Factbox: Tech firms, Wall Street lead job cuts in Corporate America

Twilio

04/12/2023 15:15

(Updates Spotify with latest layoff announcement, adds Twilio)
       Dec 4 (Reuters) - Economic uncertainties due to a rapid
rise in interest rates forced U.S. companies like tech behemoth
Amazon.com  AMZN.O  and Wall Street banks including Goldman
Sachs  GS.N  to slash thousands of jobs in a quest to rein in
costs.
    Many companies such as Meta Platforms  META.O  even resorted
to more than one round of layoffs as the economic outlook showed
no signs of material improvement through 2023, forcing them to
further tighten spending.
    Here are some of the job cuts by major American companies
announced in recent months.
        
    TECHNOLOGY, MEDIA AND TELECOM SECTOR
    
    Meta Platforms  META.O :
        The Facebook-parent said it would cut 10,000 jobs, just
four months after it let go 11,000 employees. 
       
    IBM Corp  IBM.N :
    The software and consulting firm said it will lay off 3,900
employees.  urn:newsml:reuters.com:*:nL4N34A819
    
    Spotify Technology SA  SPOT.N :
    Music streaming service Spotify is laying off around 1,500
employees, or 17% of its headcount, after letting go of 600
staffers in January and 200 more in June. 
    
    Alphabet  GOOGL.O :
    Alphabet is eliminating 12,000 jobs, its chief executive
said in a staff memo.  urn:newsml:reuters.com:*:nL1N3450MJ
    
    Microsoft Corp  MSFT.O :
    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  AMZN.O :
    The e-commerce giant will cut another 9,000 jobs in its
cloud services, advertising and Twitch units after announcing
company-wide layoffs earlier this year that would impact over
18,000 employees. 
    
    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      
    
    X, formerly known as Twitter:
    The social media company has laid off at least 200
employees, or about 10% of its workforce, the New York Times
reported. The layoffs come after X terminated about 3,700
people, representing about half of the total staff, in November
2022, soon after Elon Musk took over the firm.
 
    Lyft  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
early in 2022 and froze hiring by September last year. In April
this year, it said it would lay off about 1,072 employees.
    
    Salesforce  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.
    
    Cisco Systems  CSCO.O :
    The networking and collaboration solutions company said it
will undertake restructuring which could impact roughly 5% of
its workforce. The effort began in the second quarter of fiscal
year 2023 and cost the company $600 million.
    
    HP  HPQ.N :
    The computing devices maker said it expected to cut up to
6,000 jobs by the end of fiscal year 2025.
    
    Workday  WDAY.O :
    The software company will cut roughly 500 jobs, or 3% of its
workforce, citing a challenging macroeconomic environment. 
    
    NetApp  NTAP.O :
    The cloud firm announced an 8% reduction in its global
workforce. The company had 12,000 employees as of April 29,
2022. 
    
    Rivian Automotive  RIVN.O :
    The company is laying off 6% of its workforce in an effort
to cut costs as the EV maker, already grappling with falling
cash reserves and a weak economy, braces for an industry-wide
price war.
    
    Match Group  MTCH.O :
    The Tinder parent said on Feb. 1 this year it would lay off
about 8% of its workforce, a day after it forecast first-quarter
revenue below Wall Street expectations.
    
    Dell Technologies  DELL.N :
    The company said in February 2023 it would eliminate about
6,650 jobs, or 5% of its global workforce, as the PC maker
grapples with falling demand and braces for economic
uncertainty.
    
    Palantir Technologies  PLTR.N : 
    The data analytics firm said it had cut about 2% of its
workforce. Palantir, known for its work with the U.S. Central
Intelligence Agency, had 3,838 full-time employees as of Dec.
31, 2022.
    
    Twilio  TWLO.N :
    The cloud communications company said it would cut an
additional 5% of its workforce. In February this year it had
said it would eliminate about 17% of roles as part of a
restructuring effort to focus on profitability.
    
    FINANCIAL SECTOR
    
    Goldman Sachs Group  GS.N :
    Goldman Sachs began laying off staff on Jan. 11, 2023, 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  MS.N :
    The Wall Street powerhouse was planning to cut about 3,000
jobs in the second quarter ended June 30, Reuters reported in
May.
    In December 2022, the bank had laid off about 1,600
employees, according to a source familiar with the matter.
    
    Citigroup  C.N :
    The bank eliminated dozens of jobs across its investment
banking division in November 2022, as a dealmaking slump
continued to weigh on Wall Street's biggest banks, Bloomberg
News reported.
    
    BlackRock  BLK.N :
    The asset manager is cutting up to 500 jobs, Insider
reported, citing a memo.   
    
    Lazard  LAZ.N :
    The New York-based investment bank said in April it would
cut around 10% of its workforce in 2023.
    
    Genesis:
    The cryptocurrency firm has cut 30% of its workforce in a
second round of layoffs in less than six months, Reuters
reported in January.    
        
    Coinbase Global  COIN.O :
    The cryptocurrency exchange slashed about 950 jobs earlier
this year, marking 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:
    The digital payments firm said it was cutting its headcount
by about 14% and would have about 7,000 employees after the
layoffs, according to an email to employees from the company's
founders in November last year. 
    
    CONSUMER AND RETAIL SECTOR
    
    Beyond Meat  BYND.O : 
    The vegan meat maker said it plans to cut 200 jobs this
year, with the layoffs expected to save about $39 million.
    
    DoorDash  DASH.N :
    The food delivery firm, which enjoyed a growth surge during
the pandemic, said in November last year it had cut its
corporate headcount by about 1,250 employees.
    
    Bed Bath & Beyond:
    The retailer, which filed for Chapter 11 bankruptcy
protection, cut 1,300 jobs at four locations in New Jersey in
March this year. 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  DOW.N : 
    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  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 2022.
    
    
    HEALTH AND PHARMACEUTICAL SECTOR
    
    Johnson & Johnson  JNJ.N :
    The pharmaceuticals giant said in October last year 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
    
    3M Co  MMM.N :
    The industrial conglomerate said in April it will cut about
6,000 positions globally in a second round of layoffs this year.
In January, it said it would cut 2,500 manufacturing jobs after
reporting a lower profit.

 (Reporting by Deborah Sophia in Bengaluru; Additional reporting
by Akash Sriram, Granth Vanaik, Eva Mathews, Yuvraj Malik,
Sourasis Bose, Priyamvada C, Tiyashi Datta, Manya Saini and
Jaspreet Singh; Editing by Maju Samuel, Sriraj Kalluvila and
Pooja Desai)
 ((DeborahMary.Sophia@thomsonreuters.com))