Boeing confirmed that it plans to lay off around 2,000 workers in finance and human resources this year, as U.S. companies continue to implement job cuts amid recession fears. Other companies also announced layoffs in January 2023, including FedEx, Rivian Automotive, PayPal, HarperCollins, HubSpot, Philips, Hasbro, Dow, IBM, SAP, Groupon, Vacasa, 3M, and Gemini. The cuts are a result of declining sales, economic uncertainty, and restructuring plans to improve efficiency and profitability.
A number of companies have recently announced job cuts:
- FedEx: CEO Raj Subramaniam announced 10% of its officers and directors will be cut, along with the consolidation of some teams and functions, in an effort to make the company more efficient.
- Rivian Automotive: CEO R.J. Scaringe said in an email that 6% of its staff will be cut, just over six months after the company laid off another 5% of its 14,000 employees.
- PayPal: The online payment company announced a 7% cut to its global workforce (2,000 full-time positions) due to a challenging macroeconomic environment and competitiveness.
- HubSpot will cut 7% of its workforce by the end of Q1 2023 as part of a restructuring plan due to a downward trend after the pandemic.
- Philips will cut 3,000 jobs worldwide in 2023 and 6,000 by 2025 after reporting $1.7 billion losses in 2022.
- Hasbro will cut 15% of its global workforce (about 1,000 employees) due to a 17% decrease in revenue over the past year.
- Dow will cut 2,000 positions globally to save $1 billion in response to macro uncertainties and challenging energy markets.
- IBM will cut 1.5% of its global workforce, affecting around 3,900 employees, as it expects $10.5 billion in free cash flow in 2023.
- SAP will lay off 3,000 workers (2.5% of its global workforce) to cut costs and focus on its core cloud computing business.
- Groupon will reduce its headcount by 500 employees globally, following another round of cuts last August.
- Vacasa will slash 1,300 positions (17% of its staff) to focus on profitability, following a 6% cut three months prior.
- 3M will cut roughly 2,500 global manufacturing positions due to expected macroeconomic challenges in 2023.
- Gemini is planning to cut 10% of its workforce (about 100 employees), following previous cuts of 7% in July and 10% in May.
- Spotify will lay off 600 employees (6% of its workforce). Its chief content officer, Dawn Ostroff, will also leave the company.
- Alphabet (Google's parent company) will cut 12,000 jobs worldwide.
- Wayfair, a furniture e-commerce company, will cut 1,750 employees (10% of its global workforce).
- Capital One will cut 1,100 technology positions.
- Nelnet, a student loan servicer, will let go of 350 associates and cut 210 employees for "performance reasons."
- Microsoft will cut 10,000 employees (less than 5% of its workforce).
- Amazon will eliminate more than 18,000 positions.
- Teladoc Health will cut 6% of its staff (not including clinicians).
- LendingClub will lay off 225 employees (14% of its workforce).
- Crypto.com will cut 20% of its staff.
- DirecTV's cuts could affect hundreds of employees, primarily managers.
- BlackRock plans to reduce its headcount by 2.5%.
- Flexport will slash 20% of its global workforce (estimated to affect 662 employees).
- Coinbase, a crypto exchange, will lay off 25% of its workforce.
- Goldman Sachs could lay off up to 3,200 employees.
- Scale AI will cut one-fifth of its staff.
On January 5, Stitch Fix, an online apparel company, announced that it will lay off 20% of its salaried staff and close a Salt Lake City distribution center, according to an internal memo by founder and interim CEO Katrina Lake. This comes after the company laid off another 15% of its staff in June.
Genesis Trading, a crypto lender, reportedly laid off 30% of its workforce, according to the Wall Street Journal, citing unnamed sources. This is the company's second round of cuts since August, bringing its total number of employees to 145.
Salesforce, a San Francisco-based software giant, announced on January 4 that it will reduce its headcount by 10%, or 7,900 employees, due to a "challenging" economic climate and customers taking a "more measured approach to their purchasing decisions," according to a letter from CEO Marc Benioff.
Also on January 4, Vimeo, an online video platform, announced its second round of cuts in the past six months, affecting 11% of its workforce (roughly 150 employees of its 1,400 total employees), due to a "deterioration in economic conditions," according to CEO Anjali Sud.
