McKinsey Reportedly Cuts 2,000 Employees

Major consulting firm McKinsey & Company plans to cut 2,000 employees, Bloomberg reported Tuesday, citing sources familiar to the matter—following major layoffs this month at DocuSign, KPMG, Twilio, Disney and Yahoo, as employers continue to reduce their headcounts amid lingering recession fears two months into 2023.

February 21McKinsey’s job cuts could affect more than 4% of the company’s nearly 44,000 employees, according to PitchBook—McKinsey did not immediately respond to Forbes’ request for further details, though people familiar with the matter told Bloomberg the New York-based company is expected to conduct the layoffs in the coming weeks.

February 16DocuSign unveiled plans to cut 10% of its staff in a Securities and Exchange Commission filing on Thursday, affecting roughly 740 of its 7,400 employees—the San Francisco-based software company’s second round of cuts in less than half a year, after it slashed another 9% of its workforce last November.

February 15Accounting firm KPMG could cut 2% of its staff (roughly 700 employees), the Financial Times reported, citing a staff memo from Carl Carande, the vice-chair of the company’s U.S. advisory business, who said the cuts are intended to align its workforce with “current and anticipated market demand”—making it the first of the so-called Big Four accounting firms to conduct a major round of layoffs amid growing recession fears in recent months.

February 10Twilio’s cuts, which will affect just over 1,500 of the company’s nearly 9,000 employees, according to Pitchbook, come as part of a major realignment plan—the company’s second in five months, following its decision to slash another 11% of its workforce last September, with CEO Jeff Lawson saying in a message to employees on Monday, “it’s clear that we’ve gotten too big.”

February 9News Corp, the owner of the Wall Street Journal, New York Post, publishing giant HarperCollins as well as outlets in the U.K. and Australia, plans to slash its workforce by 5% this year (roughly 1,250 employees), the Journal reported, following a 7% revenue drop to $2.52 billion over a 12-month period ending in December.

February 8Yahoo plans to cut more than half of its Yahoo For Business division by the end of the year, affecting more than 1,600 employees, including nearly 1,000 this week alone, according to a company spokesperson, who told Forbes the cuts will “simplify and strengthen our advertising business,” which has been “not profitable and struggled to live up to our high standards.”

February 8Nomad Health, a New York-based online healthcare staffing management company, is laying off 17% of its corporate staff (nearly 120 employees), with CEO Alexi Nazem telling workers in a letter obtained by Forbes the move comes as the company is “confronting a major shift in the post-pandemic economy” due to high inflation, recession fears and low consumer demand.

February 8Internet technology management company GitHub, which is owned by Microsoft, announced it is laying off 10% of its workforce—roughly 300 of its 3,000 employees—officials confirmed to Forbes, saying the move is part of a “budgetary realignment” intended to preserve the “health of our business in the short term”).

February 7Disney could lay off as many as 7,000 employees (roughly 3.2% of its 220,000 global employees) in a “necessary step to address the challenges we face today,” CEO Bob Iger said in a conference call Wednesday afternoon as the company looks to save $5.5 billion by cutting its staff.

February 7In a Securities and Exchange Commission filing, eBay announced a 4% reduction to its workforce (500 employees), as the San Jose, California-based e-commerce company works to cut costs “with considerations of the [global] macroeconomic situation.”

February 7In a message to employees, Eric Yuan, the CEO of online meeting platform Zoom, unveiled plans to slash roughly 15% of the company’s workforce as “the world transitions to life post-pandemic” and amid “uncertainty of the global economy”—cutting approximately 1,300 positions, after it tripled its staff at the outset of the pandemic.

February 7Atlanta-based cybersecurity company Secureworks announced in a SEC filing it will cut 9% of its staff (estimated to affect roughly 225 of its nearly 2,500 employees, according to PitchBook), as it looks to reduce spending amid a “time when some world economies are in a period of uncertainty.”

February 6Jet maker Boeing confirmed to multiple news outlets plans to cut around 2,000 jobs in finance and human resources this year, though the firm said it will increase its overall headcount by 10,000 employees “with a focus on engineering and manufacturing.”

February 6Texas-headquartered Dell Technologies, which owns PC-maker Dell, could cut roughly 6,650 employees, reportedly citing “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.

February 2Okta CEO Todd McKinnon unveiled plans to reduce the tech company’s workforce by 5% (roughly 300 positions) in an SEC 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.”

February 1NetApp, a San Jose, California-based cloud data company, announced plans in an SEC 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.”

February 1Boston-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, the Boston Globe reported.

February 1FedEx announced 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).

February 1Electric automaker Rivian Automotive will cut 6% of its staff, CEO R.J. Scaringe said in an email to employees seen by Reuters, 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).

January 31In a statement on Tuesday, online payment company PayPal announced 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.

January 31Publishing 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., the Associated Press reported.

January 31HubSpot, 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 SEC filing, 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.”

January 30Philips said 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.”

January 26Hasbro said 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.

January 26Michigan-based chemical company Dow announced 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.”

January 26Software company IBM announced it would slash 1.5% of its global workforce, estimated to affect roughly 3,900 employees, according to CFO James Kavanaugh, multiple outlets reported, as the company expects $10.5 billion in free cash flow in fiscal year 2023.

January 26SAP, said it will lay off 3,000 workers—around 2.5% of its global workforce—in its earnings call announcing its 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.

January 25Groupon, in an SEC 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.

January 25Vacasa, the Portland, Oregon-based vacation rental management company announced it would slash 1,300 positions (17% of its staff) in a SEC filing 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.

January 243M, the maker of Post-it Notes and Scotch tape, announced it would cut roughly 2,500 global manufacturing positions in a financial report, as chairman and CEO Mike Roman said the company expects “macroeconomic challenges to persist in 2023.”

January 24Cryptocurrency exchange Gemini is planning to cut 10% of its workforce, according to an internal memo seen by CNBC 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.

January 23Spotify will lay off 6% of its workforce (roughly 600 employees, based on the 9,800 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.

January 20Google parent Alphabet plans to cut around 12,000 jobs worldwide, CEO Sundar Pichai said, citing the need for “tough choices” in order to “fully capture” the huge opportunities lying ahead.

January 20Boston-based furniture e-commerce company Wayfair announced 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.

January 19Capital One slashed 1,100 technology positions, a source familiar with the matter told Bloomberg—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.

January 19Student loan servicer Nelnet announced 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.

January 18Microsoft’s cuts, 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.

January 18Amazon, 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 a message 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.

January 18Teladoc Health will cut 6% of its staff—not including clinicians—as part of a restructuring plan the company announced in a financial report on Wednesday, as the New York-based telemedicine company attempts to reduce its operating costs amid a “challenged economic environment.”

January 13LendingClub announced it would lay off 225 employees (roughly 14% of its workforce) in a SEC filing, 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.

January CEO Kris Marszalek announced 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.”

January 12DirecTV’s cuts could affect hundreds of employees, primarily managers, who make up nearly half of the company’s 10,000 employees, sources told CNBC, 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.

January 11BlackRock 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 by Bloomberg, CEO Larry Fink and President Rob Kapito said the move comes amid “uncertainty around us” that necessitates staying “ahead of changes in the market.”

January 11In 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.”

January 10Coinbase, one of the biggest crypto exchanges in the U.S. announced plans to lay off 25% of its workforce (950 employees) in a company blog post in order to “weather downturns in the crypto market,” after it laid off another 18% of its staff last June.

January 9Goldman 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, multiple outlets reported, citing people familiar with the job cuts.

January 9Artificial intelligence startup Scale AI announced plans to cut one fifth of its staff, CEO Alexandr Wang announced in a blog post, saying the company grew “rapidly” over the past several years, but faces a macro environment that has “changed dramatically in recent quarters.”

January 5Online 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 an internal memo, after laying off another 15% of its staff last June.

January 5Crypto lender Genesis Trading reportedly laid off 30% of its workforce, according to the Wall Street Journal, which spoke to unnamed sources—the company’s second round of cuts since August, lowering its staff to 145.

January 4San Francisco-based software giant Salesforce will reduce its headcount by 10%, or 7,900 employees, CEO Marc Benioff announced in an internal letter, amid a “challenging” economic climate and as customers take a “more measured approach to their purchasing decisions.”

January 4Online video platform Vimeo announced 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.”

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 54-year low at 3.4%, according to the latest government data, as the labor market remains tight. Total employment in the U.S increased by 517,000 positions in January, nearly tripling economists’ expectations, as industries such as construction, hospitality and healthcare bring in new workers despite recent cuts primarily in the tech industry.