Global companies announce mass layoffs

Regression

Philips, Microsoft and Google are among the global companies that will make cuts in staff, due to the current situation in the world’s economic sector

The Dutch company Philips, announced this Wednesday (30), to the market the cut of 6,000 employees worldwide. This happens, four months after the company laid off 4,000 employees, in October.

In this regard, the announcement of staff cuts was triggered by further losses caused by a large recall of manufacturing defective respirators.

Philips CEO Roy Jakobs said in a statement that the company’s workforce reduction will run through 2025. “2022 was a very difficult year for Philips and our shareholders. We are taking firm action to improve our effectiveness and increase yield urgently,” he declared.

The company announced net losses of 105 million euros in the fourth quarter of last year and 1.605 billion euros in the whole of last year, largely due to the recall of respirators.

In 2021, the company announced to the market a worldwide recall of devices to treat people suffering from sleep apnea, and now faces a series of lawsuits in the United States.

As such, Philips made the drastic decision because patients were at risk of experiencing “possible toxic and carcinogenic effects” if they inhaled or swallowed pieces of the devices’ degraded sound-absorbing foam.

Microsoft

Another massive layoff that could happen is with Microsoft, as reported by Satya Nadella, CEO of the technology company. In all, 10,000 employees will be laid off with the intention of cutting costs.

The technology company’s decision was influenced by the uncertainties of the current economy. June 2022, about 221,000 employees were part of Microsoft’s staff worldwide, according to data from the US Securities and Exchange Commission, in all, 122,000 workers were concentrated in the United States, making up most of the company.

Satya Nadella informed that the company is vulnerable to the global economy. He then announced the layoffs in Switzerland via the World Economic Forum in Davos. “We are living in times of significant change, and when I meet with customers and partners, some things become clear,” he wrote.

The company’s CEO also highlighted the influences caused by the coronavirus pandemic on global inflation. “First, as we saw customers accelerate their digital spending during the pandemic, now we see them optimize their digital spending to do more with less,” she said.

The cuts would be in just 5% of employees, as indicated by Nadella. The shutdowns will take place until the month of March of this year. The CEO highlighted that this is not an easy decision for the company.

Other mass layoffs

This year, other technology companies have also made cuts in employees with the intention of reducing costs. After the pandemic period, the demands of digital media decreased, after the resumption of face-to-face work.

As indicated, Amazon has announced that it will lay off approximately 18,000 of its employees. Meta also said it intends to cut 11 thousand of its employees, as well as Salesforce, which announced the dismissal of 10% of its team. This is an unprecedented pace for tech companies, increasing by 649% since 2022.

Spotify also entered the wake of cuts, announcing that it should dismiss 6% of its staff, corresponding to about 600 people. This decision is based on forecasts by analysts who expect a recession in the coming months, which could affect revenue in 2023.

According to data from a streaming service report, the employee base currently consists of 9,808 people worldwide, a number that will be reduced to 9,208 in the coming days. The company calculates that it will disburse up to 45 million euros, about R$ 254 million, with the payment of compensation to those affected.

In total, more than 40,000 global jobs have been claimed by these three big techs in recent months, but there are still more to come.

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