Discover the companies that laid off the most employees in April
May 4, 2023
Disney has recently undertaken a significant reorganization resulting in multiple waves of layoffs. In total, Disney will cut 4,000 jobs, adding to the 7,000 positions previously announced earlier this year. The decision to reduce the workforce by approximately 3% was part of Disney's broader plan to streamline operations and reduce costs by $5.5 billion.
These measures were introduced by CEO Bob Iger during an earnings call, highlighting Disney's commitment to financial efficiency. The layoffs have affected various divisions, including Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products, with the impact spanning across different locations.
As media companies have been adjusting their strategies to optimize their streaming businesses, Disney's cost-cutting measures align with the industry trend of reducing content expenses. The reorganization was also implemented during a proxy fight with Nelson Peltz and his firm Trian Management, which was subsequently called off after the announcement.
Disney plans to initiate a third wave of layoffs before the summer to reach its target, but it has assured that hourly workers at its parks and resorts will not be affected.
3M, the manufacturing giant known for consumer brands like Post-It Notes and Scotch Tape, has announced a significant layoff of 6,000 employees worldwide. This decision comes as part of a major restructuring plan in response to the manufacturing sector's anticipation of a possible recession and declining demand for goods.
In addition to the recent cuts, 3M had already eliminated 2,500 manufacturing roles earlier this year. 3M expects these measures to save up to $900 million annually before taxes. By streamlining its supply chain and reducing management layers, 3M aims to become stronger, leaner, and more focused.
As part of its efforts to adapt to changing market dynamics, 3M is prioritizing products aligned with customer demands, such as climate tech, sustainable packaging, and automated industrial products. Recent sales and earnings reports indicated a 9% slump in sales to $8 billion and a 25% decline in net income, prompting 3M to take these cost-cutting measures.
With supply chain issues easing and decreased demand for manufactured goods, 3M and its industry peers have found it necessary to reduce staff to align with the workload and optimize efficiency in a challenging economic environment.
General Motors Company (GM) recently implemented cost-cutting measures, leading to approximately 5,000 salaried workers opting for buyouts and leaving General Motors. This decision was driven by General Motors 's goal of achieving a $2 billion cost reduction target, as stated by Chief Financial Officer Paul Jacobson.
While General Motors managed to increase prices in the U.S. over the past two years, Jacobson acknowledged the challenges ahead and emphasized the need for a more urgent focus on cost-cutting. In line with their commitment to electric vehicles (EVs), General Motors plans to allocate 75% of its annual capital to EV projects, with the potential for significant benefits from U.S. EV subsidies under the Inflation Reduction Act.
Furthermore, General Motors is set to announce the location of a fourth domestic battery plant, in addition to its existing three battery factories in North America.
Stellantis, the result of the merger between Fiat Chrysler Automobiles NV and PSA Group, is planning to offer early retirement and buyout incentives to skilled and production workers in the US. This move comes as Stellantis aims to eliminate around 3,500 hourly jobs ahead of the expiration of their collective bargaining contract with the United Auto Workers later this year. Stellantis' Chief Executive Officer, Carlos Tavares, had previously warned about potential job cuts due to the rising costs of electrification impacting General Motors' profit margins.
In February, the automaker temporarily laid off approximately 1,350 workers at its Jeep plant in Belvidere, Illinois, and announced the intention to cut up to 2,000 jobs in Italy.
Gap announced that it will lay off approximately 1,800 employees, more than triple the number of layoffs announced in September. This decision is part of Gap's comprehensive cost-cutting and operational streamlining efforts. The layoffs will impact positions at Gap's headquarters and upper field roles, including regional store leaders.
With declining sales and the aim to return to profitability, Gap anticipates saving $300 million annually as a result of these measures. Gap expects to see half of these savings in 2023, completing the layoffs by the end of July. Gap's interim CEO, Bob Martin, stated that these changes are necessary to reshape the company, enhance creativity, and optimize the customer experience.
The layoffs will affect Gap's various brands, including Old Navy, Banana Republic, and Athleta. Despite the workforce reduction, Gap's shares experienced a slight increase on Thursday. The layoffs are estimated to incur pretax costs of $100 million to $120 million, with Gap allocating expenses for employee-related costs and consulting fees.
As of late January, Gap employed approximately 95,000 staff members, mostly in retail locations. The retailer has faced challenges such as financial losses, inventory issues, and the absence of a permanent CEO. Gap reported a decrease in sales and net losses for the past two years. To address organizational complexities, Gap plans to reduce management layers and expedite decision-making processes.
Lyft, the ride-hailing app, recently announced a significant layoff of 1,072 employees, representing approximately 26% of its corporate workforce. In addition, Lyft has decided not to fill an additional 250 positions, as stated in an SEC filing.
These measures come after a memo from the new CEO, David Risher, confirming Lyft's intentions to reduce its headcount. Risher, who assumed the CEO role in April, has been vocal about the need to streamline operations and enhance Lyft's focus on meeting the needs of riders and drivers.
The decision to lay off employees may have been influenced by Lyft's continuous efforts to improve efficiency and respond to the challenging economic climate that has affected the tech industry. It is worth noting that Lyft's stock performance has been relatively stagnant since its 2019 public offering, with a year-to-date decline of around 8%.
F5, Inc. announced its second-quarter fiscal year 2023 financial results, showcasing an impressive 11% revenue growth driven by strong system shipments and exceptional global services performance.
François Locoh-Donou, F5's President and CEO, acknowledged the challenges posed by macro-economic uncertainty on customer spending. However, he emphasized F5's ability to assist customers in simplifying their hybrid and multi-cloud application environments. To prioritize high-impact initiatives and optimize operating costs, F5 made the difficult decision to reduce its global workforce by approximately 9%, equating to approximately 620 employees.
F5 estimates that this reduction will result in annualized savings of approximately $130 million. Alongside these actions, F5 will also reduce its facilities footprint, scrutinize discretionary projects, curtail travel, and significantly reduce the corporate bonus pool in 2023.
Sangamo Therapeutics, Inc., a genomic medicines company, announced recent business highlights, including the advancement of their clinical and pre-clinical pipeline. They are making progress in their Phase 1/2 STAAR study in Fabry disease and have dosed a total of 20 patients. They also dosed the third patient in the Phase 1/2 CAR-Treg STEADFAST study for TX200 in HLA A2 mismatched kidney transplantation.
In addition, they unveiled Nav1.7 as the flagship program in their neurology epigenetic regulation pipeline. However, due to the need for careful choices in the current environment, Sangamo Therapeutics has announced a strategic pipeline prioritization and corporate restructuring, leading to a reduction of approximately 27% of their US workforce. This decision was made to focus on their most promising programs and allocate resources accordingly.
The restructuring is expected to result in annualized savings of approximately $31 million. Sangamo Therapeutics believes that these actions, combined with their available cash, will be sufficient to fund their planned operations for at least the next 12 months.
The numbers presented are derived from the statements released by the respective companies.
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