News Analysis India

Tag: IT Layoffs 2024

  • Toshiba Announces Layoffs, To Cut Around 5,000 Jobs |

    New Delhi: Layoffs that started last year are not stopping yet. Daily, you may have encountered the news of the layoffs.  After prominent companies such as Google, Amazon, and more, Toshiba, a prominent manufacturer of personal computers, consumer electronics, and home appliances, is gearing up to trim its workforce.

    How Much Workforce Will Be Effected?

    The manufacturer decided to restructure the workforce in Japan by seven percent, which amounts to around 5,000 job cuts. (Also Read: Paytm Initiates Customer Migration To Partner Banks For UPI Services)

    Reason Behind Layoffs

    Once a major employer in the nation, Toshiba’s restructuring move aims to streamline operations and reduce costs in non-core business areas, as reported by Nikkei. (Also Read: Viral Video: Zomato Boy Delivering Food On Harley-Davidson Surfaces Online — Watch)

    Impact On Workforce

    Toshiba, currently employing around 65,000 individuals in Japan, is bracing for one of its largest layoffs since 2015 if the plan is executed. The 2015 layoffs, amounting to 7000 job cuts, were a result of accounting irregularities.

    Focus Areas

    The company’s restructuring strategy is geared towards focusing on its infrastructure and digital technology business while streamlining operations in other areas.

    This move comes amidst a broader trend of major companies in Japan, such as Shiseido, Omron, and Konica Minolta, also implementing layoffs and announcing plans for further reductions.

    Global Layoff Trends

    The layoffs at Toshiba coincide with similar actions by global giants like Amazon and Google, which have also announced significant job cuts recently.

    Company Response

    In response to inquiries, a report stated, “The restructuring plan is a key aspect of Toshiba’s efforts to enhance profitability, as part of its midterm management plan set to be unveiled in May.”

    Additionally, the report mentioned, “The company will engage in discussions with its labor union starting in May to determine the number of positions to be eliminated in each business unit.”

  • Watch: YouTube Music Employee Informed About His Layoff During Live Speech In Council |

    New Delhi: A team of 43 contractors working for YouTube Music found themselves without jobs after advocating for improved pay and benefits, according to reports. These contractors were employed both directly by Google and by its subcontractor, Cognizant.

    Layoffs At The Company

    The contractors were reportedly blindsided by the layoffs, which occurred shortly after they raised concerns about their compensation and benefits. (Also Read: Who Is Nupur Dave, Bengaluru Woman Who Worked With Google For 10 Years, Takes Retirement On Friday, Regrets Just After Two Days)

    In a widely circulated video on social media, YouTube data analyst Jack Benedict addressed the Austin City Council to seek support for his union’s negotiations with Google, only to discover during his speech that he and his entire team had been laid off. (Also Read: BIG Blow To THESE SBI Credit Card Holders; You Will Not Get Rent Payment Rewards From April 1)

    this is the exact moment our coworkers found out we had been laid off while speaking in front of city council pic.twitter.com/IcsCszGe3Z


    — jacob (@peepaw_) March 1, 2024

    Reactions From Workers

    Speaking to The Washington Post, Benedict expressed his shock and anger at the sudden termination of his employment. He and his colleagues believe that they were targeted as an example to discourage others from making similar demands.

    Company Responses

    Google distanced itself from the layoffs, stating that the contracts with its suppliers typically end at their natural expiry date. Similarly, Cognizant described the layoffs as part of their regular business operations, with contracts ending “naturally.”

    Employee Support

    In response to the layoffs, the affected employees will be provided with seven weeks of paid time to explore other opportunities within the company.

    The layoffs come after YouTube Music contract workers voted to unionize last year, seeking improved pay, benefits, and flexible return-to-office policies. However, Google refused to negotiate with the contract workers, citing their status as non-employees of the company.

  • Licious Is Latest To Join Layoffs Spree; To Cut 3% Of Its Workforce

    The Bengaluru-based company, which boasted a workforce of around 3,000 employees as of January, stated that this strategic realignment is part of its efforts to streamline operations.

  • Payments Firm PayPal To Reduce Global Workforce By 9% In 2024 |

    New Delhi: Payments firm PayPal Holdings is planning to cut about 2,500 jobs, or 9 percent of its global workforce, this year, a letter from CEO Alex Chriss, seen by Reuters, showed on Tuesday.

    In the letter to staff, newly appointed CEO Chriss said the decision was made to “right-size” the company through both direct cuts and the elimination of open roles throughout the year. The staff that will be affected are expected to be notified by the end of the week. (Also Read: How To Download Nirmala Sitharaman’s Full Budget Speech In Few Clicks? Check)

    “We are doing this to right-size our business, allowing us to move with the speed needed to deliver for our customers and drive profitable growth,” Chriss wrote in the letter. (Also Read: Capturing Moments: President Offers Dahi To Nirmala Sitharaman Ahead Of Budget)

    The company also posted the letter to its website after the market closed. Paypal’s shares ended the day down 0.13 percent. In November, Chriss said he expects to increase revenue outside of purely transaction-related volume and pledged to turn the fintech firm leaner by reducing its cost base.

    Though the announcement had helped rally the stock after third-quarter results, analysts have remained focused on PayPal’s margins in recent quarters.

    The company’s low-margin business products have risen strongly, while growth in its branded products has slowed due to increased pressure from competitors such as Apple.

    Investors hope Chriss, who was previously a senior executive at software company Intuit, will revive PayPal’s stock. It fell nearly 14% last year and missed a broader sector-wide rebound in high-growth technology shares.

    Last week, the payments firm announced it was launching new artificial intelligence-driven products as well as a one-click checkout feature.

    Meanwhile, rival Block, led by Twitter co-founder Jack Dorsey, also began to cut jobs this week as part of its previously disclosed plans to trim headcount and reduce costs, a source told Reuters.

  • Flipkart Announces Annual Workforce Restructuring: 1,000 Employees To Be Let Go |

    New Delhi: In its annual restructuring move, e-commerce giant Flipkart, owned by Walmart, is set to part ways with approximately 1,000 employees, constituting around 5 percent of its workforce. The decision comes as part of the company’s routine performance-based job cost cuts, sources familiar with the matter informed Moneycontrol.

    Employee Count And Exclusion Of Myntra Staff

    As of now, Flipkart has a workforce of around 22,000 people based in Bengaluru, excluding employees from the e-commerce fashion portal Myntra. (Also Read: Azim Premji Gifts Rs 500 Crore Worth Wipro Shares To Sons Rishad And Tariq)

    No Immediate Response From Flipkart

    According to a Moneycontrol report, the website has reached out to Flipkart for comments on the development, but the company has not provided an immediate response to queries regarding the job cuts. (Also Read: Riding The Billions: Meet Indian Tycoon Whose Company Powers Luxury Giants BMW, Mercedes Benz, Rolls Royce And Net Worth Is Rs…)

    CEO’s Townhall Insights

    During a town hall with employees on January 25, Flipkart CEO Kalyan Krishnamurthy shared insights into the company’s financial health. He assured employees that the company’s financial situation is on the upswing and anticipates a significant improvement by the end of the year.

    Potential Impact On IPO Plans

    Krishnamurthy hinted at the possibility of delaying Flipkart’s Initial Public Offering (IPO) until 2025. The decision is attributed to the expectation of better unit economics by that time, positioning the company for a more favorable IPO.

    Positive Developments In Business

    Despite the restructuring, Krishnamurthy highlighted positive developments within Flipkart. He mentioned that the company’s United Payments Interface (UPI) project is taking shape and undergoing testing with a limited group of users.

    Additionally, he reported that Flipkart’s mobile app business is now turning profitable, indicating positive trends and growth in the business.