Dominick Reuter,Ashley Stewart,Shubhangi Goel,Sarah Jackson,Pete Syme,Jyoti Mann,Lakshmi Varanasi,Katie Balevic
Fri, January 24, 2025
Microsoft is planning job cuts in the new year.
RICCARDO MILANI/Hans Lucas/AFP via Getty Images
Job cuts are continuing into 2025 following waves of reductions last year.
Companies such as Meta, Microsoft, BlackRock, and BP are conducting layoffs.
See the list of companies letting workers go in 2025.
Layoffs and other workforce reductions are continuing in 2025, following two years of significant job cuts across tech, media, finance, manufacturing, retail, and energy.
While the reasons for slimming staff vary, the cost-cutting measures are coming amid a backdrop of technological change. In a recent World Economic Forum survey, some 41% of companies worldwide said they expected to reduce their workforces over the next five years because of the rise of artificial intelligence.
Companies such as CNN, Dropbox, and IBM have previously announced job cuts related to AI. Tech jobs in big data, fintech, and AI are meanwhile expected to double by 2030, according to the WEF.
Here are the companies with job cuts planned or already underway in 2025 so far.
CNN plans to cut 200 jobs.
Job cuts are continuing into 2025 following waves of reductions last year.
Companies such as Meta, Microsoft, BlackRock, and BP are conducting layoffs.
See the list of companies letting workers go in 2025.
Layoffs and other workforce reductions are continuing in 2025, following two years of significant job cuts across tech, media, finance, manufacturing, retail, and energy.
While the reasons for slimming staff vary, the cost-cutting measures are coming amid a backdrop of technological change. In a recent World Economic Forum survey, some 41% of companies worldwide said they expected to reduce their workforces over the next five years because of the rise of artificial intelligence.
Companies such as CNN, Dropbox, and IBM have previously announced job cuts related to AI. Tech jobs in big data, fintech, and AI are meanwhile expected to double by 2030, according to the WEF.
Here are the companies with job cuts planned or already underway in 2025 so far.
CNN plans to cut 200 jobs.
CNN is cutting staff in a bid to focus the business on its digital news services.Brandon Bell/Getty ImagesCable news giant CNN is cutting about 200 television-focused roles as part of a digital pivot. The cuts will amount to about 6% of the company's workforce.
In a memo sent to staff on Thursday, CNN's CEO Mark Thompson said he aimed to "shift CNN's gravity towards the platforms and products where the audience themselves are shifting and, by doing that, to secure CNN's future as one of the world's greatest news organizations."
Starbucks is planning layoffs in March.
Starbucks is planning layoffs as part of a corporate restructuring.
ANGELA WEISS / AFP via Getty Images
Global coffee chain Starbucks announced it is planning layoffs in March.
In a memo to staff on January 21, Brian Nicoll, the company's chairman and CEO, said: "We need to meaningfully change how our support teams are organized and how we work," and as part of that, "we will have job eliminations and smaller support teams moving forward."
Nicoll said the changes would be communicated to staff by early March.
Stripe is laying off 300 employees.
Global coffee chain Starbucks announced it is planning layoffs in March.
In a memo to staff on January 21, Brian Nicoll, the company's chairman and CEO, said: "We need to meaningfully change how our support teams are organized and how we work," and as part of that, "we will have job eliminations and smaller support teams moving forward."
Nicoll said the changes would be communicated to staff by early March.
Stripe is laying off 300 employees.
Stripe is cutting 300 jobs, according to a memo obtained by BI.
Pavlo Gonchar/SOPA Images/LightRocket via Getty Images
Payments platform Stripe is cutting 300 employees, primarily in product, engineering, and operations, according to a January 20 memo obtained by BI.
Chief People Officer Rob McIntosh said in the memo that the company still planned on growing its head count to about 10,000 employees by the end of the year.
BP slashing 7,700 staff and contractor positions worldwide.
Payments platform Stripe is cutting 300 employees, primarily in product, engineering, and operations, according to a January 20 memo obtained by BI.
Chief People Officer Rob McIntosh said in the memo that the company still planned on growing its head count to about 10,000 employees by the end of the year.
BP slashing 7,700 staff and contractor positions worldwide.
Oil giant BP is cutting thousands of jobs.
John Keeble/Getty Images
BP told Business Insider it plans to cut 4,700 staff and 3,000 contractors, amounting to about 5% of its global workforce.
The cuts are part of a program to "simplify and focus" BP that began last year.
"We are strengthening our competitiveness and building in resilience as we lower our costs, drive performance improvement and play to our distinctive capabilities," the company said.
Meta is cutting 5% of its workforce.
BP told Business Insider it plans to cut 4,700 staff and 3,000 contractors, amounting to about 5% of its global workforce.
The cuts are part of a program to "simplify and focus" BP that began last year.
"We are strengthening our competitiveness and building in resilience as we lower our costs, drive performance improvement and play to our distinctive capabilities," the company said.
Meta is cutting 5% of its workforce.
Meta CEO Mark Zuckerberg told employees the company is targeting "low-performers," BI reported on Jan 14.Fabrice COFFRINI/AFP/Getty Images
Meta CEO Mark Zuckerberg recently told staff he "decided to raise the bar on performance management" and will act quickly to "move out low-performers," according to an internal memo seen by BI.
In a post on the company's internal communications platform, he said Meta will make "more extensive performance-based cuts" in this year's performance review cycle. Impacted US employees will be notified on February 10, he wrote.
The company has laid off more than 21,000 workers since 2022.
BlackRock is cutting 1% of its workforce.
Meta CEO Mark Zuckerberg recently told staff he "decided to raise the bar on performance management" and will act quickly to "move out low-performers," according to an internal memo seen by BI.
In a post on the company's internal communications platform, he said Meta will make "more extensive performance-based cuts" in this year's performance review cycle. Impacted US employees will be notified on February 10, he wrote.
The company has laid off more than 21,000 workers since 2022.
BlackRock is cutting 1% of its workforce.
BlackRock was recently reported to be planning layoffs
Eric Thayer/Reuters
BlackRock told employees it was planning to cut about 200 people of its 21,000-strong workforce, according to Bloomberg.
The reductions are more than offset by some 3,750 workers who were added last year and another 2,000 expected to be added in 2025.
BlackRock's president, Rob Kapito, and its chief operating officer, Rob Goldstein, said the cuts would help realign the firm's resources with its strategy, Bloomberg reported.
Bridgewater has cut about 90 staff.
BlackRock told employees it was planning to cut about 200 people of its 21,000-strong workforce, according to Bloomberg.
The reductions are more than offset by some 3,750 workers who were added last year and another 2,000 expected to be added in 2025.
BlackRock's president, Rob Kapito, and its chief operating officer, Rob Goldstein, said the cuts would help realign the firm's resources with its strategy, Bloomberg reported.
Bridgewater has cut about 90 staff.
Bridgewater's layoffs will return its head count to where it was in 2023, a person familiar with the matter said.Bridgewater Associates
Bridgewater Associates cut 7% of its staff in January in an effort to stay lean, a person familiar with the matter told Business Insider.
The layoffs at the world's largest hedge fund bring its head count back to where it was in 2023, the person said.
The company's founder, Ray Dalio, said in a 2019 interview that about 30% of new employees were leaving the firm within 18 months.
The Washington Post is cutting 4% of its non-newsroom workforce.
Bridgewater Associates cut 7% of its staff in January in an effort to stay lean, a person familiar with the matter told Business Insider.
The layoffs at the world's largest hedge fund bring its head count back to where it was in 2023, the person said.
The company's founder, Ray Dalio, said in a 2019 interview that about 30% of new employees were leaving the firm within 18 months.
The Washington Post is cutting 4% of its non-newsroom workforce.
The Jeff Bezos-owned Washington Post is conducting layoffs in January.
Andrew Harnik/Getty Images
The Washington Post is eliminating less than 100 employees in an effort to cut costs, Reuters reported in January.
A spokesperson told the wire service that the changes would occur across multiple areas of the business and indicated that the cuts wouldn't affect the newsroom.
"The Washington Post is continuing its transformation to meet the needs of the industry, build a more sustainable future and reach audiences where they are," the spokesperson said, according to Reuters.
Microsoft is planning an unspecified number of cuts.
The Washington Post is eliminating less than 100 employees in an effort to cut costs, Reuters reported in January.
A spokesperson told the wire service that the changes would occur across multiple areas of the business and indicated that the cuts wouldn't affect the newsroom.
"The Washington Post is continuing its transformation to meet the needs of the industry, build a more sustainable future and reach audiences where they are," the spokesperson said, according to Reuters.
Microsoft is planning an unspecified number of cuts.
Microsoft confirmed that job cuts were planned.
NurPhoto/Getty Images
Microsoft is planning job cuts soon, and the company is taking
harder look at underperforming employees as part of the reductions, according to two people familiar with the plans.
A Microsoft spokesperson confirmed cuts but declined to share details on the number of employees being let go.
"At Microsoft we focus on high performance talent," the spokesperson said. "We are always working on helping people learn and grow. When people are not performing, we take the appropriate action."
Ally is cutting less than 5% of workers.
A Microsoft spokesperson confirmed cuts but declined to share details on the number of employees being let go.
"At Microsoft we focus on high performance talent," the spokesperson said. "We are always working on helping people learn and grow. When people are not performing, we take the appropriate action."
Ally is cutting less than 5% of workers.
Ally is laying off about 500 employees.
Ally Bank/Facebook
The digital-financial-services company Ally is laying off roughly 500 of its 11,000 employees, a spokesperson confirmed to BI.
"As we continue to right-size our company, we made the difficult decision to selectively reduce our workforce in some areas, while continuing to hire in our other areas of our business," the spokesperson said.
The spokesperson also said the company was offering severance, out-placement support, and the opportunity to apply for openings at Ally.
Ally made a similar level of cuts in October 2023, the Charlotte Observer reported.
Adidas plans to cut up to 500 jobs in Germany.
The digital-financial-services company Ally is laying off roughly 500 of its 11,000 employees, a spokesperson confirmed to BI.
"As we continue to right-size our company, we made the difficult decision to selectively reduce our workforce in some areas, while continuing to hire in our other areas of our business," the spokesperson said.
The spokesperson also said the company was offering severance, out-placement support, and the opportunity to apply for openings at Ally.
Ally made a similar level of cuts in October 2023, the Charlotte Observer reported.
Adidas plans to cut up to 500 jobs in Germany.
Despite a strong year, Adidas is planning job cuts.J
akub Porzycki/NurPhoto via Getty Images
Adidas intends to reduce the size of its workforce at its headquarters in Herzogenaurach, Germany, impacting up to 500 jobs, CNBC reported.
If fully executed, it amounts to a reduction of nearly 9% at the company headquarters, which employs about 5,800 employees, according to the Adidas website.
The news comes shortly after the company announced it had outperformed its profit expectations at the end of 2024, touting "better-than-expected" results in the fourth quarter.
"Strong growth across all regions and divisions proves the good job our teams are doing across regions and functions," CEO Bjørn Gulden said in a press release. "So although we are not yet where we want to be long term, I am very happy with this development which was much better than we had expected."
In a statement to BI, an Adidas spokesperson said the company had grown "too complex because of our current operating model."
"To set adidas up for long-term success," the spokesperson said, "we are now starting to look at how we align our operating model with the reality of how we work. This may have an impact on the organizational structure and number of roles based at our HQ in Herzogenaurach."
The company said it is not a cost-cutting measure and that it could not confirm concrete numbers.
Adidas intends to reduce the size of its workforce at its headquarters in Herzogenaurach, Germany, impacting up to 500 jobs, CNBC reported.
If fully executed, it amounts to a reduction of nearly 9% at the company headquarters, which employs about 5,800 employees, according to the Adidas website.
The news comes shortly after the company announced it had outperformed its profit expectations at the end of 2024, touting "better-than-expected" results in the fourth quarter.
"Strong growth across all regions and divisions proves the good job our teams are doing across regions and functions," CEO Bjørn Gulden said in a press release. "So although we are not yet where we want to be long term, I am very happy with this development which was much better than we had expected."
In a statement to BI, an Adidas spokesperson said the company had grown "too complex because of our current operating model."
"To set adidas up for long-term success," the spokesperson said, "we are now starting to look at how we align our operating model with the reality of how we work. This may have an impact on the organizational structure and number of roles based at our HQ in Herzogenaurach."
The company said it is not a cost-cutting measure and that it could not confirm concrete numbers.
More Job Cuts Loom After UK Firms Run Down Covid Coffers
(Bloomberg) -- UK businesses have run down a mountain of cash reserves built up during the pandemic, leaving them more likely to cut jobs when Labour’s tax hikes come into effect in April.
Firms added over £150 billion ($185 billion) to their savings when the economy was placed under Covid restrictions, thanks to a mix of loans and large-scale public-sector support. Corporate coffers reached almost double the value of their quarterly wage bills, according to a Bloomberg analysis of official data.
However, most of those excess reserves are now gone. Firms tapped into them during the cost-of-living crisis to keep up with inflation-busting pay rises, including double-digit increases in the minimum wage, and high borrowing costs. The ratio of savings to payroll bills is now back to its pre-pandemic level of just above 1.5.
“It’s the corporate equivalent of households’ excess savings being eroded by high inflation last year,” said Matt Swannell, chief economic adviser to the EY ITEM Club. “With some reserves, it’s easier to keep hold of staff even if they are expensive. In real terms though, if your savings have depleted, that becomes harder to do.”
Businesses complained vociferously after Chancellor of the Exchequer Rachel Reeves increased a payroll tax by around £26 billion a year in her Oct. 30 budget. Reeves has insisted the tax rise will go ahead in April, blaming the previous Conservative government for leaving a £22 billion hole in the public finances.
Firms have already started to reduce headcount, as they brace not only for the hike in national insurance contributions, but also a third consecutive increase in the minimum wage that also takes effect in April.
The pace of job-cutting in January and December was the fastest since the wake of the financial crisis, barring the pandemic, according to a purchasing-management survey published by S&P Global on Friday. A day earlier supermarket giant J Sainsbury Plc announced 3,000 roles are to go — including a 20% reduction in senior management — and that all of its remaining in-store cafes will close.
HM Revenue & Customs data through December show private-sector employers have shed over 150,000 employees since Labour took office last July, including 70,000 since the budget. Workers in hospitality, retail and manufacturing have borne the brunt.
The run of bad economic headlines provides a bleak backdrop for Reeves as she prepares for a major speech this week on growth, which she has described as her “number one mission.” The economy is smaller than before Labour came to power.
The numbers also pile pressure on the Bank of England to cut interest rates further, with the post-pandemic trend of “hoarding” staff in the face of weak demand now apparently over. Its newest rate-setter, Alan Taylor, recently warned of a “hard landing” and recession for the UK if officials act too slowly.
“There is scope for increased unemployment going forward,” Swannell said.
(Bloomberg) -- UK businesses have run down a mountain of cash reserves built up during the pandemic, leaving them more likely to cut jobs when Labour’s tax hikes come into effect in April.
Firms added over £150 billion ($185 billion) to their savings when the economy was placed under Covid restrictions, thanks to a mix of loans and large-scale public-sector support. Corporate coffers reached almost double the value of their quarterly wage bills, according to a Bloomberg analysis of official data.
However, most of those excess reserves are now gone. Firms tapped into them during the cost-of-living crisis to keep up with inflation-busting pay rises, including double-digit increases in the minimum wage, and high borrowing costs. The ratio of savings to payroll bills is now back to its pre-pandemic level of just above 1.5.
“It’s the corporate equivalent of households’ excess savings being eroded by high inflation last year,” said Matt Swannell, chief economic adviser to the EY ITEM Club. “With some reserves, it’s easier to keep hold of staff even if they are expensive. In real terms though, if your savings have depleted, that becomes harder to do.”
Businesses complained vociferously after Chancellor of the Exchequer Rachel Reeves increased a payroll tax by around £26 billion a year in her Oct. 30 budget. Reeves has insisted the tax rise will go ahead in April, blaming the previous Conservative government for leaving a £22 billion hole in the public finances.
Firms have already started to reduce headcount, as they brace not only for the hike in national insurance contributions, but also a third consecutive increase in the minimum wage that also takes effect in April.
The pace of job-cutting in January and December was the fastest since the wake of the financial crisis, barring the pandemic, according to a purchasing-management survey published by S&P Global on Friday. A day earlier supermarket giant J Sainsbury Plc announced 3,000 roles are to go — including a 20% reduction in senior management — and that all of its remaining in-store cafes will close.
HM Revenue & Customs data through December show private-sector employers have shed over 150,000 employees since Labour took office last July, including 70,000 since the budget. Workers in hospitality, retail and manufacturing have borne the brunt.
The run of bad economic headlines provides a bleak backdrop for Reeves as she prepares for a major speech this week on growth, which she has described as her “number one mission.” The economy is smaller than before Labour came to power.
The numbers also pile pressure on the Bank of England to cut interest rates further, with the post-pandemic trend of “hoarding” staff in the face of weak demand now apparently over. Its newest rate-setter, Alan Taylor, recently warned of a “hard landing” and recession for the UK if officials act too slowly.
“There is scope for increased unemployment going forward,” Swannell said.
Bloomberg Businessweek
No comments:
Post a Comment