Layoffs continue across the globe. The layoffs are a reflection of the shifting economic trends. The growth of AI use in the workplace has put pressure on companies to reduce headcount, and as more and more work can be done by artificial intelligence. May, like the previous months, saw a significant number of organizations laying off staff.
1. Citigroup
In May 2024, Citigroup disclosed plans to lay off a portion of its workforce(4500) as part of broader job cuts that the company has been implementing. Citigroup had previously announced in April that it would lay off 430 employees across different divisions in New York. Additionally, it was reported earlier in the year that Citigroup would reduce its workforce by 20,000 employees over the next two years, as stated by CFO Mark Mason after the company reported its financial results. The layoffs are part of Citigroup's continued efforts to streamline operations and cut costs amid pressures in the financial industry. U.S. banking giants, including Citigroup, have been shedding employees to cope with economic pressures and a shift toward digital banking.
Citigroup is in the midst of a significant reorganization, with the goal of reducing its staff by 20,000 by 2026. As of now, the company has laid off or provided layoff notifications to 7,000 employees, moving closer to its stated goal. These job cuts are part of a larger trend affecting the financial sector, where companies are adjusting to market conditions and shifting consumer behavior towards online financial services.
2. Motional
Advertisment
Motional, the autonomous vehicle company, underwent a significant restructuring that resulted in the layoff of about 550 employees. This number represented approximately 40% of the company's workforce at the time of the layoffs. The reduction was part of a strategic restructuring within the company.
Prior to this layoff, Motional employed more than 1,300 people and had already made a 5% cut in its workforce in March 2024. As a result of the restructuring, Motional also announced it would halt its commercial operations, which likely influenced the decision to reduce staff.
The layoffs and restructuring come amid a broader push within the company to focus on technology development, as they have also postponed the deployment of their robotaxi service with ride-hailing firms until a later date, pushing the next-gen driverless robotaxi launch to 2026. These strategic moves are indicative of the challenges faced in the autonomous vehicle industry and reflect the company's shift in focus toward long-term goals and technology refinement.
3. Indeed
Indeed, the career site announced layoffs that affected roughly 8% of its staff, which equates to approximately 1,000 employees. This decision was communicated in a letter shared with employees and comes as a substantial reduction in the company's workforce. The layoffs were part of Indeed's efforts to simplify its organization amidst a challenging job market. This followed a larger layoff in March 2023, when Indeed let go of some 2,200 people to cut costs. Indeed's CEO, Chris Hyams, expressed that it was a difficult decision to reduce their headcount through these layoffs.
4. TSB Banking Group
In May 2024, TSB Banking Group, owned by Spain's Sabadell, announced a significant reduction in its workforce and branch network. Specifically, the bank is seeking to cut 250 jobs and plans to close 36 branches. The job cuts were announced on Wednesday, May 8, 2024, and have been branded as a "grave mistake" by the employee union Unite, which is urging TSB to reconsider its plan to close bank branches.
The decision to reduce the number of branches and associated job cuts is driven by a cost-cutting initiative and the bank's strategic shift towards digital services. The banking group indicated that the job cuts would primarily affect the fraud operations department. This move follows the broader banking industry trend of reducing physical branches as more customers adopt online banking services.
Moreover, the full list of TSB branches set to close later in the year has been published, highlighting the extent of the closures across different locations. The bank has stated that 96 percent of all TSB transactions are now conducted digitally, which has influenced their decision to reduce the branch network.
5. Vacasa
In May 2024, Vacasa, the vacation rental management company, announced significant layoffs as part of a restructuring effort. The company laid off 800 employees, which corresponds to 13% of its workforce. The layoffs included a substantial portion of its corporate and central operations staff, specifically 40%, and also affected 6% of its field employees. This restructuring comes amidst a period of turbulence for the company. It marks Vacasa's second round of job cuts in the year, following a previous layoff that affected approximately 5% of its overall workforce earlier in the year.
These moves are seen as an effort by Vacasa to navigate financial challenges and reverse the losses it has faced in recent quarters. The company, which has been publicly traded since its merger with SPAC, has disclosed significant losses in its financial statements, leading to a series of restructuring measures. The focus on restructuring and cost-cutting indicates that Vacasa is in for "another difficult year" as it tries to stabilize its operations and financial position.
6. Guild
Guild, an online worker training platform based in Denver, made a substantial reduction in its workforce, laying off 300 employees, which amounted to about 25% of its total staff. The layoffs occurred a year after the company had previously cut 12% of its workforce.
The move was part of a significant downsizing by the education technology company and reflects the challenging conditions in the tech sector, which has seen a wave of layoffs across various companies. The layoffs at Guild are part of a broader trend of job reductions in the industry as companies adapt to changing market dynamics and economic pressures.
7. Telstra
Telstra, Australia's largest telecommunications provider, announced that it would be slashing 2,800 jobs, which represents 9 percent of its workforce. The job cuts are primarily focused on its Enterprise division, and it was reported that 377 roles were already in consultation for redundancy.
The majority of the job reductions at Telstra are expected to be finalized by the end of 2024. The move is part of the company's cost-cutting measures in response to rapid technological advancements and increased market competition.
Telstra's chief executive, Vicki Brady, described the layoffs as a necessary step in ensuring the company's sustainability in the face of a changing telecommunications landscape. The restructuring plans are also aligned with Telstra's strategy to stop its traditional annual inflation-linked price adjustments.
8. Lucid Group
Lucid Group, an electric vehicle manufacturer, announced a layoff round that will cut 6% of its staff, equating to approximately 400 jobs. The company filed this plan with the Securities and Exchange Commission and attributed the layoffs to a restructuring plan aimed at reducing costs amid lowered demand for electric vehicles.
The layoffs are part of Lucid Group's cost-cutting measures and follow a string of price cuts and softening demand in the electric vehicle market. This workforce reduction represents a significant move by Lucid Motors to improve efficiency and adjust to the current economic climate within the EV industry.
These job cuts at Lucid Motors reflect the broader challenges facing the electric vehicle sector, including the need for companies to remain agile and financially sustainable in a rapidly changing market. The layoffs are a clear indication that even businesses in high-growth industries are not immune to economic pressures and the necessity to reassess their operations and workforce periodically.
9. Takeda
Takeda announced a significant reduction in its workforce as part of a company-wide restructuring campaign, with plans to lay off 641 employees at two of its Massachusetts sites. These layoffs are scheduled to begin in July 2024 and continue until March 2025.
The company has stated that these "difficult choices" are necessary, and the restructuring includes a financial overhaul that aims to simplify how its departments function and improve overall efficiency. The downsizing is part of a multi-year efficiency program that Takeda has initiated to manage costs, which includes cutting back on spending and reprioritizing research.
10. Campbell Soup
Campbell Soup announced layoffs that will affect 415 employees as part of its restructuring efforts. The company plans to close its Tualatin, Oregon, facility, which produces organic soup, broth, and plant-based beverages under the Pacific brand. This closure is expected to result in the loss of all 330 jobs at the plant by July 2026, with the layoffs occurring in phases starting with an impact on 120 employees in August 2024.
The decision to close the Oregon facility and lay off workers is part of a broader initiative by Campbell Soup to optimize its manufacturing network and implement cost-cutting measures to support its growth plan. The company is also downsizing its operations in Indiana as part of the same restructuring plan.
11. TikTok
TikTok began a round of layoffs that affected its operations and marketing departments. According to internal sources briefed on the plans, the layoffs are part of a larger reorganization within the company, and some laid-off employees estimated that at least 150 staffers were cut globally.
The job cuts are expected to impact around 1,000 positions across the company's global workforce and will affect various departments including content, operations, and marketing. The layoffs come amid a broader trend of workforce reductions in the tech industry as companies aim to reduce costs and streamline their operations .
12. Pixar Animation Studios
Pixar Animation Studios began laying off approximately 14% of its workforce, which amounts to about 175 employees. These layoffs are part of a broader directive by Disney CEO Bob Iger to focus on the quality rather than the quantity of content. As a result, Pixar will shift its focus back to theatrical releases and move away from creating short-form series for Disney+.
This move represents the largest restructuring in the company's history as owned by Disney, reflecting the changing priorities and strategic direction for the storied animation studio. The decision to reduce the workforce is also seen as a part of Disney's aggressive cost-cutting measures across its various divisions.
13. Foursquare
Foursquare implemented a significant workforce reduction by laying off 105 employees, which is approximately 25% of its total staff. This move was part of the company's efforts to streamline operations and achieve financial sustainability. The layoffs are not the first to hit Foursquare, indicating ongoing adjustments within the company as it navigates the competitive landscape of location-based services.
14. SeekOut
SeekOut, a recruiting startup last valued at $1.2 billion, laid off approximately 30% of its workforce. This round of layoffs is the second in less than a year for the company, following a 7% reduction in staff that occurred in October of the previous year. The layoffs are part of a broader effort by SeekOut to shore up its financial position in the face of economic pressures and a challenging market environment for tech giants and startups alike.
15. Cue Health
Cue Health, a company once valued at $2.3 billion, announced it would lay off all its employees and shut down operations. This drastic measure came as the company faced declining sales of its COVID-19 tests. The layoffs included nearly half of its staff, with 230 employees initially planned to be cut. The company had previously notified 49% of its workers on May 1 that they would be laid off effective July 1. However, the situation escalated, and Cue Health decided to close operations entirely as of May 24.
The closure of Cue Health and the layoff of all employees is a significant event in the medtech industry, reflecting the challenges faced by companies that surged during the pandemic but are now adjusting to a post-pandemic market. The company reported having 726 full-time employees at the end of 2023 but had reduced that number to 479 by the end of January 2024 in an earlier attempt to save costs.
16. Luminar Technologies
Luminar Technologies, a company specializing in developing lidar sensors for autonomous vehicles, announced it would be laying off 20% of its workforce. This decision is part of a restructuring plan aiming to reduce costs as the company shifts towards an "asset-light" business model and leans more heavily on its contract manufacturing partner.
This round of layoffs is a part of Luminar's efforts to conserve cash and streamline its operations in a highly competitive sector. The move to outsource more of its industrialization processes is also indicative of Luminar's efforts to scale production efficiently.
The restructuring and layoffs are a significant step for Luminar as it navigates the challenges of the evolving automotive technology landscape, and they reflect broader industry trends where companies are reassessing their strategies in light of economic pressures and the need for operational efficiency.
Conclusion
May 2024 witnessed a significant wave of layoffs across various sectors, reflecting the ongoing volatility and restructuring within the tech and medtech industries. Companies like Foursquare, SeekOut, Cue Health, and Luminar Technologies have all announced substantial cuts to their workforce, each for reasons tied to financial sustainability, market adjustments, and strategic realignments.
These layoffs are indicative of broader industry trends, where companies are looking to reduce costs, conserve cash, and adapt to post-pandemic economic realities. The layoffs in May highlight the challenging environment for tech and medtech companies as they navigate through a period of economic uncertainty and transition. The impact of these layoffs is not only felt by the employees and their families but also has broader implications for the economy and the future of work in the tech industry.
