StartupTalky

Tag: Layoffs

  • Bumble to Cut 240 Jobs in a Bold Move to Restructure Operations

    The online dating app Bumble intends to fire about 240 workers, or nearly 30% of its workforce worldwide. Bumble said in a securities filing that the cutbacks were agreed to by the board this week as the company reorganises its operations to better execute its strategic priorities.

    A large portion of the $40 million in cost savings the Austin, Texas-based company anticipates from the labour cutbacks will go towards product and technology development.

    In a statement sent to a media outlet on June 26, Bumble stated that these decisions were not made hastily and that it was “deeply grateful for the contributions of every employee impacted.”

    The company is now focussed on moving forward in a way that strengthens its core business and positions it for future growth.

    Further Details Still Remain Confidential

    When the layoffs will take place and which responsibilities would be impacted were not immediately made clear by Bumble. However, its securities filing indicated that the process would continue into the following quarter.

    It stated that it anticipates spending between $13 million and $18 million, mostly in its third and fourth fiscal quarters, on layoff-related expenses, including severance for affected employees.

    Whitney Wolfe Herd, the founder and CEO of Bumble, stated in a June 25 letter to staff members that “Bumble, like the online dating industry itself, is at an inflection point.” She pointed out that the business has been rebuilding lately, which necessitates difficult choices.

    Bumble Going Through Financial Challenges

    Two years after co-founding Tinder in 2012, Wolfe Herd launched Bumble in 2014. She returned to the top position in March after previously serving as Bumble’s CEO from 2020 to January 2024.

    Since going public in 2021, Bumble has had difficulties in the market. Even though shares increased on June 25, the company’s stock has nevertheless dropped more than 35% in the past year and about 92% since its February 2021 launch.

    Bumble’s most recent first-quarter profits showed a total revenue of almost $247 million, which was over 8% less than the same time last year. For the second quarter of its fiscal year 2025, the business anticipates earning between $244 million and $249 million, it announced on 25 June.

    Although it is more than earlier projections, it is still less than the $269 million it disclosed for the second quarter of 2024.

    Layoffs have Become a Common Scenario in 2025

    With big companies like Google, Microsoft, and others continuing to reduce their workforces, layoffs in the tech sector are not expected to halt in 2025.

    Companies are still cutting employees in an effort to simplify operations, save money, and emphasise automation and artificial intelligence, even though these figures are much lower than the major layoffs that occurred between 2022 and 2023.

    Layoffs.fyi, a website that tracks layoffs in the industry, reports that 93 organisations have laid off nearly 23,500 tech workers so far this year, and the number is still growing. Google and Microsoft are apparently contemplating a new round of layoffs, according to the most recent job reduction reports.

    According to reports, AI-led restructuring and performance-based terminations are part of the corporations’ goals to increase the effectiveness of their personnel.

  • Microsoft Hits Reset on Xbox Team with New Wave of Layoffs

    Next week, Microsoft Corporation will lay off a significant number of employees in its Xbox division as part of a larger restructuring effort.

    Deeper issues within the computer giant’s video game operations are indicated by the decision, which is the fourth significant round of layoffs to hit the gaming arm in as many months.

    An international media agency broke the story first, citing internal sources that said managers throughout the Xbox division were told to anticipate large layoffs.

    After Microsoft’s $69 billion acquisition of Activision Blizzard Inc. in 2023, the Xbox division, which is in charge of the company’s game consoles, first-party studios, and other entertainment platforms, has been under more pressure to increase profitability.

    Layoff Has Become a Regular Feature of Microsoft

    This most recent development follows earlier claims that Microsoft plans to cut thousands of jobs in customer-facing and sales professions by July 2025. The corporation had already laid off about 6,000 employees in May, and in the last two months alone, the number of job losses across all divisions has reached almost 7,000.

    One of Microsoft’s most affected divisions has been the Xbox team. The corporation let go of 1,900 workers at Xbox and the freshly acquired Activision Blizzard in January 2024. Microsoft later let off 650 more employees from its gaming division in September 2024.

    The division’s long-term capabilities were severely harmed by the closure of other Xbox subsidiaries as a result of earlier layoff waves. Although Microsoft has not issued an official comment, the reorganisation seems to be in line with a larger change in company policy that emphasises outsourcing and leaner teams.

    Microsoft said in April 2025 that it would reduce its in-house sales teams by depending increasingly on outside companies to offer software solutions to small and midsized organisations.

    The entire tech sector is still going through a difficult period. With weaker growth projections and increased demands for profitability, even the most profitable companies in the world are reassessing their cost structures.

    Microsoft is no exception, with its extensive portfolio that includes consumer games, cloud infrastructure, and enterprise applications.

    Microsoft’s Employees in a Panic Mode

    Microsoft’s long-term gaming strategy is called into question by the frequent waves of layoffs inside the Xbox division, which was originally thought to be a crucial pillar for customer involvement and upcoming metaverse efforts.

    Although the Activision Blizzard purchase was historic, analysts point out that the anticipated growth and synergy from the transaction have not yet materialised into observable financial gains.

    This might have led Microsoft’s executives to adopt a more stringent approach to cost management in the gaming industry. Employee worries are also anticipated to grow as a result of the impending cuts. Internal morale is said to be stressed as a result of multiple waves of layoffs in a very short amount of time, particularly within development and creative teams.

    As restructuring talks continue, many Xbox ecosystem personnel are still unclear about their future positions, according to Bloomberg. Broadly speaking, Microsoft’s drastic layoffs are part of a larger trend among large tech firms looking to simplify operations after the epidemic, as the hiring boom of 2020–2022 is now being replaced with efficiency and financial restraint.

  • Statkraft Unveils Bold $291M Cost-Cutting Plan, Layoffs on the Horizon

    Statkraft, a state-owned utility in Norway, plans to reduce yearly expenses by 15% by 2027 in order to adjust to the shifting market conditions through cost-cutting strategies that include technical refocusing and layoffs.

    By 2027, the business plans to cut salaries and other operating costs by about NOK 2.9 billion (USD 290.5 million/EUR 253.2 million) a year, it announced on 19 June. It follows the utility’s statement that it will no longer pursue new green hydrogen projects and that it has adopted a “sharpened strategy” to direct cash towards its core operations.

    According to CEO Birgitte Ringstad Vartdal, Statkraft must adjust to the shifting market conditions and heightened geopolitical unpredictability.

    Specific Measures to be Revealed in the 2nd Half of 2025

    The second part of the year will see the identification of the precise actions that the business will take.

    As the energy transition slows down owing to rising global uncertainties, rising costs, and falling power prices, Statkraft plans to focus its technological efforts on its flexible hydropower fleet in the Nordics, as well as solar, wind, and battery projects in Europe and South America.

    Because the offshore wind business in Europe is developing slowly, no new offshore wind projects will be undertaken. The ruling also holds true for Norway’s next Utsira Nord allocation round.

    According to Vartdal, the company can sustain its development and value creation by focusing on its core competitive advantages and giving priority to investments in short-term profitable possibilities.

    She clarified that some portfolios will be sold off, while short-term profitable technologies like solar, wind, and batteries in fewer areas will be prioritised.

    Future Investments of Statkraft

    Statkraft will evaluate its investment position in solar, wind, and batteries in Poland as part of the refocusing, and it will stop developing in Portugal while continuing to operate in both nations.

    The Norwegian company plans to invest between NOK 16 billion and NOK 20 billion in maintenance projects, onshore wind projects in Sweden and Norway, and significant hydropower capacity enhancements in Norway in the upcoming years.

    Although at a slower growth pace than initially anticipated, it would endeavour to extend its activities in solar, wind, storage, and grid services across Europe and South America, the company stated.

    In addition to the previously announced and ongoing divestment proceedings, the aforementioned steps will affect the development business in Croatia and the Netherlands, the district heating and biofuels activities in the Nordics, and the business activities in India.

    The Colombian national oil firm, Ecopetrol, agreed to purchase Statkraft’s Colombian renewable energy portfolio, Enerfín Colombia, in May 2025.

  • Collins Aerospace Announces Fresh Wave of Layoffs Across Major Facilities

    The Cedar Rapids and Decorah branches of Collins Aerospace have announced the layoff of 131 workers.

    Collins is now optimising its organisational structure, which includes reducing a limited number of positions and realigning its resources to better meet the needs of its customers, according to a representative who spoke with the media on 12 June.

    Collins Aerospace is assisting impacted employees throughout the transition since it understands the impact this has on them. The 160 employees were let go from their positions in Cedar Rapids three months ago, and now this news arrives.

    Workers were Notified on 12 June

    The website for Worker Adjustment and Retraining Notification states that 102 employees in Cedar Rapids and 29 employees in Decorah would be laid off. The layoffs will take effect on July 18, and workers were informed of the decision on June 12.

    When a plant closes or there is a mass layoff, businesses with 100 or more employees are required by the WARN Act to provide 60 calendar days’ written notice. The notice gives workers time to get ready for the possibility of losing their jobs, look for other work, and, if needed, get training, according to WARN’s website.

    Cedar Rapids is home to Collins Aerospace’s Mission Systems and Avionics businesses, which employ the majority of the almost 9,000 workers employed in Iowa. With the elimination of 68 jobs in Cedar Rapids in October 2023, the total number of layoffs in the state since September 2020 reached 248.

    Collins Aerospace Undergoing Structural Changes

    The current round of layoffs is reflective of larger industry constraints in the defence and aerospace sector worldwide. A number of companies are going through organisational shifts to simplify processes and reduce expenses, even while the industry is still reaping the benefits of more defence spending and innovative commercial aviation technology.

    It would appear that Collins Aerospace’s comment regarding “organisational optimisation” is part of this trend observed across the sector. Supplying cutting-edge avionics, communications, and mission systems to clients in the military and private sector across the globe, the company is an integral part of RTX Corporation (formerly Raytheon Technologies).

    Because of its massive presence in the state of Iowa, every change in its personnel has far-reaching consequences for the local economy, touching not only families but also businesses, schools, and government agencies. No diminution in overall operations at the impacted plants has been indicated by the corporation, notwithstanding the layoffs.

    Some observers of the aerospace industry, however, see these changes as either a reaction to fluctuating contract numbers or a more permanent shift in Collins Aerospace’s business strategy.

  • AI to Drive Deeper Job Cuts, Warns BT Chief Kirkby

    A media report published on 15 June stated that Allison Kirkby, the chief executive of BT Group, stated that developments in artificial intelligence may intensify the substantial layoffs already occurring at the British telecoms business.

    BT’s goals to eliminate over 40,000 jobs and cut 3 billion pounds ($4 billion) in expenses by the end of the decade “did not reflect the full potential of AI,” Kirkby told a newspaper.

    She said, “Depending on what we learn from AI… there may be an opportunity for BT to be even smaller by the end of the decade,” according to a media site.

    Up to 55,000 jobs, including those of contractors, would be eliminated by 2030, according to a 2023 statement from Britain’s largest internet and mobile provider.

    Phillip Jansen, the company’s CEO at the time, stated that the organisation would operate with a substantially reduced cost base and a significantly smaller workforce by the conclusion of the 2020s.

    Possible Future Spin-Off of Openreach

    Kirkby, who succeeded Jansen a year ago, has also hinted at the potential of a future spin-off of Openreach, the company’s network infrastructure division.

    She stated that she did not believe the value of Openreach was accurately represented in the company’s share price. If this were to persist, BT would be compelled to explore alternative options.

    According to BT’s email response to a media outlet, the corporation is not now actively investigating Openreach. Last month, BT said that its full-year earnings and cash flow had been strengthened by the robust demand for fibre broadband and over 900 million pounds in cost savings.

    Openreach’s resilience helped to offset revenue and profit decreases at its commercial and consumer segments, where handset sales and legacy voice services continued to decline.

    Layoffs have Become a Common Scenario in 2025

    With big companies like Google, Microsoft, and others continuing to reduce their workforces, layoffs in the tech sector are not expected to halt in 2025.

    Companies are still cutting employees in an effort to simplify operations, save money, and emphasise automation and artificial intelligence, even though these figures are much lower than the major layoffs that occurred between 2022 and 2023.

    Layoffs.fyi, a website that tracks layoffs in the industry, reports that 93 organisations have laid off nearly 23,500 tech workers so far this year, and the number is still growing.

    Google and Microsoft are apparently contemplating a new round of layoffs, according to the most recent job reduction reports. According to reports, AI-led restructuring and performance-based terminations are part of the corporations’ goals to increase the effectiveness of their personnel.

  • Intel to Cut Factory Jobs as Fresh Layoffs Begin in July

    Intel is getting ready to start laying off a large number of employees at its production facilities in the middle of July. This will be the company’s first significant layoff since Lip-Bu Tan became CEO in March.

    The layoffs, which are anticipated to finish by the end of the month, are a part of a larger strategic reorganisation as the business looks to improve its competitiveness in the global semiconductor market and streamline operations.

    The Oregonian/OregonLive examined an internal memo that confirmed the layoff timeframe but did not specify the precise locations or the number of people that would be affected.

    Various media reports claim that individual business units have been given the freedom to handle the cuts as long as they adhere to the financial standards set by upper management.

    Layoffs Are Part of Company’s Transformational Goal

    The corporation has presented the layoffs as necessary for its continuous change. According to a statement from Intel, simplifying the organisation and giving engineers more authority will help the company better meet customer needs and improve execution.

    Additionally, it highlighted that these decisions were reached after “careful consideration” and promised that the affected staff will get respectful and compassionate treatment.

    The action is a response to mounting pressure on Intel to address enduring issues, such as declining demand in the PC and laptop markets, declining sales, and heightened rivalry in the semiconductor industry, especially in the artificial intelligence (AI) domain.

    Analysts have frequently highlighted Intel’s weakness in the AI-focused hardware market, while rivals like Nvidia and AMD have risen to the top. Although this most recent round of layoffs is the first under Tan’s direction, Intel’s employees have had a challenging recent past.

     Under then-CEO Pat Gelsinger, the business eliminated over 15,000 jobs in 2023, including about 3,000 in Oregon alone. With an estimated 20,000 employees based in Washington County, Intel continues to be the largest private-sector employer in Oregon despite these layoffs.

    Tan Already Hinted About Layoffs in April

    Intel employees in Oregon have been speculating about potential layoffs since Tan hinted at potential reductions during an investor call in April, but he did not provide specifics or a comprehensive strategic plan.

    Staff members’ discontent has grown as a result of this ambiguity, and they have expressed their worries about what they see to be a lack of transparency from senior management. Since taking over as CEO, Tan has kept a noticeably lower public profile than his predecessor.

    However, later this year, he is anticipated to provide a thorough restructuring strategy.

    According to industry observers, this strategy will put a higher priority on bolstering Intel’s production capacity, growing its AI presence, and regaining investor trust—all while putting the company in a better position to handle the fiercely competitive semiconductor market.

    In the upcoming months, Intel’s long-term strategy will probably be closely examined by both staff members and market observers as the business enters this challenging period of its transformation.

  • Cable TV Crumbles: Paramount to Lay Off 3.5% of US Staff

    3.5% of Paramount Global’s employees in the US will be let go, the company revealed. According to a media report, the information was distributed to staff members via an internal memo on 10 June.

    The company’s efforts to address declining cable TV viewing as more people choose streaming services like Netflix include the job losses. This is not Paramount’s first round of layoffs.

    The company had already reduced 15% of its employment in August of last year, demonstrating continuous modifications in reaction to market shifts.

     In the message, Paramount’s co-CEOs, George Cheeks, Chris McCarthy, and Brian Robbins, stated that the firm is starting this week to further streamline its organisational structure, describing the move as a difficult but necessary one.

    New Business Strategies of Paramount

    As cable TV experiences a generational disruption, the most recent layoffs are a part of a larger trend. The memo made suggestions about possible future effects on foreign employees as the organisation attempts to manage these difficulties.

    As of the end of 2024, Paramount employed 18,600 people. The most recent action was taken as the business attempted to proceed with a significant $8.4 billion merger with billionaire David Ellison’s Skydance Media.

    Nevertheless, regulators have yet to approve that purchase. Because the traditional cable model is changing so quickly, Paramount’s strategy changes reflect a broader industry trend towards digital platforms.

    The organisation is attempting to better align its resources in order to maintain its position in this evolving climate. This process entails tough choices, like the recent layoffs, which are a part of larger initiatives to optimise the organisation in the face of changing market demands.

    Layoffs have Become a Common Scenario in 2025

    With big companies like Google, Microsoft, and others continuing to reduce their workforces, layoffs in the tech sector are not expected to halt in 2025.

    Companies are still cutting employees in an effort to simplify operations, save money, and emphasise automation and artificial intelligence, even though these figures are much lower than the major layoffs that occurred between 2022 and 2023.

    Layoffs.fyi, a website that tracks layoffs in the industry, reports that 93 organisations have laid off nearly 23,500 tech workers so far this year, and the number is still growing.

    Google and Microsoft are apparently contemplating a new round of layoffs, according to the most recent job reduction reports. According to reports, AI-led restructuring and performance-based terminations are part of the corporations’ goals to increase the effectiveness of their personnel.

  • Sunnova Slashes Over Half its Workforce, Lays Off 718 Employees in Major Shake-Up

    In an attempt to cut expenses while one of its companies declares bankruptcy, Sunnova Energy has let go of 718 workers, or around 55% of its workforce. In a filing on 5 June’s afternoon, Sunnova informed federal regulators that its wholly owned subsidiary, Sunnova TEP Developer LLC, had declared Chapter 11 bankruptcy on 8 June.

    Companies that file for Chapter 11 bankruptcy have the opportunity to restructure their finances and continue operating. In its notice to the Securities and Exchange Commission, Sunnova stated that the bankruptcy filing “is not expected to have a material effect on our servicing operations for existing customers.”

    Sunnova, once a symbol of Houston’s transformation from the oil-and-gas city to the energy transition capital more generally, has seen a sharp decline in popularity, which is reflected in the enormous layoffs and bankruptcy filing.

    The company’s headquarters in Houston is also home to a large number of Sunnova’s staff. Since the start of the year, Sunnova has lost about 1,000 workers, including the over 300 workers it let go in February.

    Inimical Environment for Sunnova

    In March, Sunnova issued a warning to investors that there was “substantial doubt” that the company would be able to avoid going bankrupt the following year. John Berger, the company’s original CEO, left a week later.

     Since then, Sunnova has been “working diligently” to obtain funding, the company wrote in a May 30 letter to the Texas Workforce Commission. However, “after extensive negotiations”, it has yet to get sufficient investor backing to prevent the mass layoffs.

    According to Sunnova’s worker adjustment and retraining notification, some of its investors have “unexpectedly shut off access” to more loans, which “in turn prevents the continued origination of new solar systems and the completion of existing solar systems.”

    The self-described “faltering company” claimed in the notification that Sunnova’s financial situation was further limited by its incapacity to finish current solar installations.

    On May 30, the same day Sunnova delivered its letter to the Texas Workforce Commission, the mass layoffs went into effect. The letter stated that the company’s “unforeseeable business circumstances” prevented it from informing the state agency sooner.

    According to Sunnova, the entire renewables business was shaken by an abrupt, unexpected, and difficult macroeconomic environment.

    Lack of Strong Support and High Interest Rates Choking the Business Operations

    High borrowing rates and diminished state subsidy programs have hampered Sunnova, as they have hurt other residential solar enterprises. These factors make rooftop solar technology more costly for prospective buyers.

    Additionally, the US Senate is considering whether to remove federal tax subsidies for home solar systems as part of President Donald Trump’s “big, beautiful bill.” The cost of the technology would increase if those tax benefits stopped.

    Sunnova claims that it was the driving force behind the Department of Energy’s recent decision to revoke the majority of its $3 billion loan guarantee. The money would have been used to support Sunnova’s now-canceled initiative to increase solar access for Puerto Ricans, low-income individuals, and those with poorer credit ratings.

    Due to its $1.9 billion in debt that must be paid off in full by the end of 2028, Sunnova is particularly susceptible to these issues facing the industry.

  • JP Morgan to Axe New Hires Who Quit Within 18 Months After Dimon’s Stern Warning

    According to a number of media stories, JP Morgan has warned new hires that they may lose their jobs if they accept positions at other organisations in the future.

    The CEO of the bank claimed that it was “unethical” to accept a position at JP Morgan with the intention of leaving for private equity within a few years. Co-heads of global banking at JP Morgan sent a harsh warning in an email addressing new hires right out of graduate school.

     According to the email, if an employee accepts a job offer from another company before joining JP Morgan or within the first 18 months of working there, they will receive notice, and their employment with the company would terminate.

    Financial Giant Wants Full Focus and Stronger Commitment from Employees

    With this action, the company has made it abundantly evident that joining the financial behemoth demands all of an employee’s attention and dedication. The memo stressed that meetings, training sessions, and other commitments are required in a stern tone aimed at younger staff.

    Termination may occur if any of these are missed. Only US-based candidates received the email, which warned them that they would lose their jobs if they accepted another offer, according to a media source.

    The fact that candidates frequently land future positions before beginning a current one seems to be a characteristically American problem.

    In September 2024, Dimon addressed a group of undergraduate business school students, saying, “I know a lot of you work at JPMorgan; you take a job at a private equity shop before you even start with us.” Since I didn’t discuss character, I’m going to say something a little different, all right. That, in my opinion, is unethical and the most significant aspect of people’s character. I dislike it.

    Naturally, the comment and the action that followed run the danger of upsetting the Private Equity Group, which makes up a sizable portion of JPMorgan’s business. The two men also write that avoiding any conflicts of interest is essential to preserving the faith and confidence that JP Morgan’s clients place in the firm and that failing to complete any portion of the training programme could result in termination.

    Poaching the New of the Financial Sector

    JPMorgan is not the sole Wall Street titan that is currently facing recruitment attempts from private equity firms. Recently, Goldman Sachs had to thwart a well-publicised attempt to hire one of its senior executives.

    Earlier this year, the David Solomon-led company gave Chief Operating Officer John Waldron an $80 million “golden handcuffs” package and a board seat in order to keep him on board. Marc Rowan’s Apollo Global Management had been pursuing Waldron for a significant position.

    Many believe that the retention bonus, which will completely vest over five years, is an attempt to retain the 55-year-old at Goldman, where he is thought to be Solomon’s most likely successor as CEO.

  • Procter & Gamble to Slash 7000 Jobs Amid Tariff Strain and Consumer Uncertainty

    In an effort to combat growing operating expenses and waning consumer demand, Procter & Gamble has revealed intentions to lay off around 7,000 employees, or roughly 6% of its global workforce, over the course of the next two years.

    The company’s non-manufacturing employees, who make up over 15% of that group, will be the main victims of the layoffs.

     Executives from the corporation announced the reorganisation at the Deutsche Bank Consumer Conference in Paris, stating that its goals are to increase role responsibilities, decrease team numbers, and streamline reporting structures.

    In order to stay competitive in what it refers to as an increasingly unpredictable global market, P&G is positioning the project as an “acceleration” of its current approach.

    Brand Missing to Achieve Sales Target Leads to Massive Job Cuts

    Following inconsistent quarterly results in late April, the reorganisation decision was made. The company’s first-quarter net sales and organic sales growth fell short of projections.

    According to the update, P&G and other major players in the consumer products industry have somewhat buckled under economic challenges connected to tariffs.

    Citing cost uncertainties and squeezed consumers, the firm lowered its full-year revenue and earnings per share (EPS) projections. According to P&G CEO Jon Moeller, “We expect uncertainty to continue,” he told a media source.

    According to Moeller, people are changing their habits to save money even when they aren’t switching to less expensive goods. For instance, in order to save detergent, P&G are observing that they do fewer loads of laundry each week.

    According to statistics from a financial media outlet, experts have been lowering their EPS projections for P&G for the upcoming two quarters since the company’s results announcement.

    Since the April 24 results, shares have fallen 1.1%, trailing the 8.35% increase of the Dow Jones Industrial Average and the 13% advance of the S&P 500. Following the news, the stock saw minimal movement in premarket trade on 5 June.

    Layoffs have Become a New Normal for Bigger Players

    This layoff announcement coincides with employment cuts by a number of multinational corporations, such as Amazon, Intel, and Goldman Sachs. Such developments are happening mainly owing to the growing impact of artificial intelligence (AI) and uncertainties in the global economy. Intel is getting ready for a massive restructure following a large financial loss in 2024.

    Similarly, Amazon also plans to eliminate about 14,000 administrative roles in order to save $3 billion yearly.

    Companies are increasingly focusing on cost optimisation and automation as a result of the rapid growth in AI adoption. This adoption is resulting in job losses across a number of industries.

    Goldman Sachs is also getting ready to lay off employees, with intentions to trim staff by 3–5% after an annual performance review. About 150 junior banker positions were recently cut by Bank of America; nevertheless, the majority of impacted workers were offered opportunities outside of investment banking.