- Last year’s job cuts weren’t the end of layoffs. Further reductions are in the cards for 2024.
- Companies like BlackRock, Nike, Intel, and Citigroup have announced plans for cuts this year.
- See the full list of corporations reducing their worker numbers in 2024.
A slew of companies across the tech, media, finance and retail industries made significant cuts to staff in 2023. Major tech players like Google and Meta, finance giants like Goldman Sachs, and manufacturers like Dow all announced layoffs.
And the forecast for 2024 is already looking grim.
Thirty-eight percent of business leaders surveyed by ResumeBuilder think layoffs are likely in 2024, and around half say their company will implement a hiring freeze. ResumeBuilder talked to around 900 leaders at organizations with more than 10 employees.
Half of those surveyed cited concerns about a recession as a reason.
Another major reason: artificial intelligence. Around four in 10 respondents said they’ll have to conduct layoffs as they replace workers with AI. Major tech companies like Dropbox, Google, and IBM have already announced job cuts as part of a new focus on AI.
Here are the companies with job cuts either planned or already underway in 2024.
The athletic-wear giant Nike announced an up-to-$2 billion cost-cutting initiative that will take place over the next three years in its second quarter earnings report on December 21.
As part of that initiative, the company said it’s expecting to make job cuts. Nike didn’t disclose exactly how many roles that affects, but it does expect to book somewhere between $400 million and $450 million in pre-tax charges, largely in its fiscal third quarter and largely related to severance costs.
Other areas for cost-cutting that the company identified included “increasing automation and use of technology” and “simplifying our product assortment.”
Chip maker Intel has warned that additional layoffs are expected in 2024 beyond the 235 employees it will cut at its Folsom, California campus on December 31, according to the Sacramento Bee. The company made five rounds of job cuts in 2023.
“Intel is working to accelerate its strategy while reducing costs through multiple initiatives, including some business and function-specific workforce reductions in areas across the company,” a spokesperson for the company told Business Insider by email.
The spokesperson also noted that “these are difficult decisions, and we are committed to treating impacted employees with dignity and respect.”
In September, Citigroup announced plans for a corporate overhaul that would cut “management layers” as part of an effort to speed up decisions at the company. It’s one of the most major organizational shakeups the bank has seen in two decades.
“These changes eliminate unnecessary complexity across the bank,” Citigroup’s CEO Jane Fraser said at the time.
Internally, the initiative is known as “Project Bora Bora” and employees have discussed cuts that could amount to at least 10% of the company’s workforce in several major businesses, according to CNBC.
Redundancies related to the overhaul began in November and are likely to continue into February 2024, CNBC reported.
BlackRock is trimming 3% of its headcount, or roughly 600 people – its third round of layoffs in the last year.
CEO Larry Fink and president Rob Kapito wrote in an early January employee memo that they expect a “distinctly different landscape” in 2024 and businesses throughout the asset management firm have “developed plans to reallocate resources,” Business Insider’s Rebecca Ungarino reports.
Fink and Kapito also wrote in their memo that “new technologies” could help BlackRock “achieve significant efficiencies in how we operate.”
They expect to more than offset the layoffs with additional hiring this year.
“Even with these changes, by the end of 2024, we expect to have a larger workforce as we continue adding people and building capabilities to support key areas of growth,” the memo reads.
Rent the Runway is reducing 10% of its corporate roles, affecting 37 employees, as part of a restructuring, according to a regulatory form filed on Monday. The clothing subscription company expects to finish the restructuring by the end of the second quarter.
As part of the restructuring, Rent the Runway president and COO Anushka Salinas resigned. CEO Jennifer Hyman is absorbing her roles.
The company said the restructuring will save $11 million to $13 million.
Unity Software plans to reduce its headcount by roughly 25%, or about 1,800 employees, according to a Form 8-K filed with the SEC on Monday.
The reductions come as the video game software provider “restructures and refocuses on its core business, and to position itself for long-term and profitable growth,” the filing said.
Unity had multiple rounds of layoffs last year, first cutting 8% of its workforce in May and later eliminating roughly 3.8% of its workforce in November.