Jobs are just a part of our daily lives. It’s something we do to earn our keep. We often work hard to ensure we can keep our job. However, sometimes, losing it may be out of our control.
There has been a wave of layoffs since the Covid-19 pandemic. And unfortunately, it’s targeting quite a lot of people. In fact, workforces of major companies like the Walt Disney Co., Zoom and Dell have not been spared. Just recently, these three companies announced that a number of their employees will be getting the cut!
Yesterday (8th February), the Walt Disney Co. revealed they would be dismissing 4% of their workforce, which reportedly means about 7000 employees. According to Bob Iger, Disney’s returning CEO, this is part of their new round of cost cutting measures.
During the announcement, Iger made it clear that he respects and appreciates their employees’ dedication. However, he still deems the cut essential, “While this is necessary to address the challenges we face today, I do not make this decision lightly,” he stated. Disney’s stock saw a prompt increase after said announcement.
Iger’s goal is reportedly to cut more than $5 billion in costs. He supposedly aims to do so by consolidating divisions in charge of making and distributing their movies and TV shows. But, Disney has reportedly been doing fairly well with their latest quarterly earnings. Yet, it was noted that their profits from traditional TV has dropped and their streaming services are not making money. Disney+ reportedly lost 2.4m subscribers.
Just a day before (7th February), Zoom also divulged that they would be conducting layoffs. “We have made the tough but necessary decision to reduce our team by approximately 15% and say goodbye to around 1,300 hardworking, talented colleagues,” Zoom’s CEO Eric Yuan stated in a blog post on the company’s website. Zoom’s shares reportedly closed up about 9.8%.
Zoom saw much growth during the pandemic when many came to rely on the service. “But we also made mistakes,” Eric admitted. “We didn’t take as much time as we should have to thoroughly analyze our teams or assess if we were growing sustainably, toward the highest priorities.” As such, cuts will be made across each organisation in Zoom. However, Zoom’s CEO has reassured that they are not abandoning their ex-employees.
The company will be offering 16 weeks of salary and healthcare coverage, and support to those affected by the layoff. Eric also stated that he would be reducing his salary for the coming fiscal year by 98% and foregoing his 2023 corporate bonus. “As the CEO and founder of Zoom, I am accountable for these mistakes and the actions we take today– and I want to show accountability not just in words but in my own actions,” Eric said.
Technology company Dell too revealed their company was not shielded from layoffs. Dell reportedly announced they would be laying off 5% of its workforce, estimated to be 6,650 employees, on Monday (6th February). Dell is allegedly undergoing cuts due to their global and computer shipments falling at the end of 2022.
“There is no tougher decision, but one we had to make for our long-term health and success. Please know we’ll support those impacted as they transition to their next opportunities,” Dell’s co-chief operating officer, Jeff Clarke said in a memo to employees.
Although Dell took measures to “stay ahead of downturn impacts”, such as pausing external hiring, limiting travel and reducing outside services spending, it supposedly isn’t enough. Dell’s shared closed down by 3% on the same day.
Well, the string of layoffs from these companies were certainly unexpected. However, we do hope those affected by the layoffs will be able to find their feet soon.
Sources: NPR, CNBC (1)(2), Zoom Blog, Dell Technologies Blog
