Discover the 4 companies that announced layoffs last week
Layoffs
December 22, 2023
LiveOne, a renowned music, entertainment, and technology platform, is set to cut an extra 25% of its staff by year-end, aiming for substantial cost savings totaling over $40 million. The move aligns with LiveOne's strategy to enhance profitability and cash generation.
CEO Robert Ellin highlighted LiveOne's successful $30 million annual cost reduction over the past two years, primarily in the Audio Division. The company intends to consolidate non-core units, concentrating on AI technologies to boost engagement and margins. This strategic shift aims to monetize talent across integrated divisions and foster overall growth.
The decision to trim additional expenses is grounded in LiveOne's commitment to strengthen its balance sheet, facilitate stock buybacks, and prioritize the development of profitable business segments. With short-term assets amounting to $27 million and $10 million in cash, LiveOne continues its trajectory towards sustained financial health. Stay tuned for updates on LiveOne's journey as it navigates evolving market dynamics.
LiveOne, Inc., formerly known as LiveXLive Media, is a dynamic digital media company headquartered in Beverly Hills, California. Specializing in the acquisition, distribution, and monetization of live music, Internet radio, podcasting/vodcasting, and music-related streaming and video content, LiveOne operates key platforms such as LiveXLive for live music streaming, PodcastOne for podcasting, and Slacker for integrated streaming music services. The company excels in producing original music-related content, live music events, and personalized merchandise and gifts. LiveOne also offers the LiveOne App, providing users access to live events, audio streams, original episodic content, podcasts, vodcasts, video on demand, real-time livestreams, and social sharing. With a foundation dating back to its incorporation in 2009, LiveOne continues to innovate in the digital media landscape.
Cruise, a self-driving car startup backed by General Motors (GM), recently announced a significant workforce reduction, affecting 24% of its employees. The layoffs come in the wake of an October 2nd accident involving a Cruise self-driving car, leading to safety concerns and management changes. The company, which had 3,800 employees before the layoffs, primarily cut roles in commercial operations and related corporate functions.
This decision follows the dismissal of nine key leaders for the company's handling of the October accident. The affected employees will receive paychecks until February 12, along with at least an additional eight weeks of pay and severance based on their tenure. The layoffs are part of Cruise's shift in focus towards a fully driverless L4 service and relaunching ride-hailing in one city.
GM expressed support for Cruise's decisions, emphasizing a commitment to safety and a more deliberate path forward. Recent challenges include the grounding of Cruise's robotaxi fleet, leadership changes, production halts, vehicle recalls, and government investigations. Cruise's goal is now to enhance safety standards and deliver improvements to its technology and vehicle performance before scaling up.
The company cited a need to slow down commercialization as the reason for the layoffs, impacting roles not aligned with its revised priorities. Despite the difficult decision, Cruise aims to treat departing employees fairly, offering a strong severance package until April 8, 2024, along with continued benefits and career support. The company plans to create an alumni directory to connect departing employees with potential employers.
Cruise's recent layoffs are a strategic response to challenges, emphasizing safety and a more focused approach to self-driving technology. The company aims to navigate the current setbacks and position itself for long-term success.
General Motors Company, founded in 1908 and headquartered in Detroit, Michigan, is a global automotive company that designs, manufactures, and sells cars, trucks, crossovers, and auto parts. Operating through segments like GM North America, GM International, Cruise, and GM Financial, the company markets vehicles under well-known brand names such as Buick, Cadillac, Chevrolet, GMC, and others. In addition to retail sales, it serves fleet customers, including rental car companies and governments, offering safety and security services, connected vehicle features, and automotive financing. General Motors also operates an online new vehicle store, showcasing its commitment to innovation and mobility solutions.
Etsy, the popular online marketplace for handmade items, is cutting 11% of its workforce, letting go of around 225 employees during the holiday season. The move is aimed at restructuring and reducing costs due to a challenging business environment. Despite doubling in size since 2019, Etsy's sales have remained flat since 2021, leading to the decision. The CEO, Josh Silverman, highlighted the need for change to sustain the company.
The layoffs are part of a broader plan to enhance operational efficiency and save costs, expected to be completed by Q1 2024. The restructuring will cost $25-30 million, mainly allocated to severance payments and related expenses.
The company's updated Q4 guidance indicates a decline in gross merchandise sales and a slight increase in revenue. This decision follows a trend in the industry, with toymaker Hasbro also announcing layoffs.
As a result of the restructuring, key executives, including the Chief Marketing Officer and Chief Human Resources Officer, will leave the company. The layoffs come at a sensitive time during the holiday season, prompting Etsy to provide affected employees with continued pay and benefits until at least January 2. The company aims to focus on reigniting growth and delivering value to its sellers worldwide amidst the evolving market challenges.
Etsy, Inc. is an online marketplace that operates in the United States, the United Kingdom, Canada, Australia, France, and Germany through platforms like Etsy.com and Reverb.com. With a diverse range of approximately 66 million items across various retail categories, Etsy connects buyers and sellers globally. The company provides seller services, including Etsy Payments for payment processing, Etsy Ads for advertising, and Etsy Shipping Labels for discounted shipping. Offering seller tools like the Shop Manager dashboard, Targeted Offers, educational resources, and Etsy Teams, the company supports sellers in managing orders, promoting sales, and building community connections. Established in 2005, Etsy, Inc. is headquartered in Brooklyn, New York.
Enphase Energy recently announced a significant workforce reduction, cutting 10% of its global employees in a restructuring move. The company, known for producing microinverters that convert solar energy to electricity, attributed this decision to a challenging year. Enphase's stock has declined by 53% due to decreased demand caused by high interest rates, resulting in excess inventory.
To address these challenges, Enphase will shut down manufacturing plants in Wisconsin and Romania, while resizing others. The focus will shift to production in South Carolina and Texas. The company anticipates a financial impact of $16-18 million from restructuring and asset impairment charges, with most charges occurring in Q4.
This decision aligns with broader challenges in the solar sector, evident in the Invesco Solar ETF's 30% decline this year. Enphase's strategic adjustments aim to navigate these difficulties and position the company for future growth.
Enphase Energy, Inc. is a leading player in the global solar photovoltaic industry. Specializing in home energy solutions, the company designs, manufactures, and sells semiconductor-based microinverters that convert energy at the individual solar module level. These microinverters are integrated with proprietary networking and software technologies, providing advanced energy monitoring and control services. Enphase also offers AC battery storage systems, Envoy communications gateway, Enlighten cloud-based monitoring service, and various accessories. The company serves solar distributors, large installers, original equipment manufacturers, strategic partners, and homeowners, including the do-it-yourself market. Enphase Energy is committed to education and offers online and in-person training resources through Enphase University. Established in 2006, the company is headquartered in Fremont, California.
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