Companies That Laid Off The Most Employees Last Week - June 5

Discover the companies that laid off the most employees last week, June 5


ALV: AUTOLIV, INC. - up to 2,000 employees

Sector: Consumer Cyclical
Industry: Auto Parts

Autoliv, Inc., a global leader in automotive safety systems, has recently announced accelerated global cost reductions, particularly in its European operations, as part of its long-term financial goals. To optimize its structure and improve margins, Autoliv plans to reduce its total direct and indirect workforce by up to 11%. These measures are expected to result in the elimination of around 2,000 indirect positions globally, with approximately 1,000 job cuts in Europe. Additionally, Autoliv intends to reduce its direct headcount by around 6,000 positions globally, reflecting an 11% reduction in its total direct workforce. Autoliv aims to streamline its operations and enhance productivity while adhering to local regulations and engaging in dialogue with social partners. Autoliv expects the implementation of these initiatives to be completed by 2025, with a projected pay-back time of 1-2 years. These cost-saving measures align with Autoliv's objective of optimizing its geographic footprint and achieving long-term improvement in margins and cash flow. Autoliv is also actively negotiating with its customers to secure fair pricing and address inflationary pressures within the value chain. Despite the challenges, Autoliv reaffirms its 2023 outlook indications, anticipating an adjusted operating margin of approximately 8.5-9.0% and operating cash flow of around $900 million, based on current market assumptions and expected customer negotiations outcomes.

SPOT: SPOTIFY TECHNOLOGY S.A. - approximately 200 employees

Sector: Communication Services
Industry: Internet Content & Information
Subindustry: Streaming Service

Spotify recently announced a workforce reduction of approximately 200 employees, constituting about 2% of its global staff, as part of its strategy to redefine its partnership approach with leading podcasters worldwide. Sahar Elhabashi, Spotify's Vice President, conveyed this decision through a memo to employees, ensuring that those affected will receive generous severance packages. Spotify aims to shift its focus towards better supporting the creator community, leading to a fundamental pivot from a more uniform proposition. In recent years, Spotify has invested significantly in its podcast unit, including notable acquisitions and high-profile sponsorship deals with figures like Meghan, Duchess of Sussex, and Joe Rogan.

CHEK: CHECK-CAP LTD. – approximately 75 employees

Sector: Healthcare
Industry: Diagnostics & Research
Subindustry: X-Ray Machines

Check-Cap Ltd. has announced its exploration of strategic alternatives to maximize stockholder value, engaging Ladenburg Thalmann & Co. Inc. as an advisor in the process. These alternatives include the potential sale, licensing, merger, or reverse merger of Check-Cap. The decision to pursue strategic options was driven by the recent ineffectiveness of the calibration studies' results, preventing progression to the powered portion of the U.S. pivotal study. Following a review of additional data and discussions with the FDA, the Board of Directors decided to reduce the workforce by approximately 90 percent to minimize cash burn, leaving only eight employees. Consequently, the calibration studies have been discontinued, and resources will be concentrated on essential research activities and strategic alternatives.

DIS: THE WALT DISNEY COMPANY – approximately 75 employees

Sector: Consumer Cyclical
Industry: Entertainment
Subindustry: Streaming Service

Pixar Animation Studios, a subsidiary of The Walt Disney Company, recently underwent significant restructuring resulting in the elimination of 75 positions, including director Angus MacLane and producer Galyn Susman from the film "Lightyear." These layoffs are part of a broader cost-cutting initiative led by Disney's CEO, Bob Iger, which aims to eliminate 7,000 jobs and reduce costs by $5.5 billion. The underperformance of "Lightyear" at the box office, coupled with its inability to be screened in several Middle Eastern and Asian countries due to its depiction of a same-sex relationship, is believed to have contributed to the job cuts. The movie had a budget of $200 million and earned a modest worldwide box office revenue of $226.7 million.

C: CITIGROUP INC. – 50 employees

Sector: Financial Services
Industry: Banks—Diversified
Subindustry: National Commercial Banks

Citigroup Inc. has recently announced plans to lay off approximately 30 investment banking jobs and 20 positions in its corporate banking unit in London. The decision to reduce the workforce is driven by the need to lower costs due to challenging market conditions. In addition to these layoffs, Citigroup is dismantling its global team responsible for foreign-exchange market analysis and commentary, as well as its Latin America corporate bond trading team. These measures are part of the bank's ongoing efforts to streamline operations and adapt to a subdued environment for dealmaking, which is influenced by macro-economic concerns and volatile markets. Earlier this year, Citi had already initiated job cuts across various divisions, including investment banking. The latest layoffs represent less than 1% of Citigroup's total workforce of 240,000 employees.

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