Tech giant Dell is laying off 6,650 workers—5% of its workforce—Bloomberg reported Monday, becoming the latest U.S. company to implement job cuts as recession fears continue into 2023.
reportedly cited “uncertain” market conditions in their decision to move beyond earlier cost-cutting measures, while analysts noted a crash in demand for personal computer products—which makes up the majority of Dell’s sales—after a pandemic high.
Texas-headquartered Dell Technologies, which owns PC-maker Dell,filing on Thursday, citing a period of over-hiring over the past several years that did not account for the “macroeconomic reality we’re in today.”
Okta CEO Todd McKinnon unveiled plans to reduce the tech company’s workforce by 5% (roughly 300 positions) in a Securities and Exchange CommissionSEC filing to lay off 8% of its staff (estimated to affect 960 employees) by the end of the fourth fiscal quarter of 2023 “in light of the macroeconomic challenges and reduced spending environment.”
NetApp, a San Jose, California-based cloud data company, announced plans in an
Boston Globe reported.
Boston-based online sports betting company DraftKings also said it plans to cut 3.5% of its global workforce, in a cost-cutting move expected to affect approximately 140 employees, theannounced it will slash 10% of its officer and director team and “consolidate some teams and functions”—four months after the delivery giant unveiled plans for a hiring freeze and that it would close 90 office FedEx Office locations—in a move CEO Raj Subramaniam said was necessary to make the company a “more efficient” and “agile organization” (FedEx employs roughly 547,000 people, according to PitchBook).
FedExReuters, just over six months after the company laid off another 5% of its roughly 14,000 employees (Rivian did not immediately respond to an inquiry for more details from Forbes).
Electric automaker Rivian Automotive will cut 6% of its staff, CEO R.J. Scaringe said in an email to employees seen byannounced it would cut 7% of its global workforce (2,000 full-time positions) amid a “competitive landscape” and a “challenging macro-economic environment,” CEO Dan Schulman said.
In a statement on Tuesday, online payment company PayPalAssociated Press reported.
Publishing giant HarperCollins announced it would slash 5% of its staff in the U.S. and Canada as the publisher struggles with declining sales and “unprecedented supply chain and inflationary pressures;” HarperCollins is estimated to have roughly 4,000 employees worldwide, with more than half of them working in the U.S., thefiling, as part of a restructuring plan, with CEO Yamini Rangan telling staff it follows a “downward trend” after the company “bloomed” in the Covid-19 pandemic, with HubSpot facing a “faster deceleration than we expected.”
HubSpot, a Cambridge, Massachusetts-based software company, said it would cut 7% of its workforce by the end of the first quarter of 2023 in a Securities and Exchange Commissionsaid it would cut 3,000 jobs worldwide in 2023 and 6,000 total by 2025 after the Dutch electronics and medical equipment maker announced $1.7 billion in losses for 2022, as CEO Roy Jakobs added the company will now focus on “strengthening our patient safety and quality management.”
Philipssaid it would cut 15% of its global workforce this year (affecting roughly 1,000 full-time employees), as the toymaker’s revenue fell 17% over the past year “against the backdrop of a challenging holiday consumer environment,” CEO Chris Cocks said in a statement.
Hasbroannounced it would cut 2,000 positions globally in a cost-reducing plan aimed at saving $1 billion, as CEO Jim Fitterling said the company navigates “macro uncertainties and challenging energy markets, particularly in Europe.”
Michigan-based chemical company Dowmultiple outlets reported, as the company expects $10.5 billion in free cash flow in fiscal year 2023.
Software company IBM announced it would slash 1.5% of its global workforce, estimated to affect roughly 3,900 employees, according to CFO James Kavanaugh,fourth quarter 2022 results on Thursday, but did not specify where those cuts would be made. The German enterprise software firm—whose U.S. headquarters are in Pennsylvania—said the layoffs were part of an effort to cut costs and strengthen focus on its core cloud computing business.
SAP, said it will lay off 3,000 workers—around 2.5% of its global workforce—in its earnings call announcing itsSEC filing, said it would reduce its head count by 500 employees, globally, in its second major round of cuts in recent months, after the e-commerce company cut another 500 positions last August.
Groupon, in anfiling as it moves to reduce costs and “focus on being a profitable company,” three months after it announced it would cut another 6% of its staff.
Vacasa, the Portland, Oregon-based vacation rental management company announced it would slash 1,300 positions (17% of its staff) in a SECfinancial report, as chairman and CEO Mike Roman said the company expects “macroeconomic challenges to persist in 2023.”
3M, the maker of Post-it Notes and Scotch tape, announced it would cut roughly 2,500 global manufacturing positions in aCNBC and The Information, with layoffs estimated to affect 100 of its roughly 1,000 employees—its latest round of cuts after it slashed 7% of its staff last July, and another 10% last May.
Cryptocurrency exchange Gemini is planning to cut 10% of its workforce, according to an internal memo seen by9,800 full-time workers it had as of a September 30 filing) and shares of the firm rose more than 5% in early trading as investors continue to largely digest tech layoffs as positive news for bottom lines, while the company’s chief content officer Dawn Ostroff will depart the company as part of the reorganization.
Spotify will lay off 6% of its workforce (roughly 600 employees, based on thesaid, citing the need for “tough choices” in order to “fully capture” the huge opportunities lying ahead.
Google parent Alphabet plans to cut around 12,000 jobs worldwide, CEO Sundar Pichaiannounced it would cut 10% of its global workforce (1,750 employees), including 1,200 corporate positions, in a move to “eliminate management layers and reorganize to be more agile” amid reduced sales—the company’s latest round of job cuts following it’s decision to cut 870 employees last August.
Boston-based furniture e-commerce company WayfairBloomberg—Capital One did not confirm the number of positions that would be cut, although a spokesperson told Forbes that affected employees were told they could apply for other roles in the company.
Capital One slashed 1,100 technology positions, a source familiar with the matter toldannounced it will let go of 350 associates hired over past next six months, while another 210 will be cut for “performance reasons,” telling Insider the cuts come as President Joe Biden’s student debt forgiveness program continues to stall after facing legal challenges from conservative groups opposed to the measure.
Student loan servicer Nelnetcuts, which affect 10,000 employees (less than 5% of its workforce), come three months after the Washington-based company conducted another round of layoffs affecting less than 1% of its roughly 180,000 employees, with CEO Satya Nadella saying in a message to employees that some workers will be notified starting Wednesday, and the layoffs will be conducted by the end of the third fiscal quarter in September.
Microsoft’smessage to staff earlier this month from CEO Andy Jassy, who said the company is facing an “uncertain economy” after hiring “rapidly” over the past few years.
Amazon, one of the biggest companies in the country, had outlined a plan to eliminate more than 18,000 positions (including jobs that were cut in November) starting January 18 in afinancial report on Wednesday, as the New York-based telemedicine company attempts to reduce its operating costs amid a “challenged economic environment.”
Teladoc Health will cut 6% of its staff—not including clinicians—as part of a restructuring plan the company announced in afiling, amid a “challenging economic environment,” as the San Francisco-based company attempts to “align its operations to reduced marketplace revenue” following seven rounds of Federal Reserve interest rate hikes last year and as concerns persist of a potential recession.
LendingClub announced it would lay off 225 employees (roughly 14% of its workforce) in a SECannounced the company, which had more than 2,500 employees as of October, according to PitchBook, will cut 20% of its staff in a message to employees, as the company faces “ongoing economic headwinds and unforeseeable industry events—including the collapse of Sam Bankman-Fried’s cryptocurrency exchange FTX late last year, which “significantly damaged trust in the industry.”
Crypto.com CEO Kris MarszalekCNBC, as the company struggles with an increase in the cost to “secure and distribute programming,” and after the company lost nearly 3% of its subscribers (400,000) in the third quarter of 2022, according to the Leichtman Research Group.
DirecTV’s cuts could affect hundreds of employees, primarily managers, who make up nearly half of the company’s 10,000 employees, sources toldBloomberg, CEO Larry Fink and President Rob Kapito said the move comes amid “uncertainty around us” that necessitates staying “ahead of changes in the market.”
BlackRock officials reportedly told employees the New York-based company plans to reduce its headcount by 2.5%—the company did not immediately respond to a Forbes inquiry for further details, but in an internal memo obtained byIn a memo to employees, Flexport CEOs Dave Clark and Ryan Petersen announced plans to slash 20% of the company’s global workforce (estimated to affect 662 of its more than 3,300 employees, according to data from PitchBook), saying the supply chain startup is “not immune” to a worldwide the “macroeconomic downturn.”
blog post in order to “weather downturns in the crypto market,” after it laid off another 18% of its staff last June.
Coinbase, one of the biggest crypto exchanges in the U.S. announced plans to lay off 25% of its workforce (950 employees) in a companymultiple outlets reported, citing people familiar with the job cuts.
Goldman Sachs could lay off as many as 3,200 employees in one of the biggest round of job cuts so far in 2023 as the investment banking giant prepares for a possible recession,blog post, saying the company grew “rapidly” over the past several years, but faces a macro environment that has “changed dramatically in recent quarters.”
Artificial intelligence startup Scale AI announced plans to cut one fifth of its staff, CEO Alexandr Wang announced in ainternal memo, after laying off another 15% of its staff last June.
Online apparel company Stitch Fix will lay off 20% of its salaried staff and close a Salt Lake City distribution center, founder and interim CEO Katrina Lake announced in anWall Street Journal, which spoke to unnamed sources—the company’s second round of cuts since August, lowering its staff to 145.
Crypto lender Genesis Trading reportedly laid off 30% of its workforce, according to theletter, amid a “challenging” economic climate and as customers take a “more measured approach to their purchasing decisions.”
San Francisco-based software giant Salesforce will reduce its headcount by 10%, or 7,900 employees, CEO Marc Benioff announced in an internalannounced its second round of cuts in the past six months, which affect 11% of its workforce (roughly 150 of its 1,400 employees, according to data from PitchBook), with CEO Anjali Sud attributing the company’s decision to a “deterioration in economic conditions.”
Online video platform VimeoNearly $70 billion. That’s how much market capitalization Alphabet, Spotify and Wayfair tacked on the day they announced their respective cuts, as the market largely cheered on the wide-scale headcount reductions.
More than 120 large U.S. companies—including tech startups, major banks, manufacturers and online platforms—conducted major rounds of layoffs last year, cutting nearly 125,000 employees, according to Forbes’ layoff tracker. The biggest came from Facebook and Instagram parent company Meta, which laid off roughly 11,000 employees in November. The company with the most rounds of cuts was Peloton, which underwent four separate rounds of layoffs, including one that affected more than 2,800 workers.
Despite the high-profile layoffs, the U.S. unemployment rate is hovering near a multi-decade low at 3.5%, according to the latest government data, as the labor market remains tight.
How the latest sackings impact affected companies’ quarterly financial reports as earnings statements heat up. Microsoft reports earnings Tuesday, while Meta, Spotify, Alphabet and Amazon report next week.
Source: https://www.forbes.com/sites/brianbushard/2023/02/06/2023-layoffs-dell-reportedly-cuts-6650-jobs/