Discover the companies that laid off the most employees last week
May 4, 2023
3M, the manufacturing behemoth known for consumer brands like Post-It Notes and Scotch Tape, recently announced significant layoffs of 6,000 staff worldwide as part of a major restructuring plan. 3M aims to streamline its supply chain and reduce management layers to become stronger, leaner, and more focused. The layoffs are expected to save up to $900 million annually before taxes. 3M reported a slump in sales and net income, with sales falling 9% to $8 billion and net income dropping 25% to under $1 billion in the quarter. 3M plans to prioritize customer-demand-driven products such as climate tech, sustainable packaging, and automated industrial products. These layoffs, along with similar actions by industry rival Dow, are prompted by a possible recession and decreased demand for manufactured goods, while supply chain challenges from the pandemic have eased.
Gap has announced that it will lay off approximately 1,800 employees, more than three times the number of layoffs announced in September. The decision is part of Gap's broader cost-cutting and operational streamlining efforts due to declining sales and profitability. The layoffs are expected to generate annual savings of $300 million, with half of the savings anticipated in 2023. Gap aims to complete the layoffs by the end of July. The restructuring includes flattening the organizational structure to improve decision-making efficiency and reduce overhead expenses. The move is expected to unleash untapped potential across Gap's brands. The layoffs will incur pretax costs of $100 million to $120 million. The retailer has been facing losses, inventory challenges, and the absence of a permanent CEO.
Deutsche Bank (DB) has announced plans to cut 800 jobs as part of a cost-saving initiative after reporting better-than-expected profits for the first quarter. The layoffs primarily target senior non-client facing roles and are one of several measures aimed at reducing costs by an additional 500 million euros in the coming years. The decision to trim the workforce reflects the need to expedite the bank's operations, according to Deutsche Bank CEO Christian Sewing. The bank's solid earnings come at a time of global turbulence in the financial sector, with banks facing challenges and customers withdrawing deposits. Despite a drop in investment banking revenue, Deutsche Bank recorded its 11th consecutive quarter of profit, marking its longest streak of profitability following years of losses. Recent developments include a revamp of the management board and a focus on sustainable profitability through a shift away from the volatile investment bank and towards more stable businesses serving companies and retail customers.
Dropbox recently announced a reduction in its workforce, with 500 employees, accounting for approximately 16% of the total workforce, being laid off. The decision was driven by a combination of factors, including slowing growth as Dropbox's business matures and economic headwinds impacting its customers. Additionally, Dropbox aims to prioritize the development of artificial intelligence (AI)-powered products, necessitating the hiring of employees with different skill sets, particularly in AI and early-stage product development. Dropbox plans to offer affected employees job placement services, career coaching, severance pay of up to 16 weeks, and additional compensation based on their tenure at Dropbox. This restructuring is part of a broader consolidation within Dropbox, merging its Core and Document Workflows businesses and implementing internal team restructuring. The CEO, Drew Houston, is determined to position Dropbox as a leading player in the AI era, much like it was during the mobile and cloud computing shift.
Lazard, a global financial firm, has announced plans to reduce its workforce by 10% as part of its cost-saving initiatives. The layoffs will impact all of Lazard's businesses, including financial advisory, corporate, and asset management. Lazard took a $21 million charge in the first quarter, and expects an additional charge of approximately $95 million throughout the year. Lazard's CEO, Kenneth M. Jacobs, stated that the cost-saving initiatives are being implemented to align with the current environment and create flexibility for strategic investments in the business. With 3,402 employees as of December 31, it is estimated that around 340 jobs will be eliminated. Recent developments show that Lazard Asset Management experienced a sequential increase in assets under management, driven by market appreciation, foreign exchange, and net inflows, although there was a year-on-year decrease.
Ride-hailing app Lyft recently announced that it will lay off 1,072 employees, which accounts for approximately 26% of its corporate workforce. Additionally, Lyft stated that it will not be hiring for 250 open positions. These layoffs were mentioned in an SEC filing and follow a previous 13% reduction in headcount in November 2022. The decision to downsize comes shortly after the appointment of Lyft's new CEO, David Risher, who has emphasized the importance of streamlining operations to better serve the needs of riders and drivers. Lyft's stock has struggled since its initial public offering in 2019 and is currently down about 8% for the year. The tech industry as a whole has experienced challenges, with over 184,000 tech employees losing their jobs in 2023 according to data from Layoffs.fyi.
Sangamo Therapeutics, a genomic medicines company, recently announced a strategic pipeline prioritization and corporate restructuring, which includes a workforce reduction of approximately 27% in the US. The decision to lay off employees was driven by the need to focus on their most promising programs, such as the Nav1.7 target for chronic neuropathic pain, the Fabry Phase 3 trial readiness, and the TX200 CAR-Treg clinical study for kidney transplantation. Sangamo aims to allocate resources towards these programs and increase their chances of success. The layoff was also influenced by a broader cost reduction initiative and the previously announced portfolio prioritization. Recent developments include the dosing of patients in their clinical trials and the positive regulatory feedback received. A conference call and webcast discussing these updates were scheduled for April 27, 2023.
The numbers presented are derived from the statements released by the respective companies.
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