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Tag: Layoffs

  • Amazon Layoffs 2025: 30,000 Corporate Jobs to be Cut in Major Restructuring Move

    According to various media reports, Amazon plans to lay off up to 30,000 corporate employees starting on October 28 in order to reduce costs and make up for hiring too many staff during the pandemic’s peak demand. The number is close to 10% of Amazon’s around 350,000 corporate employees, although it only makes up a small portion of the company’s 1.55 million total workforce.

    This would be Amazon’s biggest layoff since it began laying off over 27,000 employees in late 2022. Over the past two years, Amazon has reduced the number of employees across a number of businesses, including podcasts, devices, and communications. A number of divisions might be impacted by the layoffs that start this week, including operations, devices and services; Amazon Web Services; and human resources, often known as People Experience and Technology, or PXT.

    Amazon CEO Calling the Move ‘Excess of Bureaucracy’

    Andy Jassy, the CEO of Amazon, is taking steps to cut back on what he has called too much bureaucracy, including by laying off managers. Earlier this year, he added, he set up an anonymous complaint line to find inefficiencies, which has resulted in almost 1,500 responses and more than 450 process modifications. In June, Jassy predicted that more job losses would probably result from the growing usage of AI tools, especially when it comes to automating repetitive and routine jobs. It wasn’t immediately clear how many jobs would be cut in this round.

     According to those with knowledge of the situation, the figure may fluctuate over time as Amazon’s financial priorities alter. According to a previous Fortune story, a 15% reduction might be applied to the human resources department. It wasn’t immediately clear how many jobs would be cut in this round. According to those with knowledge of the situation, the figure may fluctuate over time as Amazon’s financial priorities alter.

    As per previous Fortune story, a 15% reduction might be applied to the human resources department. Another reason for the severity of the layoffs, according to two of the sources, is that a programme that was started early this year to get workers back to work five days a week—one of the strictest in the tech industry—has not produced enough attrition. Because they reside far from the business’s headquarters or for other reasons, some employees who don’t swipe in every day are being told they have voluntarily left Amazon and must go without severance pay, which saves the company money.

    Layoffs a New Trend in Tech Sector: Layoffs.fyi

    According to a website that tracks tech job cuts, Layoffs.fyi, 216 companies have shed roughly 98,000 workers so far this year. It came to 153,000 for the entire year 2024. AWS, the cloud computing division of Amazon, announced second-quarter revenues of $30.9 billion, a 17.5% increase that was far less than the 39% and 32% gains for Microsoft’s Azure and Alphabet’s Google Cloud, respectively.

    AWS’s third-quarter revenues are expected to have increased by roughly 18% to $32 billion, which is a modest slowdown from the 19% increase in the previous year. Many of the most well-known online applications, including Snapchat and Venmo, were taken offline during a 15-hour internet outage last week, leaving AWS still in shock.

    It looks like Amazon is anticipating another strong holiday shopping season. Like in the previous two years, it intends to provide 250,000 seasonal jobs to assist in staffing warehouses and other needs.

    Quick Shots

    •Amazon to lay off up to 30,000 corporate employees
    starting October 28, 2025.

    •Represents about 10% of its 350,000 corporate staff
    but a small share of its 1.55 million total workforce.

    •Marks Amazon’s largest layoff since 2022, when
    27,000 employees were cut.

    •Amazon aims at reducing costs and correcting
    over-hiring during pandemic demand surge.

  • Indian-Origin Startup Offers Jobs to Laid-Off Meta Employees, Salaries Up to INR 5.2 Crore

    Tech giants and startups are filling the void left by Meta’s announcement that it will lay off 600 workers from its AI business. Among them is Sudarshan Kamath, an Indian entrepreneur and the creator of Smallest AI. The US-based businessman said on X that his organisation will appoint former Meta staff members to its San Francisco-based speaking team.

    He stated in the post that Meta had laid him off. “We are hiring in speech team for Smallest AI in San Francisco!” According to Kamath, the positions offer flexible equity options in addition to basic salaries that range from $200,000 (INR 1.75 crore) to $600,000 (INR 5.26 crore) annually. Selected personnel are likely to make more than half a million dollars annually with such appealing base salary, bringing the remuneration comparable to that of larger software organisations.

    Eligibility

    Candidates must fulfil certain requirements. In his posting, Kamath described the requirements, saying that he was seeking experience in speech evaluations, speech generation, full duplex speech-to-speech, etc. It must be both intelligent and hungry. “DM me.” In an effort to increase the agility of its AI section, Meta is laying off over 600 employees from its Superintelligence Labs. According to news agency Reuters, the layoffs impact teams in Facebook Artificial Intelligence Research (FAIR), product-focused AI units, and AI infrastructure organisations.

    There will be no impact on the recently established TBD Lab, which employs a few dozen engineers and researchers developing next-generation foundation models. According to Chief AI Officer Alexandr Wang, the change will increase the accountability and influence of each remaining function while streamlining decision-making. Additionally, the organisation is urging impacted workers to look for other roles within Meta.

    Meta’s Mega AI Mission

    To support its largest data centre project to date, Meta recently secured a $27 billion financing transaction with Blue Owl Capital, its largest private capital agreement to date. According to analysts, the agreement transfers a large portion of the risk and expense to outside investors while enabling Meta to pursue its AI objectives.

    Following the departure of top workers and a lacklustre reception to its open-source Llama 4 model, Meta restructured its AI operations under Superintelligence Labs in June. To bolster the sector, CEO Mark Zuckerberg personally spearheaded a significant hiring drive.

    With an emphasis on creating the company’s next-generation AI models, Superintelligence Labs currently houses Meta’s Foundations, Product, FAIR, and TBD teams. By creating the FAIR unit and hiring Yann LeCun as its top AI scientist, Meta made its initial investments in AI in 2013 and established a global deep learning research network.

    Quick Shots

    •Smallest
    AI, founded by Sudarshan Kamath, offers roles to laid-off Meta AI staff.

    •Salaries
    range from $200,000 to $600,000 (INR 1.75–INR 5.26 crore) with flexible
    equity options.

    •Positions
    open for experts in speech evaluation, speech generation, and full-duplex
    speech-to-speech AI.

    •Over 600 employees cut from Meta’s
    Superintelligence Labs, including FAIR and AI infrastructure teams.

  • Target to Cut 1,000 Jobs as New CEO Blames Excess Management Layers for Slowed Growth

    In an attempt to expedite decision-making and speed efforts to restore the declining discount retailer’s client base, Target said on October 23 that it is laying off roughly 1,800 corporate personnel. According to a corporate representative, the company intends to eliminate roughly 800 open positions and is anticipating sending layoff notices to about 1,000 employees next week.

    According to the spokesman, the majority of the impacted employees are employed at Target’s Minneapolis headquarters, although the layoffs account for around 8% of the company’s corporate personnel worldwide.

    Layoffs Part of New Business Strategy: New CEO

    A statement outlining the downsizing was sent to Target employees on 23 October by Chief Operating Officer Michael Fiddelke, who will take over as CEO on February 1. He encouraged staff members at the Minneapolis headquarters to work from home the following week and stated that more information would be available on October 28.

    In his note, 20-year Target veteran Fiddelke stated that the corporation has been hampered by the complexity it has built up over the years. Decisions have been slowed down by too many layers of overlapping work, which has made it more difficult to realise ideas. Walmart and Amazon have surpassed Target, which has roughly 1,980 locations in the US, in recent years as consumers have reduced their discretionary spending due to inflation.

    Consumers have complained about disorganised stores with goods that don’t match the upscale-looking but low-cost niche that gave the business the mockingly upscale moniker “Tarzhay” in the past.

    Fiddelke’s Three Urgent Priorities to Revive Target’s Business

    Regaining the company’s position as a leader in merchandise selection and display, enhancing the customer experience by ensuring that shelves are regularly stocked and stores are clean, and investing in technology are the three top priorities Fiddelke stated when he was named Target’s next CEO in August.

    In his letter to staff, he listed the same objectives and described the layoffs as a “necessary step in building the future of Target and enabling the progress and growth we all want to see.” One aspect of the task that lies ahead of us, he added, is modifying Target’s structure. In order to improve its retail leadership in style and design and facilitate quicker execution, it will also be necessary to adopt new behaviours and set clearer priorities.

    In nine of the previous eleven quarters, Target has reported flat or declining comparable sales, which include sales from both established physical stores and online outlets. Comparable sales fell 1.9% in the company’s second quarter, which also saw a 21% decline in net income, according to an August report.

    According to a company spokeswoman, Target’s sorting, distribution, and other supply chain workers will not be impacted by the job layoffs, nor will any staff working in its stores. According to the spokeswoman, severance packages and compensation and benefits would be provided to the corporate employees who lose their employment until January 8.

    Quick Shots

    •Target’s
    new CEO cites “too many management layers” slowing growth.

    •About
    1,800 corporate roles affected, including 800 open positions.

    •Most
    layoffs at Minneapolis headquarters; around 8% of global corporate staff.

    •Target’s comparable sales
    declining; net income down 21% in Q2.

  • Meta Lays Off 600 Employees from its AI Unit as Wang Strengthens Leadership

    A spokeswoman confirmed to CNBC on 22 October that Meta will lay off some 600 workers in its artificial intelligence division as part of its efforts to streamline operations and cut layers. Alexandr Wang, the company’s chief AI officer, who was brought on board in June as part of Meta’s $14.3 billion investment in Scale AI, wrote a memo outlining the cuts.

    Employees at the Fundamental Artificial Intelligence Research unit (FAIR), Meta’s AI infrastructure units, and other roles involving products will be affected. According to those familiar with the situation, TBD Labs staff members, including many of the top-tier AI hires recruited into the social network company last summer, were unaffected by the layoffs, CNBC said.

    According to the people, those workers under Wang’s supervision were exempt from the layoffs, highlighting Mark Zuckerberg’s wager on his pricey hires rather than the company’s long-standing staff.

    Why Meta is Opting for Layoffs?

    According to CNBC’s report, teams like FAIR and more product-focused units frequently competed for computing resources, making Meta’s AI section appear fat. They claimed that the company’s enormous Meta AI unit was passed down to the new hires as they joined to establish Superintelligence Labs. The layoffs are part of Meta’s ongoing effort to reduce the department and strengthen Wang’s position as the company’s AI leader.

    In an effort to stay ahead of competitors like OpenAI and Google, Meta has been drastically changing its approach to AI in recent months. The company has been investing billions of dollars in hiring and infrastructure projects. According to the persons, Meta’s Superintelligence Labs now employs just under 3,000 people after the layoffs. On 22 October, Meta informed at least a few workers that they would be terminated on November 21 and that they would be placed in a “non-working notice period” until then.

    The note, which CNBC saw, stated, “Your internal access will be removed during this time, and you do not need to do any additional work for Meta.” “You can look for another position at Meta during this time.” Additionally, the corporation stated that it will give 16 weeks of severance pay plus an additional two weeks for each year of service that has been completed, “minus your notice period.” CEO Mark Zuckerberg had become dissatisfied with Meta’s AI advancements, particularly after developers responded ambivalently to the company’s April release of its Llama 4 models.

    Meta Cutting Down on its Expanses

    Meta raised the low end of its prior estimate during its July second-quarter results call, stating that it anticipates its total expenses for 2025 to fall between $114 billion and $118 billion. Since Meta said that its AI activities will lead to a 2026 year-over-year expense growth rate that is higher than the 2025 expense growth, that number is only anticipated to rise. 

    Zuckerberg announced a new division dubbed Meta Superintelligence Labs, which is composed of leading AI researchers and engineers, after Meta made a significant investment in Scale AI. Wang and former GitHub CEO Nat Friedman are in charge of the organisation. Meta and Blue Owl Capital announced a $27 billion agreement on October 21 to finance and build the gigantic Hyperion data centre in rural Louisiana. In a July post, Zuckerberg stated that the data centre would likely be big enough to occupy a “significant part of the footprint of Manhattan”.

    Quick Shots

    •Meta
    to cut 600 employees from its AI division to streamline operations and reduce
    redundancies.

    •Alexandr
    Wang, Meta’s Chief AI Officer, strengthens leadership as layoffs exempt his
    direct teams.

    •Cuts
    impact FAIR, AI infrastructure teams, and product-focused roles; TBD Labs
    staff largely unaffected.

    •Meta’s
    Superintelligence Labs now employs just under 3,000 people after layoffs.

  • Amazon to Replace 500,000 Jobs with Robots by 2033

    One of the biggest employers in the US, Amazon, is getting ready for a significant change in the way it manages its warehouses. Roughly over the next ten years, the firm plans to replace roughly half a million jobs with robots, according to internal documents and interviews that The New York Times examined.

    With about 1.2 million workers, Amazon’s U.S. workforce has grown quickly, but the company thinks technology might save it from adding more than 160,000 more people by 2027. It is anticipated that the business will save roughly 30 cents for each item it processes. According to executives, Amazon could handle twice as many products by 2033 with robotic systems without having to hire a lot more workers.

    Amazon Planning to Deploy it in its Warehouses

    In warehouses built for lightning-fast deliveries, where robots do the majority of the hard lifting, packing, and transferring of items, the company is exploring this strategy. As an illustration, Amazon’s Shreveport, Louisiana, warehouse is already using about 1,000 robots, which enables it to run with 25% fewer employees than it would require in the absence of automation. By 2027, plans are underway to replicate this strategy in 40 more facilities, including an older building in Stone Mountain, Georgia, and a large warehouse in Virginia Beach.

    At Amazon, robotics are frequently referred to as “cobots” to imply cooperation with people rather than complete replacement. In order to control impressions in communities where employment may be lost, the corporation has also thought about referring to it as “advanced technology” rather than “automation” or “AI” in public conversations.

    Move will Create New Pool of Job Opportunities: Amazon

    According to Amazon, rather than merely replacing current professions, robots are supposed to generate new, better-paying technical occupations like robotics technicians. Over 160 employees at Shreveport are paid at least $24.45 per hour as robotics technicians, while other warehouse workers make about $19.50. To prepare employees for these future positions, the business also offers apprenticeship programmes in mechatronics.

    However, because Amazon warehouses employ a large number of Black workers, experts caution that the shift to robotics could disproportionately damage communities of colour and blue-collar workers. Although the corporation has stated that it does not intend to lay off employees, automation and attrition may eventually result in fewer employees at some sites.

    To put it briefly, Amazon is utilising robots to increase productivity and reduce costs as it moves towards a fully automated future. This raises significant concerns about the future of traditional warehouse work and the people who depend on it, even while it might lead to the creation of new technical positions.

    Quick Shots

    •Amazon
    aims to replace over 500,000 jobs with robots by 2033.

    •“Cobots”
    designed to work alongside humans rather than fully replace them.

    •Amazon
    offers apprenticeships in mechatronics to prepare employees for new roles.

    •Goal is to double warehouse
    processing capacity by 2033 while controlling costs.

  • Goldman Sachs Plans Further Job Cuts as AI Drives Cost Savings

    As the bank seeks to further reduce costs and capitalise on efficiencies brought about by artificial intelligence (AI), Goldman Sachs has reportedly told its employees to anticipate another round of layoffs before the year finishes. According to an internal memo distributed to staff, the New York-based company intends to “constrain headcount growth through the end of the year” and implement a “limited reduction in roles across the firm,” according to Bloomberg.

    According to bank spokesperson Jennifer Zuccarelli, Goldman Sachs anticipates ending the year with a total rise in headcount despite the planned reductions. According to the study, the company had 48,300 workers overall as of the end of September, up roughly 1,800 from the end of the previous year.

    Goldman Sachs’ “OneGS 3.0” strategy

    The bank’s new “OneGS 3.0” strategy was unveiled in the memo, which also hailed the efficiency gains anticipated from AI as a means of achieving even higher growth. Top executives stressed that it would take a “multiyear effort” to integrate AI in areas such as vendor management, regulatory reporting, lending procedures, and client onboarding.

    In the memo, CEO David Solomon, President John Waldron, and CFO Denis Coleman stated that although they are still in the early stages of determining the best areas to implement AI solutions, it has become increasingly evident that their operational efficiency goals must take into account the benefits that these game-changing technologies will bring.

    In addition to retooling their platforms, the executives emphasised that in order for Goldman to “fully benefit from the promise of AI, we need greater speed and agility in all facets of our operations.” The anticipated cut comes after the bank’s regular yearly exercise earlier this year, which resulted in a 700-person decrease in net headcount during the second quarter.

    AI Fear Looms Over the US Market

    The biggest American banks’ remarks regarding AI are similar to those of technological titans like Amazon and Microsoft, whose executives have warned their employees to prepare for AI-related disruptions, such as layoffs and hiring freezes.

    As AI’s underlying models improve and investors reward companies that are considered as leaders in the field, corporations from a variety of industries have been more forthright this year about the potential effects of AI on workers.

    The prevalent belief in banking is that employees in operational positions, often known as the back and middle office, are typically most at risk of losing their jobs due to artificial intelligence. For example, a JPMorgan official informed investors in May that, despite an increase in business volumes, AI will result in a minimum 10% reduction in operations and support personnel over the next five years. Solomon appeared to caution the 48,300 workers of Goldman Sachs that some may find the upcoming years uncomfortable.

    Quick
    Shots

    •Goldman Sachs plans another round of
    layoffs as AI adoption boosts operational efficiency.

    •Internal memo warns staff of “limited
    reduction in roles” before year-end.

    •Total headcount expected to rise
    slightly despite the planned cuts; 48,300 employees as of September.

    •OneGS 3.0 strategy focuses on
    leveraging AI in vendor management, regulatory reporting, lending, and client
    onboarding.

  • Amazon to Slash Up to 15% of HR Staff in Major Layoff Plan

    Amazon is preparing for a significant wave of layoffs once more. According to reports, the firm is planning to lay off up to 15% of the employees in its human resources department, which is internally referred to as the People eXperience and Technology (PXT) team.

    The HR department will be the most severely impacted, according to many individuals Fortune cited, though job losses may also occur in other areas of Amazon’s sizable consumer business. As Amazon invests billions in its cloud and AI activities, the cutbacks are made.

    Building next-generation data centres to support AI infrastructure for internal usage and business clients will account for a large portion of the company’s over $100 billion in capital investments this year.

    Amazon Relying More on AI than Humans

    AI will characterise this new era, and not all employees will make the shift, according to CEO Andy Jassy, who took over from Jeff Bezos in 2021. Jassy encouraged employees to support Amazon’s AI initiative in a June company-wide memo, stating that those who do so, learn about AI, assist Amazon in developing and enhancing its AI capabilities internally, and provide for customers will be in a strong position to make a significant contribution and assist in the company’s transformation.

    However, he cautioned that the corporation anticipates a reduction in its overall staff as a result of the efficiency gains from the widespread use of AI throughout the organisation.

    Amazon Changing its Hiring Strategies

    Amazon has already experienced the biggest layoffs in its history under Jassy’s direction, eliminating almost 27,000 corporate positions between 2022 and 2023. The latest round of cuts is more strategic and linked to a long-term change towards AI-driven operations, whereas those cuts were primarily motivated by post-pandemic overexpansion and shifting consumer habits.

    The irony is not lost on anyone: Amazon is increasing its holiday hiring binge while also getting ready to fire white-collar employees. In order to meet holiday demand, the company recently revealed intentions to hire 250,000 seasonal workers across its logistics network and facilities in the United States. Jassy has established a reputation as a cost-discipline enforcer within the organisation.

    He is renowned for encouraging teams to reach a particular level of “unregretted attrition”, or workers the business is at ease losing through managed exits or resignations. However, according to sources, these upcoming layoffs are not like the usual attrition cycles, suggesting a more extensive structural reorganisation. Amazon’s people operations could be one of the biggest victims of its own transition as it strives to become more effective and AI-focused. The writing may already be on the (data-centre) wall for many people in the PXT division.

    Quick Shots

    •Amazon plans major layoffs,
    potentially affecting up to 15% of HR (PXT) staff.

    •Human Resources (People
    eXperience & Technology) most affected; other areas of consumer business
    may also see cuts.

    •Amazon’s strategic shift towards
    AI-driven operations and efficiency gains.

    •Over $100 billion invested this
    year in AI infrastructure and next-gen data centres.

  • NASA’s Jet Propulsion Lab to Layoff 550 Jobs in Major Restructuring

    NASA’s Jet Propulsion Laboratory (JPL) announced on 12 October that it will reorganise its personnel by laying off around 550 workers, or 10% of its total workforce, in an effort to maintain the facility’s long-term competitiveness. JPL director Dave Gallagher emphasised in a statement that the changes were a part of a larger strategy to restructure the facility and had nothing to do with the present US government shutdown.

    Gallagher stated, “All the while continuing to deliver on our vital work for NASA and the nation, this week’s action is essential to securing JPL’s future by creating a leaner infrastructure, focusing on our core technical capabilities, maintaining fiscal discipline, and positioning us to compete in the evolving space ecosystem,” according to NBC News. Technical, business, and support positions throughout the Pasadena-based facility will be impacted by the layoffs. This week, each employee will receive a unique status update.

    US Administration facing Financial Crunch and Political Headwinds

    However, the centre faces political and budgetary challenges, just like NASA as a whole. As part of a larger federal effort to reduce the size of the government workforce, the agency has maintained budget and staffing cuts in recent years. For many years, the Jet Propulsion Laboratory, which is run by the California Institute of Technology and receives federal funding from NASA, has been essential to US space exploration.

    It developed, constructed, and managed all five of the rovers that made a successful landing on Mars in addition to building the country’s first satellite, Explorer 1, which was launched in 1958. Since Donald Trump assumed office, around 4,000 NASA employees have already left the agency on deferred resignation plans, according to Reuters, reducing the agency’s 18,000-person workforce by nearly one-fifth. In a fresh round of layoffs announced in July, almost 2,000 senior-level employees were targeted for termination.

    Trump Office Laying Off Above 4000 Federal Employees

    NASA was not specifically mentioned in the wave of over 4,000 federal employees laid off by the Trump administration last week amid the protracted government shutdown, which also affected agencies including Treasury and Health and Human Services. The magnitude of JPL’s layoffs demonstrates the conflict between the need for scientific advancement and budgetary restraint.

    The loss of hundreds of highly qualified employees could make project schedules and capabilities more difficult, even though the lab is working on future missions, such as Earth science study and planetary exploration. According to Gallagher, the lab is still dedicated to providing for the public and NASA. He declared, “We are sure that this realignment will improve our capacity to support the country’s leadership in space science and exploration.”

    Quick Shots

    •NASA’s
    Jet Propulsion Laboratory (JPL) to cut 550 jobs, around 10% of workforce.

    •Organizational
    restructuring to ensure long-term competitiveness and fiscal discipline.

    •Technical,
    business, and support positions at Pasadena-based facility.

    •Director Dave Gallagher emphasizes
    focus on core capabilities and leaner infrastructure.

  • TCS Raises Variable Pay for Senior Employees, Retains 100% Bonus for Juniors

    Following the release of the company’s second-quarter results, Chief Human Resources Officer Sudeep Kunnumal stated that Tata Consultancy Services (TCS) would increase variable compensation for senior personnel while maintaining its 100% quarterly incentives for younger people, according to the Press Trust of India. In addition to yearly pay increases, Kunnumal affirmed that workers in grades C, C1, and C2 will continue to receive their full Quarterly Variable Allowance (QVA).

    According to him, the updated policy is to compensate senior executives according to their individual and unit success, with total rewards being more than those of the previous year. In essence, it covers everyone who has worked for the company and is eligible for the quarterly bonus, with the possible exception of recent hires, Kunnumal told PTI. The business has been paying 100% at the junior level and will keep doing so. TCS will pay seniors more, once more depending on their performance as individuals and as a team.

    Why TCS Decided to Deploy this Move?

    Kunnumal reaffirmed in an internal email quoted by the Economic Times that staff at C2 grade and higher would receive 100% of their QVA, while those at C3A grade and higher would receive variable rewards based on performance indicators. He wrote, “This segment’s overall QVA payout will be higher than it was last year.”

    The adjustments are made as TCS, the biggest provider of IT services in India, is under investigation for personnel realignment and restructuring. In response to rumours of widespread layoffs, Kunnumal explained that although the company is restructuring positions as part of its push for artificial intelligence, the number of job losses would be closer to 12,000, or around 2% of its worldwide workforce, rather than the 50,000 to 80,000 estimates that some media sources had stated.

    At a period of industry-wide change, TCS’s updated pay structure reflects its intention to strike a balance between stability for its younger employees and more robust performance-linked incentives for senior staff. According to analysts, TCS’s variable pay policies frequently serve as a model for larger developments in remuneration in the Indian IT industry.

    TCS Layoffs is it On or a Speculation

    TCS wants to lay off between 50,000 and 80,000 workers, according to media reports, although Kunnumal refuted the inflated figures. He explained that although TCS is reorganising and restructuring positions as part of its emphasis on artificial intelligence (AI), the actual number of job losses is significantly smaller—roughly 12,000 positions, or 2% of its worldwide workforce. Kunnumal emphasised that many rumours are not factually correct and that the corporation is not aiming for a specific number of layoffs.

    Quick Shots

    •TCS increases variable compensation for senior employees based
    on performance.

    •Employees in grades C, C1, and C2 continue receiving 100%
    Quarterly Variable Allowance (QVA).

    •Seniors at C3A grade and above get variable rewards tied to
    individual and unit performance.

    •TCS is reorganizing roles amid AI adoption, but layoffs are
    limited to ~12,000 employees (2% of workforce).

  • Ozempic Maker Novo Nordisk Plans to Cut 150 Jobs in India as Part of Global Layoffs

    The Danish pharmaceutical company intends to reduce 11% of its workforce, or 9,000 positions, in order to save 8 billion Danish krone ($1.25 billion) a year. Indian workers in Bengaluru have been laid off less than a month after Ozempic manufacturer Novo Nordisk declared it was reducing its worldwide workforce as part of a reorganisation strategy.

    At least three people who are aware of the development reported to Mint, saying that it has affected junior-to-mid-level personnel in departments like sales and marketing as well as those in the company’s global business services (GBS) hub, which collaborates with its international teams. According to Mint, the commercial unit, which primarily consists of sales and marketing positions, will lay off at least 100–150 employees.

    As part of the worldwide layoffs, they are anticipated to be in junior and middle order. Another official with knowledge of the situation stated that other departments are probably affected as well.

    Novo Nordisk Facing with Stiff Competition

    The Danish drugmaker planned to cut 9,000 jobs, or 11% of its workforce, in September, which would save it 8 billion Danish krone ($1.25 billion) annually. The announcement came as the company struggles with increasing competition from rivals like Eli Lilly in the highly lucrative obesity segment.

    The company said in an emailed response to media queries on the India layoffs that it has announced that the total number of intended workforce reductions globally is approximately 9,000. Out of respect for the employees involved, the company will not share additional details about individual sites or areas.

    This process takes time, and the company’ highest priority is to support its employees. The layoffs come as the pharma giant plans to launch its blockbuster once-a-week weight loss drug, Ozempic, in India soon. The Indian drug regulator approved it last month, and the launch is imminent.

    Novo Nordisk launched Wegovy, another once-a-week injectable, in India in July even as competitor Eli Lilly’s drug Mounjaro was gaining significant ground.

    Reasons for Novo Nordisk’s Layoffs

    Since last year, Novo Nordisk’s growth has been hindered by cheaper imitation compounds in the US and fierce competition from Eli Lilly’s medicines, such as Zepbound and Mounjaro. In an effort to streamline its operations, speed up decision-making, and reallocate resources to the company’s expansion prospects in diabetes and obesity, the corporation announced worldwide employment layoffs last month.

    Eli Lilly, a competing American pharmaceutical company, gained a first-mover advantage in India in March when it introduced its weight-loss medication, Mounjaro. Analysts predict that the weight-loss medication market in India, which has over 254 million obese people and over 100 million diabetics, would reach INR 10,000 crore in the next two to three years. According to data from Pharmarack, Wegovy had made INR 19 crore in sales as of August, while Mounjaro had made INR 150 crore nationwide.

    Quick Shots

    •Up to 150 employees to be laid off in India, mainly
    in sales, marketing, and Global Business Services (GBS).

    •Layoffs part of global workforce reduction
    announced in September.

    •Eli Lilly’s Mounjaro launched earlier in March,
    already leading in sales.

    •Sales as of August: Wegovy – INR 19 crore, Mounjaro
    – INR 150 crore.