Corporate America prepares for large-scale layoffs as recession looms

Job cuts announced by US-based employers jumped 13% to 33,843 in October

Microsoft retrenched less than 1,000 employees across several divisions this week. Bloomberg
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Corporate America is making deep cuts to its employee base as part of its restructuring efforts to navigate a potential downturn in the economy from the Federal Reserve's war on inflation.

Job cuts announced by US-based employers jumped 13 per cent 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

The Facebook-parent said it would cut 13 per cent 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.

Meta said it would cut 13 per cent of its workforce, or more than 11,000 employees, in one of the biggest tech layoffs this year. AP

Citigroup

The bank eliminated dozens of jobs across its investment banking division, as a deal-making slump continues to weigh on Wall Street’s biggest banks, Bloomberg News reported on Tuesday.

Morgan Stanley

The Wall Street bank is expected to start a fresh round of layoffs globally in the coming weeks, Reuters reported on November 3, as its deal-making business takes a hit.

Intel

Chief executive Pat Gelsinger told Reuters that "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, Mr Gelsinger said, but did not specify how many employees would be affected.

Microsoft

The software company laid off less than 1,000 employees across several divisions this week, Axios reported, citing a source.

Johnson & Johnson

The pharmaceutical company said it might cut some jobs amid inflationary pressure and a strong dollar, with chief financial officer Joseph Wolk saying the healthcare conglomerate is looking at "right sizing" itself.

Twitter

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 $44bn takeover.

However, Bloomberg on Sunday reported that Twitter was reaching out to dozens of employees who lost their jobs, asking them to return.

Lyft

The ride-hailing company said it would lay off 13 per cent of its workforce, or about 683 employees, after it already cut 60 jobs earlier this year and froze hiring in September.

Warner Bros Discovery

Film subsidiary Warner Bros Pictures is planning to cut a number of jobs in distribution and marketing that will reduce headcount by 5 per cent to 10 per cent, Bloomberg News reported.

Beyond Meat

The vegan meat maker said it plans to cut 200 jobs this year, with the layoffs expected to save about $39 million.

Stripe

The digital payments company is cutting its headcount by about 14 per cent and will have about 7,000 employees after the layoffs, according to an email to employees from the company's founders.

Chime

The online banking company has laid off 12 per cent of its employees, or about 160 jobs, a spokesperson said.

Opendoor Technologies

The property-selling platform is laying off about 550 employees, chief executive Eric Wu said, adding that the company had already reduced its workforce by more than 830 positions.

Phillips 66

The refiner reduced employee headcount by more than 1,100 as it seeks to meet its 2022 cost savings target of $500m. The reductions were communicated to employees in late October.

Chesapeake Energy

The US shale gas producer cut about 3 per cent of its workforce, sources told Reuters, as the company prepares for a sale of South Texas oil properties.

Coinbase Global

The cryptocurrency exchange said it planned to cut more than 60 jobs, in its recruiting and institutional onboarding teams.

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

The media company is planning to freeze hiring and cut some jobs, according to a company memo seen by Reuters.

"Hiring for the small subset of the most critical, business-driving positions will continue, but all other roles are on hold," chief executive Bob Chapek wrote in the memo sent to Disney leaders.

Updated: November 12, 2022, 8:38 AM
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