Companies Laying Off Mass Numbers of Employees
Major economic impacts have caused numerous companies to undergo mass layoffs. This phenomenon has become increasingly prevalent during the pandemic, which has wreaked havoc on the global economy. Mass layoffs, often referred to as downsizing or rightsizing, are a common strategy for companies looking to cut costs and streamline operations.
Unfortunately, many companies are currently struggling to stay afloat and are being forced to lay off a significant number of employees. These layoffs are affecting not only the workers themselves but also the communities where they live and work.
In addition to the economic challenges presented by the pandemic, many companies are facing increased competition, evolving industries, and changing consumer preferences. These factors may force companies to restructure their operations or scale back their workforce.
The ramifications of mass layoffs are far-reaching and can be felt throughout the global economy. In some cases, these layoffs may lead to additional job losses and lower consumer spending. Companies undergoing mass layoffs may also face reputational damage and decreased employee morale.
Despite the challenges brought on by mass layoffs, some companies have managed to adapt and remain successful in these turbulent times. The following list details some of the major companies currently undergoing mass layoffs and the potential implications of these job losses.
Tyson is one of the biggest meat processing companies in the country, but even they are struggling to stay afloat right now. At the end of April 2023, Tyson announced that they would be cutting roughly 25% across corporate and senior roles with the company, but they made no mention of how many employees that would be.
When announcing the cuts to jobs, Tyson CEO Donnie King said, "While we have made progress on our strategy, fully realizing the opportunity ahead requires continuing to align our business and our priorities to enable long-term success of the enterprise." According to the most recent earning reports, Tyson saw a 70% drop in earnings from last year.
Walmart is a major retailer that sells (usually affordably) basically anything a person could possibly need. However, leadership from the company warned that the year ahead will be a tough one for the company. In April of 2023, it was announced that Walmart would be laying off more than 2000 workers.
These workers come from around the country, but all work at warehouses that Walmart uses to fulfill their online orders. According to Walmart, this was done to "better prepare for the future needs of customers," which sounds like business speak for announcing that their online presence isn't doing well.
It's been a rough year for Tuesday Morning, and it seems like they just lost the battle to stay in business. The discount merchandise business started the year by announcing mass closures of its stores across the country. Then, at the end of April 2023, the store announced they were going out of business and that all stores would be closing down.
While the exact timeline for closures is still unknown, Tuesday Morning has warned customers that their gift cards will stop working by May 13th and that the closures themselves will take place in the weeks following. Roughly 200 Tuesday Morning stores remain in the country at this time.
All sorts of companies have been negatively affected by the recent business downturn, including the financial services behemoth Morgan Stanley. They recently announced plans to cut more than 3,000 jobs by the end of the second quarter of 2023. That accounts for about 5% of the business's workforce.
While the company hasn't made its specific reasons for the layoffs public, the CEO, James Gorman, has recently mentioned that many of the company's main activities, like underwriting and mergers, have slacked off in the past few months, and he doesn't expect them to resurge anytime soon.
Since September of 2022, Gap has been cutting positions across the company in an attempt to save money. As of now, roughly 2000 jobs at Gap have been eliminated, with a majority of the cuts taking place across upper management at their corporate headquarters. The company hopes it will save them more than $300 million.
According to Gap chairman and CEO Bob Martin, Gap is "taking the necessary actions to reshape Gap Inc. for the future — simplifying and optimizing our operating model, elevating creativity, and driving better delivery in every dimension of the customer experience."
The specifics behind the layoffs at weight-loss company Jenny Craig haven't been publicly announced, but it's clear that trouble is on the horizon for this once-popular company. On April 27th, the company announced to its employees that they would be "winding down" the physical Jenny Craig locations in the coming months.
The company went on to announce that it was in the process of finding a buyer and that the sale "will likely impact all employees in some manner." According to the memo obtained by NBC news, the message concluded, saying, "As a result, we would suggest that you anticipate that your employment may be impacted and begin to seek other employment."
The conglomorate 3M is responsible for the creation of so many popular products that it would be near-impossible to list them all. However, some of their biggest sellers include Post-It Notes and Scotch Tape. Despite being a massive business, 3M has fallen on hard times to and has announced more than 6,000 layoffs this year.
According to the company's CEO, Mike Roman, the layoffs will affect roughly 10% of 3M's workforce and save around $800 million dollars for the company. This second round of layoffs in 2023 comes on the heels of a January announcement cutting around 2500 jobs in the company's manufacturing division.
In early 2023, Lyft got a new CEO and, since taking the position, he's made some ruthless cuts in an attempt to make the company more profitable. At the end of April 2023, Lyft announced that they would be cutting a little over 1,000 jobs in the company's corporate division, which equates to roughly 26% of the company.
In addition to layoffs, Lyft has also scaled back on its hiring and has stopped looking for employees in 250 open positions. According to a release from a Lyft spokesman, "[The CEO] has made clear to the company that his focus is on creating a great and affordable experience for riders and improving drivers' earnings."
Whole Foods is famous for its wide array of natural and healthy (and overpriced!) grocery goods, but recently, the company has found itself in a little bit of financial trouble. While major layoffs for grocery store workers don't seem to be on the table at this point, the same can't be said for Whole Foods' corporate employees.
According to a recent announcement from the company, Whole Foods will soon be laying off "several hundred" workers in the business's corporate division. While they did not give a specific number of cuts, they went on to say that the layoffs represent less than .5% of employees.
While BuzzFeed might be most famous for its pointless, nonsensical lists and quizzes, they actually had a news department at one point—"had" being the key word in that sentence. On April 20th, 2023, the internet giant announced that the company would be shuttering the BuzzFeed News division entirely.
This closure amounted to 180 layoffs, which is roughly 15% of BuzzFeed's entire workforce. In a memo to employees, CEO Jonah Peretti took responsibility for the failure of BuzzFeed News, saying, "I could have managed these changes better as the CEO of this company and our leadership team could have performed better despite these circumstances."
Things are definitely not going well for wedding retailer David's Bridal, as they recently announced massive cuts to the company. According to a notice filed in mid-April 2023, David's Bridal has plans to cut almost 10,000 jobs, which is an overwhelming majority of the estimated 12,000 employees the company currently has.
Additionally, the company is in the midst of filing for bankruptcy and finding a buyer, which means that the history of David's Bridal could quickly be coming to an end entirely. The company didn't have much publicly to say, only remarking that "We are evaluating our strategic options and a sale process is underway."
Video game giant Electronic Arts recently announced that about 6% of its staff (or roughly 750 employees) will be let go in the near future. It's anticipated that the layoffs will run at least through 2023, if not longer. The specifics of the layoff are unknown but have to do with making the company more profitable.
In a March 2023 message to employees, CEO Andrew Wilson had this to say: "As we drive greater focus across our portfolio, we are moving away from projects that do not contribute to our strategy, reviewing our real estate footprint, and restructuring some of our teams."
2023 has not been a great year for Amazon employees. In January, the online retailer first announced more than 18,000 layoffs across the company. However, Amazon wasn't done making difficult cuts. In March of 2023, the company announced yet another 9,000 layoffs affecting employees, for a total of more than 27,000 cut jobs.
According to a memo sent to employees by CEO Andy Jassy, most of these cuts would fall on employees working in web services, advertising, and the Twitch platform. He went on to say that the layoff announcements this year were staggered to ensure that the company could do thorough financial analyses.
Sirius XM was, at one point, the radio of the future. However, it seems like even satellite radio might be going the way of the dinosaurs. In March 2023, the company announced that they were cutting about 8% of their workforce, which equates to about 750 employees total.
According to CEO Jennifer Witz, these cuts are not restricted to a particular department but rather will affect "nearly every department" in some way or another. While the CEO's memo was light on specifics, she mentions making these cuts in the name of keeping the company profitable.
In early February, Disney CEO Bob Iger announced that the company would be undergoing massive layoffs. Specifically, he unveiled plans to cut more than 7,000 positions across the company in order to save more than $5 billion in the coming years. The announcement came only a few months after Iger returned to lead the company.
In the memo, Iger said, "While this is necessary to address the challenges we are facing today, I do not make this decision lightly. I have enormous respect and appreciation for the talent and dedication of our employees worldwide and I am mindful of the personal impact of these changes."