So far in 2024, a significant surge in job cuts has impacted numerous business sectors and families. Let’s take a look into this alarming trend, highlighting 30 companies that have announced major layoffs, underscoring the challenging economy workers and industries are navigating.
Unilever
Unilever, the parent company of Dove, Axe, and various ice cream brands, has announced plans to cut 7,500 jobs and separate its ice cream businesses.
The company, which currently employs 128,000 people, is implementing a “productivity program” aimed at reducing its workforce, primarily in office-based roles, as part of a cost-saving initiative expected to generate $867 million in savings over three years.
Unilever plans to leverage technology to streamline operations and eliminate redundancies in order to achieve its cost-saving targets. This move follows a previous round of layoffs in 2022, during which 1,500 employees were let go.
In addition to the job cuts, Unilever is also pursuing the immediate separation of its ice cream divisions, relocating them to an office in Amsterdam. This decision has been well-received by shareholders, with an investment manager expressing optimism about the positive impact on the company’s share price.
The newly independent ice cream company will include popular brands such as Ben & Jerry’s, Magnum, Breyers, Walls, and Cornetto, according to CNN’s report.
Nike
Nike is planning to reduce its workforce by 2%, which will result in over 1,500 job cuts. The decision is part of a larger restructuring effort announced by the company on Thursday.
The sneaker company, based in Beaverton, Oregon, aims to reallocate its resources to focus on its growth areas, including running, women’s products, and the Jordan brand. CEO John Donahoe emphasized the importance of this strategy in reigniting the company’s growth.
Donahoe acknowledged the difficulty of the decision, stating that it is a painful reality that he does not take lightly. He also took responsibility for the company’s current underperformance and expressed accountability for himself and his leadership team.
Paramount
Paramount Global has joined the ranks of major media companies in laying off up to 800 employees.
In a recent memo, Paramount Global’s CEO, Bob Bakish, stated that these “adjustments” are aimed at positioning the company to “build momentum” and “execute strategic vision” for 2024.
Cisco
Cisco revealed its intention to reduce its workforce by 5%, eliminating approximately 4,250 jobs. This announcement caused Cisco’s shares to plummet by as much as 9% in after-hours trading.
Docusign
DocuSign revealed its decision to reduce its workforce by 6% as part of a restructuring initiative to enhance its “financial and operational efficiency,” as stated in a release.
The online signature provider specified that most affected employees will come from its sales and marketing departments. With a current workforce of 7,336 employees, the cuts are expected to impact approximately 440 jobs.
American Airlines
American Airlines has officially announced its intention to lay off 656 employees from its customer support department as part of a consolidation effort to form a unified team.
The layoffs will affect 335 employees in Phoenix and an additional 321 in Dallas-Fort Worth who work within the company’s AAdvantage Customer Service, Customer Relations, and Central Baggage Resolution groups.
Estee Lauder
Estee Lauder disclosed on Monday its decision to reduce its global workforce by up to 5% as part of a restructuring initiative. The company, with approximately 62,000 employees globally, stated that the layoffs will impact up to 3,000 positions.
Estee Lauder attributed these cuts to a new restructuring program aimed at “the reorganization and rightsizing of certain areas of the Company as well as the simplification and acceleration of processes.” The implementation of this program is set to commence during the company’s fiscal third quarter.
Instacart
Instacart revealed on Tuesday its plans to lay off approximately 250 employees, constituting around 7% of the company, as part of a restructuring effort. This announcement coincided with the company’s report of fourth-quarter earnings that closely aligned with analysts’ revenue estimates.
The layoffs are reported to be targeted at middle management roles as part of an initiative to establish a more streamlined organizational structure. Additionally, the company aims to refocus its teams on larger projects, including advertising efforts on platforms such as Roku and Google Ads.
Morgan Stanley
Morgan Stanley, the investment banking giant, is reportedly set to reduce its workforce in the wealth management unit by hundreds of employees, as indicated by a source familiar with the matter. This move aligns with a series of layoffs that various Wall Street firms have initiated since last year. The cuts are anticipated to affect less than 1% of the division’s employees.
Okta
Okta, a company specializing in identity management, announced to its employees that it will be reducing its workforce by 400 employees, constituting approximately 7% of the total number of employees.
The CEO, Todd McKinnon, conveyed in a message to the employees that the company is facing the reality of having costs that are still too high and needs to make difficult decisions as a result.
Snapchat
The social media company Snap announced its decision to reduce its global workforce by approximately 10%, which equates to around 500 employees. The company cited the goal of promoting in-person collaboration as part of the reason for this reorganization.
A spokesperson for Snap informed CNBC that the company is restructuring its team to minimize hierarchy and encourage in-person collaboration while also emphasizing their commitment to supporting the affected employees.
Warner Music
Warner Music has announced a significant reduction in its workforce, with approximately 600 employees, representing around 10% of its total workforce, being laid off. The company stated that these layoffs are part of a larger restructuring initiative designed to generate cost savings, which will be reinvested into music and the company’s growth over the next decade.
Zoom
Zoom has announced a reduction of approximately 150 positions as part of ongoing efforts to enhance efficiency in response to investor expectations. This reduction represents less than 2% of the company’s total workforce. It’s important to note that these job cuts are not across the entire company. Zoom intends to continue hiring for roles in artificial intelligence, sales, product development, and various operational areas in 2024.
As part of cost-cutting measures, Google has laid off hundreds of employees from its hardware, voice assistance, and engineering teams. The company stated that these actions are aligned with its focus on “responsibly investing in our company’s biggest priorities and the significant opportunities ahead.” Google also mentioned that certain teams are implementing organizational changes, including role eliminations on a global scale.
Amazon
Amazon is making headlines for reducing its Health Services workforce as part of its ongoing cost-cutting efforts. An internal memo from the company revealed plans to eliminate hundreds of positions within its Amazon Pharmacy and One Medical division. Impacted employees will have the opportunity to seek other roles within the company.
Amazon has been implementing layoffs since 2023 in response to the challenges posed by the Covid-19 pandemic. While the company experienced increased hiring during this period due to heightened demand for online services, the current trend reflects decreased demand, prompting a reduction in workforce. Amazon has already cut more than 27,000 jobs since the beginning of last year, with additional layoffs potentially on the horizon based on existing patterns.
Blackrock
BlackRock, the largest asset manager globally, has announced plans to reduce its current workforce by approximately 3%. This reduction equates to around 600 positions based on BlackRock’s total workforce of 19,800 employees. According to a source within the firm, the job cuts will not be concentrated within any single team.
Citigroup
Citigroup has unveiled plans to lay off 20,000 employees, which accounts for approximately 10% of its workforce, over the next two years. This decision follows the company’s poor quarterly financial performance, the worst in over a decade. Citigroup’s presentation to investors indicates that the layoffs could result in cost savings of up to $2.5 billion for the bank.
Discord
Discord has confirmed that it will be reducing its workforce by 17%, resulting in the layoff of 170 employees. This decision comes after the company, known for its popular messaging service for gamers, had previously eliminated approximately 40 positions in August. Discord joins a growing number of companies that have announced workforce reductions at the beginning of this year. In an internal memo, CEO Jason Citron stated that the layoffs are essential for Discord to improve its efficiency following a period of significant hiring in 2020. As of August, Discord had a workforce of 870 employees, based on data from PitchBook.
Duolingo
Duolingo made the decision to reduce its contract workforce by approximately 10% as part of its strategic shift towards a greater reliance on artificial intelligence. Although not all the layoffs were directly tied to this technological shift, the language learning company released some contractors towards the end of 2023 to accommodate changes related to AI in content generation and sharing. Duolingo has clarified that no full-time employees were affected by these layoffs and made efforts to identify alternative roles for all individuals before resorting to “off-boarding” as a last resort.
Ebay
eBay’s President and CEO, Jamie Iannone, communicated to employees through a memo that the company will be implementing workforce reductions, resulting in the elimination of approximately 1,000 jobs. This accounts for about 9% of the full-time employees at eBay. Additionally, the company plans to scale back its contracts with the alternate workforce in the coming months.
Iannone, who has been leading the tech company since 2020, stated that these layoffs are part of broader changes aimed at positioning eBay for “long-term, sustainable growth.” He highlighted that the number of employees at eBay and associated expenses have outpaced business growth, prompting the need for these measures.
iRobot
iRobot, the company known for its Roomba products, is set to undergo layoffs following the collapse of its plans to be acquired by Amazon.
With the Amazon deal no longer progressing, iRobot has announced that it will be laying off approximately 31% of its workforce, resulting in about 350 employees losing their jobs.
The company has outlined its intention to prioritize efforts to enhance margins, reduce research and development expenditure, and suspend work on all robots outside of its floor cleaning business.
Macy’s
Macy’s, the department store chain, is preparing to lay off approximately 13% of its corporate staff and shut down five stores as part of its cost-cutting strategy and redirection of spending to enhance the customer experience.
These job cuts will amount to around 2,350 positions, representing about 3.5% of Macy’s total workforce, excluding seasonal hires. Additionally, the company intends to streamline its management layers to expedite decision-making processes.
Microsoft
Microsoft plans to lay off approximately 1,900 employees within its gaming unit, constituting about 9% of the unit’s headcount. Phil Spencer, the CEO of Microsoft Gaming, stated that these layoffs are part of a broader “execution plan” aimed at reducing “areas of overlap.” This decision comes a little over three months after Microsoft completed its acquisition of Activision Blizzard.
Paypal
PayPal’s CEO, Alex Chriss, announced in an internal letter to employees that the company will be reducing its global workforce by 9%, resulting in approximately 2,500 job cuts. These reductions will impact both existing roles and planned job listings at PayPal and are expected to be implemented over the course of the year.
Salesforce
Salesforce Inc. is implementing job cuts affecting approximately 700 workers, contributing to a series of tech layoffs at the beginning of 2024. According to a source familiar with the plans, less than 1% of the workforce will be affected. It’s worth noting that a year ago, Salesforce reduced its headcount by 10%. As of the end of October, the San Francisco-based company had 70,843 workers, as reported in a securities filing.
Sports Illustrated
Sports Illustrated, renowned for its high standard of sports journalism and photography, is set to lay off staff following the collapse of a licensing deal. The publication’s union has indicated that the layoff may impact “possibly all” of the NewsGuild workers it represents. However, SI senior writer Pat Forde has contradicted earlier reports, stating on social media that the entire staff has not been laid off, and emphasized that the website and magazine are still operational. Nonetheless, Forde described the day as “ugly” and “brutal” due to the significant number of layoffs.
UPS
UPS has revealed plans to implement 12,000 layoffs as part of an initiative to realign resources in 2024. According to CEO Carol Tomé, these workforce reductions are expected to result in cost savings of approximately $1 billion for the company. Tomé acknowledged the challenges faced in 2023, describing it as a unique and difficult year marked by declines in volume, revenue, and operating profits across all three business segments.
Universal Music Group
Universal Music Group is set to lay off some employees in 2024, as confirmed by a company spokesperson on Friday. The world’s largest record label is poised to join a trend of layoffs that has emerged this year. It is anticipated that Universal Music Group may reduce its workforce by hundreds of jobs in the first quarter, with a focus on its recorded music division. However, the company has not provided specific details regarding the exact number of jobs that may be affected.
Wayfair
Online home goods retailer Wayfair has disclosed plans to lay off around 1,650 employees, which accounts for approximately 13% of its global workforce. This move is projected to result in annual cost savings of over $280 million for the company.
In a news release, Wayfair CEO and co-founder Niraj Shah stated, “The changes announced today reflect a return to our core principles on resource allocation, such as getting fit on spans and layers as well as focusing on our highest priorities.”
Xerox
Xerox has announced its intention to reduce its workforce by 15% as part of a plan to introduce a new organizational structure and operating model. According to a filing with the U.S. Securities and Exchange Commission, Xerox had approximately 20,500 employees as of December 31, 2022. Based on this figure, the layoffs announced on Wednesday are expected to impact around 3,075 employees.
What Do You Think?
Are these job cuts a sign of economic policies that are not working? Or something else? Comment to let us know.
