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Tag: Layoffs

  • Volkswagen Layoffs Gain Speed: 20,000 Exit Early as 35,000 Job Cuts Proceed

    In light of the continued Trump tariffs that are threatening the German auto sector, international automaker Volkswagen has announced plans to reduce its workforce by 35,000 employees by 2030 as part of its cost-cutting programme, according to a media report.

    Citing a works council meeting at Volkswagen’s Wolfsburg headquarters, a news portal reported that over 20,000 employees at the heart of the Volkswagen brand had decided to take voluntary retirement and terminate their contracts early.

    It is anticipated that the majority of the job cutbacks would occur at the automaker’s German operations, and the business hopes to implement the reductions in a way that is “acceptable” to those impacted.

    Volkswagen’s Offerings to Exiting Employees

    Depending on their duration of service, the German manufacturer intends to provide severance payments to each employee impacted by the cost-cutting strategy.

    According to a report, which cited the company’s personnel meeting on June 5, the company is expected to pay up to $400,000, but it did not disclose the exact amount of severance payments.

    In addition to laying off employees, the corporation plans to limit the number of apprenticeships it offers each year from 1,400 to 600 beginning in 2026.

    According to the news article, the German manufacturer would probably save around 1.5 billion euros annually in labour costs as a result of these cost reductions and the widespread layoffs.

    Nearly 130,000, or 13 lakh, workers in Volkswagen’s core team are agreeing to a remuneration freeze in addition to their voluntary resignation. The corporation wants to increase salaries by 5%, which will be paid into a fund in two stages.

    This money will be needed to finance flexible work schedules, among other things. The news broadcast also explained how these actions kept the German Volkswagen factory from closing.

    Trump Tariff Woes Haunting the German Automaker

    Following a report of a decline in the business climate index against the backdrop of the Trump tariffs from the United States, an international news agency previously reported that the German automotive sector further weakened in May 2025.

    The European market’s low demand and fierce competition from international brands are already problems for the manufacturers. As a result, Volkswagen, BMW, and Mercedes-Benz began negotiating a settlement with the US government to lessen the effects of tariffs.

    According to a media report, the business climate index fell to -31.8 points from -30.7 points in April, while company expectations for May 2025 fell to -28.3 from -25.2 points in April.

  • Microsoft Launches Fresh Layoff Round, Over 300 Employees Affected

    Microsoft has revealed that 305 workers would be let go in another round of layoffs. Less than three weeks have passed since the IT giant laid off over 6,000 workers worldwide in its most recent wave of layoffs. The Washington office’s more than 300 workers were let go.

    The corporation claims that the most recent layoffs represent much less than 1% of its whole workforce, though it did not confirm whether any additional employees outside of Washington were impacted.

    According to reports, Microsoft stated in an official statement that it is making the organisational adjustments required to best position the business for success in a changing environment.

    Software Engineers and Product Managers Taken a Massive Hit

    According to reports, the majority of the employees affected by this round of layoffs did not have managerial positions. Less than 17% of the impacted employees held management roles, suggesting that software engineers and product managers were the most severely affected.

    In less than a month, this is Microsoft’s second significant round of layoffs. Over 6,000 positions, or about 3% of the company’s global workforce, were cut in mid-May, marking the biggest employment reduction since 10,000 people were let go in early 2023. 1,985 of those recent layoffs were allegedly located in Washington.

    When combined with the most recent layoff total of 305, Microsoft has now let go of almost 2,300 workers in Washington this year.

    Microsoft has now stated that the more recent layoffs in May were unrelated to individual performance, although the corporation had implemented some performance-based job cuts earlier this year. Instead, the corporation has blamed organisational restructuring for the latest cuts.

    Microsoft’s Performance Based Terminations

    A distinct issue surrounded the January layoffs as Microsoft was accused of conducting performance-based terminations without providing severance or health benefits in certain instances.

    Employees were reportedly given quick termination notices and had their access to corporate systems terminated the same day, according to sources at the time. Microsoft has over 228,000 employees worldwide as of last year.

    The corporation claims that the layoffs only affect a small portion of its employees, but the frequent reductions demonstrate how Big Tech companies’ priorities are shifting in response to the rapid advancement of artificial intelligence.

    Many Silicon Valley tech businesses, including Google, Meta, and Amazon, have laid off thousands of workers in 2025 alone.

    Microsoft is placing a large bet on artificial intelligence at the same time as its firing frenzy. The business recently revealed plans to invest $400 million in Switzerland to build infrastructure for cloud computing and artificial intelligence.

    Microsoft declared earlier in January of this year that it would invest $3 billion in India to build AI infrastructure there, which would include building new data centres over the following two years.

  • Disney Announces 2025 Layoffs: Hundreds in Film, TV & Finance Hit in Cost-Cutting Drive

    A media outlet stated on June 2 that the media powerhouse The Walt Disney Company (Disney) was cutting off hundreds of workers from its corporate finance, television (TV), and film departments, according to a source.

    “The job cuts will affect teams worldwide, including casting and development departments, TV publicity, and film and TV marketing,” as per a media report. The majority of the impacted Disney Entertainment Television employees are based in Los Angeles, and the layoffs are reportedly distributed equally among the company’s TV and film divisions, according to another story.

    This is the fourth and biggest round of layoffs in the last ten months, the article continued. A manager of drama programming at ABC Hulu was among the lower-level development executives who were impacted, as were other Disney television divisions.

    Layoffs Becoming a Common Scenario in Disney

    Disney, the parent business, laid off about 200 workers, or nearly 6% of the workforce, from its ABC News Group and Disney Entertainment Networks divisions in March 2025.

    According to a media report, the Walt Disney Company restructured in October 2024, closing ABC Signature and combining its operations into 20th Television. It also merged the scripted drama and comedy teams from ABC and Hulu Originals.

    Disney Entertainment Television lost 20 positions as a result of the decision. According to a media report, Disney has already laid off 7,000 employees in 2023 in an effort to save about 5.5 billion dollars. In the same year that he announced his intention to reduce expenses, CEO Bob Iger set a target of $7.5 billion.

    Financial Outlook of The Walt Disney

    Of the 233,000 employees of the Walt Disney Company, slightly more than 60,000 are located outside of the United States. Disney owns a number of businesses in the entertainment sector, such as ESPN, Hulu, and Marvel.

    With total revenue for the first three months of the year of $23.6 billion, the company’s May earnings were better than anticipated. Compared to the same time in 2024, that represented a 7% gain. It claimed that new users of its Disney+ streaming service were the main driver of the expansion.

    This year, the studio has launched several new films, such as Snow White and Captain America: Brave New World. After receiving some unfavourable reviews, the live-action version of the classic Snow White animation movie did not do as well as anticipated at theatres.

    However, over the Memorial Day holiday weekend, Disney’s most recent film, Lilo & Stitch, set new box office records in the United States. Since its May premiere, the animated movie has sold over $610 million tickets worldwide, according to industry data company Box Office Mojo.

  • LinkedIn Slashes Jobs: Hundreds Laid Off by Microsoft-Owned Platform

    In the midst of ongoing industry-wide reorganisation, Microsoft-owned LinkedIn has announced the layoff of 281 workers throughout California, joining a growing number of IT firms that have done so.

    A recent filing with the state’s employment agency revealed the job layoffs, which primarily affected talent account directors, senior product managers, and software engineers.

    These layoffs follow Microsoft’s announcement that, as part of larger efforts to streamline operations, it would eliminate nearly 6,000 jobs, or roughly 3% of its global workforce. The wave of layoffs draws attention to persistent issues in the computer industry, where businesses are reassessing their objectives and increasing productivity.

    LinkedIn Shrinking its Workforce

    Over the past year, LinkedIn, a prominent professional networking and recruitment platform, has experienced multiple rounds of layoffs. The corporation laid off 668 employees in its finance, talent, and engineering departments in October 2023.

    Earlier, in May 2023, 716 positions were eliminated from the operations, sales, and support teams in an effort to streamline the company and expedite decision-making. Similar upheaval still affects the larger tech sector.

    In May, Google laid off 200 workers from its global business unit, primarily impacting the partnerships and sales teams.

    Significant changes were also revealed earlier this year by parent firm Meta, which laid off 3,600 employees, or 5% of its workforce, mostly from the logistics, Facebook, and Horizon VR teams after a revised performance evaluation.

    Might Following Others to Infuse More AI in Work Operations

    Although LinkedIn has not issued a formal announcement, industry watchers believe that the layoffs were likely sparked by Microsoft’s overall strategy move towards artificial intelligence. Recently, Microsoft CEO Satya Nadella said that up to 30% of the code in a number of internal projects is now written by AI.

     This statistic highlights the increasing significance of automation in fundamental development processes. These layoffs seem to be a component of Microsoft’s broader employment cut, which is expected to impact 6,000 workers worldwide.

    In another round of layoffs earlier this month, 122 Microsoft workers in the Bay Area were let go. Although Ryan Roslansky, the CEO of LinkedIn, has not made any public statements, this quiet stands in stark contrast to the company’s 2023 layoff of 716 employees, in which Roslansky addressed the decision directly in a widely shared employee email.

    Many workers and spectators are guessing about the scope and direction of future cuts as a result of this time around’s lack of information.

    Restructuring the Entire Ecosystem

    LinkedIn, which employs more than 18,400 people full-time worldwide, has long been regarded as a reliable platform inside the Microsoft ecosystem. This most recent round of layoffs, however, suggests a possible change in strategy.

    Businesses like Microsoft are reassessing their workforce requirements as AI tools become more integrated into development, operations, and product processes.

    The layoffs’ timing also fits with a larger industry trend of operations being streamlined in the face of economic challenges and growing automation capabilities.

    Although AI increases efficiency, it also poses challenging issues about the future of human positions in tech-driven organisations, especially in fields like engineering that were previously seen to be secure.

  • CARS24 to Slash 120 More Jobs Amid Major Restructuring Drive

    According to media reports, used vehicle marketplace CARS24 is currently laying off an additional 120 workers from its non-core verticals as part of a reorganisation exercise, more than a month after it let off 200 workers.

    The non-core verticals of the Delhi NCR-based startup are being shut down or scaled down. According to the reports, it is doing this by closing its business-to-business automotive replacement parts platform, “Inspare”, which will cause 80 workers to lose their employment.

    The firm has requested staff members from Inspare’s operations, sales, procurement, catalogue, and other teams to find new employment opportunities after informing them of its decision to shut down operations.

    Vikram Chopra Announcing the Shut-Down of Inspare on LikedIn

    According to a LinkedIn post by CARS24 founder Vikram Chopra, Inspare, which was in the “pilot” stage, has been shut down. He did not, however, reveal how many workers were affected by this choice. According to Chopra’s tweet, the business believed the market was prepared for change. And the more it promoted adoption, the more obvious it was that it wasn’t.

    A severance payout is being offered to the affected employees in accordance with their notice period. According to a media source, 40 workers at the startup’s “FourDoor” auto repair and maintenance platform have also been let go.

    Questions concerning the layoffs at FourDoor were also not answered by CARS24. According to one of the sources, the reorganisation effort entails laying off more than 120 workers from CARS24’s non-core business sectors.

    Notably, Chopra stated earlier this month in another LinkedIn post that customers would not be able to access two of CARS24’s platforms: FourDoor and the on-demand driver hiring tool AutoPilot. Chopra said these services are still crucial to the brand’s main transaction engine when it made the announcement.

    However, the business is reducing its customer-facing operations and strengthening its support for the remaining business units. He went on to say that CARS24 was in discussions with the workers in these verticals about giving them other positions based on their “skills and ambitions”.

    Due to their difficulties turning a profit, the startup is shutting down activities in these verticals. According to one of the individuals, companies that are not making money are being shut down.

    Financial Outlook of CARS24

    Chopra, Ruchit Agarwal, Gajendra Jangid, and Mehul Agrawal founded CARS24, an online marketplace for used car sales and purchases, in 2015. The IPO-bound business also entered the new car industry earlier this year.

    200 workers were let go by the startup last month as part of a reorganisation that started as soon as it bought the domestic auto forum Team-BHP. The Singaporean parent company of the Delhi NCR-based startup invested INR 250 Cr in CARS24 last year.

    Since its founding, the company has raised over $1.3 billion from investors like SoftBank, Alpha Wave Global, and Commercial Bank of Dubai, among others. In its most recent funding round, CARS24 was valued at $3.2 billion.

  • IBM Axes Employees 8,000 for AI Gains, Then Quietly Rehires to Plug Gaps

    IBM made news throughout the world in 2023 when it laid off almost 8,000 workers; the majority of them were from its human resources department.

     The step was taken to introduce AskHR, a proprietary AI platform intended to automate tedious administrative tasks. However, rather than reducing its personnel overall, IBM ended up recruiting the same number of people again, this time in fields that were far different from traditional human resources.

     According to a recent Wall Street Journal interview with CEO Arvind Krishna, the shift exposes a deliberate workforce pivot: automate basic tasks and reinvest in positions that call for human ingenuity, problem-solving, and customer interaction.

    AskHR Changing the Business Dynamics

    Payroll administration, vacation requests, and employee paperwork were among the procedures that AskHR was designed to expedite. Approximately 94% of these jobs are currently handled by the AI system, which recorded over 11.5 million encounters in 2024 alone.

    The effect was not just functional; IBM’s net promoter score increased from -35 to +74, indicating a notable increase in customer satisfaction. It was also difficult to overlook the productivity benefits. According to IBM, automating HR functions increased productivity across more than 70 job types worldwide by $3.5 billion.

    The headcount, however, was unexpected. In fact, IBM’s overall workforce increased in spite of job layoffs. “We have more employees overall,” Krishna told a media house.

    “Investing in human-touch areas like software engineering, sales, and marketing is made possible by AI.” This change reflects a larger trend in the industry: AI is changing employment rather than just replacing it. As the need for individuals capable of designing, implementing, and commercialising AI-driven solutions increases, routine positions are gradually being phased out.

    IBM’s message is clear: if companies are willing to rethink their workforce and make strategic investments, automation may be a growth engine.

    Other Companies Following the Similar Path

    Similar changes have been tried by other businesses, with varying degrees of success. For example, the language-learning app Duolingo relied largely on AI chatbots but discovered that the technology was not able to completely replace human teachers.

    Rehiring was necessary to cover service shortfalls. By recognising AI’s limitations—roughly 6% of HR-related enquiries still need human assistance—IBM was able to avoid these pitfalls.

    Because a long-term talent strategy was used in its implementation, the AskHR platform was successful.

    Automation Tool for Innovation

    IBM viewed automation as a tool for innovation rather than as a way to reduce costs. Its choice to replace HR duties marked the beginning of a new hiring cycle that prioritised high-impact, less automatable positions rather than the conclusion of the discussion.

     IBM’s strategy provides business transformation and HR professionals with a roadmap as well as a warning. Roles will be eliminated by automation, but more future-ready professions can and should take their place.

    Reskilling, internal mobility, and rethinking personnel strategies to focus on company value rather than just operational efficiency are crucial.

    Today, IBM has more than 270,000 employees worldwide. It has demonstrated that a net loss of jobs need not result from even severe automation. Instead, it calls for flexibility in both people strategy and technology adoption.

    The company’s shift to AI exemplifies the nature of labour in the future, which is more about reallocating talent than it is about cutting staff.

    IBM distinguishes itself for using automation as a catalyst for workforce transformation rather than merely a crude instrument for downsizing in a time when artificial intelligence is drastically changing the nature of jobs.

  • Walmart to Slash 1,500 Corporate Jobs in Major Restructuring Move

    According to a media source, the US retail giant Walmart intends to eliminate some 1,500 corporate positions as part of a reorganisation initiative to streamline its business practices.

    Divisions like Walmart Connect, its advertising business, e-commerce fulfilment in US stores, and worldwide technology operations will all be impacted by the layoffs.

    According to a memo seen by a media house, “We must sharpen our focus to accelerate our progress delivering the experiences that will define the future of retail.”

    A media outlet was previously informed by a source with knowledge of the matter that the biggest retailer in the world would lay off about 1,500 employees and replace them with new positions that better fit its long-term objectives.

    Walmart Currently Employs 2.1 People Globally

    Walmart employs over 1.6 million people in the US and 2.1 million worldwide, making it the largest private employer in the nation, according to its website. Given that the company’s supply chains have been disrupted and costs have increased due to President Donald Trump’s trade war, the action comes after another significant announcement to hike prices on a few products by the end of May.

    Interestingly, it is the biggest importer in the nation, importing almost 60% of its goods from China, mostly toys, electronics, and apparel. The company is happy with the progress the [Trump] administration has made on tariffs from the levels that were announced in early April, but they’re still too high, CFO John David Rainey stated in a recent interview with a media source.

    As part of a plan to move employees to its main centres in California and Arkansas, the corporation laid off employees and closed its North Carolina headquarters in February.

     “The brand values and culture are strategic differentiators for us as a company, and they are fostered by being together,” stated Donna Morris, Walmart’s chief people officer, in an internal memo that US media outlets were able to get in February.

    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.

  • Nike Slashes Tech Jobs as America’s Largest Shoe Giant Streamlines for the Future

    According to reports, Nike, the biggest footwear manufacturer in America, is cutting employees in its technology branch. The corporation has acknowledged the layoffs, according to Reuters, but it has not yet revealed how many staff would be affected.

    The corporation disclosed that the layoffs are a component of a larger restructuring initiative. According to the article, the business has announced that it will contract with other contractors to handle some of the tech-related tasks.

    The layoffs coincide with Nike CEO Elliott Hill’s ongoing efforts to restructure the organisation’s operational and leadership strategies since taking over in October 2024. In an effort to promote innovation in Nike’s product selection and rekindle consumer enthusiasm, Hill recently announced a number of top management moves.

    Reasons for the Layoff

    According to a media source, Nike is laying off some of its technology division employees, according to an email from a Nike spokesperson. The number of workers impacted by the layoffs is not disclosed by the spokesperson.

    He added that Nike intends to use a few outside vendors to handle the tech-related tasks. Nike has had to contend with dwindling revenue forecasts; the company’s fourth-quarter estimate indicates a more severe decline than anticipated.

    With competitors gaining ground in the sports apparel sector, the corporation is trying to re-engage with changing consumer demands and streamline processes.

    The layoffs coincide with Nike CEO Elliott Hill’s ongoing efforts to restructure the organisation’s operational and leadership strategies since taking over in October 2024. In an effort to promote innovation in Nike’s product selection and rekindle consumer enthusiasm, Hill recently announced a number of top management moves.

    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.

    Given the unpredictability of the world economy, more businesses might do the same in the months to come.

  • VerSe Innovation Slashes 350 Jobs in Major Restructuring Move

    Nearly 350 workers were let go by VerSe Innovation, the company behind DailyHunt and Josh, as part of a larger “strategic” reorganisation effort. A corporate representative said in a statement that the layoffs were due to “workforce realignment” in order to focus on long-term goals and growth, streamline operations, and accelerate investments in AI.

    The representative went on to say that the company will reduce its personnel by about 350 positions this month in order to create a more future-ready organisation where resources are allocated to growth areas and talent is cross-leveraged across business divisions.

    Company to Focus on Automation Now

    VerSe stated that in order to improve operational efficiency and create a “more future-ready organisation”, it will now concentrate on automating a number of “manual processes”. According to the spokesman, VerSe Innovation has been going through a strategic transition to become a more focused, flexible, and future-ready company.

    This strategic shift, which is a component of a well-thought-out overall plan, aims to accelerate AI investments, streamline operations, and take coordinated steps to match the organisation’s structure and strategy with its long-term goals and expansion.

     With aspirations for a future listing on the bourses, the unicorn has also set its sights on increasing its revenue “organically” and through smart acquisitions. “A focus on growth drivers and operational and structural efficiencies are actions directed to make the company profitable by the end of this fiscal year,” the representative continued.

    VerSe Going Through Financial Instability

    VerSe stated that by cutting back on marketing and service costs, it was able to cut its EBITDA burn by 51%, from INR 1,448 Cr in FY23 to INR 710 Cr in FY24. The entire income for FY24 was INR 1,261 Cr, it noted.

    However, the corporation have been at odds over VerSe’s FY24 financials. A media house reported last month that in its audit report for FY24, auditor Deloitte identified flaws in the Josh parent company’s internal financial controls, including problems with revenue recognition, handling of virtual assets, supplier selection, expense provision, and IT systems control.

    Umang Bedi, the CEO and cofounder of VerSe, acknowledged that the company’s controls were inadequate but assured a media outlet that the financials were accurate and fair with a clean report. Despite this, VerSe anticipates a YoY increase in sales of over 75% in FY25 due to investments in AI-led platforms, including subscription service Magzter and adtech platform NexVerse.ai.

     In FY24, VerSe’s net loss decreased by over 56% to INR 814.8 Cr from INR 1,878.4 Cr in the previous year. In the meantime, the company’s operational revenue decreased by 8.8% from INR 1,046.8 Cr in FY23 to INR 954.7 Cr in the fiscal year under review. Notably, VerSe Innovation has previously let go of staff members.

    The company laid off about 150 workers in November 2022, a few months after financing an enormous $805 million round.

  • Burberry to Slash 1700 Jobs Amid £66M Loss

    The British design giant Burberry revealed intentions to lay off 1,700 workers, or about one-fifth of its global staff. The action is a significant cost-cutting measure to improve the operation of the business.

    The layoffs are a part of a larger restructuring led by CEO Joshua Schulman, who joined the company last year with the goal of turning around Burberry’s years of poor performance.

    Due to overproduction, a night shift at the company’s Castleford trench coat plant in England will be eliminated, and the majority of the job losses will impact office-based positions. “All brand metrics have shown a significant improvement in the second half compared to the first half,” Shulman said in a media report.

    Going Back to Old School

    Following past blunders like aggressive pricing and ambiguous brand positioning, the former Jimmy Choo CEO has shifted Burberry’s emphasis back to its heritage staples, especially trench coats and scarves.

    Additionally, he has placed his hopes in designer Daniel Lee and leather accessories, which have a higher margin. Marco Gobbetti and designer Riccardo Tisci led the business from 2017 until 2021.

    They attempted to position the group as a high-end luxury fashion brand, but their efforts were not very successful financially. Schulman is the brand’s fourth CEO in ten years, having succeeded Jonathan Akeroyd.

    Financial Outlook of Burberry

    Burberry barely avoided a loss for the fiscal year that ended on March 29, 2025, with an adjusted operating profit of £26 million, significantly higher than the £11 million that analysts had predicted.

    The general decline in the premium sector is still a worry, though. The fourth quarter saw a 6% decline in comparable sales, which was marginally better than the 7% decline that analysts had predicted.

    According to region-by-region analysis, sales in America, Europe, the Middle East, India, and Africa all decreased by 4% from the previous year. Sales in the Asia Pacific region also fell by 9%. Schulman acknowledged that there had been indications of a softening of consumer behaviour, particularly in the United States.

    “The US customer was maintaining their momentum as we entered Q4, but as we moved into February, especially in the US market, things became a little choppy,” he stated.

     Currently, 19% of Burberry’s customers are from the US. The business noted “geopolitical developments” as a contributing reason to economic uncertainty, but it made no comments regarding the possible effects of US tariffs. For the fiscal year 2026, no specific budgetary goals were established.