Corporate America cuts thousands of employees as recession looms
Corporate America is making deep cuts to its employee base as part of its restructuring efforts to navigate a potential economic downturn from the U.S. Federal Reserve’s war on inflation.
According to a report, job cuts announced by U.S.-based employers jumped 13% to 33,843 in October, the highest since February 2021.
Here are some of the major job cuts announced in recent weeks:
Amazon.com Inc:
The e-commerce giant said it is laying off employees in its devices and services units but did not share details on the number of jobs it will cut or a time period.
Meta Platforms Inc:
The Facebook parent said it would cut 13% of its workforce, or more than 11,000 employees, in one of the biggest tech layoffs this year as it grapples with a weak advertising market and mounting costs.
Here’s a look at some companies that have announced major job cuts in recent weeks as firms look to rein in costs amid growing fears of a recession.
Citigroup Inc:
Bloomberg News reported that the bank eliminated dozens of jobs across its investment banking division as a dealmaking slump continues to weigh on Wall Street’s biggest banks.
Morgan Stanley:
Wall Street is expected to start a fresh round of layoffs globally in the coming weeks, Reuters reported on Nov. 3, as the Wall Street bank’s dealmaking business takes a hit.
Intel Corp
Chief Executive Officer Pat Gelsinger told Reuters “people actions” would be part of a cost-reduction plan. The chipmaker said it would reduce costs by $3 billion in 2023.
The adjustments would start in the fourth quarter, Gelsinger said but did not specify how many employees would be affected.
Microsoft Corp:
The software giant laid off under 1,000 employees across several divisions this week, Axios reported, citing a source.
Johnson & Johnson:
The pharmaceutical giant said it might cut some jobs amid inflationary pressure and a strong dollar, with CFO Joseph Wolk saying the healthcare conglomerate is looking at “right sizing” itself.
Twitter Inc:
The social media company laid off half its workforce across teams ranging from communications and content curation to product and engineering following Elon Musk’s $44 billion takeover.
However, Bloomberg on Sunday reported Twitter was reaching out to dozens of employees who lost their jobs, asking them to return.
Lyft Inc:
The ride-hailing firm said it would lay off 13% of its workforce, or about 683 employees, after cutting 60 jobs earlier this year and froze hiring in September.
Warner Bros Discovery:
Bloomberg News reported that the film subsidiary Warner Bros. Pictures is planning to cut several jobs in distribution and marketing that will reduce headcount by 5% to 10%.
Beyond Meat Inc:
The vegan meat maker said it plans to cut 200 jobs this year, with the layoffs expected to save about $39 million.
Stripe Inc:
According to an email from the company’s founders, the digital payments firm is cutting its headcount by about 14% and will have about 7,000 employees after the layoffs.
Chime:
A spokesperson said that the online banking firm has laid off 12% of its employees, or about 160 jobs.
Opendoor Technologies Inc:
Chief Executive Officer Eric Wu said that the Property-selling platform is laying off about 550 employees, adding that the company had already reduced its workforce by more than 830 positions.
Phillips 66:
The refinery reduced its employee headcount by over 1,100 to meet its 2022 cost savings target of $500 million. The reductions were communicated to employees in late October.
Chesapeake Energy Corp:
The U.S. shale gas producer cut about 3% of its workforce, sources told Reuters, as the company readies for selling South Texas oil properties.
Seagate Technology Holdings Plc:
The memory chip firm announced a restructuring plan, including reducing worldwide headcount by about 8%, or 3,000 employees.
Arrival SA:
The EV startup plans to further “right-size” the organization, which could have a “sizable impact” on its global workforce, mostly in the UK.
The company in July said it might cut up to 30% of its workforce in restructuring.
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Coinbase Global:
The cryptocurrency exchange said it planned to cut over 60 jobs, in its recruiting and institutional onboarding teams.
The move marks the second round of jobs cuts at the company this year and comes at a time when cryptocurrencies have been roiled by extreme volatility as investors dump risky assets.
Walt Disney Co:
The media giant is planning to freeze hiring and cut some jobs, according to a company memo seen by Reuters.
“Hiring for the small subset of the most critical, business-driving positions will continue, but all other roles are on hold,” Chief Executive Officer Bob Chapek wrote in the memo sent to Disney leaders.
