• This is the busiest time of year for returning holiday gifts.
• Retailers from Amazon to L.L. Bean have adopted a range of return policies.
• Most shoppers consider whether they can make free returns when deciding where to shop.

That unwanted kitchen gadget or too-big sweater someone gave you over the holidays represents a growing problem for retailers.

With the holiday shopping season over, retailers now face return requests from customers at the fastest pace of the year. The days between December 26 and 28 are the busiest for returns, with up to three times more than usual, payments platform Lightspeed Commerce found in a review of returns data collected over the last two years.

The amount of stuff that gets returned has been growing each year, too.

Marcus Shen, the CEO of B-Stock, which resells returned items and other excess merchandise, told Business Insider that his company has seen the volume of returns that it processes grow over the last few years. Some of the most-returned items include clothing, electronics, and toys, Shen said.

The share of goods returned to retailers is expected to reach almost 17% and be worth $890 billion this year, a report from the National Retail Federation, or NRF, found earlier this month. In 2019, it was about 8%.

The growth of e-commerce — and easy return policies at many retailers — has contributed to that explosion of returns, Shen said. Some shoppers even plan on making returns from the start with strategies like bracketing, which is buying multiple sizes or colors of an item with the intent to keep just one and return the others.

"I think that a lot of these very consumer-friendly policies are really a big driver here," Shen said.

Returns represent extra costs for the stores that handle them, whether it's the cost of shipping or marking down the price of the returned item when reselling it.

Many companies try to trim the costs of returns by offering customers incentives to use less costly methods. Earlier this year, for example, Amazon offered customers discounts on groceries if they stopped by an Amazon Fresh store to make a return.

Many retailers offer at least one free way to return a purchase, which often involves customers dropping their return off at a store or other physical location. That usually saves the retailer the cost of shipping the item from a customer's home to a processing center.

Many have also added incentives — or penalties — meant to steer customers toward those options.

Outdoor retailer REI, for instance, recently banned some customers who made frequent returns from doing so in the future. The action targeted a group of customers that had an average return rate of 79% on purchases, REI told ABC in November.

Amazon took a different approach with one of its policies, which tries to preempt returns entirely by letting shoppers on its website know when a product is frequently returned.

Other companies, such as L.L. Bean and GameStop, assess a fee of less than $10 in order to mail something back to them.

"Retailers are responding by investing in a variety of innovative returns options," the NRF said in its report. "But, at the same time, they are facing growing costs for managing and processing returns."

The NRF's report found that 76% of shoppers decide where to shop based on whether the retailer offers free returns.

"Given the priority shoppers place on free returns, retailers have to walk a fine line in implementing these policies," the NRF said in its report.

At the same time, retailers are paying more attention to controlling the costs of processing returns, Shen told BI.

Getting merchandise back to retailers is only part of the challenge: Once a retailer has the item, it has to decide whether to write it off completely or resell it at a discount, either to its own customers or through companies like Shen's.

"It's cash that's sitting on the floor of a warehouse," he said.

• OpenAI shared new details about its plan to overhaul its company structure.
• Its current for-profit arm has been governed by a nonprofit board.
• OpenAI said its existing for-profit arm would become a public benefit corporation with ordinary shares of stock.

OpenAI has detailed its plans for a new corporate structure that would separate its business from being controlled by its nonprofit board.

In a blog post shared by the company on social media on Friday, the company said its board was considering "how to best structure OpenAI to advance the mission of ensuring AGI benefits all of humanity have been."

"Our plan is to transform our existing for-profit into a Delaware Public Benefit Corporation⁠ (PBC) with ordinary shares of stock and the OpenAI mission as its public benefit interest," OpenAI wrote.

"The PBC is a structure⁠ used⁠ by many others⁠ that requires the company to balance shareholder interests, stakeholder interests, and a public benefit interest in its decisionmaking," the company said. "It will enable us to raise the necessary capital with conventional terms like others in this space."

This structure aims to generate profit while also benefiting the public interest. The nonprofit arm would take shares in the public benefit corporation, it added.

OpenAI said it was planning to make the structural change "in order to best support the mission of ensuring artificial general intelligence benefits all of humanity."

"As we enter 2025, we will have to become more than a lab and a startup — we have to become an enduring company," it added.

In September, OpenAI confirmed that it would convert to a for-profit structure.

The move was also widely reported to be key to its $6.6-billion funding round in October: OpenAI has two years to make the switch, or else investors in the round could ask for their money back, multiple reports said.

OpenAI CEO Sam Altman said last month that a for-profit status makes it easier to attract new funding.

Altman is overseeing the transition just over a year after OpenAI's board temporarily removed him as the company's chief executive, thrusting its nonprofit governance into the spotlight.

While Altman was ousted for a few days, he returned as CEO, and many of the company leaders who pushed him out have since left their roles and new board members were added.

Now, OpenAI said the AI race has proven more costly than anticipated, which requires a structure more amenable to investors.

"The hundreds⁠ of billions of dollars that major companies are now investing into AI show what it will really take for OpenAI to continue pursuing the mission," OpenAI wrote in its latest blog post.

"We once again need to raise more capital than we'd imagined," it said. "Investors want to back us but, at this scale of capital, need conventional equity and less structural bespokeness."

• Big Lots, Party City, and The Container Store reported either bankruptcy or store closures recently.
• It's a cap on a tough year for many retailers.
• Shoppers of almost all income levels have been watching their spending in 2024.

Trouble for a trio of retailers at the tail end of 2024 is a sadly fitting end to a tough year for retailers.

Home storage chain The Container Store filed for Chapter 11 bankruptcy on Sunday. The retailer plans to reorganize and its CEO said that the company "is here to stay," but it said in May its full-year consolidated net sales dropped almost 20% year-on-year, and in October that second-quarter sales on the same basis fell 10.5%.

A day earlier, Party City said it would wind down operations and close all of its stores. That's on top of Big Lots, which said last Thursday it would start store-closing sales at all of its locations after its planned sale to a private equity firm fell through.

The few days of bad news caps a rough year for many retailers. Over 2,000 stores have closed this year in the US, by Business Insider's count.

Among the companies that have shuttered stores are drugstore chains CVS and Rite Aid, Family Dollar, and convenience store chain 7-Eleven.

Even some big-name chains that aren't closing stores are still having trouble. Starbucks' sales fell in the latest quarter, showing that new CEO Brian Niccol — brought in abruptly to help revitalize the company — has plenty to address at the chain in 2025.

Starbucks store employees have told BI that the coffee chain has operational issues to work out, from not scheduling enough workers at busy times to finding a better way to fill mobile orders.

Big Lots, Party City, and The Container Store all have pointed to recent economic factors, namely inflation and consumers who are less willing to spend.

In its statement on Saturday, for instance, Party City cited "an immensely challenging environment driven by inflationary pressures on costs and consumer spending, among other factors" in explaining the decision to wind down operations.

Satish Malhotra, CEO of The Container Store, referenced a "challenging macro-economic environment" in an email to customers this week.

Big Lots, meanwhile, has been saying for months that consumers were buying fewer couches, dining room sets, and other high-priced home furnishings. The chain saw "a significant consumer pullback in big-ticket items, particularly within the furniture and patio furniture categories," CEO Bruce Thorn said during an earnings call in June — the last one that the company hosted before announcing its now-scrapped deal to sell itself to Nexus Capital Management.

Inflation has decelerated this year for many items, yet shoppers are still cautious about what they buy, and prices for many items are still proportionally higher than before the pandemic. Many low-income consumers are having trouble stretching their paychecks to cover expenses, a development that has hurt Dollar General and other dollar stores.

More affluent consumers have also slowed their spending, turning away from stores where they have to pay full price and toward off-price chains like Nordstrom Rack as well as store-brand groceries at Walmart.

Even Target reported last month that many of its customers were sticking to buying essentials and shying away from impulse buys and more expensive items, leading the big box chain to cut its forecast.

So far, the outlook for 2025 isn't great. Advance Auto Parts and Walgreens have plans to shut 1,200 stores between the two chains, for example.

To be sure, all three retailers who reported bad news over the last few days faced challenges well before this month or even this year. Big Lots has been closing stores since last year. Party City filed for bankruptcy in January 2023. And The Container Store has reported quarterly drops in same-store sales for several consecutive quarters.

But if shoppers remain value-conscious and stick to stores they perceive as offering the best deals going into 2025, retailers could continue to have a tough time in the new year.

Do you work at a major retailer and have a story idea? Reach out to this reporter at [email protected]

• OpenAI reached new funding and valuation heights in 2024.
• The ChatGPT maker also saw longtime employees depart and a legal fight with Elon Musk.
• Here are the biggest moments from OpenAI's roller-coaster year.

OpenAI cemented its place as the most valuable name in artificial intelligence in 2024 — and set itself up for more growth. The path wasn't entirely smooth.

After starting as a nonprofit almost a decade ago, OpenAI officially started moving toward converting to a for-profit company this year. It also wrapped up a historic funding round. All that came as CEO Sam Altman emerged with his role at the company intact after his temporary ouster last year.

But legal challenges remain for OpenAI, including court battles with Elon Musk, who co-founded the startup, as well as some of the nation's largest newspapers. The company also lost several high-profile employees, including some who were there at its start in 2015.

Here are the highlights of OpenAI's rocky year.

At the start of 2024, OpenAI was still reeling from the attempt to oust CEO Sam Altman.

OpenAI's board of directors removed Altman as CEO in November 2023, saying it didn't have "confidence in his ability to continue leading OpenAI."

A few days later, though, Altman was back as the startup's chief executive, and there was a new board, too. OpenAI employees reportedly refer to the period as "The Blip."

Details about the drama, such as exactly who had pushed for Altman's ouster, tricked out over the following weeks and months.

In December, Altman told Time that the ordeal was tough for him but that OpenAI emerged more unified than before. "I wouldn't wish it on an enemy. But it did have an extremely positive effect on the company," he said at the time.

Elon Musk's xAI raised billions to take on OpenAI

The Financial Times reported in January that xAI was seeking to raise as much as $6 billion at a valuation of $20 billion. Founder Elon Musk has framed the company as a challenger to OpenAI, which he co-founded with Altman. Musk left OpenAI's board in 2018.

OpenAI reached an $80 billion valuation in February

A deal valued OpenAI at $80 billion, about triple its last valuation, The New York Times first reported in February. Company employees could cash out their shares as part of the tender offer.

Elon Musk sued Sam Altman and OpenAI in February

Musk sued Altman and OpenAI in February, saying that the company "has been transformed into a closed-source de facto subsidiary" of Microsoft. That meant that OpenAI was now generating profit in violation of its nonprofit mission, Musk said in the lawsuit.

Altman and other OpenAI executives responded in a blog post in March. The post said that Musk himself had talked to the company about making OpenAI a for-profit entity, including potentially merging it with Tesla.

Musk withdrew his lawsuit in June, though the issue would resurface in the fall.

An SEC investigation into OpenAI came to light in February

The SEC investigation was focused on whether OpenAI misled investors, The Wall Street Journal reported.

Unnamed sources told the Journal that the investigation was a response to the former OpenAI board's statement in November that Altman was not "consistently candid in his communications" before he was temporarily ousted from the company.

Sam Altman won a return to OpenAI's board in March

OpenAI's board "unanimously concluded" that Altman and President Greg Brockman were "the right leaders for OpenAI," Chair Bret Taylor said in March.

Altman rejoined the board as three new members, all women, also took seats.

OpenAI cofounder Ilya Sutskever announced in May that he was leaving OpenAI

Sutskever, also chief scientist at OpenAI, was one of the group that attempted to push Altman out of the company in November. He later said that he regretted being part of the movement to oust Altman.

In a farewell post on X, formerly known as Twitter, Sutskever said he was confident that OpenAI would create artificial general intelligence that would be "both safe and beneficial."

OpenAI swiftly stopped using ChatGPT's "Sky" voice in May after claims it sounded like Scarlett Johansson

OpenAI pulled the voice from ChatGPT amid a public furor, adding that it wasn't an imitation of the movie star but belonged to another actor.

Some users had compared Sky to the voice of an automated assistant in the 2013 movie "Her," which Johansson voiced.

Johansson said that Altman had asked her to voice ChatGPT but that she declined. When OpenAI went ahead with a voice that sounded like hers, Johansson said she was "shocked" and hired legal representation.

OpenAI faced fresh criticism over safety as summer began

In addition to the "Sky" voice incident, a New York Times report in early June added to OpenAI's image problems. It featured concerns from current and former OpenAI employees that the company wasn't doing enough to prevent its artificial intelligence from harming or destroying humanity.

An OpenAI spokesperson at the time reiterated to Business Insider the company's commitment to safety, highlighting an "anonymous integrity hotline" for employees to voice their concerns and the company's safety and security committee.

A Vox report also said that OpenAI pushed restrictive NDAs on departing employees and put their vested equity at risk if they didn't agree to them. The company told BI it would make " important updates to our departure process."

All of that created a public relations challenge for Altman.

Apple said it would integrate ChatGPT into its software in June

During its annual Worldwide Developer Conference in June, Apple said it would offer ChatGPT within its software, such as through Siri.

The partnership gives OpenAI potentially vast reach, with ChatGPT now within easier reach of millions of iPhone users.

Musk filed a new lawsuit against OpenAI in August; in November, he amended it to include Microsoft as a defendant

In August, Musk filed another lawsuit in which his lawyers argued that OpenAI executives "deceived" Musk into cofounding the company by playing on his concerns about the existential risks AI poses.

In November, Musk added Microsoft as well as one of its board members, Reid Hoffman, who also used to sit on OpenAI's board, as a defendant in the suit. It alleged that Microsoft was working with OpenAI to create a monopoly in the artificial intelligence world and extend "lavish compensation" to employees.

Musk also named Shivon Zilis, a former OpenAI board member and mother of three of Musk's children, as a plaintiff.

In September, OpenAI announced that it would become a for-profit company

OpenAI was founded as a nonprofit in 2015, but the company said that it would change that status over the next two years.

The process will involve multiple steps, such as giving OpenAI's investors equity stakes in the new entity and earning government approvals, Business Insider previously reported.

The plan has drawn pushback, including from Musk and Meta CEO Mark Zuckerberg.

CTO Mira Murati said in September that she would leave OpenAI

Chief Technology Officer Murati said she was leaving OpenAI "to create the time and space to do my own exploration."

Murati reportedly played an important role in the attempted ousting of Altman from OpenAI. She served as CEO temporarily before Altman was reinstated.

President Gregg Brockman also said in August that he would take an extended leave of absence; he returned in November.

Other OpenAI executives and employees left the company throughout 2024

Including Sutskever, at least nine notable OpenAI employees have left the company in 2024, Business Insider found. Among them were OpenAI co-founders Andrej Karpathy and John Schulman.

OpenAI raised a $6.6 billion funding round in October — the biggest in Silicon Valley's history

The funding round valued OpenAI at $157 billion, putting it on a similar footing with Uber and AT&T.

Thrive Capital led the round. Other major investors in OpenAI's round included SoftBank, Tiger Global, Microsoft, and Nvidia.

In November, xAI told investors it had raised $5 billion at a $50 billion valuation, The Journal reported.

In November, OpenAI allegedly deleted legal data in its legal fight with The New York Times and other newspapers

Lawyers for the newspapers were reviewing OpenAI's training data as part of the lawsuit.

In November, they learned that "OpenAI's engineers erased all of the News Plaintiffs' programs and search result data," according to a filing in the case. OpenAI did not respond to a request for comment at the time.

• Nordstrom's founding family is taking the retail chain private with help from a Mexican retailer.
• Bruce Nordstrom, whose grandfather started the department store in 1901, died in May.
• Here's how Nordstrom grew from a single location in Seattle into a fashion empire.

The descendants of John W. Nordstrom are taking the eponymous department store chain private.

Nordstrom's great-grandsons Pete and Erik, who are now the company's President and CEO, respectively, are working with cousin Jamie Nordstrom, the company's chief merchandising officer, and Mexican retailer El Puerto de Liverpool to purchase the company at $24.25 per share, the group said on Monday. The deal gives Nordstrom an enterprise value of $6.25 billion and should be completed in the first half of 2025, the group said.

Earlier this year, Pete and Erik's father, Bruce, died at the age of 90 after a long career with the company.

The grandson of founder John W. Nordstrom, Bruce was instrumental in bringing the retailer to international prominence in a career that spanned four decades.

Here's how the Nordstroms built their empire from a single shoe store in Seattle to one of the biggest names in fashion retail.

Nordstrom was founded as a shoe store by John W. Nordstrom and Carl F. Wallin in Seattle in 1901.

Two decades later, the partners opened a second store in Seattle's University District.

John Nordstrom retired in 1928 and sold his share to his sons Everett and Elmer.

Wallin retired soon after and sold his share of the company to the Nordstrom sons too. John's third son, Lloyd, later joined the team.

John Nordstrom's sons focused on expanding into women's clothing.

Nordstrom purchased the Seattle-based clothing store Best's Apparel in 1963. Three years later, the company purchased a Portland, Oregon-based clothing store and began offering both shoes and apparel under the name Nordstrom Best. The company added men's and children's apparel in 1966.

In 1968, the three Nordstrom brothers handed the company over to the next generation.

Everett's son Bruce, Elmer's sons James and John, Lloyd's son-in-law Jack, and family friend Bob Bender became the new heads of the company. The third generation of Nordstrom chairmen took the company public in 1971, formally renaming it Nordstrom Inc.

The first Nordstrom Rack opened in the basement of the downtown Seattle store in 1973.

That same year, the company became the largest-volume fashion specialty store on the West Coast, with sales surpassing $100 million. The chain continued to expand throughout the next several decades.

In 1995, Nordstrom's third generation handed the reins over to the fourth.

The elder Nordstroms retired as co-chairmen, but remained on the Board of Directors, and Bruce's sons, Blake, Pete, and Erik, took over the company in 1995.

Bruce's oldest son Blake became co-president in 1995.

Blake began working in the family business when he was about 11 years old. His first role with the company was in the stockroom, and he went on to hold many positions with the company, including merchandise buyer, regional manager, and then vice president in charge of stores in Washington and Alaska.

Erik Nordstrom worked for his older brother in various positions at the company as the two rose through the ranks together.

"It was always the best working for my brother because he had more confidence in me and gave me more autonomy than anybody I had ever worked for," Erik Nordstrom said in his father's 2007 book, "Leave It Better Than You Found It."

Bruce returned as chairman in 2000, retiring for a second time in 2006.

Bruce and his sons were credited with turning the company around after several years of underperformance by non-family leadership.

Throughout the 2000s, Nordstrom partnered with fashion brands like Façonnable, Topshop, HauteLook, and Jeffery.

In 2014, the company started expanding internationally. It opened stores in Canada and the US territory of Puerto Rico.

Nordstrom opened its first menswear-only store in 2018 and a flagship womenswear store in 2019.

The concept combined in-store services, such as tailoring, shoe shining, and food, with high-tech digital ordering and returns systems.

Blake died in 2019 at the age of 58, passing control of the company to his brothers.

"Blake was the best big brother, friend and mentor anyone could ever ask for," Pete and Erik Nordstrom said in a note to employees. "One of the things that brings us some comfort is that Blake's values, character and passion can still be reflected in what this company does — how we treat each other, our customers and our communities. Building on that is the best way we can think of to honor his legacy."

In April, Pete and Erik revealed that the company was exploring options to go private.

In regulatory filings, the brother said they had not yet received any financing commitments to complete such a deal.

In May, Bruce died at his home at the age of 90.

Nordstrom died on May 18.

"Our dad leaves a powerful legacy as a legendary business leader, a generous community citizen and a loyal friend," Pete and Erik said in a statement.

In December, Erik, Pete, and other Nordstrom family members reached a deal to take the company private.

The deal with Mexican retailer El Puerto de Liverpool was developed over several months. Once completed, the Nordstrom descendants will own 50.1% of he department store chain, with the other 49.9% in the hands of Liverpool, Nordstrom said on Monday.

Jessica Tyler contributed to an earlier version of this story.

• Gig work has expanded to include nurses at hospitals and medical facilities, per a new report.
• Many nurses who work this way face challenges similar to Uber drivers, the report found.
• Nursing represents a high-stakes use case of gig work apps, one of the researchers said.

Gig work has expanded to the nurses who care for patients in hospitals and care homes — and it's coming with some of the same challenges that delivery and rideshare contractors have already pointed to, according to a new report.

Apps like CareRev, Clipboard Health, and ShiftKey have taken an approach similar to the one companies like Uber and Instacart have used to build up their workforces, and applied it to nursing at hospitals, care homes, and other medical facilities.

But the report, which the Roosevelt Institute released a summary of this week, found that medical facilities often turn to gig nursing services as a way to cut expenses, especially under the tutelage of private equity firms.

Medical professionals on the apps, which the report collectively calls "Uber for Nursing," also face many of the same issues that other gig workers do, from low pay to having their accounts on the platforms deactivated with little or no explanation.

The apps make pitches that are attractive to the nurses themselves, Katie Wells, a senior Fellow at think tank Groundwork Collaborative and one of the report's authors, told Business Insider in an interview. Wells wrote the report with Funda Ustek Spilda, a senior lecturer at King's College London and a research associate at the University of Oxford's Oxford Internet Institute.

Full-time nursing jobs often involve putting in long hours as well as working night or weekend shifts. COVID's strain on hospitals and other medical facilities also pushed many nurses to quit or consider finding other work.

Like rideshare and delivery companies, the apps say that they offer nurses more choices over how and when they work. ShiftKey's website, for instance, says that its users have "the freedom to make choices best suited to their lives" including how much they earn and "their relationship with work."

For a burned-out nurse, that can be an appealing pitch, Wells said.

"There is almost no flexibility and control," Wells said. "So it is no wonder that these apps become attractive."

Wells and Spilda interviewed 29 nurses and nursing assistants for their study. The interviewees all used at least one gig work app to find nursing shifts.

Like delivery and rideshare contractors, nurses who use the apps must claim jobs through them. The nursing apps often charge a fee for access, and workers bid with their pay rates. The user who offers the lowest pay gets the shift, according to the report.

Working the shift, however, can be tricky. When they show up for a gig, the nurses often have to navigate the facility themselves — even if they have never worked there before.

"At most hospitals and medical facilities, no orientations are required for gig nurses and nursing assistants," the report reads. "Workers do not know where supply closets are located, how to access patient portals with medical histories and current medication lists, and whom to contact in the chain of command."

And like Uber drivers or Instacart delivery workers, nurses who use the apps don't have a boss to contact when things go wrong. One Oregon-based nurse interviewed for the study said that she was barred from Clipboard Health's app for two weeks after she had a hernia on the job and had to leave early.

In another instance, the same nurse said that she went to work with COVID after learning that she couldn't cancel her shift without losing "attendance points" and hurting her chances of getting gigs in the future, the report reads.

"It sucks that there's nobody that you can get ahold of immediately," the nurse told Wells and Spilda.

"It's really as if AI has eaten the managers," Wells said.

The apps also advertise that nurses can make more on their platforms than at other jobs. One nurse interviewed by the researchers said she made gross pay of $23 an hour on ShiftKey. That dropped to around $13 an hour after accounting for fees that she paid to ShiftKey.

Despite the challenges, the report found that 19 of the 29 people interviewed planned to continue working for the apps, though some also said they also had jobs in other industries to make enough money to live.

The report says that gig nursing apps are often used by facilities that are trying to save money and are under pressure to produce returns for investors.

Wells told BI that bringing the gig economy to medical care creates risks not present in food delivery or rideshare.

"The stakes are higher because this has to do with patient safety, and the immediacy of health and care makes things more palpable," she told BI.

ShiftMed, which employs its nurses as W2 employees but still offers them much of the flexibility of gig work, said that it deactivates nurses' accounts for various reasons, from patient safety to legal violations.

"Nurses file an appeal by submitting a formal review through the app or support channel, after which ShiftMed conducts an internal investigation, reviews records, and determines the next steps," CEO Todd Walrath said in a statement to BI.

The company said that it also offers an orientation so that users "are fully prepared for any clinical setting by aligning health system-specific requirements, such as training or shadowing before they begin shifts," Walrath said.

CareRev, Clipboard Health, and ShiftKey did not respond to requests for comment.

Are you a nurse who works as an independent contractor with a story idea to share? Reach out to this reporter at [email protected]

• FedEx will spin off its freight business into a new publicly traded company.
• FedEx Freight will separate from FedEx over the next 18 months.
• Express delivery services have seen slowing demand for their services.

FedEx is spinning off its freight arm into a new publicly traded company.

Called FedEx Freight, the new company will handle large cargo, while FedEx will continue to handle the parcel shipping business that shoppers might be more familiar with as their holiday packages arrive.

The separation will happen over the next 18 months, FedEx said in a statement on Thursday. Shares of FedEx jumped about 9% in after-hours trading.

"Through this process, we will unlock value for our Freight business and position FedEx to create even greater value for stockholders," CEO Raj Subramaniam said in the statement.

FedEx also cut its profit estimates for its 2025 fiscal year in earnings released on Thursday and cited a "challenging demand environment." It said it had seen lower-than-expected FedEx Freight revenue and profit as "sustained weakness in US industrial production continued to pressure less-than-truckload industry demand."

The spinoff will allow FedEx to focus more on the parcel shipping market, it said in its statement.

Bloomberg reported in October that the company, along with rival UPS, has faced less demand this year for next-day shipping as many customers look to save money with slower options.

• Amazon workers at several warehouses went on strike on Thursday.
• The strike comes in the middle of Amazon's key holiday shopping and shipping season.
• Amazon said that it wasn't seeing an impact on its operations.

Amazon workers at seven Amazon fulfillment centers went on strike Thursday, though the retailer said it wasn't seeing effects on its holiday delivery operations.

The workers are walking off the job after Amazon refused to bargain with them over a contract, according to a statement from the Teamsters, which represents the employees.

The strike will affect three Amazon fulfillment centers in Southern California as well as one each in New York, Atlanta, San Francisco, and Illinois, according to the Teamsters. The union said it will also set up picket lines at other Amazon facilities.

The action comes in the middle of the key holiday shopping season. Amazon's highest quarterly revenue has historically come during the final three months of the year. This year, that period included the company's October Prime Day as well as deals for Black Friday.

"If your package is delayed during the holidays, you can blame Amazon's insatiable greed," Sean O'Brien, general president of the Teamsters, said in the statement.

O'Brien said that the Teamsters "gave Amazon a clear deadline to come to the table and do right by our members."

"They ignored it," he added.

An Amazon spokesperson said Thursday morning that the company hasn't seen its operations affected by the strike.

Spokesperson Kelly Nantel said in a statement that the Teamsters recruited non-employees to participate in the strike and intimidate Amazon employees. When Business Insider asked for evidence of those claims, an Amazon spokesperson said, "We know our employees, and we know they are not out there. Our employees repeatedly claim to management that they experience harassment from activists."

"We appreciate all our team's great work to serve their customers and communities, and are continuing to focus on getting customers their holiday orders," Nantel said.

Workers at some Starbucks stores were also preparing for a potential strike this week. On Tuesday, a union representing about 10,000 baristas said its members had voted to authorize a strike, though negotiations with Starbucks have continued and no strike date has been set.

Do you work for Amazon and have a story idea to share? Reach out to this reporter at [email protected]

• Starbucks CEO Brian Niccol has talked about improving conditions for baristas.
• A potential strike at some Starbucks stores represents a test on that front for the new CEO.
• Niccol has made some operational changes, but Starbucks Workers United wants better pay.

Starbucks CEO Brian Niccol has talked about improving working conditions for the company's baristas.

Now, as thousands of them prepare for a potential strike, Niccol faces a test of that commitment.

Baristas who are part of Starbucks Workers United, which represents about 10,000 Starbucks workers in the US, voted to authorize a strike, the union said on Tuesday. About 98% of members voted in favor of action, though they haven't selected a walkout date, according to the union.

The union said Tuesday that it's focused on winning better raises for its members. It also wants to resolve hundreds of unfair labor practice charges, or ULPs, filed with the National Labor Relations Board.

The contract negotiations predate Niccol's arrival at Starbucks in September. Starbucks and the union have been at odds for three years. The first Starbucks store to unionize — a location in Buffalo, New York — was organized in 2021. The parties restarted talks in April after about a year of no meetings and have struck agreements on some provisions of the contract.

Starbucks and union representatives continued to bargain on Wednesday, a spokesperson for Starbucks Workers United told Business Insider.

"It is disappointing that the union is considering a strike rather than focusing on what have been extremely productive negotiations," Starbucks spokesperson Phil Gee said. "Since April, we've scheduled and attended more than eight multi-day bargaining sessions where we've reached thirty meaningful agreements on dozens of topics Workers United delegates told us were important to them, including many economic issues."

Since becoming Starbucks CEO, Niccol has said he sees opportunities to improve some operational aspects of baristas' working conditions as part of a broader push to revitalize sales. In an open letter in his first week as leader, he said the company would focus on "empowering our baristas to take care of our customers" and that he wanted to make it "the best place to work, with career opportunities and a clear path to growth."

Some Starbucks workers have told BI that their stores are understaffed, including during some of the busiest times of the day, such as the morning and after-school rushes. Other workers have said that Starbucks' frequent promotions for app users result in a crush of mobile orders that they struggle to prepare in just a few minutes.

Niccol's early actions at Starbucks have included fixes to some of those issues, such as rolling back the frequency of promotions and adjusting staffing, he said on an earnings call in October. Starbucks also plans to bring back self-service milk and other condiments at its stores in 2025 to lighten some of the barista load.

One sign of progress came on Monday, when Starbucks said it would offer employees up to 18 weeks of paid parental leave — triple its current benefit of six weeks. Employees represented by Starbucks Workers United had previously proposed doubling the paid time off for parents.

On Tuesday, Starbucks Workers United said that the company had yet to agree to make changes to other aspects of workers' jobs. The union represents baristas at about 500 Starbucks stores.

"It's time to finalize a foundational framework that includes meaningful investments in baristas and to resolve unfair labor practice charges," Silvia Baldwin, a Starbucks barista in Philadelphia barista and bargaining delegate, said on Tuesday.

Starbucks spokesperson Gee said: "We remain committed to working together and committed to reaching a final framework agreement. This is our goal."

Do you work at Starbucks and have a story idea to share? Reach out to this reporter at [email protected].

• Many major companies are requiring employees to return to the office full or part-time.
• Business Insider compiled a running list of the companies calling employees back.
• The list includes companies like Starbucks, Amazon, and BlackRock.

In September, Amazon mandated corporate workers return to the office five days a week beginning January 2.

In December, Business Insider first reported that AT&T is following suit and expecting employees to be in the office 40 hours a week starting in the new year.

The two business giants are just one of the many companies calling their employees back to the office following the pandemic as COVID-19 restrictions have eased.

The Washington Post, which is owned by Amazon founder Jeff Bezos, told employees this week they would be required to return to the office five days a week, according to a memo obtained by Business Insider.

Other major employers, including JPMorgan and Goldman Sachs, have also abandoned the hybrid attendance policy they adopted during the pandemic and instead implemented full return-to-office mandates.

Several executives and leaders have said they believe productivity increases when workers are in the office together, while others hope to increase in-person collaboration. Even some CEOs who previously praised the flexibility of remote work have started backpedaling, pressuring workers to comply with RTO mandates with threats to track attendance or even fire employees who don't comply.

Here's a list, in alphabetical order, of major companies requiring employees to return to offices. Business Insider will update this list regularly.

Amazon

CEO Andy Jassy wrote in a September 16 memo that Amazon would be pulling the plug on remote work starting next year.

"We've decided that we're going to return to being in the office the way we were before the onset of COVID," Jassy said. "When we look back over the last five years, we continue to believe that the advantages of being together in the office are significant."

The CEO cited easier employee collaboration and connection and said in-person work would strengthen the company's culture, echoing his February 2023 memo, which mandated employees spend at least three days a week in the office.

Not everyone agrees. Some Amazon employees have taken to an internal Slack channel to criticize the new RTO policy, Business Insider's Ashley Stewart first reported, with one staffer writing that it is "significantly more strict and out of its mind" than pre-Covid operations.

"This is not 'going back' to how it was before," they wrote. "It's just going backwards."

The critical reaction is reminiscent of employees' response to last year's surprise return-to-office rule. Thousands of Amazon workers joined a Slack channel to share their thoughts, with some even organizing to file a petition against the change.

Apple

In August 2022, Apple's senior leaders told workers they had to return to the office at least three days a week after previously requiring two days a week. CEO Tim Cook said the decision was meant to restore "in-person collaboration." Some employees fought back and issued a petition shortly after the announcement, arguing that staffers can do "exceptional work" from home.

Despite the pushback, Apple's hybrid work program launched the following month and is still in place.

AT&T

AT&T confirmed to Business Insider that it's requiring all office employees to work on-site five days a week starting in January.

The change follows about a year of AT&T accommodating a hybrid schedule in its widely publicized office push.

"The majority of our employees and leaders never stopped working on location for the full work week — including during the pandemic," a spokesperson for the telecom giant told BI.

AT&T told BI it's updating its facilities amid the policy change.

"As we continue to evolve our model, we are enhancing our facilities and workspaces, adapting our benefits programs, and incorporating best practices to ensure our employees are best equipped to serve our customers," the spokesperson added.

BlackRock

Last year, BlackRock mandated employees return to the office four days a week. The investment firm, which is headquartered in New York City, intended to bring employees into its then newly leased office space — which spans 1 million square feet across 15 floors, according to Hudson Yards.

In a May 2023 memo sent by the company's COO, Rob Goldstein, and the head of human resources, Caroline Heller, the execs wrote: "Career development happens in teaching moments between team members, and it is accelerated during market-moving moments, when we step up and get into the mix. All of this requires us to be together in the office."

Additionally, the memo notified staffers that the firm is giving them the opportunity to work remotely for two weeks during a time period that is relevant in their country, in an effort to offer "seasonal flexibility."

Chipotle

The fast-food chain announced last summer that corporate workers work in the office four days a week, Bloomberg reported. Chipotle had previously required workers to show up three days a week, according to the report.

Citigroup

Citigroup asked its 600 US workers, who were previously eligible to work remotely, to return to the office full-time, Bloomberg reported. In a memo released by the investment firm in May, the majority of staff are reportedly still able to work a hybrid schedule, with up to two days a week outside the office.

HSBC Holding Plc and Barclays Plc also followed suit, mandating workers to come into the office five days a week, according to the report.

Vaccinated Citigroup employees across the US were asked to return to the office for at least two days a week in March 2022, an internal memo obtained by Reuters said.

Dell

Dell told its sales staff to return to the office five days a week starting on September 30. Previously, the company let US employees pick between working remotely or following a hybrid schedule with about three days a week in the office.

September's sales-team mandate came with just a few days' notice, sending employees with kids into a hurry to find childcare, Business Insider reported.

Disney

In a January 2023 memo obtained by Business Insider, CEO Bob Iger told workers that starting that March, any Disney staff member working "in a hybrid fashion" would need to return to Disney's offices four days a week.

In response, over 2,300 employees signed a petition asking Iger to reconsider the mandate.

"This policy will slow, or even reverse, our post-COVID recovery and growth by creating critical resource shortages and causing irreplaceable institutional knowledge loss," signees wrote, according to The Washington Post.

Goldman Sachs

In March 2022, CEO David Solomon told Fortune that the company was asking employees to return to the office five days a week. Seven months later, he told CNBC that about 65% of staffers were working in the office.

However, some staff have failed to follow the policy a year into its implementation, causing senior managers to become frustrated and Goldman Sachs to further crack down on employees to return to the office full-time.

Google

In March 2022, Google employees in the San Francisco Bay Area and "several other US locations" were told to return to the office for at least three days a week starting the following month.

Last year, however, the company tightened RTO expectations, telling staff in an email that office attendance would factor into their performance reviews.

Google's Chief People Officer Fiona Cicconi told workers in the memo that requests to work remotely full time will now be considered "by exception only."

Some employees expressed feeling "frustrated" with the new policy. One staffer previously told Business Insider, "We don't like being micromanaged like school kids."

IBM

IBM has made its feelings on in-person work strictly clear — telling managers to either come into offices or get out.

The company asked all its US managers to report to an office or client location at least three days a week, according to a January memo viewed by Bloomberg.

A source told the outlet that staff would have to live within 50 miles of an IBM office or client location. The memo reportedly told employees they had until August to complete their relocation arrangements, and those who were unable to comply with the new policy must "separate from IBM."

CEO Arvind Krishna previously told the news outlet that employees' careers could suffer if they work from home. He said that although he wasn't forcing his own staffers back to the office, he thought remote workers may struggle to get promotions.

JPMorgan

In April 2023, JPMorgan announced to employees in a memo that all managing directors must work in the office five days a week. The memo also reminded other workers of the current policy of working in-person a minimum of three days a week.

Despite some pushback from employees, CEO Jamie Dimon doubled down on the policy, saying disgruntled workers can choose to go elsewhere.

"I completely understand why someone doesn't want to commute an hour and a half every day, totally got it," he told The Economist. "Doesn't mean they have to have a job here either."

The company has also been collecting data on staff activity, including tracking attendance.

Meta

Meta updated its remote work policies in September 2023, requiring employees to head into the office three days a week.

It had also stopped offering remote work in new job listings. People familiar with the company previously told BI that hiring managers could no longer post new jobs that list the work location as "remote" or outside of an existing office.

The company doubled down on its RTO efforts in June of this year, telling workers that their attendance would be tracked daily and failure to comply could lead to termination.

However, some employees returning to the office said they were met with a lack of space and privacy, with one worker calling the mandate "a mess."

Redfin

In April last year, real estate company Redfin announced an updated return-to-office policy via a memo from CEO Glenn Kelman.

The memo noted that starting July 2023, Redfin would require "headquarters employees" who live within 20 miles of the company's Seattle, San Francisco, and Frisco offices to work from the office for a full day on Tuesdays and Wednesdays.

Those who live beyond the 20-mile radius are required to visit the office in-person once a quarter for a day or more of meetings, the company said.

In order to hold employees accountable, the memo included a "no-exceptions" section, reading that "to determine your distance from an office, we'll use Google Maps, with the distance from your home address measured in miles driven over roads by car."

Salesforce

Salesforce told employees in an internal memo seen by The San Francisco Standard that the majority of workers have to be in an office four to five days a week as of October 1.

The new policy is mandated for select staff in sales, workplace services, data center engineering, and on-site support technicians, according to the memo.

Early last year, Salesforce CEO Marc Benioff revised the company's annual strategic plan, including return-to-office mandates, according to a draft shared in an internal Slack message viewed by Business Insider.

The updated draft return-to-office policy required nonremote employees to work three days a week in the office and employees in "non-remote" and "customer-facing" roles to work four days a week. Engineers must work from the office 10 days per quarter, down from 20 in the initial draft, which was updated based on employee feedback.

Snap

Snap implemented a new mandate in September 2023, requiring employees to work in an office at least four days a week. The change represented a shift from the company's former "remote first" policy, which allowed employees to work from home or elsewhere.

Employees previously told BI that some managers told them the company is able to track workers' WiFi connections to see who is complying.

Starbucks

In a January 2023 memo to corporate staffers, then-CEO Howard Schultz said employees within commuting distance would be required to return to the office at least three days a week.

Schultz said some staff had failed to "meet their minimum promise of one day a week" and also pointed out that Starbucks baristas didn't have the "privilege" of working from home. The executive had previously said he "pleaded" with workers to come back to the office.

Starbucks employees responded by signing an open letter protesting the company's return-to-office mandate.

In September, former Chipotle CEO Brian Niccol took over as CEO of the coffee chain.

In October, the company threatened to fire staff if they did not comply with the RTO policy, Bloomberg first reported, citing an internal memo.

Beginning in January, the company plans to initiate a "standardized process" to hold workers accountable to the hybrid schedule at the team level, where consequences will cover "up to, and including, separation," according to the email obtained by Bloomberg.

Employees, however, may request exemptions due to physical or mental medical reasons.

Tesla

In June 2022, Tesla employees were notified of a mandatory return-to-office policy.

The email from Elon Musk included wording such as "If you don't show up, we will assume you have resigned," and noted that everyone at Tesla must work from the office at least 40 hours a week.

Musk, who has called remote work "morally wrong," nodded to his frequent presence at Tesla factories as the reason for the business' success. "If I had not done that, Tesla would long ago have gone bankrupt," he wrote in the email.

Ubisoft

In September, Ubisoft, the France-based maker of the popular "Assassin's Creed" and "Far Cry" video game series, ordered its staff worldwide to return to the office three days a week.

French workers at the video game maker went on strike on October 15 over the RTO mandate.

X

After buying X, formerly Twitter, in 2022, Musk told employees that not showing up to an office when they're able to was the same as a resignation.

Musk also told staffers in an email that remote work was no longer allowed and that employees were expected to be in the office for at least 40 hours a week unless given explicit approval to work elsewhere.

In 2023, X, then Twitter, National Labor Relations Board filed a formal complaint saying that X had illegally fired an employee who complained about Musk's RTO policy.

The complaint said that Yao Yue, a principal software engineer, criticized the mandate, tweeting, "don't resign, let him fire you." She also posted, "don't be fired. Seriously" in a company Slack channel.

Yue was then fired five days later and told it was due to violating an unspecified company policy.

Uber

In a memo obtained by Business Insider, CEO Dara Khosrowshahi told employees that beginning in April 2022, Uber staffers in 35 of the company's locations were required to return to the office at least half the time. He added that on other days, staffers were allowed to work remotely and that some could be entirely remote if they got clearance from their managers.

CEO Dara Khosrowshahi recently said remote work took away some of Uber's "most frequent customers," adding that "there is an audience who kind of stopped using us as frequently as they used to."

Walmart

Along with slashing hundreds of jobs, Walmart also asked previously remote employees in the US to move to offices.

Staffers located in smaller offices in Dallas, Atlanta, and Toronto are additionally being directed to the company's central hubs, including its headquarters in Arkansas or New Jersey, The Wall Street Journal reported.

The retail giant will still permit hybrid schedules as long as workers come in-person most of the time, according to the outlet.

The Washington Post

William Lewis, CEO and publisher of The Washington Post, told staffers in early November that they would be required to return to the office five days a week, according to a memo obtained by BI.

"I want that great office energy for us every day," Lewis wrote, referring to the energy in the office during election week. "I am reliably informed that is how it used to be here before Covid, and it's important we get this back."

All employees were expected to return to the office by June 2, 2025, while managers were expected to return by February 3, 2025.

After starting remote work in 2020, the Post previously required employees to return to the office three days a week in early 2022.

The announcement at the Post came shortly after Amazon's return-to-office mandate. The Post is owned by Jeff Bezos, Amazon founder and executive chairman.

Zoom

Zoom, the darling of remote work, said in 2022 that less than 2% of staffers work in person full time. However, last year, the video-calling company asked employees to return to the office.

Workers living within 50 miles of one of its offices were mandated to work there at least two days a week.

"We believe that a structured hybrid approach – meaning employees that live near an office need to be onsite two days a week to interact with their teams – is most effective for Zoom," a spokesperson previously said in a statement. "As a company, we are in a better position to use our own technologies, continue to innovate, and support our global customers."

• Value meals at Chili's have boosted the restaurant chain's sales lately.
• Chili's chief marketing officer says the deals aren't leaving the menu anytime soon.
• Competitors like McDonald's and Wendy's also offer value meals amid inflation challenges.

Appetizers and value meals are bringing customers to their local Chili's Grill & Bar in droves — and they're not leaving the menu anytime soon.

Deals like the Triple Dipper and the 3 for Me combo, both of which allow customers to get sit-down meals for under $20, have helped Chili's parent company, Brinker International, beat quarterly expectations recently. Same-store sales grew nearly 15% at Chili's during the company's latest quarter, which ended in September.

Those affordable deals are standing parts of the restaurant's menu, not temporary offers, George Felix, chief marketing officer at Chili's, said.

While some restaurant chains are "scrambling to throw a low-priced offer out there and try and compete," the 3 for Me deal "is something we believe in," Felix told Business Insider.

3 for Me offers diners a starter, an entrée, and a drink for as little as $10.99. Chili's has offered the combo for about two years, and it added a smash burger as an entrée option in April — a move the company said took "aim at fast food" at the time.

Other restaurant chains have ramped up deals this year to attract customers, including many whose budgets have been stretched by inflation, back to their dining rooms. McDonald's, for instance, is planning to launch a new value menu in 2025 after extending a limited-time $5 meal this year. Burger King and Wendy's have also offered their own value meals.

Meanwhile, Red Lobster discontinued its $20 endless shrimp deal, which was meant to be a permanent menu item, and ultimately blamed the promotion for an $11 million loss in Q3 2023.

For Chili's, offering food options that range from less than $11 to over $30 allows diners to choose what sort of experience they have, Felix said.

"We believe value is not about the lowest price point," Felix said. "We believe value is what you get for what you pay."

The Triple Dipper is an appetizer sampler that's been having a viral moment on social media recently.

Many Chili's customers who come in for such deals return and order higher-priced items, such as a margarita, which can cost as much — or more — than some of Chili's value meals, Felix said.

"You bring them in with the Triple Dipper, but then they come back again and it's the Don Julio margarita — they treat themselves," Felix told BI. (That margarita cost $12 when ordered for pickup in New York on Tuesday.)

It shows that even diners looking for good deals will splurge, CEO Kevin Hochman said on Chili's October earnings call. "The price-quality equation is critical for this guest," Hochman said.

Are you a Chili's customer or worker with a story idea to share? Reach out to these reporters at [email protected] and [email protected]

• Big Lots' plan to sell itself to a private equity buyer fell apart last week.
• The retailer is starting store closing sales but trying to find another suiter, it said.
• I visited a Big Lots store in Maryland in September to see what it's like to shop there.

Big Lots is fighting to survive.

The discount retail chain had won court approval to sell itself to private equity firm Nexus Capital Management this fall after filing for Chapter 11 bankruptcy in September. But the deal fell apart last week, leading Big Lots to start store closing sales at the locations it hasn't already shuttered.

In a statement on Thursday, Big Lots said it hopes to find another buyer by early January.

Big Lots cited high interest rates and inflation among the factors that have held back its sales in a statement announcing the Chapter 11 filing earlier this year. Many of its customers have cut back spending on home decor and other non-essential purchases that make up most of what Big Lots stocks, the company added.

Plenty of shoppers are trimming their budgets, especially for purchases they can live without, like eating out or upgrading their home appliances.

But Big Lots has long marketed itself as a place to find great deals. The company has said that it buys products cheaply from suppliers and other retailers, which enables it to keep prices low. That seems like a model that should be working at a time like this. Big Lots did not respond to a request for comment from Business Insider.

To see what shopping at the chain is like, I went to a Big Lots store in the Washington, DC, area after the company filed for bankruptcy in September.

Here's what I found.

I visited a Big Lots store in Waldorf, Maryland.

When I visited this store, located in a strip mall about an hour outside of DC, it was one of a few in the DC area that Big Lots planned to keep open.

After Big Lots' deal with Nexus fell through, through, the retailer said it would start store closing sales at its remaining stores, including this one, putting its future at risk.

I noticed these bags of potting soil and wood pellets for smoking meat.

It definitely wasn't peak planting or grilling season anymore when I visited this store in mid-September.

This Big Lots store had a lot more food items than I expected it to.

This Big Lots store had several aisles of shelf-stable grocery items, from chips to cake mixes.

Big Lots acquires many products from closeouts, which happen when the retailer's suppliers get rid of something at a sizable discount.

That strategy extends to food, which Big Lots acquires "for a variety of different reasons, including other retailers canceling orders or going out of business, production overruns, or marketing or packaging changes," the company wrote in its latest annual filing with the SEC.

I found condiments, including ketchup and mustard...

I recognized some big food brands, such as Hellmann's mayonnaise. Others, such as "Totally Tomato" ketchup, were foreign to me.

...as well as bottles of Prime, the line of energy drinks that Logan Paul cofounded.

Prime is facing several lawsuits, including at least two that claim the brand's sales this year have been slower than anticipated, BI reported.

Big Lots also had a selection of cleaning and personal care products, such as this store-brand toilet paper.

I found it interesting that a store focused so much on selling closeout merchandise also has so many products under its own brand. Besides this toilet paper, I also found Big Lots-branded paper plates, markers, and puppy training pads.

I found a wider selection of products at Big Lots than I'd expected for a store of this size.

On average, Big Lots stores had an average of 23,000 square feet of selling space in 2023, according to the company's annual filing with the SEC. That's tiny compared to almost any big-box store: The average Walmart takes up 105,000 square feet, according to a company filing.

Yet Big Lots had a lot of departments, from kitchen supplies to furniture to groceries. The selection within each was limited, and it felt to me like the store was trying to be everything at once.

This display of products that cost less than $5 reminded me of a dollar store.

The 99-cent Halloween-themed socks were similar to what I've seen at Dollar General and Dollar Tree stores.

There was also a decent selection of furniture, from bed frames and mattresses...

Signs on the mattresses advertised Big Lots' own credit card, which offers interest-free payments on big purchases.

...to this TV stand.

It reminded me of Ikea's Kallax shelving units.

Even though this store wasn't closing when I visited, I spied some empty shelves.

These shelves were next to a selection of plastic storage containers and other home goods.

Some of the products at this Big Lots store were from a different era.

I found this selection of DVD movies, including "Inception," released in 2010, and "War Dogs," which came out in 2016.

It's been at least a decade since I saw this many DVDs in one place.

This puzzle featuring characters from John Hughes' "Sixteen Candles" was a prime example.

I found this puzzle in the toy section for $6. It was one of the most unusual things I found in the store, both because "Sixteen Candles" came out forty years ago and because the manufacturer leaned on the Blockbuster name.

It wasn't just the products: Shopping at Big Lots felt like stepping back in time.

Maybe it was just the rows of fluorescent lighting on the ceiling, but this Big Lots store felt like something out of the 1990s.

The deals didn't impress me, either.

Big Lots customers should still expect "extreme bargains" at its stores despite its ongoing bankruptcy, the company says on a website with information about the filing.

But this 2-for-$5 deal on two-liter bottles of Coca-Cola sodas was representative of the prices I saw at this Big Lots store: Big Lots' pricing was mostly in-line with other places where I could buy similar stuff.

I headed toward the checkouts with two purchases in hand.

In addition to the $6 puzzle, I found a pack of 100 disposable gloves for $1.99, a slightly better deal than I've seen elsewhere.

I left confused about the role that Big Lots is trying to play for shoppers.

Big Lots had the range of products that I'd associate with a big-box store like Walmart or Target. But it didn't have the same selection within each category that I'm used to at those stores.

The company's focus on closeout merchandise also reminded me of off-price retailers like T.J. Maxx and Ross, but those stores seem to have a narrower focus on home goods, clothing, and accessories than Big Lots does.

And if you need ketchup, chips, or other groceries, there's no shortage of supermarkets near this Big Lots. I counted at least seven within a mile of the store, including an Aldi, a Safeway, and a local organic market — and each has fresh produce and meat as well.

Lots of retailers have gone through bankruptcy or closed stores over the last 20 years.

From Sears to Bed Bath & Beyond, plenty of once-prominent retailers have gone through bankruptcies, closed stores, and, in some cases, shut down completely. At the same time, Walmart, Target, and Amazon have continued to attract customers.

Based on my trip there, I don't see a reason to keep shopping at Big Lots. If the chain wants to survive — and avoid the fate of Sears — it will need to offer shoppers something that they can't get anywhere else.

Do you work at a major retailer and have a story idea to share? Reach out to this reporter at [email protected]

• Shoppers are still buying store brands at the grocery store and beyond to save money.
• However, many store brands are now as good as the name brands that they're meant to compete with.
• Retailers from Walmart to Amazon Fresh have launched new store brands this year.

Shoppers are still reaching for store-brand items to save money on everything from organic milk to business casual clothing as inflation slows.

However, store brands aren't just about saving money. Many are the same quality as what national brands offer.

For many shoppers, one response to inflation has been buying more store-brand items to save money instead of choosing big-name brands produced by the likes of Unilever, Procter & Gamble, and many others. Food inflation hit 1% in October, according to federal data. While that represents a slowdown from the peak rate of over 10% in 2022, shoppers are still spending historically high shares of their budgets on food.

Increasingly, though, store brands at Costco, Nordstrom, Aldi, and other retailers are also arguing that they're every bit as good as those national brands.

Costco, which has long sold products under its Kirkland Signature store brand, started selling Kirkland Signature Oxi Powder and Kirkland Signature Food Storage Bags, "both offering significant value to the national brand alternatives," CFO Gary Millerchip said on an earnings call earlier this month.

"Kirkland Signature continues to grow at a faster pace than our business as a whole," Millerchip said.

Other major retailers have launched new own brands this year. Amazon launched Amazon Saver, a brand meant to "help grocery budgets go further," the company said in September.

Walmart announced in April that it would launch Bettergoods, a new store-brand line that includes organic milk and plant-based shredded mozzarella. The goal is to expand the number of "trendy, health-conscious offerings" among Walmart's own brands, CFO John Rainey said in June.

Walmart reported earlier last month that the number of customers who purchased its store-brand products grew during the company's third quarter.

The expansion isn't just limited to food. In February, Target announced Dealworthy, a store brand for non-food items, including electronics and toiletries, with most priced under $10.

Meanwhile, Nordstrom had "double-digit" sales growth for its own-brand clothing during its third quarter across both its department stores and Nordstrom Rack, its off-price chain, the company said last month. Nordstrom's own-brand products carry "lower price points that oftentimes are more attractive to the young customers," president and chief brand officer Peter Nordstrom said on an earnings call.

Sales of store-brand groceries — or "private-label" items, as they are known in the grocery industry — rose 6.3% in value to $216.8 billion in the US in 2023, according to Circana.

Circana said store brands made up 25.5% of grocery items sold in 2023, up from 24.7% the previous year.

Over the last few years, discount grocery chain Aldi has attracted some customers looking for low food prices. Studies of Aldi's prices regularly find that its prices undercut rivals, including Walmart.

One of the main reasons is that the chain sources 90% of everything at its stores from its own brands, Scott Patton, a vice president of national buying and customer interaction at Aldi USA, told Business Insider in an interview. Using private brands gives Aldi more say in setting prices than it would with national brands, Patton said.

Aldi quality tests 35,000 products a year for its store brands, Patton said. Many of the items that make it to the shelves at Aldi don't look much like own brands, though. One of the retailer's best-selling items is its Choceur dark chocolate, which comes in a pack of five bars for just over $2, Patton said. "You might even not know it's a store brand," he said.

In the past, many customers viewed own brands as cheap — both in terms of price and quality. However, Patton said Aldi views its own brands as a chance to win over budget-conscious customers while also offering decent quality.

"We are not going to skip on quality just to get a lower price, period," Patton added.

Do you work in the grocery industry and have a story idea to share? Reach out to this reporter at [email protected]

• Elon Musk's xAI is reportedly close to unveiling a chatbot app similar to OpenAI's ChatGPT.
• The app could arrive as soon as December, The Wall Street Journal reported.
• It would be another sign that Musk and xAI want to challenge OpenAI directly.

Elon Musk's xAI is reportedly planning an app that could expand its chatbot's reach to a much wider audience and take on ChatGPT.

xAI could release the chatbot app as soon as December, The Wall Street Journal reported on Wednesday. The company did not immediately respond to a request for comment from Business Insider.

The app, if it materializes, would be another sign that xAI and Musk are trying to take on ChatGPT-maker OpenAI. Musk co-founded OpenAI but left the company in 2018. He has sued OpenAI and cofounder and CEO Sam Altman twice, most recently alleging he was "deceived" into confounding the company.

Musk founded xAI last year. Since then, the company has provided services to his other ventures, such as AI customer support for Starlink, and Grok, a chatbot only available to paid subscribers of X, the social network formerly known as Twitter that Musk acquired in 2022. A chatbot app would be its first product offered directly to consumers.

xAI's valuation has hit $50 billion, the Journal reported earlier this month. The artificial intelligence startup is now worth more than the $44 billion that Musk paid to acquire X.

Investors who backed Musk's acquisition of Twitter have registered losses on paper since the deal. On Wednesday, the Financial Times reported that Musk gave a quarter of xAI's shares to those investors, a move that could make up for those losses.

xAI's valuation is still smaller than that of OpenAI, which was last valued at $157 billion in its latest funding round in October. It also generates less revenue. xAI is "on pace to surpass $100 million annually," the Journal reported on Wednesday. OpenAI, meanwhile, expects revenue of $3.7 billion in 2024, the Journal reported earlier.

Julie Herron drove by the Aldi near her home in Nashville for years before she went in. She usually shopped at Publix, but in 2021, when inflation was sending grocery prices soaring, her curiosity got the better of her. She was shocked at what she found in Aldi.

Everything there was cheap, she said. The store also had cool products, like a variety of German cheeses and $1.59 makeup-removal wipes she said were "superior, honestly," to a comparable $20 product at Sephora.

Aldi has become Herron's go-to store. "My friends say that they call me the 'Aldi Queen,'" Herron, a retired elementary-school teacher, told me. "I go every week."

As grocery prices have jumped by double digits over the past few years, people have felt the sting. For many, Aldi has been a source of solace. A recent Motley Fool analysis found that a basket of 20 products that cost about $65 at Aldi was $11 more at Kroger and about $54 more at Whole Foods. Though Aldi isn't the biggest grocery chain in the US — according to Euromonitor, it captured just 1.4% of US grocery sales last year, compared with Walmart's 25% — it offers a lot of things shoppers are looking for these days: organic meat, store brands, and a quick shopping trip. As a result, it has attracted loyal fans who proudly sport Aldi-branded tote bags, pants, and flip-flops. And it's the fastest-growing grocery chain in America by new store openings, a title it has held for five years, according to the real-estate services company JLL.

The US grocery business is ruthless. Competition is fierce, and profit margins are slim. Many have tried and failed to find success. So how did a German grocery chain find such a ravenous following in America?

From its start in Germany after World War II, Aldi's founders, Theo and Karl Albrecht, were singularly focused on keeping prices low. The brothers expanded their family-run store into a chain of 77 stores in Germany by 1954 with the aim of minimizing expenses and maximizing profit. They didn't advertise. They offered only shelf-stable items that sold well, eliminating the need to buy and run refrigerators. Shoppers even picked their own items off the shelves — a radical concept at a time when German shoppers were used to being served at a counter.

When Aldi opened its first US store in Iowa City, Iowa, in 1976, it used a similar approach. A newspaper ad at the time proclaimed that the store had "no perishables," "no fancy shelving," and "no fancy floor." It promised lower prices for a variety of items, from baby shampoo to salad dressing. The ad estimated that the cost of a basket of goods at Aldi was 18% less than at a rival.

Though that store ended up closing in 1977, Aldi kept working to perfect its formula for American shoppers, largely by going smaller. The Iowa City store was about 40,000 square feet — close in size to a typical modern US supermarket — but the hundreds of stores Aldi opened in the next two decades were just about 10,000 square feet. This meant that Aldi could carry only a fraction of the items that its supermarket rivals could, but it had a solution: Go smaller with selection, too. Instead of stocking a dozen types of ketchup, it sold only one or two. The model caught on, and by 2004 the chain had 700 locations across the country.

Over the years Aldi has found clever ways to become even more efficient. Today, for instance, produce like apples, oranges, and broccoli are sold in prepackaged units to save time weighing and pricing each item. Many shelf-stable items are put on the sales floor in the same cartons they arrived in. Employees often rotate between ringing up customers and stocking shelves. To get a shopping cart, customers have to provide a quarter, which they get back when they return the cart — a system that saves the company from needing parking-lot attendants to round up carts. Though shoppers must bring their own bags and pack them themselves, the prepackaged produce and large barcodes on products contribute to a speedy process.

A September study of grocery prices in Charlotte, North Carolina, by analysts at Bank of America found that while Aldi had raised prices by more than other grocers over the previous year, it was still cheaper than local Walmarts (which were cheaper than Kroger-owned chains and Whole Foods).

Aldi now has about 2,400 stores in the US, with another 800 planned for the next four years. Foot-traffic data from the location-data company Placer.ai indicates that the number of shoppers who visited Aldi stores in the spring of 2022 increased from the same period in 2019. This year, foot traffic at Aldi's stores has grown by 10% to 18% each month compared with 2023, more than double the rise among traditional grocery stores.

Sumone Udono, a trucker based in Wisconsin, has frequented an Aldi that's a 10-minute walk from her home for decades. She buys everything from the brand's organic pistachios to the spices she estimates would cost double at a traditional supermarket.

Selling others on Aldi, though, wasn't always easy. She recalled that in the early 2000s, when she ran a concession stand at her kids' baseball games, she tried to convince the other parents to replace Oscar Mayer hot dogs with the Aldi equivalent to lower prices. The parents were hesitant but ultimately agreed to sell both and see how it went. The Aldi dogs ended up outselling the name-brand ones.

Relying on store brands is one of the most successful cost-cutting tactics Aldi has implemented. Aldi says roughly 90% of the items in its stores are from the grocer's own brands. For comparison, about 20% of groceries sold in the US last year were store brands, according to the Food Marketing Institute.

Scott Patton, a vice president of national buying and customer interaction at Aldi USA, said that having so many private-label products saved the company costs associated with national brands, such as advertising fees. It also gives Aldi more of a say in how products are created — for instance, Aldi worked with one of its mandarin-orange suppliers to reduce the amount of plastic in its packaging, a move which helped save Aldi money, Patton said. Costco and Trader Joe's similarly use store brands to cut costs.

Patton said that relying so much on its store brands increases the pressure for Aldi to find just the right items. "If we don't have the right quality at the right price for the consumer, there's not another option for them to pick from."

To accomplish that, he said Aldi tests about 35,000 products a year. In some cases Aldi has found success designing its products to resemble more-familiar brands. For example, it sells Clancy's nacho-cheese-flavored tortilla chips, which come in a red bag with a triangle logo reminiscent of Doritos, and L'oven Hawaiian sweet rolls, which are comparable to King's Hawaiian rolls.

Phil Lempert, a food industry analyst and editor of the website Supermarket Guru, said that many shoppers used to look down on store brands. "For my parents, there was a stigma." But these days, Gen Z and millennial customers are less likely to care about brand and more likely to prioritize price.

It helps that many Aldi-brand products don't seem generic and boring. It stocks brioche, Dutch Emmental cheese, and chili-lime cashews. "It's a German company, so they have a lot of international products, especially cheese," Herron said.

She's a fan of what's known as Aldi's "Aisle of Shame" — or as the store calls it, the Aldi Finds aisle, a section in the center of most Aldi stores with miscellaneous low-cost nonfood items that change every Wednesday. The aisle's items have included rugs and Dutch ovens — and it has garnered a loyal following. The Facebook group Aldi Aisle of Shame Community has 1.5 million members, the most active of whom post photos of their finds. Recently, fall-themed scented candles were making a splash. In October, the hit find was a pressure-point massage cane.

To cash in on the growing fan base, Aldi has released two collections of branded apparel and accessories. Last fall's selection — "Aldi-das," as some on TikTok call it — included canvas slip-on shoes, travel mugs, and a backpack. Lempert said it's a big change from the Aldi of the 1970s. "Twenty-five years ago, the people who went to Aldi were just looking to save money," he said. "Now it's very hip to go to Aldi."

In 2023, Aldi agreed to buy 400 stores from Southeastern Grocers, including many run by Winn-Dixie, a Florida chain that became a household name in the South during the 20th century. Analysts at the consumer-data firm Dunnhumby said the acquisition should "raise alarm bells for retailers not only in the Southeast but throughout the US."

Of course, Aldi's expansion faces headwinds. Americans have lots of choices for where they shop, and recent entrants like Amazon and Lidl, another discount chain based in Germany that launched in the US in 2017, are competing for market share.

Devout Aldi fans might don their branded windbreakers and dart straight to the nearest Aldi, but most Americans just head to whichever store is closest, said Zak Stambor, a senior analyst who covers retail and e-commerce for EMARKETER, a sister company of Business Insider. "Even if I want to save money on groceries and I fit the demographics of the Aldi customer, if I have to drive 15, 20, or 25 minutes to an Aldi, I'm not likely to do that on a regular basis," he said. Twelve states, including Washington and Colorado, don't have an Aldi.

Then there's the fact that grocery-price inflation, which has pushed many people toward the discount grocer, slowed to 1% in the year that ended in October — though, inflation may return if the Trump administration enacts new tariffs. Walmart recently said it planned to raise prices if Trump's tariffs are implemented.

Lempert, the grocery analyst, thinks Aldi's growth is only getting started. He has met the CEO of Aldi USA, Jason Hart, and toured the company's American headquarters in Illinois. He expects to see even more Aldi stores opening. "By the end of this decade," he said, "they'll probably have 4,000 or 5,000 stores."

Alex Bitter is a senior retail reporter at Business Insider.

• Starbucks' payment and scheduling system has been hit with a ransomware attack.
• The coffee company issued guidance for workers about how to handle pay disruptions caused by the outage.
• The outage at Blue Yonder, which makes the software, also impacted grocery stores and Fortune 500 firms.

The software company behind Starbucks' payment and scheduling system has been experiencing a dayslong ransomware attack, causing outages that are disrupting employee pay.

The attack on Blue Yonder, the company that makes the software, began on November 21 and has caused outages in Starbucks's system for tracking employee hours and payments.

According to documents reviewed by Business Insider, Starbucks has issued guidance to its employees about how to handle pay disruptions caused by the Blue Yonder outage. Starbucks told its employees that payment for the period ending on November 17 would be unaffected, but there may be discrepancies in the following pay period.

"We will ensure partners who receive less than their worked hours or intended sick and/or vacation time will be paid correctly, as soon as possible," the internal documents read.

The outage has forced employees to track their shifts using pens and paper, according to Bloomberg.

The documents viewed by BI indicate that employees who are missing pay from their checks should notify their store managers as soon as possible. Any underpayment will be resolved in the next pay period. Any payment overages resulting from an employee being paid for a scheduled shift from November 18 through November 24 that they did not report to work for will not be required to be paid back, the documents say.

A Starbucks partner in the South said their manager told them on Monday that employees who had paid time off planned for the affected weeks won't be paid for that time until the outage has been fixed.

That's "potentially very bad for some partners taking vacation around the holidays," the partner told Business Insider.

A spokesperson for Starbucks told Business Insider that the company is working to ensure its partners are paid for their hours worked with limited disruption, and indicated the outage has not disrupted customer-facing technology or service in any of its locations.

Blue Yonder's software is also used by major grocery store chains and Fortune 500 firms, CNN reported.

Similar cyber attacks have previously left companies like Sony and car dealerships across America using pen and paper for administrative tasks and sales transactions.

"Blue Yonder experienced disruptions to its managed services hosted environment, which was determined to be the result of a ransomware incident," a spokesperson for the company told Business Insider in a statement. "Since learning of the incident, the Blue Yonder team has been working diligently together with external cybersecurity firms to make progress in their recovery process. We have implemented several defensive and forensic protocols."

The software company does not currently have a timeline for resolution of the issue, according to a webpage the company has published for customers impacted by the attack.

• Some Uber and Lyft drivers are starting businesses driving people they've met through the apps.
• It's more profitable and offers better autonomy, four drivers told Business Insider.
• Uber and Lyft drivers can make as little as $3 a ride, pushing some to look for alternatives.

Brian started driving for Uber in California in 2013. At the time, it paid enough to be his full-time job.

Since then, working for the ride-hailing app has become less profitable, he said. But Uber and its rival Lyft still play an important role in his work — to recruit customers for his black-car service.

"I get a lot of people that I pick up randomly on Uber asking me, 'Hey, do you do private rides?'" Brian said in an interview with Business Insider. "And I say, 'Yes,' and I give them my business card, and if they want to book me, I'm happy to give them a price quote."

Brian is one of four drivers who told BI about starting his own business offering rides outside Uber and Lyft. He and the other drivers interviewed for this story asked that BI not use their full names for fear of being deactivated by Uber and Lyft. BI has verified their identity and work for the apps.

All four have had a similar experience: Driving exclusively for Uber and Lyft used to pay well, they said. But over the past few years, ride-hailing drivers' earnings have fallen to as little as $3 a ride. They say their businesses offer customers more reliable, higher-quality rides than they can often find on the apps — and sometimes, for less money.

Drivers pitch Uber and Lyft customers

About half of Brian's trips come from his list of private clients, he told BI. The other rides he still finds on Uber and Lyft, mostly to fill in what some drivers call "dead miles" — distances driven to get to or from a ride, which the apps don't compensate drivers for.

A trip for a private client could involve picking someone up at 3:30 a.m. to go to the airport or driving to and from a baseball game on the weekend. Those trips tend to make him more money than similar routes on the apps, he said, since Uber and Lyft aren't taking a share of the fare.

Unlike his experience with the apps, he's gotten to know many of the people he drives for, which he said helps generate repeat business and get him new customers.

"I won't advertise, but someone will post me on the Nextdoor app like, 'Hey, this driver is good, reliable — his prices are reasonable.'"

When BI asked whether drivers can pitch their own businesses while on a trip for Uber, an Uber spokesperson said the app's drivers are independent contractors. The spokesperson also referenced company statistics that Uber drivers make more than $30 an hour "while active on the app."

A Lyft spokesperson referenced the company's terms of service, which state that drivers can have other employment "including but not limited to providing services similar to the Rideshare Services to other companies."

Making money on Uber and Lyft is harder, some say

Torsten Kunert, a ride-hailing driver and YouTuber who makes videos about the industry, said he's noticed more drivers trying to develop their own businesses over the past year and a half. He offers an online course for drivers looking to make the change, with advice ranging from pitching Uber and Lyft riders on their services to navigating commercial insurance.

Riders are often looking for a better deal. Kunert said that he often prices his rides for private clients below the going rate for a similar trip on Uber. Prices for various app-based services, such as Uber and Airbnb, have increased over the past few years as the so-called millennial lifestyle subsidy has dwindled.

"The rider and the driver are pretty much experiencing the same story, really," he said.

Offering private rides has its costs, Kunert said. Drivers have to buy their own commercial insurance and develop their list of clients. Many drivers who start their own businesses also drive high-end vehicles, such as luxury sedans and SUVs, which can involve a higher monthly auto loan or lease payment, he said.

The drivers BI spoke with said the switch was worth it.

Phil, an Uber driver in Ontario, Canada, told BI he offers rides around his town for 10 Canadian dollars regardless of distance. He still occasionally works for Uber, picking up similar rides for 3 or 4 Canadian dollars just to pitch riders on his private service. "The pay is so poor," he said.

One driver in San Diego who runs his own black-car service told BI that he drives a Cadillac Escalade and mostly serves business clients who pay him more than he would make on Uber's black-car service.

It's more work than just picking up trips through Uber or Lyft. The driver said he spends more time cleaning his car and texting clients to set up rides than when he relied on the apps for work.

But he said his earning potential has gone up. Some clients pay him $100 an hour to wait outside business meetings just so they can have a car ready to leave as soon as they're finished, he said.

Many drivers for the apps are "just saying 'this is not worth it anymore,' or they're becoming independent contractors on their own," he said.

Kunert said many drivers he advises enjoy not having to worry about Uber or Lyft deactivating their accounts or figuring out whether the pay the apps offer for a trip will make them any money.

"You truly, for the first time, you step into your self-worth, and you become a true independent contractor," he said.

Do you work for a ride-hailing or gig delivery service and have a story idea to share? Reach out to this reporter at [email protected].

• Shoppers are willing to spend this holiday season, but many are still budget-conscious.
• Lower inflation — and even deflation — gives some shoppers more money to spend on gifts and parties.
• Others might go into debt to make their holiday dreams come true.

Shoppers appear ready to spend this holiday season, but many aren't giving up the search for bargains just yet.

Multiple signals suggest that some shoppers feel less pinched financially as the biggest shopping season of the year ramps up. US retail sales for October came in slightly above expectations, and prices for many items — including gifts themselves and many essentials, such as gas — are increasing at their lowest rates in a few years.

But customers can still recall that prices were lower four or five years ago, Claire Tassin, a retail and e-commerce analyst at Morning Consult, told Business Insider. As such, many are looking for good deals, as they have been for much of this year, while still spending on the holiday season.

"There is still that desire to find lower-cost alternatives where possible," Tassin said.

Retailers and consumer brands reported this summer that shoppers — even affluent ones — were pulling back on their spending as prices remained high.

Many consumers didn't stop, however. Rather, they tried to get more for their money — think shopping for clothes at an off-price store like Nordstrom Rack instead of one of the retailer's department stores, for instance.

According to a Bank of America Institute report published last week, there are some signs that consumer conditions have improved since then.

The University of Michigan's Consumer Sentiment Index has been inching up since July. In October, the measure hit its highest mark since April. Credit card spending in states affected by Hurricanes Helene and Milton rebounded in the weeks after the storms in October, the report said.

And over the last few months, inflation has slowed on some essential goods, such as groceries, and even turned into deflation in others, such as gasoline, according to the report. Theoretically, that means shoppers have more money to spend on discretionary purchases, such as eating out and buying gifts.

"Is the apparent strengthening in consumer spending temporary? Potentially, but there are reasons to be optimistic," the report reads.

Friday's retail sales growth showed "a good early step forward into the holiday shopping season," National Retail Federation Chief Economist Jack Kleinhenz said. Sales were up 0.4% on a seasonally adjusted basis year-over-year in October, according to the US Census Bureau. The Bureau also revised its September sales figure upward.

"Falling energy prices have likely provided extra dollars for household spending on retail merchandise," Kleinhenz said.

Walmart and Target, which posted differing results this week, both provided evidence that consumers are still spending — if cautiously — going into the holidays.

Walmart CEO Doug McMillon said Tuesday that the chain gained share as shoppers with household incomes over $100,000 kept visiting its stores. Shoppers "continue to seek value to maximize their budgets," CFO John Rainey said. The company raised guidance for the rest of its fiscal year.

Target, however, cut its outlook for the rest of 2024 on Wednesday after the chain said that shoppers cut back on discretionary purchases during the third quarter. Chief Commercial Officer Rick Gomez said that Target is cutting prices on 2,000 items and offering affordable gifts, such as a holiday toy selection with half of the items priced under $20.

Many prices are still higher than they were before the pandemic, said Morning Consult's Tassin said. That could push many consumers to look for value when they buy gifts or plan holiday parties this year.

But clear majorities of shoppers are willing to spend on gifts, food and beverages, and parties during the holidays this year, according to a Morning Consult survey conducted in late August and early September. Some were even willing to go into debt or cut back spending on essentials to afford their holiday plans, according to the survey results.

"People feel the financial pressure, but that doesn't necessarily mean that they're not going to spend," Tassin said, adding that people might cut back on spending in other areas to ensure they have enough for their holiday plans.

"I'm going to pay more attention to sales, or I'll buy the cheaper meat options so that I have a little bit of wiggle room to afford other things," she said.

• Last year's job cuts weren't the end of layoffs. Further reductions continue in 2024.
• Companies like Flagstar Bank, Meta, PwC, Tesla, Google, Microsoft, and Nike have all announced cuts.
• See the list of companies reducing their worker numbers in 2024.

After a brutal year of layoffs in 2023, companies this year have continued to cut jobs across tech, media, finance, manufacturing, and retail.

Tech titans like Meta, IBM, Google, and Microsoft; finance leaders like Goldman Sachs, Citi, and BlackRock; accounting firms like PwC; entertainment behemoths like Pixar and Paramount; and corporate giants like Tesla, Dow, and Nike have all announced layoffs.

A survey in late December said nearly 40% of business leaders had expected layoffs this year, ResumeBuilder said. ResumeBuilder talked to about 900 leaders at organizations with more than 10 employees.

One major factor survey respondents cited was artificial intelligence. Around four in 10 leaders said they would conduct layoffs as they replace workers with AI. Last year, Dropbox, Google, and IBM announced job cuts related to AI.

Here are the dozens of companies with job cuts planned or already underway in 2024.

The US' biggest privately-owned company, Cargill, is cutting thousands of jobs

Cargill, the largest privately owned company in the US, is slashing 5% of its workforce.

The company, which is the world's largest agricultural commodities trader, will lay off thousands of workers from its 164,000-strong workforce, Bloomberg reported on Monday, citing an internal memo it had seen.

"To strengthen Cargill's impact, we must realign our talent and resources to align with our strategy," a Cargill spokesperson told BI.

The cuts would impact workers across all professional levels from countries in Asia, Latin America, North America, Europe, the Middle East, and Africa.

The layoffs will not touch its executive team but will impact its "next level senior leaders," Bloomberg reported, citing people familiar with the matter.

"The majority of these reductions will take place this year," Chief Executive Officer Brian Sikes said in the memo, seen by Bloomberg. "They'll focus on streamlining our organizational structure by removing layers, expanding the scope and responsibilities of our managers, and reducing duplication of work."

Microchip Tech is closing an Arizona factory

Microchip Technology, a chipmaker for a variety of consumer products, on Monday said it was closing a facility in Tempe, Arizona, as it deals with slower-than-anticipated orders.

The closure is expected to affect about 500 jobs from the company's total of 22,300, Microchip said. The closure will progress in stages and end in September 2025.

"While the company has taken steps to right size inventory and reduce expenses— including temporary pay reductions and company-wide and factory shutdowns—these measures have not been enough," a spokesperson for Microchip said in a statement on Tuesday.

Microchip also updated its revenue guidance for the quarter ending in December quarter to $1.025 billion, which is at the lower end of its earlier forecast.

The company's stock fell about 3% in after-hours trading and is down 22% year-to-date.

Publishing giant Hearst Magazines trims staff.

The owner of publications including Esquire and Cosmopolitan is conducting a round of layoffs, The Hollywood Reporter said in a November 21 report.

The exact number of positions impacted is not clear.

"After a thorough review of our business, we've decided to reallocate resources to better support our goals and continue our focus on digital innovation while strengthening our best in class print products," Hearst Magazines president Debi Chirichella told staff in a memo obtained by THR. "We will scale back in areas that do not support our core strategy and will eliminate certain positions as we reimagine our team structures to drive long-term growth."

Boeing starts issuing layoff notices to 400 workers amid plans for 10% global cut

In October, Boeing said that it would cut 10% of its 170,000-strong global workforce. The reduction plan will include 2,199 employees in Washington and another 50 in Oregon, according to the company's filings.

As part of the cuts, Boeing is laying off more than 400 workers who are part of its professional aerospace labor union. The Seattle Times reported that 438 members of the Society of Professional Engineering Employees in Aerospace (SPEEA) received pink slips.

These included engineers, scientists, analysts, technicians, and other jobs, the outlet reported.

In a note to employees on October 11, CEO Kelly Ortberg said Boeing was in a "difficult position" and that "restoring our company requires tough decisions."

The layoffs come at a difficult time for Boeing. Its share price has fallen more than 40% since the start of the year as it grapples with the fallout from a seven-week strike and technical faults like a door plug coming off an Alaska Airlines 737 Max midflight in January.

Representatives of Boeing and the SPEEA didn't immediately respond to a request for comment from Business Insider.

Exxon is cutting nearly 400 jobs after Pioneer merger

ExxonMobil is cutting about 400 employees from Pioneer Natural Resources, the oil and gas company it acquired earlier this year.

The cuts will come in seven stages and will be completed in May 2026, Exxon said in a notice to the Texas Workforce Commission.

The cuts represent almost 20% of Pioneer's pre-merger workforce and will mostly affect employees in Pioneer's suburban Dallas offices, the notice said.

AMD is laying off roughly 4% of its workforce.

AMD confirmed it would be reducing its global staff, which numbered around 26,000 total employees as of December 2023.

″As a part of aligning our resources with our largest growth opportunities, we are taking a number of targeted steps that will unfortunately result in reducing our global workforce by approximately 4%," an AMD representative said in a statement to Business Insider. "We are committed to treating impacted employees with respect and helping them through this transition."

The cuts are reportedly targeting sales and marketing roles in areas like consumer PC and gaming PC, according to Bloomberg.

The computer chipmaker is focusing efforts on the artificial intelligence industry as it chases rival Nvidia in the GPU market. In October, AMD raised its 2024 GPU sales estimates from its initial $4.5 billion to over $5 billion.

Chegg is cutting 21% of its employees as AI search destroys its business

Online education site Chegg is laying off staff for the second time this year as generative AI platforms obliterate its business model.

Chegg said it is cutting 319 employees, or 21% of its staff, as it faces strong competition from platforms like ChatGPT. The company slashed global headcount by 23% in June.

"The speed and scale of Google's AIO rollout and student adoption of generative AI products have negatively impacted our industry and our business," Nathan Schultz, Chegg's CEO, said in an earnings release. The company reported a loss of $212.6 million for the third quarter.

Chegg's stock has fallen nearly 85% since the start of this year.

23andMe is cutting 40% of its staff

Genetic testing company 23andMe is cutting 200 employees, or 40% of its workforce, to reduce costs and refocus its business.

The Bay Area-based company is also discontinuing further development of all its therapeutics programs, it said in a mid-November statement.

Anne Wojcicki, 23andMe's CEO and cofounder, has been trying to take the struggling company private since April.

23andMe debuted on the stock market in 2021 but fallen from its peak valuation of $6 billion — its market cap is now north of $100 million. Financial and strategic missteps, as well as high-profile user data hacks, have dragged the company down.

Beyond Inc. plans to cut 20% of its workforce

The parent company of Bed Bath & Beyond, Overstock, Zulily, and other brands revealed its decision to slash a fifth of its staff in an October SEC filing.

The workplace reduction was taken to create a more "variable, leverageable cost structure" and to help align the company with its "asset-light business that supports an affinity and data monetization model with a strong technology focus," Beyond Inc. said in the filing.

The cuts are estimated to save roughly $20 million annually in fixed costs and are expected to be "substantially implemented" in the fourth quarter of 2024.

The news came shortly after Beyond Inc. and Kirkland announced a partnership that means physical Bed Bath & Beyond stores will return in smaller-format "neighborhood" locations.

Meta added to the 20,000+ people it's laid off since 2022

Meta is eliminating some roles on units including Instagram, WhatsApp, and its VR and AR division Reality Labs.

"A few teams at Meta are making changes to ensure resources are aligned with their long-term strategic goals and location strategy," a Meta spokesperson told BI on October 17. "This includes moving some teams to different locations, and moving some employees to different roles."

It's unclear how many roles will be affected, but Meta has trimmed its staff significantly in the year and a half, with more than 20,000 job cuts since 2022. CEO Mark Zuckerberg proclaimed 2023 a "year of efficiency" at the company, and continued cost-cutting measures this year as the tech giant gets flatter in structure.

TikTok is laying off employees as part of content moderation changes.

TikTok is cutting employees in various locations as part of changes to its content-moderation strategy.

A spokesperson for the China-owned company told Reuters in October that 80% of content that violates its policy is now removed through automated technology.

The company did not provide details on the exact number of positions that it eliminated but told Reuters the cuts would affect "several hundred" employees.

PwC is cutting 1,800 employees.

Big Four accounting firm PwC is cutting 1,800 workers, which is about 2.5% of its staff. The cuts will impact staffers ranging from associates to managing directors — half of them offshore. Those affected by the cuts will be informed in October.

In an emailed statement to Business Insider, Tim Grady, PwC's US chief operating officer, said, "To remain competitive and position our business for the future, we are continuing to transform
areas of our firm and are aligning our workforce to better support our strategy, including attracting and moving the right talent and skill sets to the areas where we need them most. Right now, we are focused on running our business well and adapting to meet the needs of our clients and the rapidly changing market."

Nike's up-to-$2 billion cost-cutting plan will involve severances

Nike announced its cost-cutting plans in a December 2023 earnings call, discussing a slow growth in sales. The call subsequently resulted in Nike's stock plunging.

"We are seeing indications of more cautious consumer behavior around the world," Nike Chief Financial Officer Matt Friend said in December.

Google laid off hundreds more workers in 2024

On January 10, Google laid off hundreds of workers in its central engineering division and members of its hardware teams — including those working on its voice-activated assistant.

In an email to some affected employees, the company encouraged them to consider applying for open positions at Google if they want to remain employed. April 9 was the last day for those unable to secure a new position, the email said.

The tech giant laid off thousands throughout 2023, beginning with a 6% reduction of its global workforce — about 12,000 people — last January.

Discord laid off 170 employees.

Discord employees learned about the layoffs in an all-hands meeting and a memo sent by CEO Jason Citron in early January.

"We grew quickly and expanded our workforce even faster, increasing by 5x since 2020," Citron said in the memo. "As a result, we took on more projects and became less efficient in how we operated."

In August 2023, Discord reduced its headcount by 4%. According to CNBC, the company was valued at $15 billion in 2021.

Citi will cut 20,000 from its staff as part of its corporate overhaul.

The layoffs announced in January are part of a larger Citigroup initiative to restructure the business and could leave the company with a remaining head count of 180,000 — excluding its Mexico operations.

In an earnings call that month, the bank said that layoffs could save the company up to $2.5 billion after it suffered a "very disappointing" final quarter last year.

Amazon-owned Twitch also announced job cuts.

Twitch announced on January 10 that it would cut 500 jobs, affecting over a third of the employees at the live-streaming company.

CEO Dan Clancy announced the layoffs in a memo, telling staff that while the company has tried to cut costs, the operation is "meaningfully" bigger than necessary.

"As you all know, we have worked hard over the last year to run our business as sustainably as possible," Clancy wrote. "Unfortunately, we still have work to do to rightsize our company and I regret having to share that we are taking the painful step to reduce our headcount by just over 500 people across Twitch."

BlackRock is planning to cut 3% of its staff.

Larry Fink, BlackRock's chief executive, and Rob Kapito, the firm's president, announced in January that the layoffs would affect around 600 people from its workforce of about 20,000.

However, the company has plans to expand in other areas to support growth in its overseas markets.

"As we prepare for 2024 and this very exciting but distinctly different landscape, businesses across the firm have developed plans to reallocate resources," the company leaders said in a memo.

Rent the Runway is slashing 10% of its corporate jobs as part of a restructuring.

In the fashion company's January announcement, COO and president Anushka Salinas said she will also be leaving the firm, Fast Company reported.

Unity Software is eliminating 25% of its workforce.

Around 1,800 jobs at the video game software company will be affected by the layoffs announced, Reuters reported in January.

eBay cut 1,000 jobs

In a January 23 memo, CEO Jamie Iannone told employees that the eBay layoffs will affect about 9% of the company's workforce.

Iannone told employees that layoffs were necessary as the company's "overall headcount and expenses have outpaced the growth of our business."

The company also plans to scale back on contractors.

Microsoft is reportedly cutting 650 more jobs from its Xbox division

Microsoft will be laying off hundreds of employees in its Xbox gaming division, Bloomberg first reported in September.

The job cuts will mainly affect workers in corporate and support functions, the outlet reported, citing a memo sent by Microsoft Gaming chief Phil Spencer.

However, he reportedly added that the company is not planning to close any studios or remove any games or devices.

This comes after the company also slashed 1,900 workers at Activision, Xbox, and ZeniMax in late January.

Nearly three months after Microsoft acquired video game firm Activision Blizzard, the company announced layoffs in its gaming divisions. The layoffs mostly affect employees at Activision Blizzard.

Xbox in May also reportedly offered some employees voluntary severance packages after shutting three units and absorbing a fourth earlier in the month.

Salesforce is cutting 700 employees across the company, The Wall Street Journal reported

Salesforce announced a round of layoffs that the company says will affect 1% of its global workforce, The Journal reported in late January.

The cuts followed a wave of cuts at the cloud giant last year. In 2023, Marc Benioff's company laid off about 10% of its total workforce — or roughly 7,000 jobs. The CEO said the company over-hired during the pandemic.

iRobot is laying off around 350 employees and founder Colin Angle will step down as chairman and CEO

The company behind the Roomba Vacuum announced layoffs in late January around the same time Amazon decided not to go through with its proposed acquisition of the company, the Associated Press reported.

UPS will cut 12,000 jobs in 2024.

The UPS layoffs will affect 14% of the company's 85,000 managers and could save the company $1 billion in 2024, UPS CEO Carol Tomé said during a January earnings call.

Paypal CEO Alex Chriss announced the company would lay off 9% of its workforce.

Announced in late January, this round of layoffs will affect about 2,500 employees at the payment processing company.

"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," CEO Alex Chriss wrote in a January memo. "At the same time, we will continue to invest in areas of the business we believe will create and accelerate growth."

Okta is cutting roughly 7% of its workforce.

The digital-access-management company announced its plans for a "restructuring plan intended to improve operating efficiencies and strengthen the Company's commitment to profitable growth" in an SEC filing in February.

The cuts will impact roughly 400 employees.

Okta CEO Todd McKinnon told staff in a memo that "costs are still too high," CNBC reported.

Snap has announced more layoffs.

The company behind Snapchat announced in February that it's reducing its global workforce by 10%, according to an SEC filing.

Estée Lauder said it will eliminate up to 3,100 positions.

The cosmetics company announced in February that it would be cutting 3% to 5% of its roles as part of a restructuring plan.

Estee Lauder reportedly employed about 62,000 employees around the world as of June 30, 2023.

DocuSign is eliminating roughly 6% of its workforce as part of a restructuring plan.

The electronic signature company said in an SEC filing in February that most of the cuts will be in its sales and marketing divisions.

Zoom is slashing 150 jobs

Zoom announced 150 job losses in February, which amounted to about 2% of its workforce. It had announced it was laying off 1,300 people the previous February.

Paramount Global is laying off 800 employees days after record-breaking Super Bowl

In February, Paramount Global CEO Bob Bakish sent a memo to employees announcing that 800 jobs — about 3% of its workforce — were being cut.

Deadline obtained the memo less than a month after reporting plans for layoffs at Paramount. The announcement comes on the heels of Super Bowl LVIII reaching record-high viewership across CBS, Paramount+, and Nickelodeon, and Univision.

Morgan Stanley is trimming its wealth management division by hundreds of staffers

Morgan Stanley is laying off several hundred employees in its wealth-management division, the Wall Street Journal reported in February, representing roughly 1% of the team.

The wealth-management division has seen some slowdown at the start of 2024, with net new assets down by about 8% from a year ago. The layoffs mark the first major move by newly-installed CEO Ted Pick, who took the reins from James Gorman on January 1.

Expedia Group is cutting more than 8% of its workforce

An Expedia spokesperson told BI that it was implementing cutbacks, as part of an operational review, that were expected to impact 1,500 roles this year.

The company's product and technology division is set to be the worst hit, a report from GeekWire said, citing an internal memo CEO Peter Kern sent to employees in late February.

"While this review will result in the elimination of some roles, it also allows the company to invest in core strategic areas for growth," the spokesperson said.

"Consultation with local employee representatives, where applicable, will occur before making any final decisions," they added.

Sony is laying off 900 workers

The cuts at Sony Interactive Entertainment swept through its game-making teams at PlayStation Studios.

Insomniac Games, which developed the hit Spider-Man video game series, as well as Naughty Dog, the developers behind Sony's flagship 'The Last of Us' video games' were hit by the cuts, the company announced on February 27.

All of PlayStation's London studio will be shuttered, according to the proposal.

"Delivering and sustaining social, online experiences – allowing PlayStation gamers to explore our worlds in different ways – as well as launching games on additional devices such as PC and Mobile, requires a different approach and different resources," PlayStation Studios boss Hermen Hulst wrote.

Hulst added that some games in development will be shut down, though he didn't say which ones.

In early February, Sony said it missed its target for selling PlayStation 5 consoles. The earnings report sent shares tumbling and the company's stock lost about $10 billion in value.

Bumble slashed 30% of its workforce

On February 27, the dating app company announced that it would be reducing its staff due to "future strategic priorities" for its business, per a statement.

The cuts will impact about 30% of its about 1,200 person workforce or about 350 roles, a representative for Bumble told BI by email.

"We are taking significant and decisive actions that ensure our customers remain at the center of everything we do as we relaunch Bumble App, transform our organization and accelerate our product roadmap," Bumble Inc CEO Lidiane Jones said in a statement.

Electronic Arts reduced its workforce by 5%

Electronic Arts is laying off about 670 workers, equating to 5% of its workforce, Bloomberg reported in late February.

The gaming firm axed two mobile games earlier in February, which it described as a difficult decision in a statement issued to GamesIndustry.biz.

CEO Andrew Wilson reportedly told employees in a memo that it would be "moving away from development of future licensed IP that we do not believe will be successful in our changing industry."

Wilson also said in the memo that the cuts came as a result of shifting customer needs and a refocusing of the company, Bloomberg reported.

IBM cut staff in marketing and communications

IBM's chief communications officer Jonathan Adashek told employees on March 12 that it would be cutting staff, CNBC reported, citing a source familiar with the matter.

An IBM spokesperson told Business Insider in a statement that the cuts follow a broader workforce action the company announced during its earnings call in January.

"In 4Q earnings earlier this year, IBM disclosed a workforce rebalancing charge that would represent a very low single-digit percentage of IBM's global workforce, and we expect to exit 2024 at roughly the same level of employment as we entered with," they said.

IBM has also been clear about the impact of AI on its workforce. In May 2023, IBM's CEO Arvind Krishna said the company expected to pause hiring on roles that could be replaced by AI, especially in areas like human resources and other non-consumer-facing departments.

"I could easily see 30% of that getting replaced by AI and automation over a five-year period," Krishna told Bloomberg at the time.

Amazon is laying off hundreds in its cloud division in yet another round of cuts this year

Amazon is cutting hundreds of jobs from its cloud division known as Amazon Web Services, Bloomberg reported on April 3.

The reduction will impact employees on the sales and marketing team and those working on tech for its retail stores, Bloomberg reported.

"We've identified a few targeted areas of the organization we need to streamline in order to continue focusing our efforts on the key strategic areas that we believe will deliver maximum impact," an Amazon spokesperson told Bloomberg.

On March 26, Amazon announced another round of job cuts after the company said it was slashing 'several hundred' jobs at its Prime Video and MGM Studios divisions earlier this year to refocus on more profitable products.

"We've identified opportunities to reduce or discontinue investments in certain areas while increasing our investment and focus on content and product initiatives that deliver the most impact," Mike Hopkins, SVP of Prime Video and Amazon MGM Studios, told employees in January.

This year's cuts follow the largest staff layoff in the company's history. In 2023, the tech giant laid off 18,000 workers.

Apple has cut over 700 employees across its self-driving car, displays, and services groups

Apple slashed its California workforce by more than 600 employees in April.

The cuts came after Apple decided to withdraw from its car and smartwatch display projects.

The tech giant filed a series of notices to comply with the Worker Adjustment and Retraining Notification program. One of the addresses was linked to a new display development office, while the others were for the company's EV effort, Bloomberg reported.

Apple officially shut down its decadelong EV project in February. At the time, Bloomberg reported that some employees would move to generative AI, but others would be laid off.

Bloomberg noted that the layoffs were likely an undercount of the full scope of staff cuts, as Apple had staff working on these projects in other locations.

In late August, Bloomberg reported that Apple was slashing 100 jobs in its services group, citing people familiar with the matter.

The layoffs mainly involved people working on the Apple Books app and the Apple Bookstore, Bloomberg reported. Cuts were also made to other service teams like Apple News, the outlet added.

Representatives for Apple did not respond to a request for comment from Business Insider sent outside normal business hours.

Tesla laid off over 10% of its workforce

Tesla CEO Elon Musk sent a memo to employees on April 14, at nearly midnight in California, informing them of the company's plan to cut over 10% of its global workforce.

In his companywide memo, Musk cited "duplication of roles and job functions in certain areas" as the reason behind the reductions.

An email sent to terminated employees, obtained by BI, read: "Effective now, you will not need to perform any further work and therefore will no longer have access to Tesla systems and physical locations."

On April 29, Musk reportedly sent an email stating the need for more layoffs at Tesla. He also announced the departure of two executives and said that their reports would also be let go. Six known Tesla executives have left the company since layoffs began in April.

Grand Theft Auto 6 publisher Take-Two Interactive is reducing its workforce by 5%

Take-Two Interactive, the parent company of Rockstar Games, said on April 16 that it would be "eliminating several projects" and reducing its workforce by about 5%.

The move — a part of its larger "cost reduction program" — will cost the video game publisher up to $200 million. It's expected to be completed by December 31.

As of March 2023, the company said it employed approximately 11,580 full-time workers.

Peloton announced it was reducing its staff by 15% as the CEO stepped down

Peloton CEO Barry McCarthy is stepping down, the company announced May 2. Along with his departure, the fitness company is also laying off about 400 workers.

McCarthy is leaving his role just two years after replacing John Foley as CEO and president in 2022. Peloton said the changes are expected to reduce annual expenses by over $200 million by the end of fiscal 2025 as part of a larger restructuring plan.

Indeed is cutting 1,000 workers after laying off 2,200 in 2023

Careers site Indeed says it will lay off roughly 1,000 employees, or 8% of its workforce, as it looks to simplify its organization.

CEO Chris Hyams took responsibility for "how we got here" in a memo in May but said the company is not yet set up for growth after last year's global hiring slowdown caused multiple quarters of declining sales.

Hyams said the latest cuts will be more concentrated in the US and primarily affect R&D and Go-to-Market teams. It comes after last year's across-the-board reduction of 2,200 workers.

Walmart is axing hundreds of corporate jobs

Retail giant Walmart is cutting hundreds of corporate jobs and asking remote employees to come to work, The Wall Street Journal reported in May, citing people familiar with the matter.

Workers in smaller offices, such as those in Dallas, Atlanta, and Toronto, are also being asked to move to central locations like Walmart's corporate headquarters in Arkansas or those in New Jersey or California, the Journal reported.

Under Armour is slashing an unspecified number of jobs, incurring $22 million in severance costs

Under Armour confirmed it was conducting layoffs in its quarterly earnings report, which was released May 16.

The company said it will pay out employee severance and benefits expenses of roughly $15 million in cash-related and $7 million in non-cash charges this year related to a restructuring plan, with close to half of that occurring in the current fiscal quarter.

"This is not where I envisaged Under Armour playing at this point in our journey," CEO Kevin Plank told investors on the company's full-year earnings call. "That said, we'll use this turbulence to reconstitute our brand and business, giving athletes, retail customers and shareholders bigger and better reasons to care about and believe in Under Armour's potential."

Pixar cuts about 175 people in pivot back to feature films

Disney's Pixar Animation Studios is cutting 175 people, about 14% of its staff, Reuters reported.

The cuts started on May 21 as the studio returns to its focus on feature-length movies. Former Disney CEO Bob Chapek, who was axed in 2022, had increased staff across studios to create more content for the company's streaming service, Disney+.

Pixar cut 75 jobs last year, Reuters previously reported, part of a larger restructuring across Disney.

Lucid Motors is slashing around 400 jobs

In a regulatory filing, Lucid Motors said it would lay off about 400 employees as part of a restructuring plan that should be complete by the end of the third quarter.

"I'm confident Lucid will deliver the world's best SUV and dramatically expand our total addressable market, but we aren't generating revenue from the program yet," CEO Peter Rawlinson said in an email to employees obtained by TechCrunch.

The cuts come ahead of Lucid's launch of its first electric SUV later this year. It comes over a year after the California-based company laid off 1,300 employees, TechCrunch previously reported.

John Deere is laying off over 600 employees

John Deere, maker of the iconic green-and-yellow tractors, is laying off over 600 employees at factories in Illinois and Iowa, the AP reported July 1.

In May, John Deere said sales fell for the third consecutive quarter and projected that the declines would continue in the second half of its fiscal year.

Burberry is expected to cut 100s of jobs

London-based luxury retailer Burberry is expected to cut hundreds of jobs in the coming weeks, the Telegraph reported July 6.

Employees learned about the cuts in late June when they were told in a Zoom meeting that their roles could be eliminated or that they would need to apply for other jobs, according to the Telegraph.

Intuit announced cuts on July 10

Intuit announced on July 10 that it's cutting its workforce by 10%. The layoffs will affect 1,800 employees nationwide, but the company plans to hire 1,800 new employees in "key areas" like engineering, InvestorPlace reports.

The refocus on other areas is following a shift in focus on AI within the company, according to the outlet.

Intuit's stock dropped by 4.01% on July 10 after the company announced the layoffs.

Tinder parent Match group plans to cut 6% of jobs

Match Group, the parent company of Tinder and Hinge, said on July 30 that it would reduce its global workforce by about 6%, or about 156 employees because it is exiting the livestreaming business.

Match said it would remove the livestreaming service from its app Plenty of Fish and sunset the Hakuna app, which focuses on Korea and Japan.

The reduction in workforce is expected to save the company $13 million in annual costs.

Disney cuts 140 jobs across its TV division

Deadline and Bloomberg reported in July that Disney was making cuts across its TV division, to the tune of roughly 140 jobs — or 2% of the staff at Disney Entertainment Television (DET).

Layoffs will impact National Geographic, owned television stations, the marketing and publicity departments, and Freeform, per a source close to the matter, which notes no teams have been eliminated.

While Disney's cable TV business generates billions, it's on the decline, Bloomberg reports, and the company is seeking to cut costs.

Last year, Disney slashed 7,000 jobs across multiple rounds of layoffs as part of a strategy implemented by returning CEO Bob Iger.

Intel plans to eliminate thousands of jobs

Intel plans to cut thousands of jobs in response to a second-quarter earnings slump, Bloomberg reported earlier this week, citing unnamed people familiar with the move.

It was officially announced on August 1, as it posted Q2 earnings. The company intends to reduce its workforce by 15% by the end of 2024.

"Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones," Intel CEO Pat Gelsinger said in a statement. "Second-half trends are more challenging than we previously expected, and we are leveraging our new operating model to take decisive actions that will improve operating and capital efficiencies while accelerating our IDM 2.0 transformation."

Intel's stock was down following the lackluster earnings.

The layoffs come after the chip maker laid off about 5% of its workforce last year, bringing its head count down to around 124,000, Bloomberg reported.

During the last round of layoffs, announced in October 2022, Intel faced a drop in demand for processors for personal computers and estimated the layoffs would save $10 billion in costs by 2025, per Bloomberg.

Intel did not immediately respond to a request for comment.

WW International is cutting jobs in corporate

Diet program creator WW International, formerly WeightWatchers, plans to lay off employees, it said in an earnings call on August 1.

The company did not specify the number of jobs it will cut. But the layoffs will largely focus on corporate positions, including a 40% cut in roles above and at the vice president level.

The cuts are expected to save the company $60 million, the company's chief financial officer said.

Dell is cutting sales jobs in new focus on AI products

Dell is cutting jobs on its sales team, Bloomberg reported. It wasn't immediately clear how many jobs Dell planned to eliminate.

In a memo announcing the cuts, company executives said that the choice was part of a restructuring to focus more on selling AI products and data center services, Bloomberg reported.

Dell did not immediately respond to a request for comment from BI, but a spokesman told Bloomberg: "Through a reorganization of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company."

Paramount Global announced it plans to slash 15% of its US workforce

Paramount Global is planning to cut about 2,000 jobs ahead of its merger with Skydance Media, CNBC reported.

The company identified $500 million in cost savings as it prepared to join forces with Skydance, totalling about 15% of its US workforce, according to the outlet.

The cuts will begin in a few weeks and will mostly be finished by the end of 2024. Paramount employees in marketing and communications, finance, legal, technology, and other support functions have been targeted, the company said on an earnings call.

The cuts come about a month after Paramount agreed to merge with Skydance. Paramount shares jumped more than 5% after hours.

Stellantis is slashing white-collar and factory jobs

In August, the owner of Jeep and Dodge announced it is cutting 2,450 factory workers from its Warren Truck assembly plant outside Detroit.

The layoffs come because the company is ending production of the Ram 1500 Classic truck, Stellantis said. These factory cuts came after white-collar jobs were axed earlier this year.

On March 22, the company said it would lay off employees on its engineering, technology, and software teams in an effort to cut costs, CNBC reported.

Stellantis announced plans for another round of layoffs on July 30, according to Bloomberg. The company is offering voluntary buyouts to non-unionized US employees to "assist those interested in pursuing other career options or retirement," Stellantis said in a message seen by Bloomberg.

The job cuts, the total number of which remains unknown, come after a difficult first half of the year, with unit sales sinking by 16% in the US.

Sonos laid off about 6% of its workforce

The audio equipment company said it slashed roughly 100 jobs in August. The layoffs significantly targeted its marketing division, The Verge reported.

CEO Patrick Spence said in a statement to BI that the company is now focusing on departing employees and "ensuring they have the support they need."

"This action was a difficult, but necessary, measure to ensure continued, meaningful investment in Sonos' product roadmap while setting Sonos up for long term success," Spence said.

Sonos is also reducing some of its customer support offices and will close one in Amsterdam later this year, according to The Verge.

The company previously cut around 7% of its workforce in June 2023, a month after it announced a 24% revenue drop in the second quarter compared to the previous year.

Cisco announced two rounds of layoffs this year

In February, networking company Cisco announced it was slashing 5% of its workforce, upward of 4,000 jobs, Bloomberg reported.

The company said it was restructuring after an industry-wide pullback in corporate tech spending — which execs said they expect to continue through the first half of the year.

On August 14, in a filing, Cisco said it would further reduce its global workforce by 7% amid sales and revenue declines. Reuters reported earlier that the company was slashing around 4,000 jobs as it shifted attention to cybersecurity and artificial intelligence.

Per its latest annual filing, Cisco had about 85,000 employees as of July 2023.

GoPro is laying off nearly 140 employees

Long-troubled GoPro is laying off 15% of its 925 current employees, the company said in a filing.

The action sports camera maker reported a net loss of nearly $48 million in the quarter that ended in June, adding to a streak of consecutive losses.

The company laid off 4% of its staff in March.

Shell is reportedly planning for major cuts in its oil exploration division

Oil giant Shell will slash its workforce in oil and gas exploration and development by 20%, according to an August 29 report from Reuters. Company sources reportedly cited intentions to cut costs in the highly profitable segments due to "deep cuts in renewables and low-carbon businesses."

Exploration, wells development, and subsurface units will face hundreds of layoffs globally, with offices in Houston, The Hauge, and Britain expected to take the biggest hit, the sources told Reuters.

A Shell spokesperson would not comment directly on the layoffs but told Business Insider that, "Shell aims to create more value with less emissions by focusing on performance, discipline and simplification across the business."

"That includes delivering structural operating cost reductions of $2-3 billion by the end of 2025, as announced at our Capital Markets Day event in June 2023," the spokesperson added.

Goldman Sachs plans to lay off more than 1,300 workers, The Wall Street Journal reported

The global investment bank is set to cut hundreds of employees during annual reviews this year, The Wall Street Journal reported, citing people familiar with the situation.

Goldman Sachs is targeting low performers with the intention of laying off between 3% and 4% of its global workforce, equaling somewhere between 1,300 and 1,800 people, according to the outlet.

The cuts are already underway and will continue in the coming months, one person told the outlet. Goldman typically tries to cut anywhere from 2% to 7% of employees each year, per The Journal.

Gwyneth Paltrow's Goop is cutting 18% of staff

Goop is cutting 18% of its 216-person staff, citing a change to its organization, WWD wrote in September. It will now focus on beauty, fashion, and food — specifically its Goop Beauty and good.clean.goop beauty brands, G.Label clothing line, and Goop Kitchen restaurants.

That means it's moving away from wellness, home, travel, and sexual wellness, some of which are categories that once defined the brand.

Samsung plans to cut jobs globally this year, Reuters reported

Samsung is planning to cut jobs this year, a move that will impact workers in the US, Europe, Asia, and Africa, Reuters reported.

The electronic devices maker will cut up to 30% of staff in some divisions, the report says. It is unclear how many jobs will be impacted.

Samsung told Reuters in a statement that the workforce adjustments would not impact its production staff and that no specific targets for the cuts are in place.

Verizon is laying off 4,800 US employees

Verizon is letting go of 4,800 US-based management employees in a voluntary separation program.

The company said in a Securities and Exchange Commission filing that more than half of these employees would exit in September, while the rest will leave by the end of March 2025.

The telecommunications giant expects severance charges to cost as much as $1.9 billion before tax in the third quarter of this year.

General Motors is laying off about 1,700 employees in Kansas

General Motors is laying off 1,695 employees at its Fairfax plant in Kansas, the company said in a Worker Adjustment and Retraining Notification notice in mid-September.

The layoffs will begin in mid-November, and a second phase will continue in January, Reuters reported, citing a GM spokesperson. It is unclear which departments will be affected, but about 1,450 of these employees will be laid off temporarily, the spokesperson said.

In August, the carmaker laid off over 1,000 workers, or 1.3% of its workforce.

The August layoffs came primarily from GM's software and services business, which it had bulked up over the past few years. Last year, the company brought on two former Apple executives to run the unit.

Flexport conducts second round of layoffs in 2024

US logistics startup Flexport is laying off another 2% of its US staff this week as it aims to cut costs and reorganizes its retail delivery business.

The fulfillment center-focused cuts amount to about 40 people and were first reported by The Information, citing an internal memo.

In January, Flexport cut 15% of its staff, or around 400 people. Those cuts came after Flexport founder and CEO Ryan Petersen initiated a 20% reduction of its workforce of an estimated 2,600 employees in October 2023.

Flexport kicked off 2024 with the announcement that it raised $260 million from Shopify and made "massive progress toward returning Flexport to profitability."

NYCB's Flagstar Bank cuts 700 jobs

New York Community Bancorp's Flagstar Bank will cut 8% of its workforce, or 700 jobs, as it aims to revamp its business, the company's CEO, Joseph Otting, said in a statement on October 17.

An additional 1,200 employees will be laid off at the end of the quarter after the company sells its residential mortgage business.

NYCB is also changing its name to Flagstar Financial as part of the turnaround efforts after losses from its commercial real estate portfolio.

Chief, a networking group for female executives, made cuts across the company

Chief, which has positioned itself as the nation's largest network of senior executive women, confirmed to Business Insider on October 20 that it has shed roles.

The company told BI that the cuts, which had already been announced internally, mainly impacted "our technology and administrative functions."

"Like many companies, we are balancing growth and profitability," the spokesperson added.

In a June press release, the American company said 40% of its members were C-suite executives and that they represent more than 10,000 companies.

In April 2023, Chief cut 14% of its workforce in what the founders called a "challenging economic environment," TechCrunch reported at the time.

This January, the company said it would close its London offices — opened one year previously — to refocus on the American market.

Visa will reportedly lay off around 1,400 people

Visa plans to lay off around 1,400 workers this year, The Wall Street Journal reported on October 29.

In a statement provided to BI, a Visa spokesperson said the company expects to grow its workforce for the foreseeable future but that it is continuously evolving to serve clients, innovate, and grow, "which can lead to the elimination of some roles."

"When this happens, we are committed to supporting our employees," the spokesperson added.

Workers affected by layoffs included employees and contractors, with more than 1,000 in technology roles, the Journal reported, citing unnamed sources familiar with the situation. Visa has more than 30,000 employees.

Dropbox is slashing around 20% of its global workforce

The cloud storage company is laying off 528 employees, targeting "over-invested or underperforming" areas, CEO Drew Houston announced in an email sent to employees.

"As CEO, I take full responsibility for this decision and the circumstances that led to it, and I'm truly sorry to those impacted by this change," Houston wrote.

The Dropbox chief cited diminishing demand and macro headwinds in the company's core business, as well as excessive management levels, as contributing factors.

The layoffs come as the company is undergoing a "transitional period" with its growing File Sync and Share (FSS) business and greater efforts on products like Dash, Dropbox's AI-powered work assistant.

KPMG plans to cut nearly 4% of its US audit workforce.

Consulting giant KPMG informed about 330 people, or less than 4%, in its US audit workforce that they would be laid off within the next couple of weeks, a spokesperson told BI.

"The actions reflect our ongoing focus to align the size, shape and skills of our workforce to the market, while addressing continued low levels of attrition," the spokesperson said in a written statement.

This follows an earlier round of layoffs in March, as well as another one last summer, that also affected the company's audit unit, similarly due to low levels of voluntary exits, the spokesperson said.

Nissan said it will slash 9,000 jobs globally.

Japanese automobile giant Nissan said during its November earnings release that it would be cutting 9,000 jobs in an attempt to save money.

The car company reported lower revenue for the period, which it attributed to higher selling and production costs. Nissan said it brought in about 32 million yen, or $208 million, at the end of the first half of the fiscal year — a steep drop from the $1.4 billion it reported for the same time last year.

In addition to a 20% production capacity reduction, CEO Makoto Uchida will give up 50% of his compensation and other executives have taken voluntary pay cuts.

NASA JPL plans to cut about 5% of its workforce.

NASA's Jet Propulsion Laboratory in California is cutting its workforce for the second time this year.

In November, the agency announced it plans to lay off 325 employees, or about 5% of its workforce. The cuts follow a round of layoffs in February, where JPL cut 530 employees.

"Although we can never have perfect insight into the future, I sincerely believe that after this action we will be at a more stable workforce level moving forward," JPL Director Laurie Leshin wrote in a company-wide memo.

Leshin added that the reductions affect all areas of JPL including technical, project, business, and support areas. The layoffs are the result of "continued funding challenges" Leshin wrote.

JPL is responsible for some of NASA's most daring feats like landing the Curiosity rover on Mars and guiding Voyagers 1 and 2 into interstellar space.

Associated Press will lay off 8% of its global staff.

The Associated Press in November announced plans to reduce its staff by 8% through a combination of buyouts and layoffs.

"This is about ensuring AP's important role as the only truly independent news organization at scale during a period of transformation in the media industry," The Associated Press said in a statement about the cuts.

The union representing a portion of AP members indicated 121 of its guild members would be offered buyouts before layoffs began, per AP.

Less than half of the expected cuts will involve news employees, the outlet reported, and though the AP has bureaus around the world, a majority of the staff reduction will occur within the United States.

Sotheby's laid off 100 workers.

Sotheby's cut 100 employees from its New York offices on Tuesday, the company confirmed to multiple publications. The layoffs include back-office workers, junior staffers, and specialists, reports said.

The layoffs come as the auction market has experienced a recent slowdown in sales and earnings. The company also previously cut about 50 employees in its London location, Art News reported.

Sotheby's recently closed a deal in October for Abu Dhabi investment company ADQ to acquire a minority stake in the company. ADQ said in a press release about the deal that the $1 billion investment was meant to support Sotheby's domestic and international expansion plans.

Sotheby's did not immediately respond to a request for comment from BI.

Wells Fargo plans to cut over 700 workers in Oregon.

Wells Fargo filed two WARN notices on December 4 sharing plans to lay off over 700 workers in Oregon, including 500 people from its Hillsboro location and 221 employees from its Salem office. It also plans to shut down both offices.

The company said in its filing that it verbally notified employees of the changes on December 3, and plans to deliver formal notices for displacement in the fourth quarter of 2025. Wells Fargo said it will provide more details on impacted roles at a later time.

Those who don't get relocated into other roles within the business are eligible to receive severance based on years of service and their opportunity to use the company health plan at active rates, the filing said.

"We continue to bring the majority of our non-customer facing positions together in locations best suited for our customers and our company," a Wells Fargo spokesperson told BI. "This effort does not impact our commitment to serving customers and clients."

CVS files notice for 164 layoffs

CVS filed a WARN notice on Friday announcing 164 layoffs during a 14-day period beginning February 15.

The company shared plans in October to cut about 2,900 workers, which is less than 1% of the company, as part of a multi-year initiative to cut costs by $2 billion. The company said the vast majority of impacted workers were notified last week.

"Before taking this step, we prioritized finding cost savings everywhere we could, including closing open job postings," CVS said in a statement. "Decisions on which positions to eliminate were extremely difficult and do not diminish the value that impacted colleagues have brought to the company."

The company said most cuts would be corporate roles and wouldn't impact front line-line jobs in stores, pharmacies, and distribution centers.

The company also filed a WARN notice in October announcing 416 layoffs, 323 of which were remote. It filed another notice in November announcing 42 cuts, 30 of which were remote workers.

"We are committed to supporting these colleagues, who will receive severance pay and benefits, including access to outplacement services," the company said in a statement.

Party City announced mass layoffs

Party City sent an email to employees about mass layoffs at its New Jersey headquarters on Friday, CBS News reported. The company filed for bankruptcy protection in the Southern District of Texas the next day.

The company said in an announcement that the decision to "wind down" followed extensive efforts to continue operations in an "immensely challenging environment driven by inflationary pressures on costs and consumer spending."

• The wholesale chain BJ's said it would raise its membership fees in 2025.
• It'll be the first time in seven years that the chain has raised its fees.
• Its rival Costco raised its membership fees in September.

Another wholesale retailer is planning to raise its membership fees.

BJ's Wholesale said on Thursday that it would raise the cost of its memberships starting on January 1.

It said the new cost of a Club membership would be $60 annually, up by $5 from the current price, and a Club+ membership would cost $120, up by $10. The company announced the changes in its third-quarter earnings report.

It said Club+ members would also get two free same-day deliveries a year on orders of at least $50.

The higher fees are set to take effect seven years after BJ's last membership-cost hike. CEO Robert Eddy said on an earnings call on Thursday that the company would use the extra income from the increase to fund the expansion of its delivery business and better staff its stores, especially as it tries to sell more fresh produce.

"Since our last fee increase in 2018, we have invested heavily in the value of BJ's membership," he said.

The chain's rival Costco raised membership fees in September. Gold Star and Business memberships at the warehouse chain now cost $65, while Executive memberships are $130.

Sam's Club, Walmart's wholesale retail chain, isn't following suit for now.

"We have no plans to raise membership fees at this time and remain committed to delivering the most value to our members," a company spokesperson told Business Insider on Friday.