Discover the companies that laid off the most employees last month, May
Layoffs
June 13, 2023
Shopify Inc. recently surprised investors with a profitable first quarter and announced its decision to lay off 20% of its workforce. Shopify made this move after realizing that its order-fulfillment network, which it aggressively expanded in anticipation of sustained pandemic-driven demand, was not as viable as expected. As a result, Shopify had to reassess its capital-intensive project, leading to a workforce reduction of 10% in July. Additionally, Shopify addressed investor concerns by divesting its logistics arm and entering into an all-stock deal with freight forwarder Flexport. These developments boosted investor confidence, causing Shopify's shares to surge by approximately 28%. Despite the layoffs, Shopify's March quarter earnings exceeded expectations, highlighting the positive impact of new tools that attracted businesses to integrate Shopify into their own sites and increased subscription fees.
JPMorgan Chase recently made the decision to reduce its workforce by approximately 500 positions, primarily affecting the technology and operations groups within the organization. These job cuts were spread across various divisions, including retail and commercial banking, asset and wealth management, and the corporate and investment bank. While JPMorgan regularly adjusts its staff numbers throughout the year, it is important to note that the bank also continues to hire thousands of new employees to fill other roles, with around 13,000 open positions currently available. It is worth mentioning that the layoff is not indicative of a general downsizing trend, as JPMorgan has been in a growth phase under CEO Jamie Dimon's leadership. This expansion was exemplified by the recent acquisition of First Republic, where approximately 85% of the acquired bank's employees were offered positions within JPMorgan. As of March 31, JPMorgan had a total of 296,877 employees, representing an 8% increase from the previous year.
Novavax Inc., a biotech company, recently reported positive results from a trial of three flu and COVID vaccines, leading to a surge in its stock price. However, Novavax is facing challenges as its COVID vaccine was introduced late to the market, resulting in low uptake. In addition, the transition to a commercial COVID vaccine market in the US has put pressure on Novavax. As a result, Novavax has announced a restructuring plan that involves laying off 25% of its global workforce and implementing cost-cutting measures to manage liabilities. Novavax aims to deliver an updated and competitive COVID vaccine for the 2023 Fall vaccination season.
Autonomous trucking company TuSimple Holdings Inc. has announced a restructuring plan that will result in the elimination of 300 jobs, representing approximately 30% of its workforce. This decision follows a previous restructuring plan in December 2022 that aimed to reduce 350 jobs. TuSimple expects to have around 750 full-time-equivalent employees after the layoffs. Recent challenges include a delisting notice from Nasdaq due to TuSimple's inability to file its March-quarter 10-Q on time. TuSimple is scheduled to present its views at a hearing before the Nasdaq Hearings Panel on June 22. TuSimple's shares have declined by 84% in the past year.
ZipRecruiter Inc. recently announced a reduction in its workforce, laying off approximately 270 employees, which accounts for around 20% of its total workforce. The decision was driven by ZipRecruiter's recognition of a more cautious hiring environment due to a shakier economy. The affected employees primarily came from sales and customer support departments. ZipRecruiter aims to enhance long-term efficiency by taking this action, in addition to reducing other discretionary expenses. The staff reductions are expected to be completed by the end of June, and ZipRecruiter anticipates a pre-tax charge ranging from $7 million to $9 million for severance and other termination benefit costs. To demonstrate solidarity, the CEO, Ian Siegel, voluntarily accepted a 30% salary reduction.
Spark Networks SE, a leading social dating platform, recently reported its financial results for the first quarter of 2023. Spark's CEO, Chelsea Grayson, emphasized the priorities of returning to revenue growth and improving profitability. To achieve this, Spark Networks plans to implement a strategic plan focused on reducing costs, optimizing marketing spend, and enhancing the user experience. As part of these efforts, Spark will be laying off approximately 200 full-time employees by closing its Berlin operations and realigning its customer acquisition budget. These changes are driven by the goal of becoming a lower fixed-cost organization, improving marketing yields, and achieving higher profitability. Spark also aims to redomicile from Germany to become a Delaware corporation and outsource its IT services to a third-party vendor for cost savings and technology improvements. The strategic review process and discussions with potential buyers have influenced Spark's action items and plans for the future.
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