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A wave of layoffs is sweeping the US 2022

Views: 19     Author: Site Editor     Publish Time: 2022-11-14      Origin: Site

A wave of layoffs is sweeping the US 2022

Disney announces layoffs and cutbacks to reduce costs

According to a number of U.S. media reports, on the 11th of local time, the U.S. Disney Company announced that it will take measures such as suspending recruitment and making layoffs. The company said it hopes to use this to control costs and aim to achieve profitability in fiscal year 2024.


The company's chief executive officer Cha Peck 11 issued the same day an internal memo shows that Disney is targeted to suspend hiring plans, as a way to limit the number of new employees, in addition to a few of the most critical, to drive business development positions will continue to recruit, other positions are suspended recruitment. According to statistics, Disney currently employs about 190,000 people.


The memo also shows that Disney is reviewing sales and administrative costs and plans to lay off some employees. Business travel will be limited in the short term, and work meetings will be conducted via online methods whenever possible. The company will also establish a task force to ensure the implementation of cost control measures. 


Disney's revenue position has fallen short of expectations due to continued high inflation. In the fourth fiscal quarter of 2022, which ended in September, the company's streaming business lost $1.47 billion, or about 10.45 billion yuan, a figure more than double the loss in the same period last year. After the company announced its earnings report on Nov. 9, the stock price fell more than 13%, hitting a new 52-week low. 


It is understood that, in addition to Disney, other large media and entertainment companies in the U.S. this year, including Warner Bros. Quest and Nifty, have made multiple rounds of layoffs because of the sharp drop in valuation.



Wave of layoffs at U.S. technology companies

Since this year, Amazon, Apple, Intel, Twitter and other technology companies have announced a hiring freeze or open layoffs, according to Bloomberg, the United States in October layoff announcements up to 48% year-on-year, more layoffs "are on the way".


Twitter has launched a massive layoff process, which could result in about 3,700 layoffs, accounting for half of its total workforce. Twitter also said that the Twitter offices in San Francisco, U.S., and London, U.K., will be closed, and after the offices are closed, access to any access cards and other documents will be suspended to ensure the security of each employee as well as the Twitter system and customer data.


No coincidence. On November 3, local time, Amazon, the world's largest online retailer, announced that the company has decided to suspend hiring new employees due to the deteriorating macroeconomic outlook. Early last month, the company only just announced that it would freeze hiring for its retail business.


In late October, Intel CEO Pat Kissinger said in an interview that Intel would begin targeted layoffs and make other adjustments, including reducing factory hours, in response to the economic downturn.


A little earlier, Microsoft announced that it would lay off no more than 1,000 employees company-wide, involving a number of departments such as Xbox, strategic missions and technology organizations, while in July this year, Microsoft had said it planned to cut 1 percent of its more than 200,000 employees.


Another technology giant Google also rumored the news of layoffs. According to people familiar with the matter, half of the employees of Google's startup incubator Area120, they need to find other jobs within the company within 90 days.


Earlier, Sundar Pichai, CEO of Google parent company Alphabet, had said he would slow down hiring for the rest of the year and wanted to increase the company's productivity by 20 percent.


On Nov. 3, local time, Bloomberg reported that Apple has now suspended hiring for many positions other than in its research and development division, a move that is a further escalation of a plan aimed at trimming its budget for next year.


U.S. online ride-hailing company Lyft announced it will lay off 13 percent of its workforce in a wider cost-saving effort, after having cut 2 percent of its workforce and frozen hiring this summer.


Seagate, the world's largest computer hard drive maker, also plans to lay off about 3,000 employees worldwide, or 8 percent of its global workforce, and expects to save about $110 million annually starting this fiscal year.


A big wave of layoffs is coming, and even the formerly wealthy tech giants are saying they can't carry it.



The wave of layoffs has swept to Wall Street

At present, the wave of layoffs has begun to sweep to Wall Street. Citibank plans to cut about 50 trading jobs this week, CNBC reported on the 9th. Citi is also cutting dozens of positions in its investment banking division due to a slowdown in M&A activity, Bloomberg reported earlier. 


London-based Barclays is also cutting about 200 jobs in its investment banking and trading divisions this week. U.S. bank Morgan Stanley is also mulling job cuts.


On Nov. 10, local time, the U.S. Department of Labor released data showing that the U.S. Consumer Price Index (CPI) rose 0.4 percent in October this year from a year earlier and 7.7 percent from a year earlier. Some economists analysis, although the data show that the U.S. inflation situation has improved, but there is still a long way to go to return to normal, the Federal Reserve in the process of controlling inflation, how to make decisions, will have a huge impact on the U.S. and global economy.

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