Friday, December 9, 2022

Factbox-Corporate America Braces for Downturn With Job Cuts

Corporate America Braces for Downturn With Job Cuts

Meta Platforms Inc on Wednesday became the latest U.S. company to cut jobs to rein in costs amid tightening monetary policy and growing fears of a recession.

Job cuts announced by U.S.-based employers jumped 13 percent 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 percent 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 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:

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’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 laid off under 1,000 employees across several divisions this week, Axios reported, citing a source.

Johnson & Johnson:

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:

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

Warner Bros Discovery:

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 percent to 10 percent, Bloomberg News reported.

Beyond Meat:

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 percent 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 percent of its employees, or about 160 jobs, a spokesperson said.

Opendoor 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:

U.S. oil refiner Phillips 66 began cutting staff at refineries, terminals and offices across the United States, sources told Reuters.

Chesapeake Energy:

U.S. shale gas producer Chesapeake Energy Corp cut about 3 percent 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 percent, 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 percent of workforce in restructuring.


(Reuters)

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