Several major American companies, including Nike and Intel, are getting ready to lay off a lot of employees in the next year. This shows that the job market is getting tougher and businesses are changing how they operate.
By the end of 2023, big companies like Nike, Intel, and Citigroup are planning to reduce their workforce significantly in 2024.
This isn’t just happening in one industry. It’s affecting many areas like technology, finance, media, and retail, which means it’s going to be hard for a lot of workers.
Nike, known for its sports gear, is planning to save $2 billion over three years, starting in the second quarter of its fiscal year. They’re expecting to spend between $400 million and $450 million on severance pay in the third quarter.
These layoffs are part of a bigger plan to use more technology and automation and make their products simpler. The goal is to make things run smoother and be more efficient.
More Layoffs at Intel
Intel, a big name in technology, isn’t holding back on its plans to cut costs. They’re not only letting go of 235 employees at their Folsom, California campus in December 2023, but they’re also planning more layoffs.
These cuts are part of a bigger plan to speed up their strategies and save money. A spokesperson from Intel says they’re making these tough decisions with care for the employees involved.
Changes at Citigroup
Citigroup, a major player in finance, is following a similar path. They announced a big change called “Project Bora Bora” in September. It’s all about getting rid of extra layers of management to make decisions faster.
This restructuring will likely lead to a big drop in the number of employees, with rumors suggesting up to 10% could be cut from some parts of the company. These changes started in November and are set to continue into February 2024, aiming to simplify things and make operations run smoother.
Impact on the Industry and AI’s Role
This trend isn’t just happening at a few companies; it’s affecting the whole industry. A survey of around 900 business leaders by ResumeBuilder found that 38% expect layoffs in 2024, and half think their companies will stop hiring.
Many companies are worried about a possible recession, and they’re also using more artificial intelligence, which could mean fewer jobs.
About 40% of those surveyed think AI will lead to job cuts.
The combination of economic troubles and new technology is changing how companies work, forcing them to adjust to new challenges.
While these changes might worry workers, they also bring chances for growth and new ideas. Both individuals and companies need to be open to change and find ways to succeed in today’s digital world.
As we head into 2024, both workers and companies will need to be flexible and ready for whatever comes next in this tough economic climate.
