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Disney, Amazon, META: Firms across the US slash jobs


US companies from Amazon.com Inc and Walt Disney Co to Wall Street heavyweights Goldman Sachs Group and Morgan Stanley are slashing thousands of jobs as they look to rein in costs in anticipation of an economic downturn.

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Some companies such as Amazon and Meta Platforms have announced a second round of layoffs as rapid interest rate hikes by global central banks to tame inflation have weighed on consumer and corporate spending.

Here are some of the job cuts by major American companies announced in recent months.

Technology, media and telecom sector

Meta Platforms Inc:

The Facebook-parent said it would cut 10,000 jobs, just four months after it let go 11,000 employees.

IBM Corp:

The software and consulting firm said it will lay off 3,900 employees.

Spotify Technology SA:

Music streaming service Spotify is cutting 6 percent of its workforce, or roughly 600 roles.

Alphabet Inc:

Alphabet Inc is eliminating 12,000 jobs, its chief executive said in a staff memo.

Microsoft Corp:

The US tech giant said it would cut 10,000 jobs by the end of the third quarter of fiscal 2023.

The company laid off under 1,000 employees across several divisions in October, Axios reported, citing a source.

Amazon.com Inc:

The e-commerce giant will cut another 9,000 jobs in its cloud services, advertising and Twitch units after announcing company-wide layoffs earlier this year that would impact over 18,000 employees.
Intel Corp:

CEO Pat Gelsinger told Reuters “people actions” would be part of a cost-reduction plan. The chipmaker said it would reduce costs by $3 billion in 2023.

Twitter Inc:

The social media company has laid off at least 200 employees, or about 10 percent of its workforce, the New York Times reported. The layoffs come after Twitter terminated about 3,700 people, representing about half of the total staff, in November, soon after Elon Musk took over the firm.

Lyft Inc:

The ride-hailing firm said it would lay off 13 percent of its workforce, or about 683 employees, after it already cut 60 jobs earlier this year and froze hiring in September.

Salesforce Inc:

The software company said it would lay off about 10 percent of its employees and close some offices as a part of its restructuring plan, citing a challenging economy.

Cisco Systems Inc:

The networking and collaboration solutions company said it will undertake restructuring which could impact roughly 5 percent of its workforce. The effort will begin in the second quarter of the fiscal year 2023 and cost the company $600 million.

HP Inc:

The computing devices maker said it expected to cut up to 6,000 jobs by the end of fiscal 2025.

Workday Inc:

The software company will cut roughly 500 jobs, or 3 percent of its workforce, citing a challenging macroeconomic environment.

NetApp Inc:

The cloud firm announced an 8 percent reduction in its global workforce. The company had 12,000 employees as of April 29, 2022.

Rivian Automotive Inc:

The company is laying off 6 percent of its workforce in an effort to cut costs as the EV maker, already grappling with falling cash reserves and a weak economy, braces for an industry-wide price war.
Match Group:

The Tinder parent said it would lay off about 8 percent of its workforce, a day after it forecast first-quarter revenue below Wall Street expectations.

Dell Technologies Inc:

The company will eliminate about 6,650 jobs, or 5 percent of its global workforce, as the PC maker grapples with falling demand and braces for economic uncertainty.

Palantir Technologies Inc:

The data analytics firm said it had cut about 2 percent of its workforce. Palantir, known for its work with the US Central Intelligence Agency, had 3,838 full-time employees as of December 31, 2022.

Financial sector

Goldman Sachs Group Inc:

Goldman Sachs began laying off staff on January 11 in a sweeping cost-cutting drive, with around a third of those affected coming from the investment banking and global markets division, a source familiar with the matter told Reuters.
The job cuts are expected to be just over 3,000, one of the sources said on January 9, in what would be the biggest workforce reduction for the bank since the financial crisis.

Morgan Stanley:

The Wall Street powerhouse is planning to cut about 3,000 jobs in the second quarter, Reuters reported.

In December, the bank had laid off nearly 1,600 employees, according to a source familiar with the matter.

Citigroup Inc:

The bank eliminated dozens of jobs across its investment banking division, as a dealmaking slump continues to weigh on Wall Street's biggest banks, Bloomberg News reported.

BlackRock Inc:

The asset manager is cutting up to 500 jobs, Insider reported, citing a memo.

Lazard Ltd:

The New York-based investment bank said it would cut around 10 percent of its workforce in 2023.

Genesis:

The cryptocurrency firm has cut 30 percent of its workforce in a second round of layoffs in less than six months, a person familiar with the matter told Reuters.

Coinbase Global:

The cryptocurrency exchange said it would slash nearly 950 jobs, the third round of workforce reduction in less than a year after cryptocurrencies, already squeezed by rising interest rates, came under renewed pressure following the collapse of major exchange FTX.

Stripe Inc:

The digital payments firm is cutting its headcount by about 14 percent and will have about 7,000 employees after the layoffs, according to an email to employees from the company’s founders.

Consumer and retail sector

Beyond Meat Inc:

The vegan meat maker said it plans to cut 200 jobs this year, with the layoffs expected to save about $39 million.

Blue Apron Holdings Inc:

The online meal-kit company said it will cut about 10 percent of its corporate workforce, as it looks to reduce costs and streamline operations. The company had about 1,657 full-time employees, as of September 30.

DoorDash Inc:

The food delivery firm, which enjoyed a growth surge during the pandemic, said it was reducing its corporate headcount by about 1,250 employees.

Bed Bath & Beyond:

The retailer will lay off more employees this year in an attempt to reduce costs. Last year, company executives had said the home goods retailer was cutting about 20 percent of its corporate and supply chain workforce.

Energy and resources sector

Dow Inc:

The US chemicals maker said it would cut about 2,000 jobs as it navigates challenges including inflation and supply chain disruptions.

Phillips 66:

The refiner reduced employee headcount by over 1,100 as it seeks to meet its 2022 cost savings target of $500 million. The reductions were communicated to employees in late October.

Health and pharmaceutical sector

Johnson & Johnson:

The pharmaceutical giant has said it might cut some jobs amid inflationary pressure and a strong dollar, with CFO Joseph Wolk saying the healthcare conglomerate is looking at “right sizing” itself.

Manufacturing sector

3M Co:

The industrial conglomerate said it would cut 2,500 manufacturing jobs after reporting a lower profit.

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Abu Dhabi Overtakes Oslo for Sovereign Wealth Fund Capital in Global SWF’s First City Ranking

Today, industry specialist Global SWF published a special report announcing a new global ranking of cities according to the capital managed by their Sovereign Wealth Funds (SWFs). The findings show that Abu Dhabi is the leading city that manages the most SWF capital globally, thanks to the US$ 1.7 trillion in assets managed by its various SWFs headquartered in the capital of the UAE. These include the Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company (MIC), Abu Dhabi Developmental
Holding Company (ADQ), and the Emirates Investment Authority (EIA). Abu Dhabi now ranks slightly above Oslo, home to the world’s largest SWF, the Government Pension Fund (GPF), which manages over US$ 1.6 trillion in assets. Abu Dhabi and Oslo are followed by Beijing (headquarters of the China Investment Corporation), Singapore (with GIC Private and Temasek Holdings), Riyadh (home to the
Public Investment Fund), and Hong Kong (where China’s second SWF, SAFE
Investment Corporation, operates from). Together, these six cities represent two thirds
of the capital managed by SWFs globally, i.e., US$ 12.5 trillion as of October 1, 2024.
For the past few decades, Abu Dhabi has grown an impressive portfolio of institutional
investors, which are among the world’s largest and most active dealmakers. In addition
to its SWFs, the emirate is home to several other asset owners, including central banks,
pension funds, and family offices linked to member of the Royal Family. Altogether, Abu
Dhabi’s public capital is estimated at US$ 2.3 trillion and is projected to reach US$ 3.4
trillion by 2030, according to Global SWF estimates.
Abu Dhabi, often referred to as the “Capital of Capital,” also leads when it comes to
human capital i.e., the number of personnel employed by SWFs of that jurisdiction, with
3,107 staff working for funds based in the city.
Diego López, Founder and Managing Director of Global SWF, said: “The world ranking
confirms the concentration of Sovereign Wealth Funds in a select number of cities,
underscoring the significance of these financial hubs on the global stage. This report
offers valuable insights into the landscape of SWF-managed capital and shows how it is
shifting and expanding in certain cities in the world.”

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AM Best Briefing in Dubai to Explore State of MENA Insurance Markets; Panel to Feature CEOs From Leading UAE Insurance Companies

AM Best will host a briefing focused on the insurance markets of the Middle East and North Africa (MENA) on 20 November 2024, at Kempinski Central Avenue in Dubai.
At this annual regional market event, senior AM Best analysts and leading executives
from the (re)insurance industry will discuss recent developments in the MENA region’s
markets and anticipate their implications in the short-to-medium term. Included in the
programme will be a panel of chief executive officers at key insurance companies in the
United Arab Emirates: Abdellatif Abuqurah of Dubai Insurance; Jason Light of Emirates
Insurance; Charalampos Mylonas (Haris) of Abu Dhabi National Insurance Company
(ADNIC); and Dr. Ali Abdul Zahra of National General Insurance (NGI).
Shivash Bhagaloo, managing partner of Lux Actuaries & Consultants, will his present
his observations in an additional session regarding implementation of IFRS 17 in the
region. The event also will highlight the state of the global and MENA region
reinsurance sectors, as well as a talk on insurance ramifications stemming from the
major United Arab Emirates floods of April 2024. The programme will be followed by a
networking lunch.
Registration for the market briefing, which will take place in the Diamond Ballroom at the
Kempinski hotel, begins at 9:00 a.m. GST with introductory comments at 9:30 a.m.
Please visit www.ambest.com/conference/IMBMENA2024 for more information or to
register.
AM Best is a global credit rating agency, news publisher and data analytics
provider specialising in the insurance industry. Headquartered in the United
States, the company does business in over 100 countries with regional offices in
London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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Future of Automotive Mobility 2024: UAE Leads the Charge in Embracing Digital Car Purchases and Alternative Drivetrains

-UAE scores show highest percentage among the region in willingness to purchase a car
completely online
– Openness to fully autonomous cars has grown to 60% vs previous 32%.
– More than half of UAE respondents in the survey intend to move to hybrid cars during
next car purchase, while less than 15% intend to move to fully electric car.
– UAE sees strong use of new mobility services such as ride-hailing (Uber, Careem, Hala
Taxi)
– The perceived future importance of having a car is not only increasing in UAE but is
higher than any other major region globally, even China

Arthur D. Little (ADL) has released the fourth edition of its influential Future of Automotive Mobility (FOAM) report, presenting a detailed analysis of current and future trends in the automotive industry. This year’s study, with insights from over 16,000 respondents across 25 countries, includes a comprehensive focus on the United Arab Emirates (UAE). The report examines car ownership, electric vehicles,
autonomous driving, and new mobility services within the UAE.

“The UAE is at the forefront of automotive innovation and consumer readiness for new mobility
solutions,” said Alan Martinovich, Partner and Head of Automotive Practice in the Middle East
and India at Arthur D. Little. “Our findings highlight the UAE’s significant interest in
transitioning to electric vehicles, favorable attitudes towards autonomous driving technologies,
and a strong inclination towards digital transactions in car purchases. These insights are critical
for automotive manufacturers and policymakers navigating the evolving landscape of the UAE
automotive market.”
Key Findings for the UAE:
1. Car Ownership:
o Over half of UAE respondents perceive that the importance of owning a car is
increasing, with the study showing the increase higher than any other major
region, including China.
o Approximately 80% of UAE respondents expressed interest in buying new (as
opposed to used) cars, above Europe and the USA which have mature used
vehicle markets

2. Shift to Electric and Hybrid Vehicles:
o While a high number of UAE respondents currently own internal combustion
engine (ICE) vehicles, more than half intend that their next vehicle have an
alternative powertrain, with significant interest in electric and plug-in hybrid
(PHEV) options. Less than 15% plan to opt for pure battery electric vehicles
(BEVs).

3. Emerging Mobility Trends:

o Ride-hailing services are the most popular new mobility option among UAE
residents, with higher usage rates than traditional car sharing and ride sharing.
The study indicates a strong openness to switching to alternative transport modes
given the quality and service levels available today.

4. Autonomous Vehicles:
o UAE consumers are among the most open globally to adopting autonomous
vehicles, with a significant increase in favorable attitudes from 32% in previous
years to 60% this year versus approximately 30% in mature markets. Safety
concerns, both human and machine-related, remain the primary obstacles to
broader adoption.

5. Car Purchasing Behavior and Sustainability:
o The internet has become a dominant channel for UAE residents throughout the car
buying process, from finding the right vehicle to arranging test drives and closing
deals. UAE car buyers visit dealerships an average of 3.9 times before making a
purchase, higher than any other region in the world, emphasizing the need for
efficient integration of online and offline experiences.
o Upwards of 53% of respondents from the region would prefer to ‘close the deal’
and complete the purchase of their car online, which is the highest for any region
in the world.
o Sustainability is a key factor cited by UAE consumers as influencing car choice.
The UAE scored among the top half of regions, highlighting the importance of
environmental considerations.

“Our study confirms the promising market opportunities for car manufacturers (OEMs) and
distributors in the UAE” commented Philipp Seidel, Principal at Arthur D. Little and co-Author
of the Global Study. “Consumers in the Emirates show a great and increasing appetite for cars
while being among the most demanding globally when it comes to latest vehicle technologies
and a seamless purchase and service experience.”
The comprehensive report, “The Future of Automotive Mobility 2024” by Richard Parkin and
Philipp Seidel, delves into global automotive trends and their impact on various regions,
including the UAE. This study is an invaluable tool for industry stakeholders seeking to navigate
and leverage the dynamic changes driving the future of mobility.

 

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