Discover last week's companies that laid off the most employees, June 12
Layoffs
June 24, 2023
Oracle Corp made the difficult decision to lay off hundreds of employees, retract job offers, and reduce open positions within its health unit, which includes the recently acquired electronic medical records firm, Cerner. This downsizing was primarily driven by challenges faced in Cerner's work with the U.S. Department of Veterans Affairs, where it was tasked with replacing the department's homemade medical records system. The company cited these difficulties as a contributing factor to the layoffs. Recent news indicates that despite the layoffs, Oracle reported strong financial performance, with fourth-quarter revenue increasing 17% year-over-year to $13.8 billion, surpassing analyst estimates.
BCE Inc., the parent company of Bell Media, has laid off 1,300 employees, which represents about three percent of its workforce. The job cuts are part of the company's plan to adapt its news delivery methods and consolidate its news production function. Bell Media aims to create a single newsroom approach across its various brands, including CTV National News, BNN, CP24, local TV news stations, and radio channels, to improve collaboration and efficiency. The decision to lay off employees is a response to unfavorable public policy and regulatory conditions that the company can no longer tolerate. Additionally, Bell Media is closing or selling nine radio stations as part of the restructuring process.
Novavax, a cash-strapped Covid vaccine maker, recently reported its first-quarter financial results, revealing a cost-cutting push and a higher revenue forecast for 2023. Despite the positive news, the company's stock price remains down approximately 18% since the beginning of the year. Novavax is heavily dependent on its protein-based Covid vaccine for revenue this year, and its ability to deliver an updated version of the vaccine in time for the fall will be crucial. Competition from mRNA vaccine rivals Pfizer and Moderna, as well as a pending $700 million arbitration over a canceled vaccine purchase agreement with Gavi, present additional challenges. The company plans to reduce costs by slashing about 25% of its global workforce and consolidating facilities. The success of Novavax's cost-cutting plan and its ability to navigate these obstacles will determine its future viability in the commercial Covid vaccine market.
Tyson Foods Inc recently announced significant layoffs, cutting approximately 10% of corporate jobs and 15% of senior leadership positions in April. The decision was driven by the company's failure to meet Q2 street expectations and its subsequent reduction in FY23 Outlook. In an effort to save costs, Tyson plans to let go of 228 corporate workers in Illinois who declined to transfer to the company's headquarters in Arkansas. The layoffs will commence on July 31, affecting 51 workers in Downers Grove and 177 workers in downtown Chicago. Additionally, Tyson will lay off approximately 490 corporate personnel, including employees at another office in Dakota Dunes, South Dakota, who opted not to relocate out of a total of around 1,000 employees in this category. These layoffs are a result of the consolidation of corporate offices and the company's strategic restructuring efforts.
Nikola Corporation recently announced a progress update on its business optimization efforts, which include a focused business plan on North America, zero-emission truck production, and the HYLA hydrogen business. As part of these efforts, the company conducted a thorough review of its organizational structure and made the difficult decision to reduce its headcount. This strategic decision resulted in a layoff of approximately 150 team members supporting European programs and around 120 employees based in Phoenix and Coolidge, Arizona. The company expects this reduction to decrease personnel-related cash spend by more than $50 million annually. The aim of these actions is to streamline operations, manage costs, and create a sustainable structure that aligns with Nikola's future growth objectives. Recent developments include the successful performance of their battery-electric truck in the marketplace, imminent production of the hydrogen fuel cell electric truck, and the optimization of production at their manufacturing facility in Coolidge, Arizona.
Molecular Templates, a clinical-stage biopharmaceutical company specializing in targeted biologic therapeutics for cancer, recently announced a restructuring plan that includes a reduction of approximately 44% of its workforce. This decision was made as part of a broader strategy to explore strategic alternatives and extend the company's resources. Molecular Templates has also entered into a restructuring agreement with K2 HealthVentures to address its outstanding secured debt obligations. The company aims to continue supporting its collaboration with BMS and its ongoing clinical studies.
United Natural Foods, Inc. recently announced a restructuring effort aimed at enhancing profitability and streamlining operations. The company will consolidate from four operating regions to three, namely East, Central, and West. This consolidation will result in the elimination of approximately 150 roles, mainly in management or supervisory positions. The decision to reduce administrative layers and increase efficiency is part of UNFI's transformation plan. The new regional structure is expected to simplify the company's operations and support its customer-centric strategy. In related news, UNFI appointed new leaders to align resources and drive transformation initiatives.
Wireless speaker company Sonos recently announced that it will be laying off approximately 7% of its workforce, equivalent to around 130 employees. The decision to reduce staff was driven by the company's need to make difficult choices and reevaluate program spend in the face of ongoing challenges. Sonos CEO Patrick Spence acknowledged the continued headwinds that the company is experiencing. In addition to severance costs, Sonos anticipates incurring restructuring expenses, including streamlining its real estate portfolio. This layoff follows a previous 12% reduction in head count in 2020, which was prompted by the impact of the Covid-19 pandemic. Sonos' most recent earnings report revealed a 23.9% year-over-year decrease in revenue, amounting to $304.2 million.
TrueCar, Inc. has announced a strategic restructuring aimed at streamlining the organization and improving efficiency. As part of this restructuring, approximately 102 positions, which represent 24% of the company's headcount, will be eliminated. The decision was made after an extensive review to better align the cost structure with the revenue base and to enable TrueCar to achieve its strategic priorities and create long-term shareholder value. In addition, Jantoon Reigersman has been appointed as the new President and Chief Executive Officer, succeeding Michael Darrow. The restructuring is expected to result in non-recurring cash payments of around $7 million and an annualized reduction in expenses of over $20 million. Despite the layoffs, TrueCar anticipates breakeven or positive Adjusted EBITDA and double-digit year-over-year revenue growth in the fourth quarter of 2023.
Struggling online learning platform Chegg recently announced a workforce reduction, affecting approximately 80 employees, which amounts to about 4% of its workforce. The decision to lay off employees was driven by the increasing popularity of OpenAI's ChatGPT, which has been impacting Chegg's ability to attract new customers for its subscription-based homework help and educational resources. The rise of ChatGPT has prompted concerns about student cheating, job losses, misinformation, and potential negative consequences for humanity. Chegg aims to optimize its AI strategy and create sustainable value for students and investors through these workforce changes, incurring an estimated cost of $5 million to $6 million for severance payments and related expenses. The company's own AI chatbot, CheggMate, developed in collaboration with OpenAI, is part of its plan to enhance personalized and effective learning experiences.
All data was sourced from LevelFields AI
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