A Total Of 7,000 Disney Employees Will Be Laid Off In 2023

Following major layoffs at Zoom, eBay, Boeing, and Dell-the latest U.S. companies to reduce headcounts due to recession fears into 2023-Disney announced plans Wednesday to lay off as many as 7,000 employees in a massive restructuring plan.

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As part of its efforts to save $5.5 billion by cutting its staff, Disney CEO Bob Iger told a conference call Wednesday afternoon that up to 7,000 employees (roughly 3.2% of the 220,000 employees in the company) could be laid off.

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On February 7th, eBay announced that it would cut 4% of its workforce (500 employees), as part of its efforts to reduce costs “with considerations of [global] growth and efficiency.”

An overview of macroeconomic conditions."

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In a message to employees on February 7, Zoom's CEO Eric Yuan announced plans to eliminate about 15% of the company's workforce amid “uncertainty of the global economy” and as the world transitioned to life post-pandemic. After it tripled its staff before the pandemic, 1,300 positions were cut.

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In a filing to the Securities and Exchange Commission, Atlanta-based cybersecurity company Secureworks announced 9% staff cuts (which would affect about 225 of its nearly 2,500 employees, according to Trade Algo) as it seeks to cut spending at a time when some world economies are uncertain.

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Several news outlets report Boeing plans to reduce 2,000 jobs in finance and human resources this year, but the company promises to hire 10,000 additional workers "with an emphasis on manufacturing and engineering."

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A report published by Dell Technologies, which owns PC maker Dell, said that the company could cut roughly 6,650 employees. In moving beyond earlier cost-cutting measures, Dell Technologies cited "uncertain" market conditions. In addition, analysts noted a drop in personal computer product demand after the pandemic high.

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Several years of over-hiring over the past several years, coupled with macroeconomic realities, led Okta CEO Todd McKinnon to announce plans on Thursday to reduce the staff by 5% (roughly 300 positions).

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As a result of macroeconomic challenges and reduced spending, NetApp, a cloud data company based in San Jose, California, announced plans to lay off 8% of its staff by the end of the fourth fiscal quarter of 2023 (or about 960 employees).

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According to the Boston Globe, DraftKings, an online sports betting company based in Boston, also announced it should cut 3.5% of its global workforce in a cost-cutting move.

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The delivery company announced on February 1 that it will cut 10% of its officer and director staff and consolidate some teams and functions. The move follows the delivery giant's announcement that it was planning a hiring freeze and closing 90 FedEx Offices four months ago. According to CEO Raj Subramaniam, the move was necessary to make FedEx a more efficient and agile company. According to Trade Algo, FedEx employs about 547,000 people.

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According to CEO R.J. Scaringe, Rivian Automotive is reducing its staff by 6%. Just over six months after the company cut another 5% of its roughly 14,000 employees (Rivian declined to respond to Forbes' request for more information). Scaringe said this in an email to employees seen by Reuters.

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PayPal, a provider of online payment services, announced on Tuesday that it will reduce 7% of its global workforce (2,000 full-time positions) due to an "emerging competitive environment" and a "challenging macroeconomic landscape."

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As a result of declining sales and "unprecedented supply chain and inflationary pressures," HarperCollins announced Monday that it would cut 5% of its U.S. and Canada staff. According to the Associated Press, HarperCollins employs about 4,000 people worldwide, with more than half of them based in the United States.

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According to an SEC filing, HubSpot, a software company based in Cambridge, Massachusetts, plans to reduce its workforce by 7% by the end of the first quarter of 2023, as part of a restructuring program. In a recent email to HubSpot staff, CEO Yamini Rangan said the company had a “downward trend” as the company "bloomed" during the Covid-19 pandemic, with a "faster deceleration than we anticipated."

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After the Dutch electronics and medical equipment maker announced losses of $1.7 billion for 2022, Philips said 3,000 jobs would be cut worldwide by 2023 and 6,000 by 2025, according to CEO Roy Jakobs, who said the company was now focusing on improving patient safety and quality control.

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According to CEO Chris Cocks, Hasbro has cut 15% of its global workforce this year, due to a challenging holiday consumer environment, which has been a factor in its revenue dropping 17% over the last year.

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As Dow has responded to "macro uncertainties and challenging energy markets, particularly in Europe," it is planning to cut 2,000 positions worldwide in a cost-saving plan aimed at saving $1 billion. Chief executive Jim Fitterling said Dow faces macro uncertainties and challenging energy markets.

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CFO James Kavanaugh, speaking at IBM's annual shareholder meeting on January 26, said the company would let go of 1.5% of its global workforce, which would affect about 3,900 people.

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During its earnings call announcing its fourth quarter 2022 results on Thursday, SAP said it would lay off 3,000 workers - around 2.5% of its global workforce - without indicating where the cuts would take place. This was part of a cost-cutting effort by the German enterprise software firm that has its U.S. headquarters in Pennsylvania.

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After cutting another 500 positions last August, Groupon cut 500 more positions in its latest round of cuts, as reported in its SEC filing on January 25.

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As part of its efforts to reduce costs and “focus on being a profitable company,” Vacasa, a Portland-based vacation rental management company, announced in an SEC filing three months after it announced plans to cut another 6% of its staff, it would cut 1,300 positions (17% of its staff).

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According to its financial report released in January, 243M, the maker of Post-it Notes and Scotch tape, plans to cut roughly 2,500 manufacturing jobs globally, as well as the number of employees in its headquarters.

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It is estimated that 100 of Gemini's roughly 1,000 employees will be laid off, according to an internal memo seen by Trade Algo, which shows that the currency exchange plans to reduce its workforce by 10%, the latest round of layoffs since it slashed 7% of its staff in July, and another 10% in May last year.

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As of a September 30 filing, Spotify had 9,800 full-time employees and was planning to lay off about 600 of them. As investors continue to digest tech layoffs as positive news for bottom lines, shares of the firm rose over 5% in early trading. In addition, Dawn Ostroff will depart the company as part of the reorganization as a chief content officer.

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The CEO of Alphabet's parent company, Google, has announced plans to cut around 12,000 jobs worldwide. Pichai cited the need to make "tough decisions" in order to "take full advantage" of the huge opportunities ahead.

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This is Wayfair's latest round of job cuts following last August's decision to cut 870 jobs in a move to "eliminate management layers and reorganize to be more agile" amid reduced sales, the Boston-based furniture e-commerce company announced it would cut 10% of its global workforce (1,750 employees), including 1,200 corporate positions.

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An employee of Capital One told Trade Algo that the company cut 1,100 technology positions. Capital One did not confirm how many positions would be cut, but a spokesperson told Forbes they were told to apply for other positions.

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The student loan servicer Nelnet announced Monday that 350 associates have been laid off over the past six months, while another 210 will be laid off for “performance reasons,” Insider reported. Despite legal challenges from conservative groups opposing the President’s student debt forgiveness program, President Biden’s program continues to stall.

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The company announced its cuts three months ago, which affected less than 1% of its approximately 180,000 employees. The cuts affect 10,000 employees (less than 5% of the company's workforce). Satya Nadella told employees that some workers would be notified starting Wednesday, and the layoffs would take place by the end of September, the company's CEO stated in a message.

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According to a message sent to employees by CEO Andy Jassy earlier this month, Amazon, one of the largest companies in the country, is planning to eliminate 18,000 jobs beginning January 18 (including the jobs it cut in November). In recent years, the company has hired "rapidly" and faced an "uncertain economy."

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During a restructuring plan announced in a financial report on Wednesday, Teladoc Health announced in a financial report that 6% of its workforce would be cut—not counting clinicians—as the company attempts to cut operating costs amid a "challenging economic environment."

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As a result of a “challenging economic environment,” LendingClub announced it would lay off 225 employees (roughly 14% of its workforce) in an SEC filing. Following seven rounds of Federal Reserve interest rate hikes last year and fears of a potential recession, the San Francisco-based company is trying to "align its operations to lower marketplace revenue."

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Kris Marszalek announced in a message to employees on January 13 that Crypto.com will cut 20% of its staff. According to PitchBook, the company had more than 2,500 employees as of October. Due to continuing economic headwinds and unforeseeable industry events—including Sam Bankman-Fried's cryptocurrency exchange collapse late last year, which "significantly damaged trust in the industry," the company is facing “ongoing economic headwinds and unforeseeable industry events.”

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The company is planning to cut hundreds of employees, primarily managers, who make up about half of its 10,000 staff, sources told CNBC. In the third quarter of 2022, the Leichtman Research Group estimates that the company lost nearly 3% (400,000) of its subscribers due to an increase in the cost of "securing and distributing programming."

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Approximately 2.5% of BlackRock's headcount will be reduced, according to reports by employees on January 11. Forbes inquired about the company's plans, but the company did not respond right away. According to an internal memo obtained by Trade Algo, CEO Larry Fink, and President Rob Kapito are making the move because of the “uncertainty” surrounding us that necessitates keeping “ahead of market changes.”

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CEOs of Flexport Dave Clark and Ryan Petersen announced plans to cut 20% of the company's global workforce in a memo to employees. According to data from PitchBook, 662 of Flexport's more than 3,300 employees will lose their jobs. In an effort to reduce global macroeconomic risks, the supply chain startup says it is “not immune.”

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According to a company blog post on January 10, Coinbase, one of the largest cryptocurrency exchanges in the U.S., plans to lay off 25% of its workforce (950 employees) in order to "weather market downturns." The exchange laid off another 18% of its staff in June.

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As the investment banking giant prepares for a possible recession, Goldman Sachs could axe 3,200 employees in a round of job cuts that are among the biggest so far in 2023, multiple outlets reported on January 9.

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As part of its announcement in a blog post, Scale AI CEO Alexandr Wang said the company was planning to cut one-fifth of its staff after it grew “rapidly” over the past several years. Wang said the macro environment has changed dramatically in recent quarters.

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After laying off another 15% of its staff last June, founder and interim CEO Katrina Lake announced in an internal memo that Stitch Fix would lay off 20% of its salaried staff and close its Salt Lake City distribution center.

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The Wall Street Journal reports Genesis Trading has cut 30% of its workforce, citing unnamed sources. The firm has lowered its staff to 145 after laying off 30% of its workforce in August.

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According to a company letter sent last week, CEO Marc Benioff announced Salesforce would cut 10% of its workforce, or 7,900 employees, because of a "challenging" economic climate and customers taking "more measured approaches to purchasing decisions."

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It was announced by online video platform Vimeo that it was cutting 11% of its workforce (roughly 150 of its 1,400 employees, based on data from PitchBook), it's the second round of cuts in six months. CEO Anjali Sud blamed a "deterioration of economic conditions" for the decision.

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Key Background

Forbes' layoff tracker found that nearly 125,000 employees were laid off by more than 120 large U.S. companies last year, including tech startups, banks, manufacturers, and online platforms. Around 11,000 employees were laid off by Meta, the parent company of Facebook and Instagram. Over 2,800 workers were laid off in one round of layoffs at Peloton, which has undergone four rounds of cutbacks.

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Surprising Fact

According to the latest government data, the U.S. unemployment rate is hovering near a 54-year low at 3.4%, despite the high-profile layoffs. As the construction, hospitality, and healthcare sectors add to their workforces despite recent cuts in the technology sector, U.S. employment increased by 517,000 in January, nearly tripling economists' expectations.