RETRENCHMENTS and Unemployment Widespread in 2025
Technology Sector
Meta Platforms kicked off a round of layoffs on February 10, targeting "low performers" and seeking fresh talent. Chief executive officer Mark Zuckerberg said in mid-January that Meta would cut 5% of its workforce, or 36,000 employees. Those cuts also hit Singapore, according to public posts on professional networking platform LinkedIn and sources, a report in The Straits Times indicated.
US-based employees were notified on February 10, while international employees would be informed later, Zuckerberg said. Job cuts have been consistent at Meta in recent years. The company laid off thousands of employees in 2022 and 2023 as part of an efficiency push.
TikTok
At least a dozen TikTok employees in Singapore were let go with immediate effect, as the firm trimmed its back-end teams globally to better align operations with long-term growth plans. Letters went out to employees in its trust and safety department on February 20 to inform them about the internal reorganisation. The cuts affected teams in Asia-Pacific, Europe, and the US, the report said. The move is for operational efficiency and will better align with its business needs.
Other Companies
Salesforce will axe more than 1,000 roles, even as the company simultaneously hires salespeople for new artificial intelligence (AI) products. It could not be determined which divisions the reductions were focused in. The company is focusing on maintaining profit margins following pressure from activist investors in 2023.
Sonos is shedding about 200 workers, or 12% of its staff. The restructuring includes major changes to its product development team to make it "flatter, smaller, and more focused," the company said on February 5.
Amazon.com is exiting its operations in Quebec, Canada, leading to the loss of more than 1,700 full-time jobs. It will close all seven warehouses in Quebec as it returns to a third-party delivery model to provide more savings to its customers, said a spokesperson on January 22.
Workday will lay off about 1,750 workers, or 8.5% of its workforce. It will also exit certain owned office space, it wrote in a filing on February 5. The company said it would save money through selective hiring and using AI in its call centers and finance departments.
Renesas Electronics will cut less than 5% of its global workforce, amounting to fewer than 1,000 positions, as it struggles with sluggish demand for its chips. It has also canceled salary increases planned for this spring.
Financial Services Sector
HSBC is shuttering its international payments app Zing, potentially triggering around 400 job losses, including a substantial number of non-HSBC support staff.
SingPost will lay off 45 employees in the coming months in a move to restructure the company, it said on February 19. The affected employees are primarily in corporate support units, with a small number from the international business unit. The company said that the restructuring is the result of prolonged macroeconomic challenges, such as intense competition.
Automotive Sector
General Motors (GM) is cutting almost half of its workforce in the Cruise driverless car unit, amounting to about 1,000 positions. This includes chief executive officer Mark Whitten, the company revealed on February 4. The cuts are part of GM’s quick exit from the robotaxi business and its shift in strategy.
Boeing expects to have about 400 positions cut due to changes in NASA’s Artemis program and revised cost expectations. The aerospace manufacturer has been facing significant delays and rising costs with the Artemis program, which was established by NASA during the first term of US President Donald Trump.
Nissan is cutting 9,000 jobs globally and reducing production capacity by 20%, it said on January 29. It is cutting a work shift at two US vehicle assembly plants and trimming its hourly staff via buyouts, as the company considers a potential sale to Honda Motor.
Media Sector
BBC has told 12 staff in its Singapore bureau to reapply for new roles after closing their positions, a report in ST indicated. Affected staff have been given the chance to compete with external candidates for 11 new roles but were also told that they could be retrenched, the report said.
CNN will shed 6% of staff, or some 200 people, as it embarks on a major shakeup of staffing and programming amid a deluge of political news, said the outlet.
Retail Sector
Walmart is eliminating hundreds of corporate roles and asking staffers to move to its central offices in Arkansas or California. It is also closing its office in Charlotte, North Carolina. Walmart asked employees to move to bigger hubs last year too, continuing its push to consolidate its corporate footprint.
Adidas and Puma could cut jobs and impact the number of positions at the group’s headquarters in southern Germany, a spokesperson said on January 23. The plans could affect up to 500 employees. The group is seeking to reduce costs and bolster profits, as it looks to move past a challenging few years after the controversy surrounding Kanye West.
Estee Lauder is expanding its restructuring plan to include up to 7,000 job cuts as forecast third-quarter profit fell below estimates. This was due to persistent weak demand at airports and travel destinations such as Korea and China. The company estimates a net reduction of 5,800 to 7,000 jobs by the end of FY 2026 as part of an expanded plan to help the cosmetics giant return to sales growth and restore a solid double-digit adjusted operating margin over the next few years.
Conclusion
The article highlights the widespread job cuts announced across various industries, including technology, finance, automotive, media, and retail sectors. Many companies are restructuring to adapt to changing market conditions, and job cuts are a result of this process. The article provides an overview of the companies that have made announcements, the number of employees affected, and the reasons behind the cuts.
Frequently Asked Questions
Q: What are the reasons behind the job cuts?
A: The reasons behind the job cuts vary, but common factors include adapting to changing market conditions, restructuring, and reducing costs to improve profitability.
Q: Which industries are most affected?
A: The technology, finance, automotive, media, and retail sectors are among the most affected.
Q: How many jobs are being cut?
A: The number of jobs being cut varies, but estimates range from hundreds to thousands of employees.
Q: What is the future outlook for the job market?
A: The future outlook for the job market is uncertain, but many companies are taking steps to adapt to changing conditions and reduce costs to improve profitability.
