That is not all; the company will relocate its office from Tokyo to Kawasaki. The objective of the job cuts is to achieve 10 per cent profit margin by 2027 and attain better stability.

After a decade of financial struggle, Toshiba was bought over by a group led by Japan Industrial Partners (JIP) in a $13 billion deal.

The job cuts do not come as a shocker. In April 2024, Toshiba had revealed that it was contemplating a significant downsizing of its workforce in Japan, eyeing a reduction of about 5,000 positions. At the time, it was reported that the move would affect roughly seven per cent of its domestic staff.

The focus of these job cuts was primarily be on back-office roles within the company’s headquarters, with plans to implement them through voluntary retirement schemes. This proposed reduction would be the largest since the fallout from the 2015 accounting scandal.

The move, then, was anticipated to incur a loss of about 100 billion yen ($646 million), covering expenses such as special retirement packages and outplacement services. This restructuring is part of Toshiba’s attempt to streamline its operations by consolidating its energy, infrastructure, devices and IT divisions into its main headquarters, aiming for greater efficiency and synergy.

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With people cutting down on spending, the company expects sales to be weak this year.

In December 2023, the brand had revealed that it would lay off hundreds from its workforce to cut costs of up to $2 billion. It had also revealed that it would be spending about $400 million in severance pay to the impacted employees. At the time it was known as to how many employees would be impacted.

The last time the company had decided to trim its workforce, about 700 employees had been rendered jobless amidst the pandemic, in 2020.

As per media reports, this second major layoff round has been resorted to because the company has been forced to take measures to cut costs across various divisions due to dwindling sales. Sales over the last past quarter or so have gone up merely by about one per cent. In 2017, Nike had trimmed its workforce by about 745 in Oregon, where it happens to be the largest company. Globally, Nike has a workforce of well over 83,000 as of 31 May 2023.

The job cuts will begin to be implemented today, while the second phase will be completed by the end of this quarter.

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This is the third round of layoffs at the multinational investment-management corporation. In January 2023, it had let go 500 of its employees.

The layoffs do not mean that the company is pausing hiring. In fact, BlackRock intends to continue hiring people to ensure growth.

In a memo to the staff, Larry Fink, CEO and chairman, BlackRock, has shared that the cuts will impact businesses across the firm.

The reason for this downsizing is said to be the uncertainties and changes that are being experienced by the asset-management industry in general. The company clarifies that the firm has built a strong relationship with its clients and that 2024 will witness strong momentum. It has also increased its investment in artificial intelligence (AI) technology with an aim to improve productivity, ensure efficiency and transform processes.

In July 2023, BlackRock joined forces with the financial services arm of Jio. At the time of the announcement, BlackRock and Jio Financial Services, each planned to invest up to $150 million in the 50-50 venture.

The venture named, Jio BlackRock was aimed at placing the combined strength and scale of the two entities “in the hands of millions of investors in India”.

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Last year, Twitch saw its chief customer officer, chief content officer, chief product officer as well as chief revenue officer, putting in their papers within a period of a few months. The platform undertook two rounds of job cuts last year, impacting 400 people.

Although Twitch has been relying on infrastructure provided by Amazon, the platform has reportedly been finding it very financially challenging to run the website, which supports over one billion hours of live video content on a monthly basis. The business has clearly not made profits.

On 6 December 2023, Twitch announced that it will cease operations in South Korea in February 2024, citing high operating expenses and network fees as the primary reasons. In a blog post, Dan Clancy, CEO, Twitch, had stated last month that the platform had been facing substantial financial losses in Korea, and that there was no viable way for the business to operate in a more sustainable fashion in Korea.

In October, 2023, the video-streaming platform had reportedly let go of 400 employees. This downsizing, revealed by user Zach Bussey, was lower in scale than the one in March, 2023.

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Earlier, FedEx had already integrated its operations — including ground and air— in a bid to cut costs. The move reportedly saved the company about $4 billion costs.

In February, FedEx had revealed its intention to let go 10 per cent of its global officers and directors as part of cost-cutting measures.

In April this year, the company had consolidated its operating firms. With the new operating structure, it is hoped that there will be more flexibility and efficiency in terms of customer service and creating value for team members and stakeholders.

At the time, it was revealed that the transition would happen in phases with implementation to be completed by June next year. That means, by June 2024, FedEx Express, FedEx Ground, FedEx Services and other FedEx operating companies would be completely integrated into Federal Express Corporation. All of them together will be one firm functioning as a unified air and ground network under brand FedEx.

However, it was announced at that time that FedEx Freight would keep functioning as a stand-alone firm, offering less-than-truckload freight transportation services under Federal Express Corporation.

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In April, SenseTime made a significant move by introducing SenseNova, a direct contender to the ChatGPT platform. SenseTime, a company listed on the Hong Kong stock exchange, continues to grapple with the limitations imposed by US sanctions, making its journey towards profitability a continued challenge. This struggle is evidenced by a financial record showing cumulative losses surpassing RMB 40 billion over the last five years.

As the year 2022 drew to a close, a discernible decrease of over 1,000 staff members was observed compared to the previous year. This marked a notable drop of approximately 16.6 per cent in the employee count, signifying a period of contraction for the company.

As reported by the local media source Caixin on 28 August 2023, the smart city division within the company has undergone a staff reduction of approximately 10 to 15 per cent. This development occurs within the context of a competitive race among local technology companies to create and introduce their own extensive language models.

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The acquisition of Credit Suisse by UBS had raised the latter’s headcount to 1,20,000. The job cuts it was stated at the time, are expected to save UBS about $6 billion over the next few years. Presently, Credit Suisse alone has about 45,000 employees. The plan was to bring down the combined headcount by 30 per cent.

Post acquisition of Credit Suisse, it was revealed that the first of three rounds of layoffs will see some employees of Credit Suisse in London, New York and parts of Asia losing their jobs in July 2023. It was said at the time that the teams involved in managing Credit Suisse’s structured loans to rich customers would not lose their jobs just yet.

In July 2023, 20 per cent of Credit Suisse’s workforce in China had been let go. The wealth management and investment banking divisions were most affected.

In recent times, many of Credit Suisse’s good performers have been poached by other financial institutions, such as Wells Fargo, Deutsche Bank, Jefferies Financial Group and the likes.

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The exact number of employees who will be asked to leave has not been officially disclosed. However, media reports say that hundreds may be impacted. The company has reduced its global headcount by about 27,000 in the last one year.

Amazon is apparently trying to rehaul its operations model and its in-store workforce to offer more efficient services to its customers and workforce. Early this year, Amazon had revealed its intentions to shut down some of its Fresh outlets and Go stores.

According to the Washington Post, employees have been offered either other roles within the company or a severance package.

The maximum number of these Fresh outlets are located in Virgina, Washington, California and Illinois. Over 20 cashier-free convenience stores are also operated by it in the US in the form of Amazon Go. About six years ago, Whole Foods was also bought by Amazon in a $13.7 billion deal. In April, Whole Foods laid off hundreds of its employees a part of a restructuring exercise.

In trying to reduce costs, Amazon has been checking spends across its operations, so it is not surprising that the grocery stores were also affected. Andy Jassy, CEO, Amazon, had spoken of the need to identify a suitable ‘mass grocery format’.

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Founded in 2018, by Sachin Bansal, the founder of Flipkart, the firm had been given the green signal for its initial public offering or IPO, to raise funds through a fresh issue of Rs 3,350 crore.

It plans to put in over Rs 2,000 crore into Navi Technologies and about Rs 150 crore into Navi General Insurance, while the rest is to go into handling other corporate expenses.

The company’s Draft Red Herring Prospectus (DRHP) was filed with the Securities and Exchange Board of India (SEBI) in March 2022, according to which Bansal would not dilute his 97.7 per cent stake in the IPO, having invested about Rs 4,000 crore.

The layoff process, which began earlier this week, has impacted almost all departments. Reports say that no severance was offered to the laid-off employees.

Till 2022, two rounds of appraisals were conducted, in June and December. Only the good performers were given increments, while the others were warned or assigned a time period within which to show improved performance. Layoffs were rare. However, now, the revised policy does not have provisions for severance to those who are terminated due to performance issues in either June or December.

The latest policy also allows for promotions in December only, but layoffs in both June and December rounds.

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As per a report in ET, the company is in the middle of a rehauling and streamlining of operations, following a dip in mobile sales in India. In fact, the past few weeks have witnessed some terminations at Xiaomi India as part of this exercise. While Xiaomi India’s shipments amounted to about 8 million earlier, it has reduced to about 5 million over a period of a year, in Q1 of 2023.

The mobile phone company, however, also intends to hire as per needs. It had a workforce strength of about 1,500 in January 2023.

The leaders of the company have reportedly been told to identify employees whose performance is not up to the mark. That means, the decision pertaining to termination or rejection will be dependent on the assessment of each employee’s individual performance, in accordance with a performance improvement plan or PIP.

This will not be the first round of layoffs at Xiaomi. In December 2022, about 10 per cent of the global workforce of the company had been terminated as part of an endeavour to optimise and streamline operations. Those impacted had been given severance as per local regulations.

Reports say that all these decisions are centralised and taken in China.

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About 10 days ago, Byju’s was reportedly considering axing about 1,000 jobs amidst a financial crisis. At the time, it was said that the sales and marketing teams would bear the brunt of the cuts. This time, reports indicate that members of the content division have been asked to put in their papers voluntarily. There are also reports that post the quarterly evaluation, almost half of the sales team is now part of a performance improvement plan or PIP. The impact of this round of layoffs will reportedly be seen in the business development, products and technology departments too.

Earlier this year, over 1,000 people were asked to leave from the engineering division, which reduced the workforce size by 15 per cent.

Byju’s also bagged headlines recently, when it failed to make a quarterly interest payment of around $40 million on a $1.2 billion term loan B. The company, which has been accused of defaulting on payments, later took legal action against its lender, Redwood Investment Management, filing a lawsuit in the New York Supreme Court. Byjus has not only stopped payments to the lender but has called their approach predatory’.

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Cognizant, which has its primary operations in India, is bracing for a revenue decline in 2023.

Ravi Kumar S, the new CEO, who replaced Brian Humphries, will work towards turning around the company amidst competition from the likes of Infosys, Tata Consultancy Services and Accenture.

Cognizant reportedly has the lowest margins in the IT space presently, with a margin of 14.6 per cent. For the entire year, Cognizant predicts an adjusted operating margin of about 14.2 per cent and revenue guidance of $19.2 to $19.6 billion. This is a fall of -1.2 per cent to 0.8 per cent in reported terms.

In Q2, Cognizant predicts a revenue band of $4.83 to $4.88 billion — a decline of -1.6 per cent to -0.6 per cent, or a decline of 1 per cent to flat in constant currency.

Post taking over in January 2023, Kumar led the company through a major chunk of Q1 of FY23, beating the expectations of experts.

While the net profit of Cognizant increased by three per cent year-on-year (YoY) and 11.2 per cent sequentially, the revenue posted was $4.81 billion, a fall of 0.3 per cent year-on-year, more than the guidance range of $4.71-$4.76 billion.

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The move comes after end of negotiations with union.

Ericsson, which has its headquarters in Stockholm, assures that the entire layoff process will be carried out in a professional manner with utmost respect to the impacted staff. The plan is to carry out the process via a voluntary programme.

With these job cuts, Ericsson will save costs in terms of the reduction in number of employees and facilities, decreased number of consultants and streamlining of processes. The Company fell short of expected earnings inQ4.

Similar workforce reduction may be expected in other locations as well, though an official confirmation is yet to come.

Earlier, the Company had revealed its intention to reduce costs by about $880 million by the end of 2023, amidst a global slowdown in markets, including North America.

This isn’t the first time Ericsson is resorting to layoffs. About six years ago, it had laid off thousands amidst huge losses.

In September 2022, the Company had notified its 400-member staff in Russia that they would be rendered jobless following the Company’s decision to wind up operations in the country. Nokia had already shut down operations in Russia in April 2022.

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With companies gearing up to face the economic slowdown, hiring has either been frozen altogether or slowed down tremendously. Job are also being axed in big numbers.

As per the report by Challenger, Gray & Christmas, Inc., while economy-wide layoffs are low on the whole, the number of organisations that have announced job cuts has increased of late. The tech sector has seen maximum job cuts, with thousands being rendered jobless at Amazon, Meta, Alphabet, Microsoft, Twitter, PayPal and others.

About 1,10,793 job cuts have been announced since November 2022. In January, 2023, the tech sector saw 158 per cent more job cuts than December 2022.

The media industry announced 754 cuts in January, the highest monthly total since June 2021. Of these, 360 were in digital, print and broadcast news companies, reveals the report.

While firms had revealed their intention to hire 32,764 employees in January, mainly in the entertainment and leisure space, the number has come down 58 per cent, than what was announced in January 2022. It is 37 per cent less than what was announced in December 2022.

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The tech giant has already frozen hiring, and now media reports indicate that Meta has put its middle managers on notice, amidst the uncertain economic environment and increased competition and other unfavourable conditions.

As per the newsletter, Command Line, at a meeting recently, Mark Zuckerberg, CEO, Meta, has reportedly warned managers that Meta does not wish to see sets of managers managing other sets of managers, who are managing the employees. This revelation from the CEO himself has led to beliefs that Meta intends to do away with middle managers.

The Company is set to make its quarterly results public this week. And that is when it is expected that the announcement regarding sacking of middle managers in order to make the structure of the Company more flat may be made.

Earlier too, Zuckerberg has indicated the desire to make the Company more lean and efficient. Among other corrective measures, the Company intends to cut costs, ensure that spending becomes more discrete and also extend the hiring freeze.

Zuckerberg has admitted that just like other organisations, he too had thought that the e-commerce surge that happened during the pandemic would continue; that the revenues will continue to increase. Therefore, he too had invested heavily, but the performance and growth did not continue as expected.

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On the other hand, the company has denied any impending layoff- large or
small. In a conversation with IANS, a spokesperson from upGrad said, “We
categorically deny any vested interest or rumours about layoffs, large or small.
As we consolidate our M&As, there will always be an ongoing assessment of
both profile redundancy and performance”.

He further elaborated that in the last two months, upGrad had added over
2,000 people in the team with 200 being added just in the last two weeks.
Reportedly, as a part of their growth and expansion plans, the edtech platform
announced that it plans to hire over 1400 new employees by the end of March
2023.

The platform was in the news recently for its acquisition of corporate training
solutions provider, Centum Learning, in a share swap deal in September this
year.

UpGrad, which launched in 2015, boasts more than 3 million learners in more
than 100 countries, more than 300 university partners, and a strong business
with a clientele of 1,000 enterprises globally.

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At the time, Sundar Pichai, CEO, Google, had admitted that the pace of growth at Google had reduced, and that better management of the various macroeconomic factors would be required to make the Company more productive and profitable. He was concerned that the revenue growth was not up to the mark and a lot lesser than expected.

During a recent meeting, Pichai admitted that the future is unpredictable and that he was in no position to reassure the workforce that there would be no job cuts.

In August, Pichai had indicated that Google definitely had more employees than it had work, while expressing concerns about the low productivity of the workforce.

While Pichai still talks about introducing measures to better handle the situation imposed by the unfavourable state of the economy, with the fear of recession looming large, he does not deny the possibility of job cuts in the future.

Media reports say that Pichai has expressed the need for better discipline and critical decisions. He has been stating that as a Company, Google needs to think of ways to be better prepared for difficult times.

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The affected employees have been talking about these job cuts on social media and seeking help with placements.

According to a report in Silicon Valley Business Journal, Chuck Robbins, CEO, Cisco has admitted to this being a ‘rightsizing’ exercise without giving any details.

The US-based multinational digital communications technology conglomerate is reportedly planning to support the impacted employees as much as possible and also offer them severance packages.

According to the first quarter earnings report (Q1 2023) of Cisco, the Company had made $13.6 billion in revenue, which is about six per cent more than what it made during the same period last year, that is, year-on-year.

In November 2022, when the Company had revealed its intentions to lay off 4,000 people, it had denied that it was a cost-cutting exercise. The Company had, at the time, preferred to called it a ‘rebalancing’. It was disclosed that Cisco sought to focus and invest more on cloud-delivered products. In fact, the Company had even claimed to have generated new openings in the new areas of focus.

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About 250 jobs may be cut as per the ET report. That means, at least three per cent of the workforce may be asked to leave by the end of 2022 as part of a restructuring exercise. Jobs across departments, tech, including customer service, operations and supply chain will be axed.

The objective is to make the Company more agile and profitable.

Employees will be laid off basis their performance, as the performance cycle has just ended and it is time for promotions across levels.

Last month, that is, November 2022, about 5,000 Swiggy workers went on strike demanding better pay.

The protesting personnel have been seeking better pay for some time now. Their main grouse is that they are paid about Rs 900 daily. They work for almost 12 hours a day, sometimes more. Of the Rs 900 that they earn, a significant portion goes into paying for fuel. That means, they are left without about Rs 400 as actual income.

During one of the many negotiation meetings, the workers demanded Rs 25 for every three kilometres. However, Swiggy agreed to pay them only Rs 23 for every four kilometres, which the workers refused to accept.

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With various projects being wound up and its product and engineering teams being merged for more efficiency, Oyo’s employee base of 3,700 will see 600 people leaving from its technology and product teams. That means, 10 per cent of the workforce will be gone.

Employees who were part of the teams working on pilots and proofs and also those whose projects have been completed or developed have either been let go or reassigned to other teams.

While Oyo is integrating functions across its vacation homes business in Europe, it is reducing headcount in other areas, aiming for more efficiency. Even at its corporate headquarters it is looking at making team structures flat wherever required and merging certain roles.

Those being let go will be given outplacement assistance and up to three months’ medical coverage.

There are plans to expand Oyo’s relationship-management team to enhance consumer satisfaction and help scale up the business, by adding more hotels and homes.

Ritesh Agarwal, founder and group CEO, Oyo has said that if Oyo has vacancies in the future, it will ensure that its laid off employees are considered first for those positions.

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As per media reports, roles in the operations and sales side have been impacted.

As part of the severance package, the Company is providing three months’ salary and health insurance to all employees. It is also expediting the process of vesting ESOP’s (employee stock ownership plans) of the laid-off employees. The outgoing employees may also apply for the current openings in the organisation.

Teachmint had launched a programme that lets employees sell their shares as soon as they are eligible by giving them more financial leeway.

Till now, the edtech firm, founded by Mihir Gupta, Payoj Jain, Divyansh Barodia, and Anshuman Kumar, has raised $118 million backed by Rocketship VC, Vulcan, Better Capital and Lightspeed Venture Partners.

Recently, many tech firms in the US have resorted to major layoffs, which have impacted over 60,000 people. In India, edtech firms have been laying off people as part of course correction, or as a result of bad predictions and lack of funding this year. As per various media reports, as many as 7,000 employees have been impacted in the year 2022 by the layoff trend in the edtech industry alone.

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Some employees have been told not to report for work till 30 December, which will be their last working day. The Company has offices in Bengaluru and Gurugram as well.

The employees will be given severance of a month’s basic salary for each year of service they have completed with the firm, with the maximum limit being 12 months. This severance will be paid to them within five days of the date of separation.

The Company has been facing a financial crisis for some time now. And these layoffs are in all likelihood a part of a cost-cutting exercise. Stephanie Ferris, who will begin discharging her duties as the CEO of FIS starting January 2023, is reportedly looking to embrace measures to regain the confidence of the Company’s investors.

About a third of FIS’ 55,000-strong global workforce is based out of India. Although the exact number of layoffs in India has not been officially announced, media reports say that about 400 employees from the Pune office have been asked to leave.

The Indian arm of FIS has been in operation for over 20 years now.

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It is expected that the move will make the firm ready for the future and place it in a better position to serve its customers. The strategy will also ensure creation of value in the long term, as costs will be reduced and reinvestment will be facilitated in growth initiatives.

During the pandemic, the sale of personal computers had surged with most employees working from home, and students kept away from schools and forced to study online. However, post the pandemic, the uncertain economic conditions have forced organisations across the world to look at reducing headcount and tech costs. This has resulted in the demand for personal computers dipping significantly.

The layoff will affect about 10 per cent of HP’s global workforce, which is about 61,000 strong.

The restructuring itself will cost HP about one billion dollars. By 2025, the Company expects to save about $1.4 billion a year.

There has been a string of layoffs in the tech space, with Alphabet, Google’s parent company being the latest to announce a reduction in headcount. Recently, Meta, Twitter and Cisco have also made headlines with their layoffs.

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Given the uncertainties of the environment, the platform is looking at ways to become profitable. Employees across the marketing, technology, product and catalogue functions are being asked to leave.

The platform, however, calls this a normal overhaul or restructuring based on performance that hardly affects three per cent of the workforce, says a Money Control report.

During a recent townhall, Deepinder Goyal, CEO, Zomato is said to have indicated that the functions that were not making profits would be witness to job cuts. Some managers looking after cloud kitchens have already been asked to leave.

In May 2020, when the pandemic happened, about 13 per cent of the staff had been let go, that is, about 520 employees.

This latest round of layoffs is happening soon after three senior executives quit the Company. Amongst those who had left were Mohit Gupta, the co-founder, Rahul Ganjoo, head of new initiatives and Siddharth Jhewar, vice president – global growth and head of Intercity Legends service. Gupta had been heading the food-delivery vertical for over four years and had become co-founder in 2020. Having moved to Zomato in 2018, from MakeMyTrip, where he was COO, Gupta put in his papers on 18 November 2022.

Last year, in September 2021, Gaurav Gupta another co-founder of the Company, quit just two months after Zomato’s initial public offering (IPO).

These exits, especially in the senior ranks have raised questions regarding the steadiness of the leadership at Zomato.

The food-delivery platform posted a net loss of about Rs 250 in the September quarter. During the same period last year, its revenues had been much higher thanks to its food delivery and wholesale units doing well. On 18 November, 2022, shares of Zomato stood at Rs 61.15 per unit post Gupta’s exit.

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As per Wall Street Journal, a formal announcement will happen within two days.

In October, Meta predicted a weak holiday season and higher costs for the coming year. The Company’s profits dipped 52 per cent in Q3, and stood at $4.4 billion. Its market value has also fallen to $600 billion in the past one year.

Meta’s workforce strength, as of 30 September, was about 87,000, globally, across WhatsApp, Facebook and Instagram.

Mark Zuckerberg, however, has been openly talking of the need to cut down on expenditure and slow down on hiring. He had said that the coming year will be focussed on investing on growth areas. He had indicated that while some teams may grow, others may reduce in size.

While an official figure is yet to be revealed, it is speculated that thousands may be rendered jobless at Meta in this layoff round.

In September, Bloomberg had reported that Zuckerberg, had communicated to the workforce his intentions to restructure certain groups in the social-media company and freeze hiring. He had at the time left it to the individual teams to decide how they would want to plan changes in team size and work with their limited budgets.

The objective was to cut costs and budgets across the organisation. Zuckerberg had indicated that the Company and the tech space, in general, was going through one of the worst recessions, and therefore, there was a need to slow hiring. He had also indicated that the Company had many people and roles that were redundant. Earlier this year, the social-media company had even reduced hiring of engineers by 30 per cent.

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These figures have been revealed in the KPMG 2022 India CEO Outlook report, which also says that in the longer term, a significant 79 per cent CEOs in India and globally expect to see the workforce expanding over the next three years.

Chief executive officers around the world, across sectors continue to invest in their present employees. In fact, about 34 per cent CEOs in India and 50 per cent CEOs globally are looking at ways to improve and enhance the productivity of their workforces.

How do the CEOs plan to deal with recession, if it hits?

About 75 per cent CEOs worldwide and about 70 per cent in India have either imposed a hiring freeze or plan to do so in the next six months. A whopping 80 per cent CEOs around the world and 75 per cent in India have either seriously thought of reducing headcount or will downsize their workforce in the next six months.

Worldwide, 40 per cent CEOs have taken steps to pause or reduce digital transformation strategies to prepare for an anticipated recession. About 37 per cent plan to do so in the next six months, but 22 per cent have no action planned yet. In India, 28 per cent have taken action, while 50 per cent are planning to take action in the next six months and 22 per cent have yet to plan what to do .

By 2025, two per cent CEOs in India feel that the workforces will be working 100 per cent remotely. About 34 per cent feel the hybrid model will be embraced over the next three years, while 65 per cent believe it will be back to in-office work.

There is awareness that diverse teams perform better, but this is limited to environments of psychological safety alone says the report. About 62 per cent CEOs in the country feel they are responsible for driving greater social mobility in their organisations. That means, they are accountable for how the organisation is structured and the kind of people invited to the organisation.

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Employees will begin to be laid off soon.

Even as the Company struggles amidst a tight labour market to find quality mechanics to build planes and engineers for its designing team, it has indicated that about 150 jobs will be cut right now, and more will be laid off in the times to come, across the US.

The exiting employees will train the TCS personnel before they leave so that the handover is smooth.

The layoff process will be spread over months and is aimed at improving efficiency and simplifying processes with a leaner team. The streamlinging process and its effects will be assessed as it progresses.

The finance employees have been shifted to new divisions / units with new managers, as per media reports.

The Company claims to be keeping its employees informed of every action in an attempt to maintain transparency; that it had indicated to its employees that staff levels will be lowered.

Boeing had already started outsourcing some of its IT work, especially the work that wasn’t primary to its business, to other companies to reduce costs. Last year, some of Boeing’s IT work was outsourced to Dell, which had led to hundreds of jobs being cut.

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As per a report on CNBC-TV18, about 500 people may be rendered jobless from various verticals of ANI technologies. Of these, a significant number are working on the Ola app.

This move, which will reportedly impact only about 10 per cent of the Company, is said to be part of an effort to reduce redundancy.

In an earlier round of restructuring ?mainly affecting the Ola Cars (pre-owned cars vertical) and Ola Dash (quick commerce vertical) businesses ? employees across various departments, including sales, business, product, marketing, supply, tech, and operations had been laid off.

Of late, the sales of the Ola Electric Scooter have been dipping. The electric scooter was rolled out in December 2021. This business has been undergoing restructuring for some time now.

Over the last 24 months, over 30 senior executives and members of the leadership team at Ola have left the Company.

In July, HRKatha had reported how close on the heels of Ranjit Kondeshan, director – HR, Ola Electric putting in his papers, Yashwant Kumar, senior director and business head – charging network had also resigned. At the time, he was the 32nd person to quit the Company since 2020.

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Admitting that the pace of growth at Google had reduced, Sundar Pichai, CEO, Google, has indicated that the endeavour to make the Company 20 per cent more productive will require better management of the various macroeconomic factors.

While there seems to be revenue growth, it has clearly been lesser than expected.

That is why, the Company is looking at trimming the workforce a bit so that it is in a better position to prioritise the relevant things and focus on employee productivity and overall organisational efficiency.

About two months ago, the Company had conveyed to the workers that it was time to get serious about performance or be prepared to leave. Pichai had, in August, indicated that Google has more employees than it has work, while expressing concern about the ‘below expectations’ productivity of the workforce.

Pichai had at the time conveyed to the employees that the fact that productivity is way lower than it should be is a cause for concern, considering the size of the workforce. Revealing that the Company has been unable to achieve the set targets despite such a large team, he had gone on to urge employees to actively work towards a culture that is more focussed on the mission of the Company as well as on its products and customers.

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While the move, it is hoped, will help streamline things, some employees will have to be let go.

As reported by Bloomberg News, Michale Vale, who heads the Company’s safety and industrial unit, has conveyed the layoff plans to his team saying that the decision to reduce the team size was unavoidable.

The Company, which produces consumer goods and also operates in the areas of industry, worker safety and US health care, reportedly hired about 95,000 people at the end of 2021.

Now, it has realised that for continued growth, it needs to prioritise not only its investments but also its resources, for which adjustments will have to be made in terms of roles and responsibilities.

The safety and industrial division accounts for 3M’s maximum revenue. Last year, it gave the Company 34 per cent of its total sales of about $35 billion.

The Company had indicated that it would focus on the health-care operation, from where close to one fourth of its sales comes. Amongst other things, 3M offers a range of products in the transportation, electronics and consumer markets.

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As per Almanac News, more than a 100 service workers belonging to various unions were part of the march on the campus of the Company.

The participants included drivers, janitors and cafeteria staff among others, who are demanding that Meta and Canon Business, its subcontractor, give them fair contracts. These protestors wish to draw attention to the fact that they are indispensable to the growing IT businesses. The workers’ attempts to unionise were reportedly not approved by The Canon Business.

Meta, however, maintains that it appreciates the fact that the employees of its vendors are organised and unionised, and that its partnership with these vendors is creating lucrative union jobs.

Mark Zuckerberg, founder, Meta, had revealed the Company’s intention to reduce team size over the next one year, given the economic slump and its adverse effect on digital advertising-related business. The aim is to move resources and energy to other areas within the organisation.

Zuckerberg had reportedly revealed his intention to allow leadership the liberty to decide where to downsize and how much, and how to go about restructuring the teams without compromising on the Company’s future goals.

Those fighting for the rights of the workers feel that Facebook should at least be open to bargaining in a just manner so that every worker is respected and heard.

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The exact number of people that will be affected at Ford Blue — its internal combustion engine (ICE) vehicles unit — and Ford Model E — its electric vehicles (EVs) unit — is yet to be officially revealed.

The employees have been informed that these changes are in keeping with the rapid pace at which the business environment and the operation of the industry are changing.

These job cuts are part of Ford’s way of tackling material costs as well as costs related to quality.

The memo sent out to the employees by Bill Ford, chairman, Ford and Jim Farley, CEO, Ford admits that it is not easy to cut jobs and acknowledges with gratitude the contribution made by the employees to the Company’s growth.

Ford and Farley promise that the Company will fulfil its duty towards the impacted workers by providing them relevant benefits and also help them find new jobs.

The chairman and CEO explain to the employees in the memo that the present cost structure of Ford is rather uncompetitive, and therefore, it is time to address the same and redeploy resources.

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The poor revenues can be attributed to political situations worldwide, rising fuel prices, global inflation and fluctuations in foreign exchange, which have adversely affected the market demand as well as the earnings of the Company.

While at least 30,000 of its workforce works out of Beijing, China, where the Company is headquartered, the remaining employees work from India and Indonesia.

Smartphone sales had slowed too, with revenue dropping 28.5 per cent. Considering that smartphone sales made up for over 50 per cent of the Company’s revenue, this has been a major jolt. The revenue that was about 59 billion yuan in Q2 last year, fell to about 42 billion yuan for the same quarter this year. The net profit was affected because of the pressure to sell and clear inventory, for which sales and promotions were resorted to.

Sales had picked up last year, when Huawei was facing US-imposed restrictions for obtaining components, and Xiaomi was able to capture some market share. However, this was a temporary surge in sales only. With the Chinese economy slowing down early this year, Xiaomi’s revenues began dipping again.

It is reported that the economy is slowing down so much that citizens in China have resorted to selling off their luxury watches and bags to earn money.

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A couple of months ago, the CEO of Snapchapt had indicated that hiring will be slowed down. Employees had been told that the Company would be hiring only about 500 people compared to the 2,000 that were hired over the last one year. Investors had also been told not to expect revenues to grow at the expected pace.

However, the photo-sharing service is yet to officially reveal the exact number of job cuts it is planning across the Company. Its managers are reportedly still working out the cuts.

The Company is said to have incurred a net loss of about $422 million. In the previous year, the loss was about $152 million. The forecast doesn’t look too bright either.

A hiring slowdown is not new presently, as most tech majors are either pausing or freezing hiring amidst fears of recession. Rising inflation, the Ukraine war and supply-chain challenges are only adding to the woes.

Snapchat was recently in the news when it announced the launch of a new ‘Family Centre’ feature to allow parents to see who their children or teenagers are messaging or chatting with on the app, without revealing the content of the messages. These supervision tools are aimed at ensuring the online safety of children.

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The Company has started laying off people, and about one thousand will lose their jobs.

Instead of firing them, Ola is reportedly asking them to voluntarily put in their papers. Postponing the appraisals is one of the tactics being used by the Company to get people to resign as per media reports.

Earlier this month, Ola had revealed plans to reduce headcount by at least 400 people. It has intensified hiring for its electric vehicles (EVs) business. Now, it is reported that about 1,000 are being asked to leave as part of its internal restructuring exercise.

In June, the ride-hailing platform had already closed down Ola Dash, its quick commerce business, and Ola Cars, which was its used cars business, which rendered 500 people unemployed.

At that time too Ola had admitted that it is going to focus more on the EV mobility wing.

However, it is reported that for each person being terminated, Ola is hiring four people with skills pertaining to electric cars manufacturing and producing lithium-ion batteries.

It had launched its Li-ion cell manufacturing business in July and is preparing to produce the same in big volumes by next year. In fact, it has revealed its intention to pump in about $500 mn in its Bangalore battery innovation centre or BIC.

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A recent report in Bloomberg said that Jim Farley, chief executive, Ford, was ready to cut about 8,000 jobs, so that finances could be diverted towards EV manufacturing. The employees at Ford Blue, which produces gasoline-powered vehicles, are expected to be impacted the most.

When reports of Ford’s intentions to lay off emerged, Farley sent the employees a video message via e-mail, wherein he acknowledged the rumours pertaining to downsizing and that it was bound to create anxiety amongst the workforce. He, however, is said to have requested employees to focus on their work and explained that Ford needed to bring down costs in order to remain in the race.

He conveyed how important it was to drive transformation and significant change so that the Company could grow in the area of all-electric vehicles.

The Company had indicated that a smaller team is more agile, and hence, ensures speedy decision making.

Ford has been redoing its cost structure so that the Company becomes more lean and efficient enough to compete with the best in the EV space.

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The tech major has cut 1,800 jobs as part of an endeavour to realign its business at the beginning of the new fiscal year. This ‘realignment’ exercise has affected one per cent of its workforce, including people in the consulting, customer and partner solutions departments across locations.

Although Microsoft has slowed hiring in various departments including its Teams, Office and Windows group, the Company has said that it will continue investing in the business and keep hiring for other departments and roles.

The tech firm maintains that these layoffs are not an outcome of the economic situation. It calls it a restructuring exercise in the larger interest of the Company.

The Company posted a 26 per cent YOY increase in cloud revenue, while overall revenue went up by $49.4 billion.

In the first week of July, Microsoft had revealed that it would hire fewer people than it had originally planned to in the second half of 2022 because it intended to reduce spending and have better control over finances, just like most other companies. It had then revealed its intention to focus on retaining the key employees amidst a tight labour market and that it would set aside a bigger budget for merit increments. It had almost doubled the budget for merit-based pay hikes.

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This move comes not long after the ride-hailing company shut down Ola Cars, the used cars business, and Ola Dash, its quick commerce business so that it could focus on the electric vehicles business alone.

According to Money Control, the senior managers of the Company have been asked to draw up a list of employees who can be asked to leave from its presently 5,000-strong staff.

By downsizing, the Company hopes to be a more lean and agile company that appears profitable when it comes to listing.

About two years ago, in 2020, Ola had laid off around 1,400 employees from its food, rides and financial services verticals in response to dipping revenues amidst the pandemic-imposed mobility restrictions.

The demand for electric vehicles of Ola fell slightly recently following certain fire incidents affecting two-wheeler electric vehicles, which made the safety of the vehicles doubtful. Naturally, the registrations of EVs was adversely affected.

Ola Electric is reportedly all set to launch its electric car, whose design was recently unveiled.

Meanwhile, the state government of Delhi has issued a notification that all three and four-wheeler passenger vehicles as well as two-, three- and four-wheeler commercial vehicles should be converted to electric vehicles by April 2030.

A Delhi Motor Vehicle Aggregator Scheme has been issued to this effect and will be applicable to all aggregators including Ola and Uber.

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With about one lakh employees in its workforce, if Tesla is going ahead with laying off 10 per cent, about 10,000 people may be rendered jobless.

According to Business Insider, a project lead, a senior regional warehouse manager, a few trainers as well as a CGI animation lead are amongst those who have been asked to leave. Clearly, senior and managerial-level positions are also being affected by the layoffs.

Social-media posts by the laid-off employees reveal that some of them actually relocated because of their job at Tesla. Most of them speak well of their experience at Tesla and have found it hard to digest the news of layoff.

Quite recently, Tesla also cancelled three hiring events in China scheduled for June 2022.

Musk had grabbed headlines when he said that he expected all employees to return to office full time and that those who failed to do so could expect to be rendered jobless. He had made it clear to Tesla employees that he expected everyone to put in 40 hours of in-person work.

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In a letter to the employees, Brian Armstrong, CEO, Coinbase, has conveyed that the cost of employees is too much for the Company to handle, and that is why, the firm is taking this hard decision to reduce headcount.

The letter further states that after more than 10 years of witnessing a boom, the crypto market is now heading towards heavy recession, and to prepare for the same, Coinbase will have to let go some of its employees.

The Company has also hired a law firm to advise it on the restructuring process.

Recently, Coinbase was in the news when in a blogpost, its chief people officer indicated that it will continue to the hiring freeze for another couple of weeks.

Since the crypto market is rather volatile anyway, Coinbase does not want to take unnecessary risks with the expected recession.

In the letter, the CEO also mentions that the Company grew too quickly in a very short period.

At the start of 2021, the crypto trading platform employed about 1,200 employees, and now its workforce strength stands at about 6000!

There has also been a decline in the number of active users on the platform. Additionally, the Company has reported a $430 million loss in the first quarter of 2022.

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The affected employees belong to the sales, talent acquisition, product and engineering, quality analysis, professional services and development teams.

The surprised employees, who were given the unfortunate layoff news just when they were awaiting appraisals, were informed personally by their managers of this difficult decision.

Inc42 reports that FarEye has promised to pay the affected employees two months’ salary, depending on their serving the notice period.

It was only in January, 2022 that the New Delhi-based SaaS platform provider had announced liquidation for Employee Stock Ownership Plan (ESOP) holders. It had announced an ESOPs buyback worth $1.22 million. This was the Company’s second and largest buyback. At the time, it had revealed its intention to use its cash reserves for this buyback exercise.

Kushal Nahata, CEO, FarEye, had, at the time had admitted that it was the Company way “showing our gratitude and in turn, making our employees become partners in our success. We are dedicated to cultivating the same healthy, supportive environment as we plan to expand our team further in 2022.”

Its first round of ESOPs buyback had happened in January, 2021, when the logistics management platform (operating as a software providing service), had announced the distribution of $739, 000 to liquidate ESOP choices for its workforce.

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The learning and community platform calls these job cuts a part of an exercise to make the Company more efficient and agile. It is not the only firm in the edtech space to have resorted to downsizing. With funding expected to slow down, most organisations in this sector are trying to cut costs.

With various experts, celebrities and influencers on its panel, the Bengaluru-based upskilling platform focuses on teaching non-academic skills, such as singing, photography, film-making, screenwriting and even comedy. Last year, in September, it managed to raise funds to the tune of $14 million from various investors including Eight Road Ventures, GSV, Lightspeed and Elevation Capital and some angel investors.

Over the last one year, FrontRow, which is co-founded by Ishaan Preet Singh, had scaled the business and made heavy investments to create a new category. This round of layoffs is expected to help the Company achieve its growth goals and focus more on the core business. In fact, the Company intends to continue hiring quality talent for the core business and focus on profitability and sustainability.

It is not just the edtech space that is witnessing startups laying off employees. Many other companies, including Meesho, the online shopping site and Cars24 the used-cars platform, have laid off hundreds of employees recently.

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The move is part of a restructuring and cost-cutting exercise that will csot the Company about $715 million. As part of this exercise, the Company also plans to reduce site fragmentation in the long run.

The Company has been facing stiff competition in the 5G equipment space and has failed to grow the business.

This planned rehaul will reduce the 90,000-strong workforce to about 80,000 or 85,000 over a period of 24 months.

Since the appointment of the new CEO in 2020, the Company has been focussing on succeeding in the 5G space.

Media reports observe that the Company has let go about 11,000 of its employees in the past few years. It is estimated that its workforce would have reduced by 20 per cent in five years’ time.

Nokia’s share price has decreased by 50 per cent compared to what it was about six years ago, at the time of the acquisition of Alcatel-Lucent.

Now, Nokia’s cloud and network services business plans to align portfolios and streamline service models and operations, focus more on research and development and increase productivity by reducing site fragmentation.

Similarly, its mobile networks division will also invest further in 5G R&D and speed up the process to digitalise its processes.

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The lender, which provides financial backing to agricultural businesses, closed down three of its trade and commodity finance offices, in January 2021. Its operations in Sydney, Shanghai and London will be closed. However, wholesale banking activities will continue, so that the clients are not left in the lurch.

Rabobank is considering a proposal to streamline and centralise its European trade and commodity finance operations across locations, from London to Utrecht.

While the Bank has been working on becoming more cost efficient for some time now, the pandemic speeded up the process, due to the drastic changes that it brought about in the banking space. In addition, with rising cases of fraud and defaults in the banking sector, Rabobank is now seriously reviewing its organisation.

Teams devoted to trade finance will continue to be available for clients in Utrecht, Singapore, Hong Kong, New York, São Paulo, Buenos Aires and Nairobi. The Bank is committed to helping its clients in smoothly transitioning to other financial solutions without being adversely affected or inconvenienced in any way.

In November 2020, Dutch bank ABN Amro had revealed its intention to slay about 3,000 jobs by 2024, opting to restrict its global exposure to northwest Europe only.

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will begin outsourcing information technology (IT) work to Dell, Aprin onwards. However, this will result in about 600 Boeing employees losing their jobs. Over the next couple of year, the Company will also work on bringing down its office and factory space by over five million square feet and shift a significant part of its workforce to the remote-working mode. It will also now focus more on advancing its digital transformation.

About 10 per cent of the Company’s workforce will be asked to leave, as Boeing will outsource work pertaining to cloud services support, IT and databases. The maximum brunt of layoffs will be faced by the staff in the Puget Sound region, St. Louis and Charleston, South Carolina.

The employees who will be impacted will either have be laid off, or assigned to other departments within the Company or seek employment with Dell. However, finding jobs elsewhere within Boeing will not be easy, as the Company has already slashed about 20,000 jobs in 2020, and plans to eliminate about 11,000 more this year. Also, a majority of these employees are not part of any union.

The Company has been working towards creating a leaner organisation for some time now and the coronavirus outbreak only made it implement its plans faster.

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These job cuts will help the Company attain some level of stability. While some employees will be asked to stop working w.e.f from end of January, some will work till March 2021. The full-time staff will be given severance of two weeks’ pay for each year of their tenure, up to a maximum of 52 weeks of pay and a minimum of three months’ pay, for staff who have served for less than year. Health insurance for three months and outplacement service will also be provided.

The media industry in the US reportedly witnessed over 30,000 job cuts in 2020.

Meanwhile, in Denmark and Britain, Vestas, the wind-turbine manufacturing company, is reducing its staff to integrate its onshore and offshore operations. It will lay off about 220 people.

In October 2020, the Company had revealed its plan to take full ownership of its joint venture with Mitsubishi Heavy Industries as part of a $838 million deal to accelerate growth in offshore wind.

In Israel, McAfee is slashing about 60 jobs as it gears to shut down its Israeli development centre. The platform-security company, headquartered in San Jose, will move its Israeli operations overseas to cut costs. In order to do this, it will let go about 60 employees from the R&D department and about 10 from the sales team of its Tel Aviv centre.

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The French food company is expected to save $ 1.19 billion by 2023. A part of this amount will be reinvested in its growth plan and the rest will go towards securing margin expansion.

This move will redirect the French food giant to the profit trajectory path by the second half of 2021. It is expected to recover its pre-Covid profit margin in two years’ time. Danone is also expected to reach the three to five per cent profit margin in its mid-term growth target.

The Company’s shift from a category-led to a local organisational model, will be gradually implemented in 2021 with 1500-2000 job cuts, globally. At least one in four jobs in its global headquarters will be cut. These job cuts amount to two per cent of its total workforce.

Danone started with a sustainability approach in the beginning of 2020, and is now changing to address its internal management shortcomings.

The Company is willing to move its headquarters closer to its French base in Paris. This will help it revive its European dairy division and cope with the losses in its bottled water division, with the pandemic forcing restaurants to close their shutters.

Abandoning its layered hierarchy, Danone is looking at giving more authority to local management.

Its operating margin is expected to exceed 15 per cent by 2022, as the investors and the Company itself adapt to the major changes.

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Clearly, at least 7,400 employees will be rendered jobless by 2023. The shares of the Company have already fallen by over seven per cent this year, and there seems to be no sign of recovery any time soon.

These layoffs are a part of its strategy to reduce debt and finance its restructuring plans. Last year, the Company sold its elevators business for over €17 billion, to try and stabilise its financial situation.

While employees’ unions are trying to acquire support from the government, Thyssenkrupp is on the lookout for partners to help revive its steel business. British company, Liberty Steel is one of the companies that has come forward to partner with Thyssenkrupp. Swedish company, SSAB as well as Tata Steel have also been in talks for a possible partnership. However,

There have also been discussions with Sweden’s SSAB and India’s Tata Steel. A merger with Tata Steel did not work out last year when ant-trust regulators of the European Union posed some hurdle. .

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ING, which is Netherland’s leading bank, employs about 53,000 people across 40 nations. It now plans to focus on core clients and simplify operations geographically.

Globally, ESPN has about 6,000 employees, of which 4,000 are working out of its headquarters in Bristol, Connecticut, in the US. With live sports events being cancelled for a long time due to the pandemic, 2020 has been a bad year for sports television, in general. The Company realises the need to focus on direct-to-consumer business strategy, digital, and invent new and advanced television experiences.

Back in July, Nike had first disclosed its plan to cut a minimum of 500 jobs and also shut its childcare centres, which had impacted about 192 staff members. Recently, it revealed that it would actually ask about 700 employees to leave by sending them a direct notification, as they are not part of any labour union.

These layoffs are part of Nike’s efforts to restructure and streamline processes, focussing more on the direct-to-consumer channels. The boost being given to e-commerce under its ‘consumer direct acceleration’ programme is going to empower Nike digitally. The objective is to make the Company lean, nimble and ready for the future marketplace. Nike will reinvest in the areas of high potential, and the restructuring and realignment will result in some amount of job cuts. Any costs that may be saved will be poured back in the areas being prioritised.

As for Nike’s operations in India, it is not clear whether its corporate office will continue to function or whether all work will be shifted to Singapore. Already 35 per cent of Nike stores were shut in India four years ago. In 2019, Nike had less than 150 stores in the country. At that time, it had let go quite a few of its employees and absorbed a few in its offices in Southeast Asia.

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This round of cuts in the US will mainly impact the management offices in Houston.

At the end of last year, the Company had about 88,300 employees, which included 13,300 contractors as well.

The Company lost almost $1.7 billion in the first six months of this year, and its losses in the third quarter may touch about $1.9 billion.

The layoffs are part of the Company’s attempts to reorganise, reduce costs and improve efficiency. The move is expected to enhance the Company’s competitiveness in the longer run and help it tide over the current crisis.

Last week, BP had also revealed its plan to slash about 7,500 employees after about 2,500 employees opted for voluntary severance. The British oil major had announced in June that it would do away with almost 15 per cent of its 70,000-strong workforce as part of an exercise to reduce costs and ‘reinvent’.

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