Discover the companies that laid off the most employees last week, June 19
Deutsche Bank is reportedly planning to reduce its German retail workforce by 10% over the next few years, aiming to achieve cost savings. This decision coincides with the upcoming appointment of Claudio de Sanctis as head of the retail unit on July 1. The bank has previously expressed its commitment to identifying cost savings and trimming jobs in specific areas to maintain profit growth. The potential reduction in retail jobs is still in the planning phase and subject to discussions with unions and worker representatives. Deutsche Bank has closed over 300 retail branches in Germany in the past five years, and further branch closures have been anticipated to control expenses. The retail division, which has struggled with low interest rates impacting revenue, has experienced a turnaround with increased interest income due to higher interest rates implemented by central banks to combat inflation.
Grab, a Southeast Asian supper app ride-hailing and food delivery app operator, recently laid off over a thousand employees, approximately 11% of its staff. Grab attributed the layoffs to changes in technology, the state of the capital markets, and increased competition. Grab reported slowing user growth and user spend in its quarterly results and experienced the departure of its co-founder. CEO Anthony Tan emphasized the need to adapt to the fast-changing environment, referring to the rapid evolution of technology and the rising cost of capital. Grab aims to achieve Group Adjusted EBITDA breakeven by the end of the financial year, but it faced challenges such as intense price competition and the complexity of its "super app" model. Grab has not ruled out further measures to adapt to the market, including divestments and service sunsetting.
BlackRock recently announced a small-scale layoff affecting less than 1% of its global workforce, which comprises approximately 19,500 employees across over 30 countries. The decision to reduce staff was driven by budget reallocations aimed at supporting critical priorities, as mentioned in a memo obtained by Reuters. Earlier this year, BlackRock had already cut 500 jobs as part of a restructuring effort to streamline operations and control costs, a move that mirrored similar actions taken by other financial institutions amidst an economic downturn caused by factors such as higher interest rates, market volatility, and geopolitical tensions. Although the specific departments affected by the recent layoffs were not immediately disclosed, the memo assured employees that the overall headcount at BlackRock would still be higher at the end of 2023 compared to the beginning of the year, indicating that BlackRock remains focused on growth despite these necessary adjustments.
Uber Technologies Inc (UBER) recently announced a strategic move to trim 200 jobs in its recruitment division, aiming to streamline costs. The layoffs will impact less than 1% of Uber's global workforce, as per Reuters. This decision aligns with Uber's plan to maintain a steady staff count throughout the year. In addition to this, earlier this year, Uber's Freight segment had already laid off 150 employees, equivalent to around 3% of its workforce. Recent developments include Uber's decision to exit the food delivery business in Italy and Israel, redirecting its focus towards markets with sustainable growth opportunities. Despite the layoffs, Uber reported impressive revenue growth of 29% year-on-year in the first quarter of FY23, amounting to $8.82 billion, surpassing consensus expectations.
Goldman Sachs Group Inc. has recently announced layoffs affecting approximately 125 managing directors, including some in investment banking. These job cuts are part of the bank's ongoing cost-saving efforts due to a decline in deal activity and falling fees in the M&A and initial public offering sectors. Goldman Sachs, which has experienced multiple rounds of layoffs within the past year, is ranked second globally in terms of advisory services, with deal values dropping by over 40% this year to $1.2 trillion. This downturn in the market has prompted the bank to reduce its headcount as it grapples with the challenging environment.
Intercept Pharmaceuticals, Inc. recently announced a restructuring aimed at focusing on rare and serious liver diseases and reducing operating expenses. Intercept Pharmaceuticals plans to discontinue all nonalcoholic steatohepatitis (NASH)-related investments and initiate a workforce reduction of approximately one third. The restructuring is expected to result in a net reduction of approximately $140 million in annual non-GAAP adjusted operating expenses. Intercept will prioritize its investment in Ocaliva, an FDA-approved treatment for primary biliary cholangitis (PBC), and advance its R&D efforts on a combination therapy of OCA and bezafibrate. Intercept Pharmaceuticals also aims to establish a proof-of-concept for INT-787 in severe alcohol-associated hepatitis.
Under Armour, based in Baltimore, Maryland, has recently laid off 50 employees across various units in its corporate workforce. The decision was made to reduce expenses and improve profitability as Under Armour enters a new phase of growth. The layoffs are part of Under Armour's efforts to revamp its business through the Protect This House 3 (PTH 3) plan, which focuses on reinvigorating the brand DNA, emphasizing key product areas, and expanding business in North America. Under Armour's new CEO, Stephanie Linnartz, highlighted the need for improvement and urgency in reshaping the brand. Under Armour reported adjusted earnings per share of 18 cents in Q4 of the previous year and offered weak guidance for fiscal 2024.
All data was sourced from LevelFields AI
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