#workforcereduction

[secretstalks]

Amazon may reduce its workforce further; here’s what the CEO disclosed in a company memo

Amazon is reportedly preparing for another round of job cuts, as indicated by a recent memo from CEO Andy Jassy. In this internal communication, Jassy outlined plans for significant workforce changes, aiming to reduce the number of managers across various divisions by 15% by the end of Q1 2025.

The goal is to create a more effective and flexible organizational structure by decreasing management layers and increasing the number of individual contributors. Jassy emphasized that this shift would help eliminate bureaucracy, improve decision-making, empower employees locally, and ultimately enhance customer service.

While Amazon frames these changes as a way to foster employee ownership and efficiency, many anticipate that they may precede further layoffs. This concern arises in the context of substantial job losses in 2023, when the company cut around 27,000 positions as part of cost-saving measures.

To implement these changes, Jassy noted that the People Experience and Technology (PxT) team will work closely with Amazon's leadership, aiming to streamline operations so employees can make quicker, client-focused decisions.

Additionally, the memo announced a significant shift in labor policy: starting January 2, 2025, corporate staff will be required to work in the office five days a week, moving away from the current hybrid model of three in-office days. This change has the potential to further impact employee sentiment amid the organizational restructuring.

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[usnewsper-business]

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[enterprisewired]

Cisco Announces Workforce Reduction Amid Industry Downturn

Tech Giant to Cut 5% of Workforce, Eliminating 4,250 Jobs

In a move to streamline operations amidst a challenging industry landscape, Cisco, one of the leading technology companies, has announced plans to reduce its workforce by 5%. This decision will result in approximately 4,250 job cuts, contributing to a significant downsizing trend seen across the tech sector. The news has had an immediate impact on Cisco’s stock, with shares declining by as much as 9% in extended trading.

Industry-Wide Downsizing in 2024

Cisco’s decision reflects an industry-wide trend, as tech companies continue to implement cost-cutting measures in response to the market downturn that began two years ago. January marked a particularly active month for job cuts in the sector, with major players like Alphabet, Amazon, Microsoft, SAP, eBay, Unity, and Discord all announcing layoffs. According to Layoffs.fyi, 144 tech companies have already laid off nearly 35,000 workers in 2024.

Financial Performance and Guidance Challenges

Cisco’s workforce reduction comes on the heels of a 6% year-over-year decline in revenue for the quarter ending on January 27. The net income also experienced a dip, falling to $2.63 billion, or 65 cents per share, from $2.77 billion, or 67 cents per share, in the same period last year. The company attributed part of the challenging financial environment to delays in finalizing the $28 billion acquisition of monitoring and security software maker Splunk.

Cisco Is Cutting 5% of Workforce

CEO Chuck Robbins, in a conference call with analysts, provided guidance for the fiscal third quarter, calling for adjusted earnings per share between 84 to 86 cents on $12.1 billion to $12.3 billion in revenue. These figures fell short of analysts’ expectations, who were anticipating adjusted earnings of 92 cents per share on $13.09 billion in revenue.

For the full year, Cisco anticipates adjusted earnings per share in the range of $3.68 to $3.74 and revenue between $51.5 billion to $52.5 billion, below analysts’ projections of $3.86 in adjusted earnings per share and $54.26 billion in revenue.

Challenges and Caution in a Shifting Environment

During the conference call, Robbins acknowledged challenges impacting the guidance, citing a cautious approach due to heightened uncertainty in the macro environment. Additionally, customers are taking more time to deploy products received in recent quarters, contributing to slower-than-expected progress. Demand remains sluggish among telecommunications and cable service provider clients, adding further complexity to Cisco’s outlook.

Despite these challenges, Cisco announced a slight increase in its dividend, raising it by a penny to 40 cents per share. The company now faces the task of navigating a changing landscape while aiming to maintain its competitive edge in the technology sector.

Also Read: Tencent’s Riot Games Undertakes Global Workforce Reduction

[wnewsguru]

विवेक रामास्वामी ने 75% से अधिक लोगों को निकाल दिया, एफबीआई और अन्य प्रमुख एजेंसियों को बंद कर देंगे

[hrexecutivebyashishbhalla]

HRExecMag: RT OBrienPR: How communication can make all the difference in workforce reductions. Via HRExecMag https://t.co/UfHjtA0iUp #changemanagement #crisiscommunications #crisismanagement #HumanResources #workforcereductions #layoffs

HRExecMag: RT OBrienPR: How communication can make all the difference in workforce reductions. Via HRExecMag https://t.co/UfHjtA0iUp #changemanagement #crisiscommunications #crisismanagement #HumanResources #workforcereductions #layoffs

— Ashish Bhalla (@Ashish__Bhalla) May 30, 2020

from Twitter https://twitter.com/Ashish__Bhalla May 29, 2020 at 09:03PM via IFTTT

[secretstalks]

Intel has laid off 15,000 employees, with the CEO stating that ‘painful but tougher days are ahead

Intel CEO Pat Gelsinger has announced that the company will be implementing significant job cuts as part of a broader effort to reduce expenses and achieve financial stability. In a memo to employees, Gelsinger revealed that Intel is targeting $10 billion in savings by 2025, which will result in a reduction of approximately 15% of the workforce. To support this transition, the company will introduce an enhanced retirement package for eligible employees and offer a voluntary departure program next week.

Gelsinger expressed his deep regret over the decision, acknowledging the difficulty of the news for employees. He described the situation as one of the most challenging moments in Intel’s history, stating, “We are implementing some of the most significant changes in our company’s history.”

He highlighted that Intel's high costs and low margins necessitate these measures, noting that the financial outlook for the second half of 2024 is more challenging than expected. “We need to take more decisive actions to address these issues,” he said.

Gelsinger assured employees that the company will prioritize honesty, transparency, and respect throughout this process. “These decisions have deeply challenged me, making this the hardest task of my career. We will adhere to Intel’s values because how we implement these changes is just as important as the changes themselves,” he said.

He also prepared staff for difficult times ahead, but emphasized that these adjustments are essential for Intel to build on progress and enter a new era of growth.

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[enterprisewired]

Spotify Implements Substantial Workforce Reductions

Streaming Giant Slashes Jobs in Ongoing Profitability Drive

Spotify, the prominent music streaming platform, announced a significant workforce reduction, aiming to trim 17 percent of its global staff as part of its strategy to enhance productivity and efficiency. The move, unveiled in a blog post by CEO Daniel Ek on Monday, is anticipated to impact approximately 1,500 jobs globally, marking another wave of cutbacks following earlier reductions.

Continuing Restructuring Efforts

The latest round of layoffs comes on the heels of previous job cuts within Spotify’s podcast division earlier in the year. January witnessed 600 job eliminations, followed by an additional 200 in June, all amid the company’s endeavor to streamline operations. This streamlining has extended to programming decisions, including terminating an exclusive podcasting deal with Prince Harry and Meghan Markle in June and the consolidation of podcasting studios Parcast and Gimlet into a unified division, coupled with the cancellation of ten shows from these entities.

Emphasis on Profitability

Spotify’s recent actions align with its intensified focus on achieving profitability. Despite a better-than-expected third-quarter performance, with increased subscriber numbers and a surprising operating profit, the company remains resolute in its pursuit of operational efficiency. As of September, Spotify boasted 226 million paying premium subscribers, surpassing initial forecasts and demonstrating growth from 220 million subscribers at the end of June.

Spotify cuts 17% of staff in third round of layoffs this year

CEO’s Explanation and Forward Strategy

In his blog post, CEO Daniel Ek acknowledged the substantial impact of the layoffs amidst positive earnings and justified the decision, expressing deliberation over smaller reductions across 2024 and 2025. Ek emphasized the necessity of significant action to align operational costs with financial objectives, recognizing the difficulty of this step for the team while emphasizing the need for change within the company’s operational framework.

Forward Outlook

Ek concluded by underscoring the importance of these reductions in shaping a more robust and efficient future for Spotify. He highlighted the imperative nature of altering the company’s operational approaches to better align with strategic objectives.

Spotify’s decision to reduce its workforce significantly reflects a strategic move aimed at fostering greater efficiency and financial sustainability, albeit at the cost of substantial job losses. As the company navigates these changes, it anticipates a recalibration of its operations in line with its future goals.

As Spotify navigates the aftermath of these workforce reductions, the company is poised to leverage this restructured framework to drive innovation and cultivate a more sustainable business model. The forthcoming period will likely witness the implementation of strategic initiatives aimed at bolstering profitability while continuing to cater to the diverse musical tastes of its expansive user base.

Curious to learn more? Explore our articles on Enterprise Wired

[enterprisewired]

Virgin Galactic Implements Workforce Reduction as Focus Shifts to Next-Generation Suborbital Vehicle

Virgin Galactic has made the strategic decision to reduce its workforce and cut down on expenses as it shifts its attention towards the development of the Delta class of suborbital spaceplanes. This move is aimed at conserving resources and prioritizing the company’s future endeavors.

While specific details, such as the number of employees being affected, were not provided, the company mentioned that the process of notifying impacted employees is ongoing. Further information on these changes will be presented during the company’s scheduled earnings call on November 8.

The company also disclosed that its facilities would remain closed for the week. According to Virgin Galactic’s annual report filed with the Securities and Exchange Commission in February, the company had 1,166 employees as of the end of 2022.

The Focus on Delta Class

Michael Colglazier, CEO of Virgin Galactic, highlighted that these workforce reductions and cost-cutting measures are in alignment with the company’s commitment to preserving its financial resources for the development of the Delta class of spaceplanes. The Delta vehicles are envisioned to offer more frequent and cost-effective suborbital flights, distinguishing them from the existing SpaceShipTwo suborbital vehicle, VSS Unity.

Colglazier also pointed out the “uncertainty” in the markets, attributing it to high-interest rates and geopolitical events. He emphasized that such uncertainty has made it less favorable to access capital in the near term. In light of this, the company aims to direct its resources towards the Delta program, while streamlining and minimizing activities outside this program.

In his message to employees, Colglazier stated, “The Delta ships are powerful economic engines,” and continued, “To bring them into service, we need to extend our strong financial position and reduce our reliance on unpredictable capital markets. We will accomplish this, but it requires us to redirect our resources toward the Delta ships while streamlining and reducing our work outside of the Delta program.”

Financial Snapshot and Future Projections

Virgin Galactic reported having $980 million in cash and equivalents at the close of the second quarter of the current year, coinciding with a net loss of $134.4 million. Although the estimated costs for developing the Delta vehicles were not disclosed, the company anticipates their entry into service by 2026. While the existing VSS Unity can accommodate up to four customers per monthly flight, the company projects only limited revenue from it.

Previous Cost-Cutting Measures

The company had previously implemented cost-saving measures, including delaying work on a new line of mothership aircraft by approximately a year, which are responsible for carrying the Delta-class spaceplanes into the air. The decision was made considering the possibility of utilizing the current mothership aircraft, VMS Eve, for test flights of Delta-class vehicles. Virgin Galactic had also deprioritized the introduction of another spaceplane, VSS Imagine, before the rollout of the Delta line of vehicles.

It remains to be seen how these workforce reductions will impact the operations of VSS Unity, especially after it recently completed its fifth commercial flight, Galactic 05, carrying two researchers and a private astronaut. With VMS Eve, both vehicles are now set to undergo annual maintenance, with flights resuming in January, as announced by the company.

Virgin Galactic is navigating through a crucial phase in its journey, making tough decisions to ensure it remains on track for its ambitious plans in the space tourism industry. The strategic realignment underscores the challenges and uncertainties that are often associated with groundbreaking endeavors in space exploration.

Also Read: Nokia Announces Significant Workforce Reduction Amid Challenging Market Conditions

[usnewsper-business]

Activist Investor Boosts Japanese Medical Company's Future Amidst Competition and Challenges #activisthedgefund #activistinvestors #competition #corporatelandscape #costcuttingmeasures #COVID19pandemic #cuttingcosts #decliningsales #divestingnoncoreassets #endoscopebusiness #innovativestrategies. #investoroptimism #Japanesehealthcareindustry #Japanesemedicaldevicecompany #marketconditions #newgrowthopportunities #OlympusCorp #outsourcingproduction #revenuestreams #streamliningoperations #ValueActCapital #workforcereduction

[hrexecutivebyashishbhalla]

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HRExecMag: RT OBrienPR: How communication can make all the difference in workforce reductions. Via HRExecMag https://t.co/UfHjtA0iUp #changemanagement #crisiscommunications #crisismanagement #HumanResources #workforcereductions #layoffs

— Ashish Bhalla (@Ashish__Bhalla) May 30, 2020