Companies are dialling back after operating during the pandemic, and trimming curbs means investing in others, such as artificial intelligence.
Nikе Inc. is set to reduce its global workforce by approximately 2%, amounting to over 1,600 jobs, as the sportswear giant adapts to a weaker outlook and increased competition. The movement comes in line with a broader trend among major corporations, which has initiated substantial layoffs in the early months of 2024.
Large Layoffs Across Corporate America in 2024
Some of the biggest names in corporate America have initiated significant layoffs in 2024 and are implementing a strategic shift after the pandemic. This movement is aimed at optimising resources and transforming existing infrastructure into emеrging arеas likе artificial intelligence.
- Alphabet Inc.'s Google: Google is laying off hundreds of employees from its digital assistant, hardware, and engineering teams to cut costs and refocus on artificial intelligence. The movement is prompted by increasing competition in the AI space.
- Amazon.com Inc.: Amazon announces more layoffs in its health care division and supports CEO Andy Jassy's efforts to control costs following the company's rapid expansion caused by the pandemic and significant reductions in 2022 and 2023.
- BlackRock Inc.It employs roughly 600 people, or 3% of the world's workforce.In the face of quick changes in asset management, it aims to reallocate resources.
- Cisco Systems Inc., the largest manufacturer of new equipment, plans to cut thousands of jobs due to a slowdown in corporate TV sales, impacting around 5% of Cisco's workforce.
- Citigroup Inc.: In a significant move, Citigroups CEO, Janе Frasеr, aims to reduce bureaucracy,increase profitability, and eliminate 20,000 roles.
- DocuSign Inc.: The company is restructuring, resulting in a 6% reduction in its work force, and primarily employing staff in sales and marketing.
- eBay Inc.: The company giant is set to lay off 9% of its staff, or approximately 12,000 job cuts, as staffing and expenses outpace growth.
- Estéе Laudеr Cos.: As part of a restructuring plan, the company is cutting up to 3000 positions to become leaner and more responsive to beauty tasks driven by social media.
- Microsoft Corp.: The tech giant will lay off 1,900 people in its video game divisions and include A Activision Blizzard, which it acquired for $69 billion.
- Morgan Stanley is planning to eliminate several hundred jobs in its wealth management business as part of a broader cost-cutting strategy.
- PayPal Holdings Inc. is struggling to keep up with competition, and PayPal announced about 2,500 cuts in January, followed by a similar round of cuts last year.
- Snap Inc.: The company is reducing its work force by roughly 10% worldwide to position its business strategically amidst a decline in ad revenue.
- United Parcеl Sеrvicе Inc.: After disappointing earnings, UPS plans to cut 12,000 managerial jobs and expand its trucking business.
- Warnеr Music Group: The company will cut 10% of its staff and significantly from websites Uproxx, HipHopDx, and a podcast network and redirect its funds into new opportunities.
These significant layoffs reflect the evolving strategies of major corporations as they adapt to changing market conditions, restructuring operations, and investing in emerging technologies. The trend is indicative of a broader shift towards optimising resources for sustainable growth in a dynamic business landscape.
Layoffs in Indian startups
Wipro : Indian tech giant Wipro plans to lay off hundreds of mid-level employees to boost profit margins, despite being among the top four IT firms in India, with margins lower than TCS, Infosys, and HCL Technologies.
Swiggy: 400 workers were let go by the meal delivery app Swiggy in January 2024
Flipkart: The online retailer Flipkart let go of 1,000 workers.
Paytm: Paytm declared in the final week of December 2023 that, in an effort to reduce costs, it is letting go of 1000 workers from a variety of departments.
Byju's: Byju's, an ed-tech company, fired over 5000 employees last year due to legal battles with lenders. With a 90% valuation cut in recent funding, employees are anticipating further job cuts this year.
These significant layoffs reflect the evolving strategies of major corporations as they adapt to changing market conditions, restructuring operations, and investing in emerging technologies. The trend is indicative of a broader shift towards optimising resources for sustainable growth in a dynamic business landscape.
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