- Some of the biggest tech, retail and media companies in the U.S. are eliminating tens of thousands of jobs.
- While many companies have cut jobs as pure cost-cutting measures, others have done so as they move toward a bigger reliance on artificial intelligence.
- Leading the pack is Citigroup, which announced in January it will slash 20,000 jobs by the end of 2026.
(NewsNation) — Tens of thousands of Americans working for some of the biggest tech, retail and media companies in the U.S. are coping with the loss of their jobs or the threat of their positions being eliminated in 2024.
Well-known brands, many of which bolstered their workforces during the COVID-19 pandemic, are now scaling back as the focus shifts to leaner, more efficient employee rosters.
While many companies have cut jobs as pure cost-cutting measures, others have done so as they move toward a bigger reliance on artificial intelligence, several outlets — including CBS News, Business Insider and the Wall Street Journal — reported in recent weeks.
After such companies as Google, Walmart, CVS and others announced large-scale layoffs in 2023, several corporations made announcements in January, adding to an already long list of employers who have determined to do more with less moving forward.
Citigroup: 20,000 jobs
The bank will save about $2.5 billion following a disappointing fourth quarter. Citigroup finished 2023 with about 200,000 employees, not counting its Mexico operations, which are being spun off. The company announced in January it will slash 20,000 jobs by the end of 2026 as a wider company reorganization effort, the Wall Street Journal reported.
Citigroup’s CEO announced in November that the bank had already begun laying off employees around Thanksgiving. The first wave of cuts would affect hundreds of senior-level employees, while future cuts will extend to thousands of lower-level employees, the memo said.
UPS: 12,000 jobs
Citing year-after-year revenue declines, the Atlanta-based company announced this week it is eliminating 12,000 positions, a move that will save an estimated $1 billion. In a statement released by the company’s CEO, UPS called 2023 “a unique and difficult year” in which the company remained focused on controlling what it could control and strengthened its foundation for future growth.
Salesforce: 7,350 jobs
The San Francisco-based cloud computing company announced the elimination of 10% of its workforce in January as the industry as a whole experiences cost-cutting measures. The company also announced it would close some of its offices to save on real estate costs. In a letter to employees, the company’s CEO said that the industry’s environment remains “challenging” as customers are taking a more measured approach to purchasing decisions.
Microsoft: 1,900 jobs
The nearly 2,000 eliminated jobs will come from the company’s gaming division, in which about 8% of employees will lose their jobs, the Associated Press reported in January. The announcement came just three months after Microsoft announced a $69 billion purchase of video game maker Activision Blizzard.
The AP, citing an internal memo, said that workers are part of the company’s Activision Blizzard, Xbox and ZeniMax divisions. Microsoft’s CEO wrote that the moves are being made as Microsoft and Activision Blizzard align their strategies to move toward a “sustainable cost structure” that will support Microsoft’s growing business.
eBay: 1,000 jobs
The online e-commerce company will eliminate around 9% of its workforce as the company announced it will attempt to better align the company’s current pace of growth as the economy continues to slow.
Google: Several hundred jobs
Google, which is owned by parent company Alphabet, in January laid off hundreds of workers who had been assigned to the tech giant’s engineering, hardware and voice assistance divisions. Alphabet’s CEO is already forecasting more cuts as Google shifts its attention to gaining more traction in the AI universe and “Investing in…(Alphabet’s) big priorities,” a memo sent to employees said, according to CBS News.
Google previously cut 12,000 jobs to tighten its belt financially after a pandemic hiring spree. The jobs eliminated in 2023 represent about 6% of the company’s workforce.
Riot Games: 530 jobs
The developer of the popular “League of Legends” video game announced in January it has eliminated 11% of its workforce to allow the company to build a more sustainable future. In a memo sent to employees, company executives called the cuts “a necessity,” CBS News reported, and “critical to the future of Riot Games.”
REI: 357 jobs
The outdoor apparel and gear company, citing four quarters of declining revenues, is cutting hundreds of positions at its corporate headquarters and distribution center.
iRobot: 350 jobs
The company that manufactures robot vacuum cleaners announced it would cut 31% of its jobs, including that of its top executive, after Amazon and iRobot announced this week that they had terminated a $1.7 billion agreement that would have merged the two companies.
Amazon: Several hundred jobs
The e-commerce firm is cutting jobs across its film and studio operations as well as its Twitch streaming platform. Audiobook platform Audible is slashing hundreds of jobs, and the company’s Buy With Prime platform that works with third-party merchants also reported that it will cut around 5% of its workforce, the Wall Street Journal reported.
TikTok: 60 jobs
The popular social media platform, owned by ByteDance, cut dozens of jobs among its advertising and sales divisions as part of a routine company reorganization, CBS News reported.
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