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Factbox-Tech firms, Wall Street lead job cuts in corporate America

Published 01/25/2023, 05:52 PM
Updated 01/26/2023, 01:11 PM
© Reuters. The logo of Microsoft is seen on the exterior of their offices in Herzliya, near Tel Aviv, Israel December 27, 2022. REUTERS/Rami Amichay
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(Reuters) - Big Tech firms and Wall Street titans are leading a string of layoffs across corporate America as companies look to rein in costs to ride out a global economic downturn.

Rapid interest rate hikes and weak consumer demand have forced firms such as Amazon, Walt Disney (NYSE:DIS), Facebook-owner Meta and American banks to trim their workforce.

As a pandemic-led demand boom rapidly fades, tech companies shed more than 150,000 workers in 2022, according to tracking site Layoffs.fyi, and more layoffs are expected as growth in the world's biggest economies start to slow.

Here are some of the job cuts by major American companies announced in recent weeks.

TECHNOLOGY, MEDIA AND TELECOM SECTOR

IBM (NYSE:IBM) Corp:

The software and consulting firm said it will lay off 3,900 employees.

Spotify Technology SA (NYSE:SPOT):

Music streaming service Spotify is cutting 6% of its workforce, or roughly 600 roles.

Alphabet (NASDAQ:GOOGL) Inc:

Alphabet Inc is eliminating 12,000 jobs, its chief executive said in a staff memo.

Microsoft Corp (NASDAQ:MSFT):

The U.S. tech giant said it would cut 10,000 jobs by the end of the third quarter of fiscal 2023.

The company laid off under 1,000 employees across several divisions in October, Axios reported, citing a source.

Amazon.com Inc (NASDAQ:AMZN):

The e-commerce giant said company-wide layoffs would impact over 18,000 employees.

Meta Platforms Inc (NASDAQ:META):

The Facebook-parent said it would cut 13% of its workforce, or more than 11,000 employees, as it grapples with a weak advertising market and mounting costs.

Intel Corp (NASDAQ:INTC):

CEO 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.

Twitter Inc (NYSE:TWTR):

The social media company has aggressively cut its workforce across teams ranging from communications and content curation to product and engineering following Elon Musk's $44 billion takeover.

Lyft Inc (NASDAQ:LYFT):

The ride-hailing firm said it would lay off 13% of its workforce, or about 683 employees, after it already cut 60 jobs earlier this year and froze hiring in September.

Salesforce (NYSE:CRM) Inc:

The software company said it would lay off about 10% of its employees and close some offices as a part of its restructuring plan, citing a challenging economy.

Cisco Systems Inc (NASDAQ:CSCO):

The networking and collaboration solutions company said it will undertake restructuring which could impact roughly 5% of its workforce. The effort will begin in the second quarter of the fiscal year 2023 and cost the company $600 million.

HP Inc (NYSE:HPQ):

The computing devices maker said it expected to cut up to 6,000 jobs by the end of fiscal 2025.

FINANCIAL SECTOR

Goldman Sachs Group Inc (NYSE:GS):

Goldman Sachs began laying off staff on Jan. 11 in a sweeping cost-cutting drive, with around a third of those affected coming from the investment banking and global markets division, a source familiar with the matter told Reuters.

The job cuts are expected to be just over 3,000, one of the sources said on Jan. 9, in what would be the biggest workforce reduction for the bank since the financial crisis.

Morgan Stanley (NYSE:MS):

The Wall Street powerhouse is expected to start a fresh round of layoffs globally in the coming weeks, Reuters reported on Nov. 3, as dealmaking business takes a hit.

Citigroup Inc (NYSE:C):

The bank eliminated dozens of jobs across its investment banking division, as a dealmaking slump continues to weigh on Wall Street's biggest banks, Bloomberg News reported.

BlackRock Inc (NYSE:BLK):

The asset manager is cutting up to 500 jobs, Insider reported, citing a memo.

Genesis:

The cryptocurrency firm has cut 30% of its workforce in a second round of layoffs in less than six months, a person familiar with the matter told Reuters.

Coinbase (NASDAQ:COIN) Global:

The cryptocurrency exchange said it would slash nearly 950 jobs, the third round of workforce reduction in less than a year after cryptocurrencies, already squeezed by rising interest rates, came under renewed pressure following the collapse of major exchange FTX.

Stripe Inc:

The digital payments firm is cutting its headcount by about 14% and will have about 7,000 employees after the layoffs, according to an email to employees from the company's founders.

CONSUMER AND RETAIL SECTOR

Beyond Meat (NASDAQ:BYND) Inc:

The vegan meat maker said it plans to cut 200 jobs this year, with the layoffs expected to save about $39 million.

Blue Apron Holdings (NYSE:APRN) Inc:

The online meal-kit company said it will cut about 10% of its corporate workforce, as it looks to reduce costs and streamline operations. The company had about 1,657 full-time employees, as of Sept. 30.

DoorDash Inc:

The food delivery firm, which enjoyed a growth surge during the pandemic, said it was reducing its corporate headcount by about 1,250 employees.

Bed Bath & Beyond (NASDAQ:BBBY):

The retailer will lay off more employees this year in an attempt to reduce costs. Last year, company executives had said the home goods retailer was cutting about 20% of its corporate and supply chain workforce.

ENERGY AND RESOURCES SECTOR

Dow Inc:

The U.S. chemicals maker said it would cut about 2,000 jobs as it navigates challenges including inflation and supply chain disruptions.

Phillips 66 (NYSE:PSX):

The refiner reduced employee headcount by over 1,100 as it seeks to meet its 2022 cost savings target of $500 million. The reductions were communicated to employees in late October.

HEALTH AND PHARMACEUTICAL SECTOR

Johnson & Johnson (NYSE:JNJ):

The pharmaceutical giant has 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.

MANUFACTURING SECTOR

© Reuters. The logo of Microsoft is seen on the exterior of their offices in Herzliya, near Tel Aviv, Israel December 27, 2022. REUTERS/Rami Amichay

3M Co:

The industrial conglomerate said it would cut 2,500 manufacturing jobs after reporting a lower profit.

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