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Tech firms, Wall Street lead job cuts in corporate America

[February 27, 2023] (Reuters) - Big Tech firms and Wall Street titans are leading a string of layoffs across corporate America as companies look to rein in costs to ride out a global economic downturn.

Rapid interest rate hikes and weak consumer demand have forced firms such as Amazon, Walt Disney, Facebook-owner Meta and American banks to trim their workforce.

Tech companies shed more than 150,000 workers in 2022 amid a rapidly fading pandemic-led demand boom, according to tracking site Layoffs.fyi, and more layoffs are expected as growth in the world's biggest economies slows.

Here are some of the job cuts by major American companies announced in recent weeks.

TECHNOLOGY, MEDIA AND TELECOM SECTOR

IBM Corp:

The software and consulting firm said it will lay off 3,900 employees.

Spotify Technology SA:

Music streaming service Spotify is cutting 6% of its workforce, or roughly 600 roles.

Alphabet Inc:

Alphabet Inc is eliminating 12,000 jobs, its chief executive said in a staff memo.

Microsoft Corp:

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 Inc:

The e-commerce giant said company-wide layoffs would impact over 18,000 employees.

Meta Platforms Inc:

The Facebook-parent said it would cut 13% of its workforce, or more than 11,000 employees, as it grapples with a weak advertising market and mounting costs.

Intel Corp:

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.

Twitter Inc:

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 Twitter terminated about 3,700 people, representing about half of the total staff, in November, soon after Elon Musk took over the firm.

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.

Salesforce Inc:

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 Inc:

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:

The computing devices maker said it expected to cut up to 6,000 jobs by the end of fiscal 2025.

Workday Inc:

The software company will cut roughly 500 jobs, or 3% of its workforce, citing a challenging macroeconomic environment.

NetApp Inc:

The cloud firm announced an 8% reduction in its global workforce. The company had 12,000 employees as of April 29, 2022.

Rivian Automotive Inc:

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

The Tinder parent said it would lay off about 8% of its workforce, a day after it forecast first-quarter revenue below Wall Street expectations.

Dell Technologies Inc

The company will eliminate about 6,650 jobs, or 5% of its global workforce, as the PC maker grapples with falling demand and braces for economic uncertainty.

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The logo of Dow Jones Industrial Average stock market index listed company IBM (IBM) is seen on a computer screen in Los Angeles, California, United States, April 22, 2016. REUTERS/Lucy Nicholson/File Photo

FINANCIAL SECTOR

Goldman Sachs Group Inc:

Goldman Sachs began laying off staff on Jan. 11 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:

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.

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.

BlackRock Inc:

The asset manager is cutting up to 500 jobs, Insider reported, citing a memo.

Genesis:

The cryptocurrency firm has cut 30% of its workforce in a second round of layoffs in less than six months, a person familiar with the matter told Reuters.

Coinbase Global:

The cryptocurrency exchange said it would slash nearly 950 jobs, 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 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.

CONSUMER AND RETAIL SECTOR

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.

Blue Apron Holdings Inc:

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.

DoorDash Inc:

The food delivery firm, which enjoyed a growth surge during the pandemic, said it was reducing its corporate headcount by about 1,250 employees.

Bed Bath & Beyond:

The retailer will lay off more employees this year in an attempt to reduce costs. 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 Inc:

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:

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.

HEALTH AND PHARMACEUTICAL SECTOR

Johnson & Johnson:

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.

MANUFACTURING SECTOR

3M Co:

The industrial conglomerate 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 and Manya Saini; Editing by Shinjini Ganguli, Maju Samuel, Shounak Dasgupta, Sriraj Kalluvila, Vinay Dwivedi and Sonia Cheema)

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