All articles tagged with #cost cuts
In October 2025, US companies announced the highest number of layoffs in over 20 years, driven by AI adoption, economic slowdown, and cost-cutting measures, with year-to-date layoffs exceeding 1 million and the lowest hiring plans since 2011, indicating a weakening labor market.
Paramount Skydance is set to begin mass layoffs around 2,000 jobs in the U.S. and internationally during the week of October 27 as part of a plan to cut costs by up to $2 billion following its merger, amidst ongoing industry shifts and new content investments.
Paramount is mandating a return to a five-day in-office workweek starting January 2026 as part of a broader effort to improve organizational agility and cut costs, including layoffs of up to 3,000 employees and a $2 billion reduction plan, with support measures like buyouts for affected staff.
Paramount Skydance announced that all employees will be required to work in the office five days a week starting January 2026, as part of a broader cost-cutting strategy, with some staff eligible for buyouts if they do not wish to comply. The move aims to foster in-person collaboration to support company culture and success amid financial pressures.
Pfizer raised its 2025 profit guidance due to cost reductions and strong quarterly performance, surpassing Wall Street estimates with a revenue of $14.65 billion in Q2, and maintaining its revenue forecast despite potential tariffs and drug price pressures.
Moderna exceeded Wall Street sales expectations in Q2 driven by strong COVID booster demand and cost reductions, but lowered its 2025 sales forecast due to delayed UK revenue, and announced significant cost-cutting measures including workforce reductions.
Merck plans to cut $3 billion in costs by 2027 to fund new product launches and support its drug pipeline, amid revenue challenges and strategic restructuring, including layoffs and real estate reductions. The company also narrowed its full-year revenue and earnings guidance, while reporting a slight decline in Q2 revenue and mixed sales performance across its key products, notably a significant drop in Gardasil sales in China.
JetBlue Airlines faces financial difficulties and plans significant cost-cutting measures, including route reductions and layoffs, amid a challenging industry environment, but has some room for recovery according to financial analysis.
JetBlue Airways is implementing significant cost-cutting measures, including reducing flights and restructuring leadership, as weaker-than-expected travel demand makes achieving break-even profitability in 2025 unlikely, leading to reliance on borrowed cash to sustain operations.
Anderson Cooper has hired Hollywood super agent Bryan Lourd, sparking speculation that the CNN anchor, earning around $18 million annually, may be considering leaving CNN amid industry-wide cost-cutting and restructuring efforts. Cooper's move to CAA suggests potential career expansion or a departure from traditional news, as networks face financial pressures and strategic shifts.
Spotify forecasts higher-than-expected fourth-quarter profit due to cost-cutting measures and strong subscriber growth, particularly during the holiday season. The company has increased its premium plan prices and reduced expenses by laying off employees and cutting back on podcasts and marketing. Spotify anticipates operating income of 481 million euros, surpassing analyst estimates, and expects to reach 665 million monthly active users. Despite a rise in premium subscribers, overall revenue growth was slightly below expectations due to a weak digital advertising market and a strong dollar.
Paramount Global, under the leadership of Shari Redstone, has unveiled a new business plan involving $500 million in cost cuts and potential layoffs as it explores a sale to David Ellison’s Skydance Media. The company aims to improve its financial standing and transform its streaming service, Paramount+, while maintaining operations as a standalone entity. The proposed deal with Skydance includes a $4.5 billion buyout of non-voting stockholders and a $1.5 billion cash infusion to reduce debt.
Pfizer announces plans for an additional $1.5 billion in cost cuts, focusing on streamlining operations and reducing complexity in its manufacturing base, as part of a larger $4 billion savings strategy initiated earlier. The company anticipates further reductions in the future.
Alphabet-owned Google is laying off an unspecified number of employees and shifting some roles abroad as part of cost-cutting measures, with affected employees being able to apply for internal roles. The layoffs are not company-wide and a small percentage of impacted roles will move to hubs the company is investing in, including India, Chicago, Atlanta, and Dublin. This follows a series of job cuts across Google and the tech industry, with fears that more layoffs may occur as companies navigate economic uncertainty.
XPeng Inc reported a fourth-quarter loss due to cost cuts that led to margin improvements, with a net loss of $190 million and a 170.9% YoY growth in vehicle deliveries. The company provided a muted EV delivery guidance amid economic and demand slowdown, similar to Tesla's warning of a potential slowdown in vehicle volume growth. XPeng and Tesla are both launching affordable EV models in response to rising competition and a weakening macroeconomic backdrop. XPeng's new affordable EV, equipped with AI features, will be priced between $14,000 and $21,000 and is set to launch next month, while Tesla's compact EV model is planned for production in mid-2025.