Factbox: Tech firms leading job cuts in Corporate America

AMC Global Media

05/01/2023 15:59

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       Jan 5 (Reuters) - 
    Big Tech firms are leading a string of layoffs across
corporate America as companies look to rein in costs to ride out
the economic downturn.
  
        Rapid interest rate hikes, weak consumer demand and an
economic slowdown in China have forced firms such as Amazon,
Walt Disney, Facebook-owner Meta and American banks to trim
their workforce.
  
        As a pandemic-led demand boom rapidly wanes, 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 major job cuts by American companies
announced in recent weeks:
    Amazon.com Inc  AMZN.O :
    The e-commerce giant said company-wide layoffs would impact
over 18,000 employees, raising the figure from 10,000 layoffs it
announced months ago.
    Meta Platforms Inc  META.O :
    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.
    DoorDash Inc  DASH.N :
    The food delivery firm, which enjoyed a growth surge during
the pandemic, said it was reducing its corporate headcount by
about 1,250 employees.
    AMC Networks Inc  AMCX.O :
    The cable TV network said it would cut about 20% of its U.S.
workforce, as it announced Chief Executive Officer Christina
Spade had stepped down, less than three months into the role.
    Kraken:
    The cryptocurrency exchange said it would cut its global
workforce by 30%, or about 1,100 employees, citing tough market
conditions that have crippled demand for digital assets this
year.
    Citigroup Inc  C.N :
    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  MS.N :
    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.
    Intel Corp  INTC.O :
    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.  urn:newsml:reuters.com:*:nL4N31S4OG
    The adjustments would start in the fourth quarter, Gelsinger
said, but did not specify how many employees would be affected.
    Microsoft Corp  MSFT.O : 
    The software giant laid off under 1,000 employees across
several divisions in October, Axios reported, citing a source.
    Johnson & Johnson  JNJ.N :
    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.
    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 later reported Twitter was reaching out
to dozens of employees who lost their jobs, asking them to
return.
    Lyft Inc  LYFT.O :
    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  WBD.O :
    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  BYND.O : 
    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 Financial Inc:
    The online banking firm has laid off 12% of its employees,
or about 160 jobs, a spokesperson said.
    Opendoor Technologies Inc  OPEN.O :
    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  PSX.N :
    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  CHK.O :
    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  STX.O :
    The memory chip firm announced a restructuring plan
including reducing worldwide headcount by about 8%, or 3,000
employees. 
    Arrival SA  ARVL.O : 
    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  COIN.O : 
    The cryptocurrency exchange said it planned to cut over 60
jobs, in its recruiting and institutional onboarding teams.
 urn:newsml:reuters.com:*:nL4N3264O2
    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  DIS.N :
    The media giant is planning to freeze hiring and cut some
jobs, according to a company memo seen by Reuters.
    Roku Inc  ROKU.O :
    The video-streaming device maker said it would reduce its
headcount by 5%, or about 200 employees, due to "current
economic conditions".
    Cisco Systems Inc  CSCO.O :
    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  HPQ.N :
    The computing devices maker said it expected to cut up to
6,000 jobs by the end of fiscal 2025. 
    CNN:
    Warner Bros Discovery-owned  WBD.O  CNN's top boss Chris
Licht informed employees in an all-staff memo that job cuts were
underway.
    Buzzfeed Inc  BZFD.O :
    The online media company said it will cut about 12% of its
workforce. As of Dec. 31 last year, the company had 1,522
employees in six countries.
        Blue Apron Holdings Inc  APRN.N :
    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.
    Stitch Fix Inc  SFIX.O :
        The online personalized styling service firm said it
will 
    cut about 20% of its salaried positions.
     The company had about 7,920 full- and part-time employees
as of July 30.
  
    Wolverine World Wide Inc  WWW.N :
    The casual footwear and apparel retailer said it had
initiated a workforce reduction earlier this week and expects
this initiative to result in about $30 million in savings in
2023.
    TuSimple Holdings Inc  TSP.O 
    The autonomous driving technology company will lay off 25%
of its workforce, or nearly 350 employees, as part of a
restructuring plan to rein in costs.
    Micron Technology Inc  MU.O 
    The memory chipmaker will cut 10% of its workforce in 2023
and would reduce its capex plans for fiscal 2024, citing a
nagging glut in the semiconductor market.
    Salesforce Inc  CRM.N 
    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.
 (Reporting by Deborah Sophia in Bengaluru; Additional reporting
by Akash Sriram, Granth Vanaik, Eva Mathews and Yuvraj Malik;
Editing by Vinay Dwivedi and Shounak Dasgupta)
 ((DeborahMary.Sophia@thomsonreuters.com))