Discover the 14 companies that laid off the most employees last month, January
Layoffs
February 2, 2024
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AlloVir Inc. recently made a tough decision to cut its workforce by about 95%, with the majority of layoffs expected to happen by April 15, 2024. This move comes after AlloVir announced the discontinuation of three clinical trials for its lead T cell therapy, posoleucel, aimed at treating various viral diseases.
The decision to reduce staff was approved by AlloVir's board on January 1, with the primary goal of preserving capital. The Phase 3 trials for posoleucel, targeting viral pathogens like Epstein-Barr virus and human herpesvirus, were halted last month. An analysis revealed that these trials were unlikely to meet their primary objectives.
As a result, AlloVir anticipates incurring charges of approximately $13 million, mainly in the first quarter, to cover expenses related to severance and other benefits. Despite these challenges, AlloVir's stock saw a 3.4% increase in after-hours trade.
Allovir, Inc., a clinical-stage cell therapy company, engages in the research and development of allogeneic, off-the-shelf multi-virus specific T cell (VST) therapies to prevent and treat devastating viral-associated diseases. AlloVir''s lead product is Viralym-M, an allogeneic, off-the-shelf VST therapy, to treat BK virus, cytomegalovirus, adenovirus, Epstein-Barr virus, and human herpesvirus 6. Its preclinical and clinical development product candidates include ALVR106 for respiratory syncytial virus, influenza, parainfluenza virus, and human metapneumovirus; ALVR109 to treat SARS-CoV-2 and COVID-19; ALVR107 for treating hepatitis B; and ALVR108 to treat human herpesvirus-8, including Kaposi''s sarcoma, primary effusion lymphoma, and multicentric Castleman''s diseases. AlloVir was formerly known as ViraCyte, Inc. and changed its name to Allovir, Inc. in May 2019. Allovir, Inc. was founded in 2013 and is based in Cambridge, Massachusetts.
Allakos Inc., a biotech firm working on treatments for various diseases, recently announced a restructuring plan. The aim is to cut costs and prioritize the development of AK006 and other programs. This move will reduce the workforce by around 50%, mainly in areas related to lirentelimab.
As of the fourth quarter of 2023, Allakos had about $171 million in cash, but it expects to use $85 to $90 million for operating activities in 2024. After accounting for lirentelimab-related costs, the estimated year-end 2024 cash is expected to be between $81 to $86 million.
The restructuring is expected to extend Allakos's cash runway until mid-2026. Despite the layoffs, Allakos has important milestones ahead in 2024, including completing dosing in Phase 1 trials for AK006 and reporting data on safety, pharmacokinetics, and pharmacodynamics.
This move is in response to a strategic focus on key programs, and Allakos is optimistic about its future milestones. Investors should keep an eye on Allakos as it progresses through its clinical developments and adjusts its financial strategy.
Allakos Inc. operates as a clinical stage biopharmaceutical company. Allakos is developing antolimab (AK002) for the treatment of eosinophilic gastritis and eosinophilic gastroenteritis, chronic urticaria, indolent systemic mastocytosis, and severe allergic conjunctivitis. Allakos Inc. was founded in 2012 and is headquartered in Redwood City, California.
BioSig Technologies, Inc. recently announced a workforce reduction to cut annual expenses by 50%. The reduction will be completed by January 31, as part of BioSig Technologies's efforts to streamline operations. Ken Londoner, Chairman and CEO, expressed gratitude to affected employees, acknowledging their crucial role in developing the PURE EP™ Platform.
BioSig Technologies, since its Q4 2023 launch, has seen increased interest in PURE EP™'s Near-Field Tracking (“NFT”) at major medical centers. This revealed a need for enhanced clinical support as BioSig Technologies expands its platform to more accounts. To address this, BioSig is changing its business model, seeking partnerships for sales and clinical support.
Fred Hrkac, Executive VP of BioSig, mentioned adjustments to ensure an economical clinical infrastructure, especially with the release of version 7 software featuring NFT. BioSig Technologies aims to partner with established electrophysiology companies and distributors for hospital settings.
Physicians from renowned medical centers have successfully conducted over 100 cases using PURE EP™'s NFT algorithm. Clinical findings presented at the Heart Rhythm 2023 convention demonstrated a 66% reduction in ablation time, among other benefits. BioSig is collaborating with early adopters to explore further applications and assess the efficacy and safety benefits of NFT.
Despite the layoffs, BioSig remains committed to collaborating with physicians to seamlessly integrate its hardware and software into labs for enhanced functionality. BioSig Technologies's strategic move aligns with its goal of delivering precision in intracardiac signal visualization while adapting to market needs and optimizing operational efficiency.
BioSig Technologies, Inc., founded in 2009 and headquartered in Westport, Connecticut, is a medical device company specializing in the development and commercialization of a proprietary biomedical signal processing technology platform. BioSig Technologies's flagship product is an advanced electrophysiology system that enables precise real-time evaluation of electrograms during procedures for patients undergoing electrophysiology in a laboratory setting. BioSig focuses on improving intracardiac signal acquisition and diagnostic information for conditions such as atrial fibrillation and ventricular tachycardia, catering to the needs of licensed healthcare practitioners responsible for interpreting the data.
Senti Biosciences, Inc. has announced a plan to streamline its operations, focusing on advancing its Gene Circuit technology. Senti Biosciences will reduce its workforce by about 37% to prioritize the development of SENTI-202, a promising cell therapy for acute myeloid leukemia. This decision comes after receiving FDA clearance for the Investigational New Drug (IND) application of SENTI-202 in December 2023.
Senti Biosciences aims to support clinical trials for SENTI-202 and SENTI-301A, a therapy for hepatocellular carcinoma in China. By scaling back other initiatives, reducing staff, and managing costs, Senti Bio plans to extend its cash resources until Q1 2025.
Senti Bio's CEO, Dr. Timothy Lu, emphasized Senti Biosciences's commitment to clinical progress and supporting affected colleagues. The strategic decisions include dosing the first patient with SENTI-202 in Q2 2024, providing initial efficacy data by year-end 2024, and continuing the SENTI-301A program in China.
While these changes aim to strengthen Senti Biosciences's focus on clinical proof-of-concept, there will be one-time costs of around $1 million, mostly related to severance, expected in Q1 2024. With a cash balance of $40.3 million as of November 30, 2023, and anticipated savings, Senti Bio anticipates funding its operations until Q1 2025.
Senti Biosciences, Inc. is a leading gene circuit company specializing in the development of innovative cell and gene therapies. Using a synthetic biology platform, Senti Biosciences engineers off-the-shelf chimeric antigen receptor natural killer (CAR-NK) cells equipped with gene circuits to reprogram cells with biological logic. These therapies are designed to sense inputs, compute decisions, and respond to specific cellular environments. Senti Biosciences focuses on challenging oncology indications, with lead programs such as SENTI-202 for acute myeloid leukemia (AML), SENTI-301 for hepatocellular carcinoma (HCC), and SENTI-401 for colorectal cancer (CRC). Founded in 2016 and headquartered in South San Francisco, California, Senti Biosciences is at the forefront of advancing precision medicine in the field of cell and gene therapy.
Amazon's streaming platform Twitch is about to undergo a significant workforce reduction, with 35% of its staff, approximately 500 employees, facing layoffs. The decision, expected to be officially announced soon, comes as the platform continues to operate at a loss, despite being under Amazon's ownership for nine years.
This move follows Twitch CEO Dan Clancy's announcement in December that the company would cease operations in South Korea due to high operating costs and network fees. Last March, Twitch had already laid off over 400 employees when user and revenue growth fell short of expectations.
In addition to the Twitch layoffs, Amazon is also cutting jobs in its streaming and studio operations, affecting several hundred employees. This decision is part of the ongoing trend of major job cuts across the tech industry in the wake of the pandemic. The affected staff at Prime Video and Amazon MGM Studios in the Americas will be notified this week, following a similar pattern in other regions.
Mike Hopkins, Senior Vice President of Prime Video and Amazon MGM Studios, explained the decision, stating that the company is reallocating resources by reducing or discontinuing investments in certain areas while focusing on content and product initiatives with the highest impact. Amazon has been making substantial investments in its media business, including an $8.5 billion deal for MGM and significant spending on original content like "The Lord of the Rings: The Rings of Power."
These layoffs reflect a broader trend in the industry, with many companies revisiting their priorities and cutting back after extensive job cuts in 2022 and 2023. As part of this shift, Amazon has also recently trimmed positions in its Alexa voice assistant division.
In summary, Twitch's workforce reduction and Amazon's broader job cuts are responses to ongoing financial challenges and a strategic shift towards prioritizing impactful content and product initiatives. The industry-wide trend of selective project and division targeting is evident as companies reevaluate and reallocate resources.
Amazon.com, Inc. is a global e-commerce and technology giant headquartered in Seattle, Washington. Operating through three main segments - North America, International, and Amazon Web Services (AWS) - the company facilitates the retail sale of consumer products and subscriptions worldwide. Amazon offers a wide range of merchandise through physical and online stores, including electronic devices such as Kindle, Fire tablets, Fire TVs, Rings, and Echo. The company also plays a significant role in content creation, providing services like Kindle Direct Publishing for authors and media content development. Additionally, Amazon is involved in various ventures, from food delivery in Bengaluru, India, to utility-scale solar projects in China, Australia, and the United States. With programs like Amazon Prime, the company caters to diverse audiences, serving consumers, sellers, developers, enterprises, and content creators since its founding in 1994.
C4 Therapeutics, Inc., a biopharmaceutical company focusing on targeted protein degradation, has outlined its 2024 priorities to advance breakthrough therapies. C4 Therapeutics will emphasize key programs, including clinical trials and discovery collaborations, aiming for near-term milestones. However, to align with this strategic focus, C4T is restructuring and reducing its workforce by about 30%.
To support these initiatives, C4T has bolstered its financial position with approximately $107 million in additional capital. This includes investments from Betta Pharmaceuticals, an upfront payment from Merck for collaboration, and proceeds from stock sales. C4 Therapeutics's CEO, Andrew Hirsch, expressed confidence in achieving significant progress in 2024, particularly with programs like CFT7455 and CFT1946.
The layoffs, though challenging, are seen as a mission-driven decision to prioritize the portfolio. C4 Therapeutics assures sufficient financial runway for executing critical milestones, with a balance sheet fortified through recent funding activities.
In terms of future milestones, C4T has announced key goals for 2024, including presenting updated data from ongoing clinical trials, completing Phase 1 exploration for certain programs, and supporting study start-up activities related to Phase 1 trials in collaboration with Betta Pharmaceuticals.
Recent achievements include positive clinical data for CFT7455 and promising pharmacokinetic/pharmacodynamic data for CFT1946. Additionally, notable partnerships with Betta Pharmaceuticals and Merck have contributed to C4 Therapeutics's financial outlook.
As of January 5, 2024, C4T's unaudited cash, cash equivalents, and marketable securities stand at approximately $330 million. C4 Therapeutics anticipates this, combined with cost savings from restructuring, will fund its operations into 2027.
C4 Therapeutics, Inc., a biopharmaceutical company, develops novel therapeutic candidates to target and destroy disease-causing proteins for the treatment of cancer, neurodegenerative conditions, and other diseases. Its lead product candidate is CFT7455, an orally bioavailable degrader targeting IKZF1/3 for multiple myeloma, peripheral T-cell lymphoma, and mantle cell lymphoma. C4 Therapeutics is also developing CFT8634, an orally bioavailable degrader of BRD9, a protein target for synovial sarcoma and SMARCB1-deleted solid malignancies; and BRAF V600E and RET programs for genetically defined resistant solid tumors. It has strategic collaborations with F. Hoffman-La Roche Ltd.; Biogen, Inc.; and Calico Life Sciences LLC. C4 Therapeutics, Inc. was founded in 2015 and is headquartered in Watertown, Massachusetts.
Levi Strauss & Co. recently announced layoffs and cost-cutting as part of a global productivity initiative. The move comes after a challenging 2023, with Levi Strauss aiming to save $100 million in fiscal 2024. The decision, revealed on Thursday, coincides with the transition from current CEO Chip Bergh to incoming CEO Michelle Gass.
The layoffs, affecting 10-15% of global corporate staff, are set to occur in the first half of this year. Levi's also plans to boost direct-to-consumer sales through its physical stores and online network, adapting to caution from outside retailers due to subdued demand.
Despite expressing confidence in growth opportunities, Levi's faced a 2.5% drop in after-hours shares. Levi Strauss's full-year adjusted per-share profit projection fell short of Wall Street expectations, ranging from $1.15 to $1.25 compared to FactSet's forecast of $1.33, with a projected sales growth of 1-3%.
Levi's strategic shift mirrors a broader trend of companies implementing cost-cutting measures to protect profit margins. Nike, in December, announced a similar approach with plans for up to $2 billion in cost cuts over the next three years, emphasizing "newness and innovation" to attract budget-conscious consumers.
Levi's reported Q4 sales of $1.6 billion, a 3% YoY increase, and adjusted earnings per share of 44 cents. Levi Strauss's direct-to-consumer sales saw an 11% increase, constituting 42% of overall revenue. However, wholesale revenues, particularly in Europe, declined by 2%.
Levi Strauss & Co. is a renowned global apparel company founded in 1853, headquartered in San Francisco, California. Specializing in the design, marketing, and sale of a diverse range of clothing and accessories, Levi Strauss offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and more for men, women, and children. With a presence in the Americas, Europe, and Asia, Levi Strauss & Co. boasts well-known brands such as Levi's, Dockers, Signature by Levi Strauss & Co., and Denizen. In addition to selling through various channels, including third-party retailers, department stores, and specialty shops, Levi Strauss operates around 3,000 retail stores and shop-in-shops worldwide, providing consumers direct access to its products. Furthermore, Levi Strauss & Co. licenses its iconic Levi's and Dockers trademarks for a range of product categories, expanding its market reach and influence in the fashion industry.
ChargePoint Holdings Inc. recently announced a 12% reduction in its workforce, aiming to cut costs by approximately $33 million annually. While ChargePoint Holdings didn't specify the exact number of employees affected, given its reported workforce of over 1,650 as of January 31, 2023, it suggests around 198 people may be impacted.
This decision, according to ChargePoint CEO Rick Wilmer, follows a careful evaluation of the business after his appointment in November. ChargePoint Holdings is responding to challenges in the electric vehicle market, where adoption has been slower than expected due to higher car prices, as noted by Ford and others.
Despite earlier losses, ChargePoint's stock showed a 3.6% gain by the end of the session. Wilmer emphasized ChargePoint Holdings's renewed focus on execution, operational excellence, and efficiency improvements.
ChargePoint anticipates $14 million in restructuring charges related to the layoffs, with the majority reflected in the Q4 results scheduled for release in March. As of the third quarter, ChargePoint Holdings held $397 million in cash, cash equivalents, and restricted cash. Additionally, it has access to an unused $150 million revolving credit facility.
ChargePoint went public in 2021 through a reverse merger with Switchback Energy Acquisition Corp., describing it as the world's first publicly-traded global EV charging network. Despite challenges reflected in a 19.8% stock decline over the past year, ChargePoint Holdings remains a key player in the evolving electric vehicle industry.
ChargePoint Holdings, Inc., together with its subsidiaries, provides electric vehicle (EV) charging networks and charging solutions in the United States and internationally. It offers a portfolio of hardware, software, and services for commercial, fleet, and residential customers. ChargePoint Holdings, Inc. was founded in 2007 and is headquartered in Campbell, California.
Group 1 Automotive Inc. recently announced a 10% reduction in its U.K. workforce, cutting 300 jobs, as part of cost-cutting measures amid economic uncertainty. The Houston-based auto dealership and collision-repair company faced challenges in the U.K. due to losses in used-vehicle wholesale sales, which are expected to persist until the end of March.
While Group 1's U.S. operations performed well in a changing market, its U.K. unit struggled with used vehicles, leading CEO Daryl Kenningham to acknowledge the need to align costs with recent trends.
In the fourth quarter, Group 1's profit declined by 30.3% to $106.2 million, falling short of analyst estimates. Group 1 Automotive cited increased costs, with adjusted earnings per share at $9.50, below the FactSet consensus of $10.44. Despite a 10% rise in revenue to $4.48 billion, higher selling and administrative expenses affected margins.
Group 1 Automotive highlighted a rebalancing of its U.K. used vehicle inventory in response to market changes, resulting in losses on wholesale sales. This strategic move aims to address challenges and position Group 1 for better performance in the future.
As a result, Group 1's stock saw a 6% decline in premarket trades. Investors should closely monitor Group 1 Automotive's efforts to realign costs and navigate market challenges, keeping an eye on future developments that may impact its performance and stock prospects.
Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry. Group 1 Automotive sells new and used cars, light trucks, and vehicle parts, as well as service insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services. It operates primarily in the metropolitan areas in 15 states in the United States; 33 towns in the United Kingdom; and 3 states in Brazil. As of February 5, 2020, Group 1 Automotive owned and operated 186 automotive dealerships, 242 franchises, and 49 collision centers that offer 31 brands of automobiles. Group 1 Automotive, Inc. was founded in 1995 and is headquartered in Houston, Texas.
Citigroup is reducing 20,000 employees in the next two years due to a $1.8 billion loss in Q4 2023, the worst in 15 years. CFO Mark Mason mentioned the layoffs will save $2.5 billion long-term. The loss per share was $1.16, far from the expected loss of 11 cents.
Various one-time costs contributed, including a $1.7 billion charge for a past banking crisis, an $880 million loss in Argentina, and $800 million in restructuring costs from 7,000 layoffs in 2023. CEO Jane Fraser aims to streamline Citigroup and boost profits, calling 2024 a "turning point year."
Despite the tough morale impact, Mason emphasized Citigroup's clear strategy and momentum. The bank plans an IPO for its Mexican retail unit, cutting a total of 40,000 jobs. Severance and restructuring costs could reach $1 billion globally. Fraser's restructuring plan, announced in September, focuses on leadership changes and increased accountability for a more efficient and profitable Citigroup.
Citigroup Inc., founded in 1812 and headquartered in New York, is a diversified financial services holding company with a global presence across North America, Latin America, Asia, Europe, the Middle East, and Africa. Citigroup operates in two main segments: Global Consumer Banking (GCB) and Institutional Clients Group (ICG). The GCB segment focuses on providing traditional banking services to retail customers through retail banking, Citi-branded cards, and Citi retail services, while the ICG segment offers wholesale banking products and services to corporate, institutional, public sector, and high-net-worth clients. With 2,348 branches primarily in the United States, Mexico, and Asia, Citigroup Inc. delivers a wide range of financial products and services, including banking, credit card lending, investment services, fixed income and equity trading, foreign exchange, and more.
Playtika, an Israeli mobile games developer listed on Nasdaq (PLTK), recently made headlines for downsizing its workforce by 10%, affecting 400 employees. Playtika also closed several offices in Central and Eastern Europe, mainly those involved in tech-related tasks. This move followed a previous layoff in December 2022, where 600 employees, including 180 in Israel, were let go.
The decision to reduce staff comes after a challenging year for Playtika, which experienced a 20% reduction in its workforce in 2022, following profitable years, particularly during the Covid pandemic. In May 2022, Playtika initiated the first wave of layoffs. Despite these measures, Playtika assures that its 1,100 employees in Israel will not be impacted.
In a notable development, Playtika acquired Innplay Labs for a reported sum of up to $300 million in September. However, Playtika faced setbacks earlier in the year when its attempt to acquire Rovio, the maker of the popular Angry Birds game, proved unsuccessful.
Playtika Holding Corporation develops mobile games worldwide. Playtika owns a portfolio of casual and casino-themed games. It distributes its games to the end customer through various web and mobile platforms, such as Apple, Facebook, Google, and other web and mobile platforms and its own proprietary platforms. Playtika was founded in 2010 and is headquartered in Herzliya Pituarch, Israel.
Rent the Runway is making tough decisions due to a slowdown in subscriber growth. Rent the Runway plans to cut around 10% of its corporate workforce, with COO Anushka Salinas stepping down by January 31. The move is part of a restructuring plan expected to cost $3-4 million.
In the last earnings report, Rent the Runway disclosed a 2% decrease in active subscribers. CEO Jennifer Hyman attributes this to strategic choices, focusing on profitability over acquiring more customers. However, industry reports suggest a broader trend, with similar declines seen in Stitch Fix's client base.
Stitch Fix reported a 15% decline in active clients, indicating a larger industry shift. Rent the Runway and others are adapting strategies to attract high-value, long-term customers. A PYMNTS report emphasizes the loyalty factor in subscription commerce, with 30% of loyalists contributing to 80% of revenue, particularly in the clothing subscription sector. Rent the Runway aims to build a healthier client base and enhance services for existing and future clients. The layoffs are part of a strategic response to industry challenges and a commitment to long-term success.
Rent the Runway, Inc. rents designer wear for women through its stores and online retail. Rent the Runway offers ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, ski wear, home goods, evening wear, and kids wear, as well as accessories. It also engages in the software development and support activities. Rent the Runway was incorporated in 2009 and is headquartered in Brooklyn, New York.
PayPal is set to undergo a round of layoffs as part of its cost-cutting measures, aiming to trim its workforce by 9% this year. CEO Alex Chriss attributes this move to streamline the business for enhanced efficiency and sustained growth. With 29,900 employees as of 2022, this marks the second significant reduction after a 7% cut last winter under the previous CEO.
PayPal's stock, which has faced a 61% decline over two years and a 79% drop from its July 2021 peak, has analysts divided. Bulls see the layoffs as a positive step towards fulfilling promises of margin-boosted growth, citing successful examples in the tech industry. On the other hand, bears view it defensively, raising concerns about potential challenges in upcoming quarterly results.
Chriss, who became CEO in September, emphasizes the need for PayPal to refocus on its strengths and create a culture of innovation. The layoffs align with this strategy, bringing PayPal's headcount back to 2019/2020 levels, according to Baird analyst Colin Sebastian. Despite the reduced workforce, revenues and operating income remain over 30% higher than three years ago.
PayPal Holdings, Inc. operates as a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. Its payment solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, and iZettle products. PayPal''s payments platform allows consumers to send and receive payments, withdraw funds to their bank accounts, and hold balances in their PayPal accounts in various currencies. It also offers gateway services that enable merchants to accept payments online with credit or debit cards, as well as digital wallets. PayPal Holdings, Inc. was founded in 1998 and is headquartered in San Jose, California.
Microsoft's gaming unit is reducing 1,900 employees, about 9% of its workforce, following the $69 billion acquisition of Activision Blizzard. The layoffs aim to streamline operations and eliminate redundancies. Key figures like Blizzard's president, Mike Ybarra, and design leader Allen Adham are leaving. Microsoft's Gaming CEO, Phil Spencer, stated that the cuts are part of an "execution plan" post-merger. While such layoffs are typical after big mergers, Microsoft assures full support, including location-based severance. Despite this news, Microsoft's stock remains relatively stable. The tech industry has witnessed various layoffs in 2024, signaling the quest for efficiency amid economic challenges. Microsoft remains committed to investing in growth areas despite the tough decision.
Microsoft Corporation, founded in 1975 and headquartered in Redmond, Washington, is a global leader in software, services, devices, and solutions. The company operates through three main segments: Productivity and Business Processes, offering a range of Office, Teams, LinkedIn, and Dynamics 365 solutions; Intelligent Cloud, providing licenses for SQL, Windows Servers, GitHub, and Azure cloud platform; and More Personal Computing, covering Windows OEM licensing, Surface devices, Xbox gaming, and search services. Microsoft also delivers support, consulting, and training services to assist customers in deploying and managing its products. With a diverse portfolio, Microsoft reaches customers through OEMs, distributors, online stores, and retail outlets.
Some data was sourced from LevelFields.AI
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