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Factbox-Corporate America braces for downturn with job cuts

Published 11/08/2022, 02:44 PM
Updated 11/10/2022, 04:02 PM
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(Reuters) - Corporate America is making deep cuts to its employee base as part of its restructuring efforts to navigate a potential downturn in the economy from the Federal Reserve's war on inflation.

Job cuts announced by U.S.-based employers jumped 13% to 33,843 in October, the highest since February 2021, a report said.

Here are some of the major job cuts announced in recent weeks:

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.

Citigroup:

Citigroup Inc (NYSE:C) 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 on Tuesday.

Morgan Stanley (NYSE:MS):

Morgan Stanley 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:

Intel Corp (NASDAQ:INTC)'s 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.

The adjustments would start in the fourth quarter, Gelsinger said, but did not specify how many employees would be affected.

Microsoft:

Microsoft Corp (NASDAQ:MSFT) laid off under 1,000 employees across several divisions this week, Axios reported, citing a source.

Johnson & Johnson (NYSE:JNJ):

Johnson & Johnson said it may 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 (NYSE:TWTR):

Twitter 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:

Ride-hailing firm Lyft Inc (NASDAQ:LYFT) 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.

Warner Bros Discovery (NASDAQ:WBD):

Warner Bros. Pictures, film subsidiary of Warner Bros Discovery, is planning to cut a number of jobs in distribution and marketing that will reduce headcount by 5% to 10%, Bloomberg News reported.

Beyond Meat (NASDAQ:BYND):

Vegan meat maker Beyond Meat Inc said it plans to cut 200 jobs this year, with the layoffs expected to save about $39 million.

Stripe Inc:

Digital payments firm Stripe Inc 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.

Chime:

Online banking firm Chime has laid off 12% of its employees, or about 160 jobs, a spokesperson said.

Opendoor (NASDAQ:OPEN) Technologies:

Property-selling platform Opendoor Technologies Inc is laying off about 550 employees, Chief Executive Officer Eric Wu said, adding that the company had already reduced its workforce by more than 830 positions.

Phillips 66 (NYSE:PSX):

Phillips 66 reduced employee headcount by over 1,100 as the refiner seeks to meet its 2022 cost savings target of $500 million. The reductions were communicated to employees in late October.

Chesapeake Energy:

U.S. shale gas producer Chesapeake Energy Corp (NYSE:CHK) cut about 3% of its workforce, sources told Reuters, as the company readies a sale of South Texas oil properties.

Seagate Technology:

Memory chip firm Seagate Technology Holdings Plc announced a restructuring plan including reducing worldwide headcount by about 8%, or 3,000 employees.

Arrival:

EV startup Arrival SA said it 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 may cut up to 30% of workforce in restructuring.

Coinbase (NASDAQ:COIN) Global:

© Reuters. FILE PHOTO: The Meta logo is seen on smartphone in front of displayed logos of Facebook, Messenger, Instagram, WhatsApp, Oculus in this illustration picture taken October 28, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

Cryptocurrency exchange Coinbase Global said it planned to cut over 60 jobs, in its recruiting and institutional onboarding teams.

The move marks a 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.

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