Markets in Europe, Asia and New York fell on Friday as rumors spread that the US is on the brink of recession. $2.9 trillion has been drained from global stock markets. The momentum of the fall increased with the report that unemployment in the United States could not be resolved as expected.
Reports also show that the unemployment rate in the United States is now the highest since October 2021. The U.S. stock market's rally slowed following a report earlier this week showing a slump in the U.S. manufacturing sector. Amazon has laid off 25,000 employees in January 2023.
The Japanese market witnessed its worst performance since the Covid era yesterday. European technology companies also suffered heavy losses yesterday. Many giants, including Amazon, suffered heavy losses yesterday. Amazon saw a 12.5 percent decline, while Intel saw a 29 percent decline. A similar decline was seen in the Japanese stock market.
The collapse of the market started with the disappointing report of the semiconductor manufacturer Intel. In anticipation of this, Intel announced last week that it would lay off about 15,000 employees globally, although it was not known how many of those would be affected by the layoffs.
With the arrival of these two reports yesterday, there was a huge collapse in the global stock market. There was a huge drop in the stock value of the largest 500 companies listed on the American stock exchanges.
After announcing disappointing financial results last quarter, Intel said it would cut $10 billion (9.27 billion euros) in labor in 2025 as part of a cost-saving measure.
The layoffs will be completed by the end of the year, Intel CEO Pat Gelsinger said in a message to staff, adding that an enhanced retirement offer will be announced next week for eligible employees and a separate scheme for those who quit.
In October last year, Intel officially opened its latest manufacturing facility 'Fab 34' at its plant in Leixlip, Kildare, Ireland. Under the agreement, Intel retained ownership of the plant, although it later sold a 49% stake in the new venture for €10 billion.
The deal was part of a funding strategy designed to allow access to capital to invest in Intel's global manufacturing operations. That is why workers in Ireland, as one of the last designed centers when it comes to the decision to cut losses, are also worried. Intel has 4,900 employees in Ireland.
TikTok
TikTok has warned it could potentially cut more European jobs. Impacted roles are within the company's financial integrity team.
"As our business grows and evolves, we are undertaking a redesign of our monetization integrity team that will enable us to further improve our integrity assurance processes," a TikTok spokesperson said.
"Unfortunately, some roles may be made redundant and our priority is to support affected employees through this transition to minimize the impact of the changes," the company said.
TikTok is continuing to hire in its Irish operations, and some affected employees are likely to be redeployed to other divisions. TikTok employs around 3,000 people in Ireland.
Del
Dell aims to reduce workforce and focus more on AI. The company informed the employees about the dismissal of the workers through an internal letter.
It is reported that the new move will affect those in the sales and marketing department the most. According to a 10-K SEC filing, it cut its global workforce by about 6,000 jobs. The company cut 13,000 jobs last year, the filing revealed.
IBM
It is reportedly cutting its marketing and communications staff. The company previously announced plans to replace more than 8,000 jobs with AI.
Cisco
5% layoffs have been announced, affecting more than 4,000 people.
Apple
TechCrunch reports that hundreds of employees working on the company's autonomous electric car project are likely to be cut.
Sony
900 employees are being laid off from the PlayStation unit, affecting 8% of the division's workforce. Insomniac Games, Naughty Dog, Guerrilla and Firesprite Studios will also be affected.
Expedia
It is reported that 1,500 roles will be cut by 2024, primarily in its Product & Technology division, accounting for more than 8% of the company's workforce.
Byju's
About 500 employees, 3% of the total workforce, are being laid off as part of a restructuring effort.
Bungie
220 employees will be cut, representing 17% of the game studio's total workforce. CEO Pete Parsons said the changes will affect all levels of the company, including senior and executive leadership.
Pocket FM
A month after the company teamed up with Eleven Labs to quickly convert scripts to audio content using AI, it reportedly cut the roles of nearly 200 US writers.
Webflow
The company has announced it will cut about 8% of its workforce as it works toward its "next phase of growth."
Kaspersky
A US government order banning the sale of the company's software due to security risks has laid off dozens of employees and left the US market entirely.
Intuit
It will cut 1,800 jobs, affecting 10% of its workforce. The company says the cut was more than half due to poor performance and aims to hire about the same number of employees instead of cutting costs.
UKG
The software company plans to cut about 2,200 employees, about 14% of its workforce, as it seeks to redirect resources into "key areas of product innovation."
OpenText
The information management company plans to cut about 1,200 jobs, about 2% of its total workforce, as it plans to cut costs significantly through 2025.
