Corporate America Cuts Thousands of Jobs as Recession Looms

(Reuters)—Corporate America is making deep cuts to its employee base as part of a restructuring effort to navigate potential economic fallout from the U.S. Federal Reserve’s war on inflation.

Job cuts announced by US-based employers jumped 13% to 33,843 in October, the highest since February 2021, according to the report.

Here are some of the major job cuts announced in the past week:

Amazon.com Inc.:

The e-commerce giant plans to lay off about 10,000 people in corporate and technology jobs, the New York Times reported.

Meta Platforms Inc.:

Facebook-parent said it will cut 13% of its workforce, or more than 11,000 workers, in one of the biggest technology layoffs this year as it grapples with a weak advertising market and rising costs.

Citigroup Inc:

The bank is cutting dozens of jobs in its investment banking division, as a dealmaking slump continues to weigh on Wall Street’s biggest banks, Bloomberg News reported.

Morgan Stanley:

The Wall Street is expected to start a new round of global layoffs in the coming weeks, Reuters reported on November 3, as the Wall Street bank’s dealmaking business took a hit.

Intel Corporation:

Chief Executive Pat Gelsinger told Reuters “people actions” would be part of the cost-cutting plan. The chipmaker said it will reduce costs by $3 billion in 2023.

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Adjustments will begin in the fourth quarter, Gelsinger said, but did not specify how many employees will be affected.

Microsoft Corp:

The software giant laid off just under 1,000 employees across multiple divisions this week, Axios reported, citing sources.

Johnson & Johnson:

The pharmaceutical giant said it may cut some jobs amid strong inflationary pressures dollarswith CFO Joseph Wolk saying that the Healthcare conglomerate is looking at the “right size” itself.

Twitter Inc:

The social media company laid off half of its workforce across teams ranging from communications and content curation to product and engineering after Elon Musk’s $44 billion takeover.

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

Lyft Inc.:

The ride-hailing firm said it would lay off 13% of its workforce, or about 683 employees, after already cutting 60 jobs earlier this year and suspending jobs in September.

Warner Bros. Discovery:

Film subsidiary Warner Bros. Pictures plans to cut several jobs in distribution and marketing that will reduce the number of employees by 5% to 10%, Bloomberg News reported.

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Beyond Meat Inc:

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

Stripe Inc:

The digital the payments firm is reducing its numbers by about 14% and will have about 7,000 employees after the layoffs, according to an email to employees from the company’s founders.

Bell:

The online banking firm has laid off 12% of its employees, or about 160 jobs, a spokesman said.

Opendoor Technologies Inc:

The property sales platform is laying off about 550 employees, Chief Executive Officer Eric Wu said, adding that the company has reduced its workforce by more than 830 positions.

Phillips 66:

Refinery is cutting more than 1,100 employees as it seeks to meet a 2022 cost savings target of $500 million. Reductions were communicated to employees at the end of October.

Chesapeake Energy Corp:

The US shale gas producer is cutting about 3% of its workforce, sources told Reuters, as the company prepares to sell South Texas oil assets.

Seagate Technology Holdings Plc:

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The memory chip company announced a restructuring plan that includes reducing the number of employees worldwide by about 8%, or 3,000 employees.

SA arrival:

The EV startup said it plans to “right-size” the organization, which could have a “huge impact” on its global workforce, mostly in the UK.

The company in July said it could cut up to 30% of its workforce in a restructuring.

Coinbase Global:

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

The move marks the second round of job cuts at the company this year, and comes at a time when cryptocurrencies have been rocked by extreme volatility as investors shed risky assets.

Walt Disney Co:

The media giant plans to lay off jobs and cut some jobs, according to a company memo seen by Reuters.

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

(Reporting by Deborah Sophia in Bengaluru; Additional reporting by Akash Sriram and Granth Vanaik; Editing by Sriraj Kalluvila, Shounak Dasgupta and Anil D’Silva)



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