Japanese car giants Honda and Nissan are working out the details of a major merger that could create the worldβs third-largest automaker, as the companies look to survive in an industry faced with uncertainty. The Tesla-led shift toward electric vehicles, and Chinaβs increased importance in the automotive market, have companies like Honda and Nissan feeling [β¦]
Beleaguered automaker Nissan is going to throw its lot in with Honda. The two Japanese OEMs want to merge by 2026, creating the world's third-largest car company in the process. In fact, earlier this year the two signed memorandums of understanding to create a strategic partnership focused on software and electrification. Now, the changing business environment calls for deeper integration, they say.
"Today marks a pivotal moment as we begin discussions on business integration that has the potential to shape our future. If realized, I believe that by uniting the strengths of both companies, we can deliver unparalleled value to customers worldwide who appreciate our respective brands. Together, we can create a unique way for them to enjoy cars that neither company could achieve alone," said Makoto Uchida, Nissan's president and CEO.
"Creation of new mobility value by bringing together the resources including knowledge, talents, and technologies that Honda and Nissan have been developing over the long years is essential to overcome challenging environmental shifts that the auto industry is facing" said Honda director Toshihiro Mibe. "Honda and Nissan are two companies with distinctive strengths. We are still at the stage of starting our review, and we have not decided on a business integration yet, but in order to find a direction for the possibility of business integration by the end of January 2025, we strive to be the one and only leading company that creates new mobility value through chemical reaction that can only be driven through synthesis of the two teams."
Nissan and Honda are aiming to finalize merger talks by the end of January 2025.
RICHARD A. BROOKS/AFP via Getty Images
Nissan and Honda have announced they are beginning merger talks.
A third Japanese automaker, Mitsubishi, will also participate in the discussions.
The companies hope a merger could help them take on Tesla and Chinese EV makers, Nikkei previously reported.
Nissan and Honda, two of Japan's largest car companies, have announced that they are beginning merger talks.
The two automakers have agreed to proceed with discussions to build a "strategic partnership focused on intelligence and electrification," according to a statement issued on Monday.
Nissan and Honda are looking to reach a conclusion in talks by the end of January 2025.
A memorandum of understanding (MOU) has also been signed with a third company, Mitsubishi, signaling its involvement in the merger talks.
It would be the largest domestic merger in Japanese automotive history, and if finalized, it would create the world's third-largest automaker by sales.
The companies hope that a merger could help them better compete against Tesla and Chinese EV makers.
Profits were down in the latest earnings reports for all three of Japan's top auto companies βΒ Toyota, Nissan, and Honda β with slumping sales in China a constant theme.
"At this time of change in the automobile industry, which is said to occur once every 100 years, we hope that Mitsubishi Motors' participation in the business integration discussions of Nissan and Honda will lead to further social change," said Toshihiro Mibe, Honda's Director and Representative Executive Officer.
Japan's stock market had closed for trading on Monday when the announcement was made. However, Honda's New York-listed stock was up 13% in premarket trade Monday on the back of the news.
After news of the merger was reported last week, Nissan's stock had surged by nearly 24%.
"It's not a pragmatic deal because frankly, the synergies between the two companies are difficult to find," Carlos Ghosn, the disgraced ex-CEO of Nissan, told Bloomberg on Friday.
Joseph Eid/AFP via Getty Images
Nissan and Honda are reportedly considering a merger.
But former Nissan CEO Carlos Ghosn said the move suggests that Nissan is in "panic mode."
"There is practically no complementarity between the two companies," Ghosn told Bloomberg on Friday.
On Tuesday, Japanese newspaper Nikkei said the two companies are entering into merger negotiations.
Pooling their resources would allow Nissan and Honda to better compete against rivals in the electric vehicle space like Tesla and China's EV makers, the outlet reported.
Honda and Nissan are the second and third largest automakers in Japan, respectively. Their local rival, Toyota, is the world's biggest automaker.
A Nissan-Honda merger would result in the world's third-largest car company by volume.
Last week, Nissan and Honda told Business Insider that they are "considering various possibilities for future collaboration" but added that "no decisions have been made."
Ghosn said in an interview withΒ BloombergΒ on Friday that pursuing a merger with Honda suggests that Nissan is in "panic mode."
"It's not a pragmatic deal because frankly, the synergies between the two companies are difficult to find," Ghosn said.
"There is practically no complementarity between the two companies. They are on the same markets. They have the same products. The brands are very similar," he added.
Ghosn, Nissan, and Honda did not respond to requests for comment from BI.
Ghosn, once considered a legend in the auto industry, experienced a dramatic fall from grace in 2018.
The disgraced auto chief has maintained his innocence. Last year, Ghosn filed a billion-dollar lawsuit against Nissan in Lebanon for damaging his finances and reputation.
On Friday, Ghosn told Bloomberg that the Japanese government β specifically Japan's Ministry of Economy, Trade, and Industry β was likely behind the Nissan-Honda merger talks.
"So at the end of the day, they're trying to figure out something that could marry the short-term problems of Nissan and the long-term vision of Honda," Ghosn said.
The merger talks come at a precarious time for Nissan, which has been grappling with falling profits and decreased sales this year. Last month, Nissan cut 9,000 jobs globally in a bid to reduce costs. The company's stock is down 20.7% this year.
Nissan is also facing increased competition from Chinese EV makers like BYD, as automakers vie for market share in developing markets like Southeast Asia and Latin America. Data compiled by the technology firm ABI Research for BI showed that Chinese carmakers accounted for 70% of the EV market in Thailand and 88% in Brazil in the first quarter of this year.
Nissan initially led the EV race when it launched the world's first mass-market EV, the Leaf, in 2010.
But the Japanese car company's EV strategy has since floundered. Nissan is one of the few car manufacturers in the US without a hybrid or plug-in offering.
"Nissan finds itself now with a very poor lineup of products and without obvious leadership in EVs, and that's the direct result of poor management," Andy Palmer, the former chief operating officer of Nissan, told BI in November.
Nissan's lack of hybrids has affected the success of popular models like the Rogue.
Honda has seen big sales increases for popular models with hybrid offerings.
A tie-up between Nissan and Honda could solve one big problem for Nissan: a lack of hybrids.
That's what dealers who spoke with Business Insider said last week amid reports that the Japanese automakers are in talks to create a new global auto goliath. Now, this week, the automakers have confirmed the chatter β saying they're indeed in official merger talks. Mitsubishi Motors also is involved in the talks, the Monday statement from the companies said.
Nissan is one of few car manufacturers in the US without a hybrid or plug-in hybrid offering, despite taking an early lead in EV sales with the Leaf in 2010.
Green car shoppers have turned away from EVs in favor of hybrid models this year, leaving Nissan with unpopular and unprofitable battery-powered offerings in the Leaf and Ariya SUV.
Nissan dealers have dealt with slumping sales all year, particularly for the brand's top seller, the Rogue. Once a segment leader, sales of the Rogue fell 10% through the first nine months of the year compared to the same period last year, according to company data.
And dealers say they're losing customers to Honda and Toyota, which have hybrid versions of their CR-V and RAV4 SUVs.
One dealer with both Nissan and Honda stores says it's "painfully obvious" that Nissan is losing customers to brands with more hybrids. The dealer didn't want to be identified, but Business Insider confirmed his identity.
He said it has become common for a Nissan shopper to migrate to the Honda store after they realize there aren't any hybrids.
Following disappointing sales results in the first quarter, Nissan CEO Makoto Uchida acknowledged the hybrid blind spot, saying during an earnings press conference that until last year, Nissan wasn't able to predict the rapid rise in demand for hybrids. The company has said it is shifting efforts toward hybrid offerings, but dealers and automotive industry experts say that change could take years.
Meanwhile, Honda is riding the hybrid wave this year as customers gravitate toward the hybrid versions of the CR-V SUV and Civic sedan. Just this month, Honda said it has plans to double its global hybrid sales to 1.3 million vehicles by 2030, as it aims to create a "bridge" to EV adoption.
Dealer skepticism over another auto merger
Still, some dealers are wary of yet another global auto merger.
Adam Lee, a dealer in Maine with several major brands, including Nissan, Honda, and Chrylser, said he's grown cynical about promised "synergies" after experiencing several different mergers as a Chrysler dealer.
"Show me a merger where the synergies actually existed, and I'll show you something that doesn't exist," Lee said. "I'm trying to give them the benefit of the doubt, but I tend to be cynical about anything like this."
Chyrsler-owner Stellantis is in the middle of a tough transition right now, as the CEO who led the merger of Fiat Chrysler and PSA stepped down suddenly at the start of the month. Before that, Chrysler lived through a messy marriage with Germany's Daimler in the late 1990s and early 2000s.
Lee said Nissan could probably use some help with hybrids and other plug-in models but argued: "You don't necessarily need to merge to do that."
The largest market for both automakers is the US, where Honda's models typically outsell Nissan's. The CR-V, for example, has outsold the Rogue by more than 100,000 units this year.
The companies said Monday they planned to merge in 2026, which would create the world's third-largest automaker. Pooling resources, like many other automakers have done in recent years, could help them speed up the development of new electric vehicles, and using shared parts could reduce production costs.
The companies could also help fill each other's gaps.
Honda, for example, doesn't have a presence in the full-size-SUV market, a highly competitive but lucrative segment, with transaction prices often reaching six figures. Nissan has long been a player with its Armada and Infiniti QX80.
Here's a closer look at the five top-selling models in the US from both Nissan and Honda:
1. Nissan Rogue
The 2024 Nissan Rogue SL.
Benjamin Zhang/Business Insider
2024 sales (through Q3): 189,156
The Rogue is Nissan's top seller and, given the popularity of the compact-SUV segment, the brand's most important product. Business Insider recently reviewed the Rogue and was impressed by its punchy three-cylinder engine.
2. Nissan Sentra
A 2024 Nissan Sentra SR sedan.
Benjamin Zhang/Business Insider
2024 sales (through Q3): 123,732
For decades, the Sentra has been one of the most popular subcompact economy cars in the US. We recently reviewed a 2024 Sentra and found it to be an attractively styled little sedan at an affordable price.
3. Nissan Altima
The 2025 Nissan Altima SV special edition.
Nissan
2024 sales (through Q3): 86,679
The midsize Altima is Nissan's answer to the Honda Accord, Toyota Camry, and Hyundai Sonata. Despite its relatively strong sales, Nissan reportedly plans to end production of the Altima after 2026.
4. Nissan Pathfinder
The 2025 Nissan Pathfinder Rock Creek.
Nissan
2024 sales (through Q3): 58,896
The Pathfinder has been a staple of Nissan's SUV lineup since its launch in 1986. The fifth-generation Pathfinder SUV launched in 2022.
5. Nissan Frontier
The 2025 Nissan Frontier PRO-4X pickup.
Nissan
2024 sales (through Q3): 54,257
The Frontier is one of the most popular midsize pickups on sale today. The third generation launched in 2022.
1. Honda CR-V
The 2025 Honda CR-V Hybrid Sport Touring.
Benjamin Zhang/Business Insider
2024 sales (through Q3): 298,164
The CR-V has been Honda's best-selling model in the US since 2017. We recently reviewed a 2025 CR-V Hybrid and found it to be one of the best small SUVs on the market.
2. Honda Civic
The 2025 Honda Civic hatchback Sport Touring hybrid.
Honda
2024 sales (through Q3): 188,422
The compact Civic is one of the models that helped Honda establish itself as an automaker more than 40 years ago.
3. Honda Accord
The Honda Accord Touring.
Honda
2024 sales (through Q3): 124,689
Until the rise of SUVs over the past decade, the Accord held the mantle as Honda's top seller. In fact, the Accord was the last vehicle to dethrone the mighty Toyota Camry as America's best-selling car more than two decades ago.
4. Honda HR-V
The 2024 Honda HR-V Sport.
Honda
2024 sales (through Q3): 114,805
The subcompact HR-V is Honda's smallest and most affordable SUV, competing directly against the Nissan Kicks and Toyota Corolla Cross.
5. Honda Pilot
The 2025 Honda Pilot Elite.
Benjamin Zhang/Business Insider
2024 sales (through Q3): 103,115
The Honda Pilot is one of the most popular family SUVs on sale today. We recently reviewed a 2025 Pilot Elite and came away impressed by its smooth V6 engine, smartly designed cabin, and superb quality.
Honda and its rivals are facing a growing headache over sales in China, the world's largest car market.
Costfoto/NurPhoto via Getty Images
Three of Japan's iconic car companies are struggling.
Toyota, Honda, and Nissan have seen sales in China slump, and now Nissan and Honda are considering merging.
Japanese automakers, which have prioritized hybrids, are facing pressure from China's EV giants like BYD.
Japan's iconic auto industry is going through a rough patch, and now two of its most important companies are considering merging as they fight for survival.
It comes after the two companies and major rival Toyota reported slumping profits in their most recent earnings, as they grapple with ferocious competition in China and a bumpy transition to electric vehicles.
All three companies face a similar problem; they are failing to sell enough cars in China.
Toyota's sales in China were down just over 10% in the first nine months of the year, with the company blaming "severe market conditions" such as "intensifying price competition."
Still, a Toyota spokesperson told Business Insider that its declining profits were not only attributable to China; it also saw weakness in Japan and North America.
Honda flagged a decline in sales in China in its most recent quarter, dragging down its total group sales. While Nissan reported a drop of over 5% in retail sales in China in the first half of the fiscal year β the largest drop of any of its regions.
Like other foreign automakers, Japan's car giants are being squeezed in China by local rivals. These rivals have rapidly gained market share by offering a range of affordable but high-tech EVs and hybrids.
"The real battle is happening in the emerging markets. And that's exactly where the Japanese car makers are suffering the most," said Munoz, pointing to the rapid expansion of the likes of BYD in Southeast Asia and Latin America.
"Japanese carmakers have a strong presence in Southeast Asia. And Southeast Asia right now is a hot market for Chinese cars," he said.
Electric woes
Japanese automakers have taken a broadly cautious approach to the transition to EVs, focusing instead on hybrid vehicles.
That approach has mostly paid off as EV demand has slowed, with Toyota reporting bumper profits on the back of strong hybrid sales in the US earlier this year.
Toyota is considered to have started the hybrid-car craze in the early 2000s with the release of its Prius.
iStock; Rebecca Zisser/BI
However, Munoz said that while the hybrids-first strategy may have worked out in the US and Europe, it has created problems for Japanese automakers in China, leaving them without a strong lineup of EVs that can compete with local offerings that can cost less than $10,000.
"China is definitely shifting to fully electric. And this leaves out all of the car makers that are not competitive with their electric cars," said Munoz.
He added that Toyota, Honda, and Nissan are at risk of becoming overly dependent on US and European markets, which are experiencing stagnating growth while losing out in expanding markets like China.
"At the end of the day, the hybrid strategy worked in Japan, worked in the US, and worked very well in Europe, but that's not the case in China," he added.
There are signs that Japan's auto giants are changing their strategies.
Nissan has pledged to accelerate the introduction of new EVs in China and hybrids in the US, while Toyota is reportedly planning to expand production in China as it attempts to take on local firms.
A Nissan spokesperson told BI that the company is taking measures to meet the market's and customers' needs, including introducing new products.
They added that the US remains a priority market for Nissan, and that the company was expecting an increase in sales from new models.
Shares of the carmaker jumped after news of the potential merger with Honda broke, rising as much as 24% in early trading on Wednesday. Nissan's shares are down nearly 25% this year.
Speaking on an earnings call in November, Honda executive vice president Shinji Aoyama warned that Trump's proposed tariffs on vehicles imported from Mexico could have a huge impact on Japanese automakers, many of whom have factories in the country.
Honda did not respond to a request for comment, sent outside normal working hours.
Honda and Nissan are negotiating a possible merger.
Benjamin Zhang/Business Insider
Nissan and Honda are considering a merger to help them compete in the EV industry.
The news sent Nissan stocks skyrocketing by as much as 24% in early trading on Wednesday local time.
The Japanese car companies are struggling with slumping profits and stock prices.
Honda and Nissan are set to negotiate a possible merger that could see the two Japanese car heavyweights strengthen their existing ties and increase their collective power locally and globally.
Japanese newspaper Nikkei reported news of the possible merger on Tuesday, adding that the two car companies are hoping their combined resources will help both compete against Tesla and Chinese electric vehicle makers.
The two companies are in talks to set up an umbrella holding company to facilitate a merger, Reuters reported on Tuesday, citing a person with knowledge of the discussions.
"As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other's strengths," a spokesperson for Honda said in a statement to Business Insider on Tuesday.
"We will inform our stakeholders of any updates at an appropriate time," the statement added.
The merger could also include another automaker: Mitsubishi Motors, Bloomberg reported on Tuesday, citing people familiar with the matter. Nissan is Mitsubishi's largest shareholder.
"The contents of the report is not something that has been announced by our company. Nothing has been decided at the moment," Mitsubishi said in a statement to BI.
On Wednesday, Bloomberg reported that the parent company of Taiwanese tech giant Foxconn had approached Nissan to take a controlling stake in the automaker.
Representatives for Nissan and Foxconn did not immediately respond to BI's request for comment.
The news sent Nissan stocks skyrocketing. The company's shares were nearly 24% higher when local markets closed on Wednesday.
The stock's uptick follows a particularly difficult year for the car company. Amid falling profits and decreased sales, Nissan slashed its workforce by 9,000 jobs globally in November in an effort to reduce costs. Nissan's shares are down nearly 25% this year.
The potential consolidation comes after Honda and Nissan agreed to collaborate on EV batteries and software earlier this year.
During Nissan's November earnings call, CEO Makoto Uchida acknowledged that the company had fallen behind, saying the automaker needed to strengthen its competitiveness.
"There are limits if we are to do that alone. So, that had triggered us to engage in partnership with Honda," Uchida said on the call.
Honda investors, however, seemed less thrilled by the news.
The company's shares closed 3% lower on Wednesday. Honda's stock is down by over 15% this year.
December 18, 12:15 a.m. β This story has been updated with statements from Honda and Mitsubishi Motors.
The Infiniti QX60 is a midsize, three-row luxury SUV and the brand's best-selling model.
I was impressed by the QX60's sleek design, quiet ride, and well-designed cabin.
I was disappointed by the QX60's unrefined engine, dated infotainment system, and cramped third-row.
The QX60 is the most important model in Infiniti's product portfolio. The three-row midsize luxury SUV accounted for just under half of the brand's total US sales in 2023, and it's on track to do the same this year.
The current second-generation QX60 launched in 2022 alongside its corporate sibling, the Nissan Pathfinder.
I spent a week driving a 2025 Infiniti QX60 Luxe Black Edition around suburban Atlanta.
The 2025 Infiniti QX60 Luxe Black Edition.
Benjamin Zhang/Business Insider
I was impressed by the QX60's sleek design, quiet ride, and well-designed cabin.
Unfortunately, the QX60 is let down by its unrefined turbocharged, four-cylinder engine, dated infotainment system, and cramped third-row.
My test car came to $62,745.
The 2025 Infiniti QX60 Luxe Black Edition.
Benjamin Zhang/Business Insider
The base, front-wheel-drive Infiniti QX60 Pure starts at $50,200, while the top-spec AWD Autobiography trim starts at $66,150.
My lower-mid-tier, all-wheel-drive Luxe trim test car starts at $58,800. Freight fees, upgraded Harbor Gray paint, and the $1,900 Black Edition package pushed the as-test price to $62,745.
The QX60's sheet metal is understated but handsome.
The 2025 Infiniti QX60 Luxe Black Edition.
Benjamin Zhang/Business Insider
Its subtle, sculpted curves, angular LED headlights, and large origami-inspired mesh grille give the Infiniti enough styling pizazz not to be boring.
At 198.2 inches, it's the same length as the Acura MDX but five inches shorter than the Lexus TX.
The 2025 Infiniti QX60 Luxe Black Edition.
Benjamin Zhang/Business Insider
The QX60's 6.7 inches of ground clearance is low for an SUV of the genre.
However, its 6,000 lbs towing capacity is higher than the segment norm of around 5,000 lbs.
Under the QX60's hood is a turbocharged four-cylinder engine.
The QX60's VC Turbo engine.
Benjamin Zhang/Business Insider
The 2025 QX60 is powered by Nissan's KR20DDET 2.0-liter VC-Turbo engine. The turbocharged inline-four produces 268 horsepower and 286 lb-ft of torque and is paired with a 9-speed automatic transmission.
The four-cylinder is less powerful but produces more torque than the outgoing V6, which puts out 295 horsepower and 270 lb-ft of twisting power.
The "VC" part of the VC-Turbo moniker refers to Nissan's unique variable compression technology that can vary the compression ratio within the engine from 8:1 under hard acceleration up to 14:1 for more efficient operation while cruising along.
The EPA rates my all-wheel-drive Luxe Black Edition test car at 22 mpg city, 27 mpg highway, and 24 mpg combined fuel economy, a two mpg improvement over the V6.
The QX60's pleasant driving experience is let down by its unrefined drivetrain.
The QX60's front cabin.
Benjamin Zhang/Business Insider
The Infiniti has the potential to be a really pleasant-to-drive luxury SUV. It rides smoothly and has a quiet cabin.
Unfortunately, the entire experience is let down by its four-cylinder engine. The new VC-Turbo motor has plenty of power, but instead of delivering that power predictably and linearly, it vacillates wildly between no power and massive surges of acceleration. It's an acceptable trait for a Saab Turbo from the 1980s, but not in a modern luxury SUV.
According to Motor Trend, the VC-Turbo QX60 can accelerate from 0 to 60 mph in 7.9 seconds, a full second slower than the outgoing V6-powered variant.
Noise from the VC-Turbo engine can also be loud and intrusive, which is tolerable if the engine makes a nice sound. Unfortunately, that's not the case here, as the four-banger sounds cheap and tinnyβagain, not an acceptable trait in a luxury SUV.
Like its exterior, the QX60's cabin is attractively styled.
The QX60's cabin.
Benjamin Zhang/Business Insider
The QX60's cabin looks modern and attractive, with good ergonomics and material quality. I found the wide variety of strategically placed charging sockets and storage nooks to be particularly handy on road trips.
The QX60's zero-gravity front seats are exceptionally comfortable.
The QX60's front seats.
Benjamin Zhang/Business Insider
The eight-way power black leather seats are also heated and cooled.
In front of the driver is a heated, leather-wrapped steering wheel.
The Infiniti QX60's steering wheel and digital instrument display.
Benjamin Zhang/Business Insider
Also, in front of the driver is a configurable 12.3-inch digital gauge cluster.
The QX60 comes standard with a 12.3-inch infotainment touchscreen.
The QX60's infotainment screen.
Benjamin Zhang/Business Insider
Although Infiniti's Nissan-sourced infotainment system was fairly intuitive to use, it looks dated compared to those found in its rivals. I was annoyed by the screen's split layout, which only allows you to fully use two-thirds of the screen real estate.
My test car came with wireless Apple CarPlay, wired Android Auto, and a 360-degree camera system.
A large panoramic glass moonroof spans the first and second rows.
The QX60's panoramic moonroof.
Benjamin Zhang/Business Insider
The feature is standard on all QX60s, which is impressive at this price point.
The second-row bench in my test car offers a competitive 37.7 inches of legroom.
The QX60's second-row bench seat.
Benjamin Zhang/Business Insider
Second-row passengers have heated outboard seats, dedicated climate controls, and access to a pair of USB sockets.
The leatherette upholstered two-person third-row bench seat has just 28 inches of legroom.
The QX60's third row.
Benjamin Zhang/Business Insider
It's one of the tightest third-rows in the midsize three-row SUV segment and should be reserved for children or very short trips.
Behind the QX60's third row is 14.5 cubic feet of cargo space, which is small for this segment.
The QX60's cargo space.
Benjamin Zhang/Business Insider
Cargo capacity expands to 41.6 cubic feet with the third row folded into the floor and 75.4 cubic feet with the second row also folded.
All figures are significantly less than the rival Acura and Lexus.
The QX60 Luxe comes standard with a host of standard safety and assistance features.
The 2025 Infiniti QX60 Luxe Black Edition.
Benjamin Zhang/Business Insider
All but the base Pure trim comes standard with adaptive cruise control, ProPilot Assist, lane departure prevention, and traffic sign recognition.
My verdict: The Infiniti QX60 is an attractively styled premium SUV with a pleasant cabin, but its unrefined drivetrain limits its appeal.
The 2025 Infiniti QX60 Luxe Black Edition.
Benjamin Zhang/Business Insider
There's so much to like about the 2025 Infiniti QX60. It's a handsomely styled premium SUV with a well-executed cabin and solid tech content.
Unfortunately, that's all been overshadowed by its lackluster, unrefined powertrain.
The lure of the VC-Turbo engine's beefier low-end torque and better fuel economy is understandable.
Automakers are facing lower-than-expected demand for EVs this year.
Shutterstock
Auto execs see an opportunity to roll back state EV mandates under President-elect Donald Trump.
Nissan and Toyota say state rules requiring a rapid uptick in EV sales are unrealistic.
Automakers are facing slowing EV demand, job cuts, and competition from China.
Some auto executives see an opportunity with the incoming Trump administration to roll back state rules requiring a rapid uptick in electric vehicle sales.
Executives at Nissan, Toyota, and the auto industry's largest US lobbying group say it will be impossible for the industry to meet aggressive timelines to phase out gas-powered cars and trucks by 2035 in a dozen states including California and New York, as well as Washington, DC. In six states, a target kicks in in 2026, when at least 35% of new car sales must be EVs.
He noted that EVs accounted for about 9% of new car sales nationwide in the third quarter β a record, but still far short of what regulators are requiring by 2026.
Automakers, facing lower-than-expected demand for EVs this year, are pulling back on production, and some companies are cutting jobs to save costs. At the same time, they have poured billions of dollars into EVs and executives say they are committed to the transition, especially to stay competitive with China as it churns out more affordable EVs. That balancing act has put the industry in a delicate position with Trump who railed against EVs on the campaign trail, vowing to kill tax credits and other incentives encouraging Americans to buy them.
Now the industry is strategizing how to influence Trump, including on EV sales requirements they view as too ambitious. Trump will likely take their side.
At a campaign event in Michigan in October, he said no state would be allowed to ban gas-powered cars. Trump during his first term tried to revoke California's authority to set stricter limits on tailpipe pollution than the federal government. California is granted that authority under the Clean Air Act but must get waivers from the Environmental Protection Agency. Biden restored the states' authority β a move currently being litigated and could reach the Supreme Court.
To avoid uncertainty, a group of automakers, including BMW, Ford, Honda, and Volkswagen, struck an agreement with California in 2020 to follow the state's rules through 2026.
The rules are stricter than federal regulations issued earlier this year by the Biden administration's EPA. Those federal rules aren't an "EV mandate," as Trump falsely said on the campaign trail. Rather, automakers can choose how to curb greenhouse gas emissions from cars, trucks, SUVs, and vans sold between 2027 and 2032. The agency estimated the rules could boost EVs to up to 56% of new car sales, with the rest from a mix of hybrids and gas vehicles.
'Not ready to go electric'
Dealers, which were the first to sound the alarm on changes in the EV market last year, have argued that state and federal emissions requirements are out of step with demand. As companies push to meet these requirements, dealers complain they are stuck with unpopular EVs on their lots.
"A majority of customers are simply not ready to go electric right now," Dave Kelleher, a Chrysler-Dodge-Jeep-Ram dealer in Pennsylvania, told BI. "Maybe with a new administration, some of those fines will become a thing of the past, or even mitigated."
Karoline Leavitt, spokeswoman for Trump's transition effort, said Trump will stop attacks on gas-powered cars.
"When he takes office, President Trump will support the auto industry, allowing space for both gas-powered cars AND electric vehicles," she said in an email.
John Bozella, president of the Alliance for Automotive Innovation, which represents companies producing nearly all the new vehicles sold in the US, sent a letter to Trump in November asking that he ease emissions regulations but keep EV tax incentives fueling domestic investment in the supply chain.
An analysis commissioned by the Natural Resources Defense Council found that companies have announced $312 billion in planned investments in EVs and battery production since Biden took office in 2021, fueled partly by tax incentives in the Inflation Reduction Act.
One automaker, Toyota, supports doing away with EV mandates and subsidies altogether. In a recent op-ed in the Wall Street Journal, Toyota Chief Operating Officer Jack Hollins wrote that state mandates distort the market because companies funnel zero-emissions vehicles to those locations and ultimately limit choices for customers.
General Motors initially sided with Trump in his crusade against California's EV rules, but dropped its support of the legal battle after Biden won the 2020 election. It's unclear whether the automaker would once again side with Trump if he tries to roll back emissions requirements. Paul Jacobson, General Motors' executive vice president and chief financial officer, told reporters that ideally there'd be more consistency between federal and state rules. But the automaker will respect regulators' authority, he said.
"There's a lot at stake here," Jacobson said during the event in Washington. "That's why we talk about being nimble across the board, because sometimes it's the marketplace and sometimes it might be the regulatory environment. But we can't make excuses for poor performance. It's not just Washington. It's China, it's Europe. There's a lot of things going on all over the world and we have to be able to respond to that."
Figures released on Thursday showed that vehicle production has dropped dramatically in all of Nissan's major markets this year except Mexico, where it rose nearly 10% compared to 2023. Overall, global production was down 7.1% in the first 10 months of 2024 compared to the previous year.
Experts previously told Business Insider that any tariffs on trade with Mexico would have a dire impact on the US auto industry and likely increase vehicle prices.
Nissan would be one of the automakers worst-hit by the tariffs. The company has four production sites in Mexico, where it makes models including the Sentra, Versa, and Kicks.
Nissan's global sales in October were down nearly 2.7% from the previous year. The carmaker recorded double-digit drops in both China and Europe but saw sales rise in the US for the first time in three months.
The looming threat of tariffs adds to Nissan's considerable list of problems.
The automaker announced earlier this month that it wouldΒ cut 9,000 jobs and 20% of its manufacturing capacity. Profit for the quarter ending in September fell to around $210 million, down from $1.4 billion over the same period last year.
Nissan is reportedly searching for extra investors after European partner Renault sold some of its holdings. A senior official close to the companyΒ told The Financial Times that Nissan has "12 or 14 months to survive."
Japan's automakers face a reckoning
Along with rivals Honda and Toyota, Nissan has come under pressure from Chinese automakers. These companies are eating into Nissan's market share in China with affordable EVs andΒ rapidly expanding intoΒ developing markets dominated by Japanese companies.
Toyota, Honda, and Nissan are also facing a reckoning over their handling of the transition to electric vehicles. The three automakers have prioritized hybrids over pure battery-electric vehicles, a strategy that has boosted sales in the US but left them lagging behind local rivals like BYD in China.
"At the end of the day, the hybrid strategy worked in Japan, worked in the US, and worked very well in Europe, but that's not the case in China," analyst Felipe Munoz previously told Business Insider.
Nissan did not immediately respond to a request for comment from Business Insider, sent outside normal working hours.
Mexico is the largest trade partner for the US, accounting for nearly 16% of total trade over the first three quarters of this year. Canada isn't far behind as the country's second-largest trading pattern, accounting for about 14.5% of trade.
Tariffs on goods from Mexico and Canada are especially problematic for the US automotive industry.
Mexico alone exports more than 2.3 million cars a year to the US, according to Commerce Department data.
Foreign and domestic carmakers like Ford, GM, and Nissan have invested decades of time and billions of dollars to establish a well-oiled, cross-border manufacturing and supply chain operation to make vehicles destined for US dealerships.
A 25% tariff would not automatically mean a matching price increase, though it would leave automakers β already struggling with shrinking profit margins β with little room to eat the cost without increasing the sticker price of their vehicles.
Parts for cars, trucks, and SUVs sold in the US can cross the border several times during their production process, thanks to friendly conditions fueled by various regional trade agreements over the years.
Representatives from Ford, Honda, and the American Automakers Policy Council, a lobbying group representing Detroit's Big 3, did not immediately respond to requests for comment.
Nissan, Stellantis, General Motors, and Toyota declined to comment.
This comes at a bad time for US consumers who have seen the average cost of a new car skyrocket more than $10,000 since 2019 to more than $48,000. Many automakers, meanwhile, are planning layoffs and plant closures amid a slowdown in EV demand.
Information from the National Highway Traffic Safety Administration shows that several dozen vehicles made in Canada and Mexico are currently sold in the US.
Here's a closer look at these models, which range from pickups to luxury SUVs and EVs:
BMW Group
A 2024 BMW M240i xDrive Couple
BMW
BMW 2-Series Coupe/Convertible (Mexico)
BMW M2 Coupe (Mexico)
BMW 3-Series Sedan (Mexico)
Ford
Ford Mustang Mach-E.
Paul Marotta/Getty Images
Ford Bronco Sport (Mexico)
Ford Maverick (Mexico)
Ford Mustang Mach-E (Mexico)
General Motors
A 2024 Chevrolet Equinox EV RS in Summit White driving in a downtown area.
Volkswagen and other automakers battling with sliding sales this year.
Hendrik Schmidt/dpa/Getty Images
Car companies are scrambling to adjust to a rapidly changing EV market.
Restructuring efforts include massive job cuts in some cases.
Cost-cutting measures come as automotive execs double down on expensive EV commitments.
A protracted transition to electric vehicles is taking its toll on global car companies, many of which still have yet to profit from battery-powered vehicles.
Demand for EVs, particularly in the critical US market, has slowed considerably this year as green car shoppers get more frugal and practical. This presents a problem for car companies that need mass adoption to deliver profits for these expensive vehicles.
Automotive executives have been scrambling to adjust to this new EV market, pulling back on some EV production and speeding up the development of more popular hybrid cars. As 2024 draws to a close, many manufacturers opt for more drastic cost-cutting options as they continue investing heavily in EV technology.
Major car companies like Detroit's GM, Ford, and Stellantis have begun slashing jobs as they cut costs and reshape their business models for this next stage of the EV transition.
Detroit car giant General Motors laid off about 2,000 workers in two rounds of layoffs in August and November. GM cited cost cutting and changing market conditions in both instances.
The majority of the 1,000 jobs cut in November were white-collar, but the United Auto Workers union reported that about 50 of its members were also affected. According to reports, most affected workers were stationed at GM's global technical center in suburban Detroit, where most design and engineering work occurs.
Prior to the November job cuts, GM also trimmed another 1,000 salaried positions in software and services, according to reports.
GM aims to trim $2 billion in costs as it adjusts its EV strategy and manages slowing sales in the US and China.
Ford to cut 4,000 jobs in Europe amid EV slowdown
Ford said in November that it plans to slash 4,000 positions from its European workforce by the end of 2027. Ford said the Germany and UK divisions are likely to be the hardest hit, as these regions suffer "significant losses."
In addition to these job cuts, Ford also announced curtailed production at a factory in Cologne in the first quarter of 2025.
The cuts to Ford's European business come as companies in the region grapple with intense competition from Chinese EV maker BYD.
In the US, Ford also recently announced an extended pause in F-150 Lightning production, which will affect the roughly 730 hourly workers at that Metro Detroit plant until 2025.
Volkswagen plans historic job cuts in Germany
German automotive giant Volkswagen announced big restructuring actions in October, which could include closing factories and cutting tens of thousands of jobs.
The planned cuts, which still face the scrutiny of German unions, were announced after VW issued its second profit warning in three months. Volkswagen faces similar issues to its rivals, with slowing EV sales in China and stiffer competition from BYD in Europe.
VW's planned restructuring would include closing three German factories for the first time in the company's history, as well as cutting salaries by 10% and freezing wages for two years.
Jeep-maker Stellantis slashes jobs amid tough year
As it struggles with oversupply, it has initiated plans to cut nearly 4,000 factory jobs in the US. Meanwhile, the company laid off 400 white-collar workers in the spring and has offered broad buyouts to salaried workers.
The factory cuts have become a lightning rod for the UAW, accusing Stellantis of violating its contract by removing product commitments from an Illinois factory that built the discontinued Jeep Cherokee.
The UAW has threatened to strike over the alleged violation. Stellantis maintains that its actions fall within its contractual right to change plans based on market conditions. The car company has filed a lawsuit against the UAW in reaction to strike authorization votes.
Tesla reduces global workforce by more than 10%
In an April memo obtained by Business Insider, Tesla CEO Elon Musk told his employees that the company would eliminate "more than 10%" of its staff.
The cuts came after Tesla reported declining sales in the first quarter of the year. After initially weathering a slowdown in EV demand, Tesla is finally feeling the pinch of a more competitive EV market in the US.
Nissan plans to cut 9,000 jobs
Japanese car company Nissan announced in November that it would cut 9,000 jobs and reduce manufacturing output amid poor performance in the critical Chinese and US car markets.
The move came as Nissan reduced its operating profit forecast for the year by 70%.
Last year's job cutsΒ 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 is cutting 5% of its workforce.
Spencer Tirey/Getty Images
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 is closing a factory in Arizona, which is expected to cut around 500 jobs.
iStock/Getty Images Plus
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 expensesβ including temporary pay reductions and company-wide and factory shutdownsβthese 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.
Hearst Tower
Rob Kim/Getty Images
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
Boeing is cutting 10% of its global workforce.
PATRICK T. FALLON/AFP via Getty Images
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 aΒ seven-week strikeΒ 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
Exxon Mobil is cutting about 400 employees after Pioneer merger.
Andrew Kelly/Reuters
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 is reportedly cutting roughly 4% of its global workforce, or around 1,000 employees.
Costfoto/NurPhoto via Getty Images
AMD confirmed it would be reducing its global staff, which numbered around 26,000 total employees as of December 2023.
β³As 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
Chegg is letting go of 21% of its staff amid competition from ChatGPT and other AI searchers.
Pavlo Gonchar via Getty Images
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
23andMe is cutting 40% of its staff and exiting its therapeautics business.
Smith Collection/Gado
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.
Beyond Inc., the parent company of Bed Bath & Beyond, Overstock, and Zulily, is the latest to announce layoffs.
PATRICK T. FALLON/AFP via Getty Images
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
The newest cuts affect employees at units including Instagram, WhatsApp, and Reality Labs.
Chesnot/Getty
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 its content-moderation arm.
Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images
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.
PwC is laying off about 2.5% of its staff.
Michael Kappeler/picture alliance via Getty Images
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 β 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
Athletic retailer Nike will be making reductions to staffing as part of a cost-cutting initiative.
CFOTO/Future Publishing via Getty Images
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
Google confirmed the layoffs to Business Insider in an email.
Justin Sullivan/Getty Images
On January 10, Google laid off hundreds of workers in its central engineering division and members of its hardware teams β 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 β about 12,000 people β last January.
Discord laid off 170 employees.
Jason Citron said rapid growth was to blame for the cuts.
Jakub Porzycki/NurPhoto/Getty Images
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.
CEO Jane Fraser has been vocal about the necessity for restructuring at Citigroup.
Patrick T. Fallon/Getty Images
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 β 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 is cutting more than 500 positions.
NurPhoto/Getty Images
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.
BlackRock expects to lay off 3% of its workforce.
Leonardo Munoz/VIEWpress
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.
Rent the Runway is laying off a few dozen people in its corporate workforce.
Shannon Stapleton/Reuters
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.
Unity Software plans to cut roughly 1,800 jobs.
Sutro Software
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
eBay wants to become "more nimble."
ullstein bild Dtl/ Getty
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 is reportedly laying off hundreds of employees in Xbox division
SOPA Images/Getty Images
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 laid off about a tenth of its headcount last year.
Plexi Images/Glasshouse Images/UCG/Universal Images Group via Getty Images
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 β 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
iRobot's executive vice president and chief legal officer Glen Weinstein has been appointed interim CEO upon Angle's exit from the company.
Kimberly White/Getty Images
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.
Paypal CEO Alex Chriss announced the company would lay off 9% of its workforce.
PayPal announced layoffs at the end of January.
(Photo by Justin Sullivan/Getty Images)
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.
Okta announced a restructuring plan at the start of February.
SOPA Images/ Getty
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.
Snap has announced another round of job cuts.
Snapchat, Tyler Le/Insider
The company behind Snapchat announced in February that it's reducing its global workforce by 10%, according to an SEC filing.
Between 1,600 and 3,100 jobs will be eliminated from the company.
Reuters
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 is cutting 6% of its workforce.
Igor Golovniov/SOPA Images/LightRocket/Getty Images
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
Videoconferencing company Zoom laid off 1,300 people in February 2023. The following February it announced 150 layoffs.
Kena Betancur
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
CEO Bob Bakish sent a note informing employees of layoffs.
Eduardo Munoz Alvarez/AP
In February, Paramount Global CEO Bob Bakish sent a memo to employees announcing that 800 jobs β about 3% of its workforce β 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
The layoffs mark one of the first major moves by newly-installed CEO Ted Pick.
Pavlo Gonchar/SOPA Images/LightRocket via Getty Images
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
Peter Kern, CEO of Expedia Group
Business Wire
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 tech company is slashing 900 workers from its workforce.
NurPhoto/Getty Images
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 β allowing PlayStation gamers to explore our worlds in different ways β 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
Lidiane Jones, CEO of Bumble.
Eugene Gologursky/Stringer/Gr
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 cutting hundreds of jobs.
Getty Images
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 CEO Arvind Krishna said last year that he could easily see 30% of the company's staff getting replaced by AI and automation over the coming five years.
Sajjad Hussain/Getty Images
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
The cuts follow several rounds of layoffs at Amazon last year.
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
The cuts follow Apple's decision to withdraw from two major projects.
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
Impacted employees were notified that they were being terminated, effective immediately.
JOHN THYS / Getty
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 is slated to cut around 600 roles this year.
Jakub Porzycki/NurPhoto/Getty Images
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 β a part of its larger "cost reduction program" β 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
Barry McCarthy served as the CEO of Peloton for just over two years.
Getty/Ilya S. Savenok
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
Indeed draws more than 250 million people from around the world each month, making it the largest job site.
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 ofΒ 2,200Β workers.
Walmart is axing hundreds of corporate jobs
A Walmart storefront in the US.
Kena Betancur/VIEWpress via Getty Images
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
An Under Armour retail store.
Alex Tai/SOPA Images/LightRocket via Getty Images
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.Β "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
"Inside Out," a 2015 film, is one of Pixar's many hits.
Disney/Pixar
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
Lucid Motors will cut about 6% of its workforce.
John Keeble/Getty Images
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 tractors for sale at a dealer in Longmont, Colorado.
Rick Wilking/Reuters
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
Burberry is reportedly cutting hundreds of roles.
Anton Novoderezhkin\TASS via Getty Images
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 it would fire 1,800 employees as the company shifts focus to AI development.
Chris Helgren/Reuters
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.
Tinder and Hinge parent company is cutting about 156 jobs globally.
Beata Zawrzel/NurPhoto via Getty Images
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
Disney Entertainment Television (DET) is eliminating roughly 2% of its workforce.
SOPA Images/Getty Images
Deadline and Bloomberg reported in July that Disney was making cuts across its TV division, to the tune of roughly 140 jobs β 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 expected to eliminate thousands of jobs, Bloomberg reported.
Justin Sullivan/Getty Images
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
WeightWatchers is cutting down its staff.
Eugene Gologursky
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
A Dell Technologies office building in Round Rock, Texas.
Brandon Bell/Getty
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 plans to cut 15% of its US workforce.
PATRICK T. FALLON/Getty Images
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
Stellantis is cutting 400 jobs.
Gonzalo Fuentes/Reuters
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
Sonos laid off about 100 workers in August.
Courtesy of Sonos
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
The cuts comprised 5% of the networking company's workforce.
REUTERS/Mike Blake
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 β 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.Β ReutersΒ 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
GoPro will go through a second round of layoffs in 2024.
David Becker via Getty Images
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
Shell plans for major layoffs in its oil and gas exploration division.
INA FASSBENDER/Getty Images
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
Goldman Sachs has already begun cuts, The Wall Street Journal reported.
Michael M. Santiago/Getty Images
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
Gwyneth Paltrow speaks at the In Goop Health Summit in Los Angeles in 2021. The wellness company is laying off 18% of its staff amid a strategy shift.
Rachel Murray/Getty Images for goop
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 β 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 global job cuts in 2024.
SOPA Images/Getty Images
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 will let go of 4,800 US-based management employees by March 2025.
Kena Betancur/VIEWpress/Getty Images
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 about 1,700 employees at its Fairfax plant in Kansas.
Rebecca Cook/Reuters
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
Flexport CEO Ryan Petersen returned to the company in September.
Sam Barnes/Sportsfile for Collision via Getty Images
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
NYCB's Flagstar Bank is cutting 700 jobs as part of a business overhaul.
Facebook/Adobe Stock/BI
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, cofounded by Lindsay Kaplan and Carolyn Childers, laid off staff.
Kimberly White/Getty Images for TechCrunch.
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 β opened one year previously β to refocus on the American market.
Visa will reportedly lay off around 1,400 people
Visa plans to lay off around 1,400 people by the end of the year, The Wall Street Journal reported.
Jakub Porzycki/NurPhoto/Getty Images
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
Dropbox CEO Drew Houston announced the company is laying off around 20% of its workforce.
Reuters/ Mike Blake
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.
KPMG plans to lay off about 330 people in its US audit workforce.
Jakub Porzycki/NurPhoto via Getty Images
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.
Nissan said it will cute 20% of its staff.
Benjamin Zhang/Business Insider
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 β 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.
Mars Curiosity rover at the John Klein site.
NASA/JPL-Caltech/MSSS
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.
Associated Press will lay off 8% of its staff, the company announced in November.
Mario Tama/Getty Images
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 laid off 100 workers in its New York offices.
Alexi Rosenfeld/Getty Images
Sotheby's cut 100 employees from its New York offices on Tuesday, the company confirmed to multiplepublications. 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 plans to cut over 700 workers in Oregon locations.
REUTERS/ Shannon Stapleton
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."
