The U.S. Job Market: Overview of Recent Layoffs and Job Cuts
The U.S. economy is experiencing significant growth, with hundreds of thousands of jobs being added each month. Despite being saddled with the highest interest rates in two decades, the U.S. Federal Reserve’s attempt to cool down hiring and spending has proven unsuccessful. The nation added a remarkable 353,000 jobs in January, bringing the unemployment rate to a historic low of 3.7%.
However, despite this positive trend in overall job growth, several leading companies across various sectors have implemented significant job cuts in recent months. The impacts of the COVID-19 pandemic, a shifting economy, and the need to reduce costs have influenced the downsizing decisions.
Cuts in the Clothing & Fashion Industry
Nike:
Athletic wear giant Nike aims to trim costs and redirect its savings into its growth areas of sport, health, and wellness. Nike is cutting 2% of its global workforce, approximately 1,600 jobs.
Estee Lauder:
Global beauty company Estee Lauder is downsizing its global workforce by 3% to 5%, affecting up to 3,100 workers.
REI:
Outdoor retailer REI is laying off 357 workers, primarily in its headquarters and distribution centers. The company’s CEO cited a four-quarter decline in outdoor specialty retail and warns of challenging conditions in 2024.
Levi’s:
Denim giant Levi Strauss & Co. announced a restructuring plan, including reducing its global corporate workforce by 10% to 15% in the first half of the year to cut costs and streamline operations.
Job cuts in Gaming Companies
Sony:
Sony plans to cut around 900 jobs, approximately 8% of its global workforce, in its PlayStation division, citing industry changes and future-readiness.
Electronic Arts:
Video game maker Electronic Arts (EA) is implementing a restructuring plan that will result in about 5% of its workforce being laid off. The company will also be closing some offices or facilities.
Microsoft:
Microsoft recently laid off nearly 1,900 employees, around 8% of its gaming division workforce, following its acquisition of video game maker Activision Blizzard.
Riot Games:
Riot Games, developers of the popular “League of Legends” game, will be trimming 11% of its staff, resulting in the elimination of 530 jobs.
Twitch:
In an effort to cut costs, video streaming platform Twitch, owned by Amazon, will be reducing its workforce by more than 500 jobs.
Reductions in Packaging & Delivery Companies
UPS:
UPS is eliminating 12,000 jobs throughout the company, predominantly within management roles and contractors, and may consider the sale of its Coyote truck load brokerage business.
Job Cuts in the Media Industry
Vice:
Vice Media plans to lay off several hundred employees and cease publication on its Vice.com website, further restructuring after its bankruptcy and subsequent acquisition.
Los Angeles Times:
The Los Angeles Times announced a significant reduction, with at least 115 employees, around 20% of its newsroom, losing their jobs. The decision was met with protests and a newsroom union work stoppage.
Reduction in Social Media Companies
Snap:
Social media company Snap, owner of Snapchat, will cut approximately 10% of its worldwide workforce, resulting in around 530 employees losing their jobs.
TikTok:
TikTok is reducing its advertising and sales unit workforce, laying off 60 employees. The company did not provide a specific reason for the cuts.
Job Cuts in the Retail Sector
eBay:
Online retailer eBay Inc. will reduce its full-time workforce by an estimated 9%, approximately 1,000 jobs, citing a deceleration of business growth in a slowing economy.
Wayfair:
Online furniture seller Wayfair is cutting 1,650 jobs, equivalent to 13% of its global workforce, as part of a broader restructuring plan to enhance efficiency and rebuild the company.
Macy’s:
Iconic department store Macy’s announced a laying off about 2,350 employees, which accounts for approximately 3.5% of its total headcount. The company is also closing five locations in different states.
Tech Giants Facing Job Cuts
Cisco:
Networking company Cisco Systems is eliminating over 4,000 jobs, about 5% of its workforce. This comes after previous cutbacks and ahead of its anticipated acquisition of Splunk.
Google:
Google is letting go of hundreds of employees from its hardware, voice assistance, and engineering teams. This decision reflects the company’s commitment to cost reduction.
Amazon:
Audible, the Amazon-owned online audiobook and podcast service, is laying off about 5% of its workforce due to the challenging landscape it faces. Additionally, Amazon’s Prime Video and MGM Studios unit is reducing its workforce as it adjusts its operations.
