All articles tagged with #headcount reduction
Opendoor's new chairman Keith Rabois criticized the company's large workforce and culture, citing remote work and DEI efforts as issues, and suggested significant layoffs to reduce staff from 1,400 to around 200. The company, a meme stock with a 470% year-to-date increase, is undergoing leadership changes and intends to refocus on merit and excellence.
Wells Fargo CEO Charles Scharf warned that severance costs this quarter could reach nearly $1 billion as the bank prepares for additional layoffs. The bank has already fired around 11,300 employees this year, but Scharf acknowledged the need to be more aggressive in reducing headcount. Other banks, including Morgan Stanley and Goldman Sachs, are also facing similar challenges and have already cut thousands of jobs. Scharf believes that while cost-cutting measures are necessary, both consumers and businesses will remain strong, and the overall economy is heading towards a "soft landing."
The Washington Post has appointed William Lewis, former CEO and publisher of The Wall Street Journal, as its new CEO and publisher. The company is projected to end the year with a $100 million loss and plans to reduce its headcount by about 10%. Lewis's appointment comes at a challenging time for the media industry, with a sluggish advertising market, low trust in news, and the rise of generative AI technology. The Post's prior projections for website traffic, subscriptions, and advertising growth were deemed "overly optimistic." The majority of the Post's revenue now comes from its digital business, with about 2.5 million digital subscribers.
General Motors (GM) announced that around 5,000 white-collar workers have opted for the voluntary buyout program, which was launched last month to reduce the automaker's global headcount and fixed costs. GM CFO Paul Jacobson said the automaker expects to take a roughly $1 billion charge during the quarter as a result of the program. The headcount reduction was part of the company's plans to cut $2 billion in structural costs over the next two years.
Despite being profitable, global tech giants such as Microsoft, Google, Amazon, SAP, and more have laid off thousands of employees since the start of the year due to over-hiring during the pandemic and a slower growth outlook than originally forecasted. With interest rates and inflation remaining elevated, consumers are pulling back spending amid uncertainty in the global economy, leading companies to reduce headcount in order to regain operating efficiency with a headcount that matches current demand trends.