US Companies Cut Down Employee Numbers

US companies, including tech majors and consumer firms, are bracing for a potential economic downturn by shrinking their employee base to streamline operations.

Job cuts announced by US-based employers jumped 13 percent to 33,843 in October last year, the highest since February 2021, according to a report.

Big tech companies such as Amazon Inc. and Meta Platforms Inc. laid off staff, while others are involved in major shake ups.

The IMF said earlier this week that major economies of the world including US, Europe, China are facing slow growth and tight situations occasioned by the Covid-19 pandemic surge in China, the Russia-Ukraine war, and Central Banks being in a tight rope state to salvage the situation.

The e-commerce giant, Amazon Inc. has laid off some employees in its devices group as a person familiar with the company said it still targeted around 10,000 job cuts, including in its retail division and human resources.

The Facebook parent companu, Meta Platforms Inc. also said it would cut 13% of its workforce, or more than 11,000 employees, in one of the biggest tech layoffs this year as it grapples with a weak advertising market and mounting costs.

Other companies such as the food delivery firm,  DoorDash Inc, which enjoyed a growth surge during the pandemic, said it was reducing its corporate headcount by about 1,250 employees.

Meanwhile, the cable TV network, AMC Networks Inc. said it would cut about 20% of its U.S. workforce, as it announced Chief Executive Officer Christina Spade had stepped down less than three months into the role.

Kraken

Also, the cryptocurrency exchange coy, Kraken said it would cut its global workforce by 30%, or about 1,100 employees, citing tough market conditions that have crippled demand for digital assets this year.

Reuters/Hauwa Abu