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Corporate America cuts thousands of jobs as recession looms

From Big Tech to Wall Street, several companies are seeing massive layoff drive.

Corporate America cuts thousands of jobs as recession looms
Job cuts announced by US-based employers jumped 13% to 33,843 in October, the highest since February 2021, according to a report. (Photo: Pixabay)

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 US 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, according to a report.

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

Also Read: Why a US recession with a hard landing virtually inevitable?

Amazon.com Inc: The e-commerce giant said it has laid off some employees in its devices group as a person familiar with the company said it still targeted around 10,000 job cuts, including in its retail division and human resources.

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 Inc: 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.

Morgan Stanley: The 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.

Also Read: EU expects recession to hit Europe as inflation hangs on

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 it already cut 60 jobs earlier this year and froze hiring in September.

Warner Bros Discovery: Film subsidiary Warner Bros. Pictures 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 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: 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.

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

Opendoor Technologies Inc: The Property-selling platform 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: 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.

Chesapeake Energy Corp: The U.S. shale gas producer cut about 3% of its workforce, sources told Reuters, as the company readies a sale of 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 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 Global: The cryptocurrency exchange 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.

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. Roku Inc: The video-streaming device maker said it would reduce its headcount by 5%, or about 200 employees, due to “current economic conditions”.

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