Companies That Announced The Most Number Of Layoffs Last Week

Discover the companies that laid off the most employees last week, May 15



Sector: Communication Services
Industry: Telecom Services
Subindustry: Telecom And Telecom Equipment

Vodafone, a telecommunications group, announced plans to cut 11,000 jobs over the next three years due to poor performance in its largest market and a declining share price. Margherita Della Valle, the new chief executive, emphasized the need for significant and swift changes in the company's execution. The job cuts represent approximately 12% of Vodafone's global workforce of 90,000 employees and will affect both the UK headquarters and local markets. The restructuring aims to make the group leaner, improve customer service, and strengthen the Vodafone brand using around £250 million in cost savings. The company's recent financial results fell short of analysts' expectations, with revenues and earnings declining. Shareholders expressed concerns about Vodafone's performance in Germany and the company's spread across multiple regions. The CEO's plan received mixed reactions, with some analysts skeptical about its potential success. Vodafone's share price has experienced a significant drop over the past year, while foreign investors, including e& and Liberty Global, have acquired substantial stakes in the company.

F: FORD MOTOR COMPANY (1,300 in China)

Sector: Consumer Cyclical
Industry: Auto Manufacturers

Ford Motor's recent layoffs in China have caused upheaval in the midst of a global economic downturn and concerns about a recession. Local media reports suggest that over 1,300 workers will be affected by these layoffs, which have been attributed to the company's declining sales in the world's largest car market. In 2022, Ford's wholesales in China dropped below half a million units for the first time in a decade, continuing a downward trend since 2016 when they shipped 1.27 million vehicles. This decline can be partly attributed to the increasing popularity of electric vehicles in the Chinese market, which caused Ford's market share to dwindle to a mere 2.1 percent last year. Although the exact number of affected workers is unknown, Ford recognizes the need to reduce costs and create a leaner and more agile organization to ensure a healthier and sustainable business in China. Additionally, the company had previously announced the elimination of around 3,800 jobs in Europe due to rising costs and the demand for electric vehicles.


Sector: Consumer Cyclical
Industry: Specialty Retail
Subindustry: Home Improvement Retail

Container Store Group Inc., a home-goods retailer, reported a 4.3% decline in annual revenue to $1.05 billion in its fiscal fourth-quarter earnings report. Surprisingly, executives predicted an even larger decline in the new fiscal year, with annual sales expected to reach $885 million to $900 million, compared to analysts' forecast of $1.07 billion. As a result, shares plummeted over 16% in after-hours trading, reaching their lowest price since May 2020. Chief Executive Satish Malhotra attributed the cautious guidance to ongoing macro uncertainty and the pressure faced by the company in the first quarter. In response to the challenging market conditions, Container Store announced significant cost-cutting measures, including layoffs of approximately 15% of employees at the support center and less than 3% at store and distribution center operations. Despite the difficulties, the company plans to continue investing in its long-term strategic initiatives and expand its store locations. However, the home-goods retail sector's challenges, reflected in a 13.1% decline in comparable same-store sales, may pose ongoing obstacles for Container Store's growth.


Sector: Industrials
Industry: Trucking

Autonomous trucking company TuSimple Holdings Inc. recently announced a significant restructuring plan, resulting in the elimination of 300 jobs, approximately 30% of its workforce. This decision was made by the company's board of directors in an effort to optimize operations. Following these layoffs, TuSimple anticipates having around 750 full-time-equivalent employees, as stated in their filing with the Securities and Exchange Commission. In December 2022, TuSimple had already disclosed a prior restructuring plan, which aimed to reduce 350 jobs. This recent development follows news of a delisting notice from the Nasdaq due to TuSimple's inability to file its March-quarter 10-Q on time. This notice adds to the challenges the company is facing, potentially leading to the delisting of its securities. TuSimple is scheduled to present its views on this matter during a hearing before the Nasdaq Hearings Panel on June 22. Over the past year, the company's shares have experienced an 84% decline, reflecting the difficulties it has encountered.

LOV: SPARK NETWORKS SE  (Approximately 200)

Sector: Communication Services
Industry: Internet Content & Information
Subindustry: Personal Services

Spark Networks SE (LOV), a leading social dating platform with a diverse portfolio of brands including Zoosk, EliteSingles, SilverSingles, eDarling, Christian Mingle, and Jdate, recently announced its first-quarter financial results for 2023. With a focus on returning to revenue growth and improving profitability, the company aims to achieve these goals through a strategic plan that involves reducing costs, optimizing marketing spend, and enhancing the user experience. To achieve greater efficiencies, Spark Networks plans to close its Berlin operations by January 2024, resulting in a downsizing of approximately 200 full-time positions. Additionally, the company intends to outsource its IT services, hire a Chief Revenue Officer, and improve marketing yield by transitioning away from affiliate marketing and adopting higher-yielding channels such as SEM, SEO, and TV advertising. These changes are expected to lead to cost savings, increased revenue, and a more profitable business. The company reported a first-quarter Adjusted EBITDA margin of 6%, representing a positive start to its efficiency-focused year. With these strategic measures in place, Spark Networks aims to achieve its long-term goal of sustaining 25-30% plus Adjusted EBITDA margins.

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