Layoffs are continuing across the globe, affecting companies in various sectors. The layoffs that started in the last half of 2023 are not slowing down, according to the April numbers. Some companies are being proactive by laying off staff as a means to give their business a lifeline. As the economic landscape continues to evolve, the effects continue across various sectors. In April 2024, a significant number of companies across the United States, Asia, and Europe announced layoffs, reflecting a trend of workforce reductions that started in 2023. These layoffs span from tech giants to automotive leaders, each with its own set of circumstances leading to difficult decisions.
The April layoffs roundup will give you an overview of what transpired, spotlighting the companies that laid off staff and providing the number of employees affected where these are available.
United States
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Tesla
Tesla was again in the limelight during the month of April when they announced significant layoffs, affecting employees across multiple locations. It is estimated that 2,700 workers at its Austin, Texas factory will be affected. The actual layoffs are envisaged to start in June, as affected staff were notified.
In California, the layoffs are much bigger, with 3,332 jobs expected to be cut. The numbers indicate that California will see the most significant impact of these layoffs between the two states. News reports show that Tesla plans to lay off 6,020 employees in Texas and California. These layoffs form part of Tesla's efforts to address declining demand and decreasing profit margins.
The Tesla layoffs were not without incident, as there were legal challenges. There are lawsuits claiming that the company did not provide sufficient notice to the workers, as required by law. This has been a recurring issue for Tesla, which faced similar claims when it laid off more than 500 employees at its battery factory near Reno, Nevada, in 2022.
Other reports show that Tesla is trimming the company's senior management team.
Related: Layoff Roundup January 2024: Global Perspective
2. Google
Google has recently undertaken a series of layoffs as it seeks to streamline its operations and reduce costs. In a significant move, the tech giant laid off the entire Python team as part of a plan to outsource jobs to less expensive labor markets. The action involves setting up a new team in Munich, Germany, which is expected to serve as a more cost-effective labor force.
3. Boeing
In April 2024, Boeing faced the necessity to adjust its workforce due to ongoing challenges in their space program. The company began laying off employees at the Michoud Assembly Facility in New Orleans East, with the possibility of further job cuts looming. These layoffs have been attributed to delays in NASA's Artemis program, which has experienced a slower launch schedule than initially planned.
Boeing's Space Launch System (SLS) workers were particularly affected, as the company announced plans for job cuts. The announcement came after NASA made adjustments to the Artemis launch schedule, which consequently affected Boeing's SLS rocket program. This has led to reviews and adjustments of staffing levels to align with the updated timeline for the Artemis missions.
On a related note, Boeing's involuntary layoffs began as the company sought to navigate through its restructuring plan. These workforce reductions were part of Boeing's announced strategy last month to adapt to the current economic climate.
Related: Layoff Roundup February 2024: Global Perspective
4. Whirlpool Layoffs
In April 2024, Whirlpool Corporation made the tough decision to eliminate approximately 1,000 salaried positions as part of a global restructuring effort. This move came as the company faced a slowdown in U.S. home purchases, which directly impacted the demand for their appliances. The layoffs represent a significant reduction from Whirlpool's global workforce, which stood at roughly 59,000 employees at the end of 2023.
The layoffs have become a focal point of discussion on Wall Street as Whirlpool navigates through these economic challenges. The job cuts affected various departments within the organization, but the company has not specified which locations or roles were most impacted by the reduction.
5. Bristol–Myers Squibb
Bristol-Myers Squibb, a major player in the pharmaceutical industry, announced that it will be reducing its workforce by 6% in 2024. This equates to roughly 2,200 employees who are expected to be laid off as part of an effort to streamline operations and save $1.5 billion in costs by the end of the next year.
The layoffs are part of a larger restructuring initiative aimed at making the company more "agile," as stated by CEO Chris Boerner. These changes are significant for Bristol-Myers Squibb, which employed approximately 34,100 people before the layoffs.
The company also terminated about 12 drug development programs in addition to the workforce reductions. These combined measures are intended to contribute to the $1.5 billion in cost savings that Bristol-Myers Squibb is targeting.
These layoffs are a reflection of the broader trends in the pharmaceutical industry, where companies are making difficult decisions to adjust to the current market landscape. This includes Bristol-Myers Squibb, which is facing the need to improve efficiency and reduce expenses amid a challenging business environment.
6. Nike
In April 2024, Nike announced layoffs that would result in the elimination of 740 jobs at the company's headquarters. These job cuts are part of a larger three-year plan that Nike previously announced in December 2023, which aims to achieve up to $2 billion in cumulative cost savings. The layoffs are being conducted across two rounds, with the affected positions being primarily located at Nike's Beaverton, Oregon headquarters.
The layoffs are connected to the company's broader strategy and the need to address challenges created by its direct-to-consumer (DTC) focus. The initiative is not only a cost-cutting measure but also a strategic move to reinvest savings in driving growth, innovation, and profitability.
As part of the process, Nike has officially notified state and local officials about the workforce reduction in compliance with the Worker Adjustment and Retraining Notification (WARN) Act. The final phase of the layoffs is expected to be completed by June 28, 2024, as the company continues to adjust its strategy in response to the evolving market.
Related: Global Layoff Roundup: March 2024
7. Google layoffs
In April 2024, Google continued with its restructuring process, which resulted in more layoffs. The company had already made significant job cuts earlier in the year, and this latest round affected around 200 employees from its core team. As part of a cost-cutting strategy, some positions are being moved to countries like India and Mexico, where labor costs are typically lower. Google's layoffs are part of this broader wave, reflecting the industry's ongoing adjustments in response to market demands and strategic shifts (Salesforce Ben).
8. Amazon layoffs
In April 2024, Amazon continued its series of layoffs, which started at the end of 2022 and extended throughout 2023, by cutting several hundred roles in its cloud computing division, Amazon Web Services (AWS). The layoffs were part of a larger restructuring effort within AWS's Sales, Marketing, and Global Services units.
The job cuts at AWS included roles in sales, marketing, and technology development teams and a specific focus on brick-and-mortar technology development. The downsizing at Amazon is part of the company's initiative to cut costs and optimize operations.
9. UPS layoffs
UPS announced significant job cuts in April 2024, stating it would eliminate approximately 12,000 positions. The layoffs are part of the company's effort to "right-size" global staffing and are expected to take place over the next several months. These cuts will primarily affect management and contracted positions and could save the company about $1 billion in costs.
The decision for the layoffs came as UPS contended with low parcel volumes, with the aim of optimizing operations and improving its financial position. This is part of a larger strategy as UPS navigates a soft-demand environment, with executives looking for ways to maintain efficiency during a challenging economic period.
10. BenevolentAI
In April 2024, BenevolentAI announced significant job cuts, laying off approximately 30% of its workforce. This move came as the company decided to close its U.S. office in an effort to slow its cash burn amidst a challenging funding environment. This is the second round of layoffs for BenevolentAI within a year as the company continues to refine its business strategy around AI drug discovery.
11. Pfiza layoffs
In April 2024, Pfizer announced layoffs as part of its cost-cutting measures. Specifically, Pfizer is set to lay off 119 workers with the closure of a manufacturing facility in south Everett. This action is part of a broader reduction of its workforce as the pharmaceutical giant navigates a challenging landscape.
12. CureVac
In April 2024, CureVac, the mRNA vaccine maker, announced a restructuring plan that included the elimination of 150 positions. This decision was made as part of the company's efforts to extend its financial runway in the face of challenging market conditions. The layoffs are a part of CureVac's cost-cutting initiatives as it aims to streamline its operations.
13. Tessera Therapeutics
In April 2024, Tessera Therapeutics, a gene editing company, reduced its workforce by 13% to 14%, affecting "less than 50" current employees. The layoffs at Tessera are part of a broader industry trend as biotech companies adjust their operations and focus resources on clinical advancement and other strategic areas.
14. Fujifilm
Fujifilm Diosynth Biotechnologies, a subsidiary of Fujifilm, announced layoffs that could affect up to 240 employees across various U.S. locations, including College Station, Research Triangle Park, and other sites. This move is part of a restructuring plan aimed to optimize operations, even as the company plans a massive expansion in Holly Springs.
15. Genentech
Genentech announced it would be cutting 436 jobs at its South San Francisco headquarters. This decision is part of a broader layoff trend affecting the biotech industry, with other companies like Sanofi also making substantial workforce reductions. The layoffs at Genentech contribute to a significant number of job cuts in the Bay Area biotech sector.
16. Apple
Apple announced layoffs impacting 614 employees in California following the cancellation of a long-running car project. This significant workforce reduction was confirmed through a state filing, indicating that Apple is reassessing its projects and potentially shifting its strategic focus. The layoffs were part of a broader tech industry trend that has seen many companies resizing their workforce in response to changing market conditions and project realignments
17. Quaker Oat
Quaker Oats Company, a division of PepsiCo, announced the permanent closure of its plant in Danville, Illinois, resulting in the layoff of 510 employees. The decision to shut down the plant, which had been operational for over 65 years, followed a recall in December 2023 due to Salmonella contamination. The closure of the facility is planned for June 8, 2024, marking the end of an era for the company in Danville. Officials have confirmed that the production from the Danville plant will be shifted to other facilities within PepsiCo's manufacturing network.
18. Hartford Public Schools
Hartford Public Schools announced a large-scale reduction in their workforce, which includes the cutting of 387 positions, equating to 11% of their staff members. This decision, driven by increased costs, will impact various roles across the district, including 156 teachers and an equal number of counseling, social work, and administrative jobs.
19. Novartis
Novartis announced a significant reduction in its workforce, planning to cut approximately 680 positions in product development. This includes around 440 jobs in Switzerland and up to 240 roles in the United States. The layoffs are part of the company's broader restructuring efforts.
21. Southwest
Southwest Airlines announced significant operational changes, including the layoff of approximately 2,000 employees and the cessation of services to four airports. This decision was made public after the airline reported a net loss of $231 million in the first quarter of the year despite achieving record revenue. The layoffs and airport closures are part of Southwest's efforts to address financial challenges and operational setbacks, including delays in Boeing aircraft deliveries. The affected airports include locations in the U.S. and one international destination
Layoffs in Europe
1. Novartis
Novartis is set to reduce its workforce in April 2024, cutting up to 680 jobs in its development organization across Switzerland and the U.S. This move is part of the company's global development restructuring efforts.
2. Premier Inn
The UK-based hotel chain announced on April 30, 2024, that it would cut 1,500 jobs. This decision is part of a wider plan to expand its hotel operations, which suggests a significant shift in the company's operational strategy and resource allocation.
Layoffs in Asia
1. Morgan Stanely
Morgan Stanley initiated its largest round of job cuts in years within the Asia-Pacific region. The investment bank began laying off around 50 investment banking jobs, with the majority of the reductions occurring in China, which is the bank's largest market in the region. This move is a result of a slowdown in deal-making activities.
2. HSBC
HSBC also announced job cuts, with plans to eliminate an additional 20 investment banking positions in Asia due to a slump in deals.
Conclusion
These layoffs are symptomatic of a global economy grappling with rapid technological advancements, shifting market dynamics, and geopolitical uncertainties. Companies are being compelled to reassess their operations and workforce needs, leading to difficult decisions that affect thousands of employees worldwide. As businesses strive to adapt to these changes, the trend of layoffs underscores the importance of agility and resilience in the modern economic landscape.