Many US companies are announcing layoffs as they prepare for potential economic downturn. The number of job cuts announced by US-based employers reached a high of 33,843 in October of last year, according to a report.
US Employers See Highest Number of Layoffs Since February 2021
US companies are bracing for a potential economic downturn by shrinking their employee base to streamline operations. Job cuts announced by US-based employers jumped 13% to 33,843 in October last year, the highest since February 2021, according to a report.
Amazon, the e-commerce giant, has laid off some employees in its devices group as it still targets around 10,000 job cuts, including in its retail division and human resources. Facebook, the social media company, announced that it will cut 13% of its workforce, or more than 11,000 employees, as it grapples with a weak advertising market and mounting costs.
Food delivery firm DoorDash said it is reducing its corporate headcount by about 1,250 employees. Cable TV network AMC Networks announced it will cut about 20% of its US workforce, as it announced that CEO Christina Spade had stepped down, less than three months into the role. Cryptocurrency exchange Kraken said it will 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 has eliminated dozens of jobs across its investment banking division as a dealmaking slump continues to weigh on Wall Street’s biggest banks, according to Bloomberg News.
Morgan Stanley is expected to start a fresh round of layoffs globally in the coming weeks, as the dealmaking business takes a hit, according to Reuters.
Intel CEO Pat Gelsinger has announced “people actions” will be part of a cost-reduction plan, as the chipmaker plans to reduce costs by $3 billion in 2024.
Microsoft laid off under 1,000 employees across several divisions in October, according to Axios.
Pharmaceutical giant Johnson & Johnson has 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 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 that Twitter was reaching out to dozens of employees who lost their jobs, asking them to return.
Ride-hailing firm Lyft said it will lay off 13% of its workforce, or about 683 employees after it already cut 60 jobs earlier this year and froze hiring in September.
Film subsidiary Warner Bros. Pictures is planning to cut several jobs in distribution and marketing that will reduce headcount by 5% to 10%, according to Bloomberg News.
Vegan meat maker Beyond Meat said it plans to cut 200 jobs this year, with the layoffs expected to save about $39 million.
Digital payments firm Stripe 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.
Online banking firm Chime Financial has laid off 12% of its employees, or about 160 jobs, according to a spokesperson.
Property-selling platform Opendoor Technologies is laying off about 550 employees, according to CEO Eric Wu, who added that the company had already reduced its workforce by more than 830 positions.
Refiner Phillips 66 has reduced employee headcount by about 10% and is offering voluntary buyouts to more than 2,000 employees.
