Companies lay off staff due to economic difficulties created by the COVID-19 pandemic

guest · Apr 20, 2020

Kickstarter's live project count is down 35 percent from last year
...crowdfunding takes a serious blow
April 20, 2020
https://www.engadget.com/kickstarter-new-projects-plunge-233748000.html

Crowdfunding is taking a serious hit due to the COVID-19 pandemic. A Kickstarter internal memo from CEO Aziz Hasan obtained by The Verge indicates that new projects have dropped by 35 percent year-over-year with “no clear sign of rebound.”

The steep drop has led to the company discussing “potential layoffs” with the Kickstarter employee union and finding ways to cut expenses, including cutting pay for management, capping new hires and being selective when filling newly vacant positions.
Hasan acknowledged that employees were “shouldering some part” of the uncertainty, and vowed to get through the situation “thoughtfully and transparently” to ease concerns as much as possible.

However, its situation underscores the challenges crowdfunding faces while COVID-19 remains an issue. Many projects can’t be finished remotely, and those that can may have trouble getting backers (due to higher unemployment) and suppliers.
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guest · Apr 21, 2020

Patreon lays off 13% of workforce
April 21, 2020
https://techcrunch.com/2020/04/21/patreon-lays-off-13-of-workforce/

Creative platform Patreon has laid off 30 employees, which is 13% of its workforce, TechCrunch has learned.

“It is unclear how long this economic uncertainty will last and therefore, to prepare accordingly, we have made the difficult decision to part ways with 13% of Patreon’s workforce,” a Patreon spokesperson said in a statement to TechCrunch. “This decision was not made lightly and consisted of several other factors beyond the financial ones.”
The startup ecosystem has been hit hard by the COVID-19 pandemic, with layoffs no longer the exception, but the rule. Still, it’s peculiar timing for Patreon, given the company touted an increase in new memberships during the first three weeks of March.

“Although the business is in a strong cash position, we want to ensure that we can continue to support creators for many years to come.”
Here’s Patreon’s full statement below: [...]
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Firecat · Apr 21, 2020

Some of my friends in the UK are having a tough time as they have been furloughed by their firms. It's very bad for people who are out in the job market seeking jobs at this time. I wish all the best to the people affected by this. It's probably going to be a long road to recovery.

guest · Apr 29, 2020

Deliveroo cuts ~15% of staff as coronavirus challenges food delivery
April 28, 2020
https://techcrunch.com/2020/04/29/d...taff-as-coronavirus-challenges-food-delivery/

The UK’s Deliveroo has confirmed it’s axing more than 350 staff — or around 15% of its global headcount.
Late yesterday the Telegraph reported that the London-based startup will be cutting 367 staff and furloughing a further 50 out of a total headcount of more than 2,500.

He did not confirm which types of roles are being eliminated nor the markets where the axe is falling.
“The extraordinary global health crisis we are living through has impacted nearly all businesses. As a result, like so many others, Deliveroo has had to examine how to overcome the challenges we all face, as well as ensure we are in the strongest position possible following the crisis,” the spokesman said in a statement.
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Earlier this month CNBC reported on plummeting demand in the UK leaving delivery couriers struggling to earn enough money to live on.
But the kind of mass appetite for fast food at the push of a button — which has led to years of frenzied competition in the on demand space — may be a longer term casualty of the pandemic.
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‘Driven to destitution’: Delivery riders in Britain are struggling as takeout orders plummet

“It’s not great,” said Alice, a 29-year-old student who delivers for Uber Eats in Edinburgh. Scotland. Alice, who did not wish to provide her surname, was logged onto Uber Eats for 6 hours and 45 minutes on Monday. She made a grand total of £4.00 ($4.92).

“To get orders you have to be outside places that are open, which is quite an ask given the low numbers coming through,” said Alice. “I’ve definitely seen colleagues struggling mentally to just be outside waiting and waiting.”
Reality check
One might assume that the lockdown means consumers are ordering more food through these takeout apps. But the truth is far from that.
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guest · Apr 29, 2020

Lyft lays off nearly 1,000 employees
The layoffs account for 17 percent of its workforce
April 29, 2020
https://www.engadget.com/lyft-covid19-layoffs-165619468.html

More than 1,000 people are out of work due to cutbacks at Lyft. The company is laying off 982 employees, 17 percent of its workforce, CNBC reports. It is furloughing another 288 workers.

In a regulatory filing, the company detailed plans to reduce the base salary for remaining employees for a 12-week period. Executives will take a 30 percent pay cut. Vice presidents will see a 20 percent cut, and Lyft will reduce pay by 10 percent for all other exempt employees.
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Layoffs are becoming increasingly common due to COVID-19, and ridesharing has been particularly hard-hit. With more people staying home, services have seen demand drop precipitously. Just yesterday, The Information reported rumors that Uber is discussing plans to layoff about 20 percent of its workforce.
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Lime reportedly plans to lay off as many as 100 employees
April 29, 2020
https://www.theverge.com/2020/4/29/21242041/lime-layoff-80-100-employees

Lime is planning to lay off between 80 and 100 of its workers, according to Axios, an indication the company has run into financial troubles during the global COVID-19 pandemic. Lime did not respond to a request for comment for this story.

Bloomberg also reported that layoffs at Lime could be on the way, saying the cuts may hit staff in both the US and Europe and could affect as many as 190 workers. However, “our understanding is that the number is significantly lower,” Axios reported today. Some employees have already been told they are being let go, Bloomberg said. Bloomberg also reported back in March that Lime was considering laying off between 50 and 70 people.
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The scooter startup isn’t the only on-demand transportation company to experience challenges during the pandemic — Lyft laid off 17 percent of its workforce earlier today, Uber is reportedly considering cutting up to 20 percent of its staff, and rival scooter company Bird laid off about 30 percent of its staff last month.
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guest · May 2, 2020

mood said: ↑

Kickstarter's live project count is down 35 percent from last year
...crowdfunding takes a serious blow
April 20, 2020
https://www.engadget.com/kickstarter-new-projects-plunge-233748000.html
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Kickstarter Prepares to Shed 'Up to 45-Percent' Of Staff
May 2, 2020
https://gizmodo.com/kickstarter-prepares-to-shed-up-to-45-percent-of-staff-1843212985

Kickstarter has been transparent that, as a result of the pandemic, the number of fundraising projects on the platform is nowhere near normal. Today, the company confirmed to Gizmodo that shrinking revenues have forced it to drastically reduce staff.
With no physical footprint, Kickstarter would appear to be well positioned to weather this crisis, but that hasn’t been the case.

The news of potential layoffs were reported last month, but the size of those reductions staff reductions was only made public last night by OPEIU, the union which Kickstarter employees successfully joined in February [...]
Gallagher contests the 45-percent figure, and while the union solely refers to these reductions as layoffs, Gallagher indicated the staff reductions include some amount of voluntary buyouts.
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Press Release: Kickstarter United Reaches Agreement with Management to Support Laid-Off Members

guest · May 5, 2020

Airbnb to lay off nearly 1,900 people, 25% of company
May 5, 2020
https://www.cnbc.com/2020/05/05/airbnb-to-lay-off-nearly-1900-people-25percent-of-company.html

Airbnb plans to lay off nearly 1,900 employees, or about 25% of the company, a person familiar with the plans confirmed to CNBC.

The layoffs were first reported by The Information, which reported the news would be broken to employees by CEO Brian Chesky in a call starting around 3pm ET.

“We are collectively living through the most harrowing crisis of our lifetime, and as it began to unfold, global travel came to a standstill,” Chesky told employees in a note. “Airbnb’s business has been hit hard, with revenue this year forecasted to be less than half of what we earned in 2019.”
Prior to the layoffs, Airbnb had 7,500 employees, Chesky said. Airbnb will halt projects related to hotels, a transportation division and luxury stays, Chesky said.
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guest · May 6, 2020

Uber lays off 14 percent of its workforce in COVID-19-related cost-cutting
Uber CEO Dara Khosrowshahi said he will forgo his salary for the rest of the year
May 6, 2020
https://www.theverge.com/2020/5/6/21249131/uber-layoffs-coronavirus-pandemic-cost-cutting-ceo-salary

Uber will lay off 3,700 full-time employees, or around 14 percent of its global workforce, the company said in filings with the US Securities and Exchange Commission. In addition, Uber CEO Dara Khosrowshahi will forgo his salary for the rest of the year as the company continues to struggle in response to the COVID-19 pandemic.

The layoffs are expected to hit the company’s customer support and recruiting divisions. Uber says it will incur approximately $20 million in severance and other termination-related expenses.
Last week, The Information reported that Uber’s top executives were considering laying off as many as 20 percent of the company’s workforce.

“Since we don’t know how long a recovery will take, we are taking steps to bring our costs in line with the size of our business today. This was a tough decision, but it is the right one to help protect the company’s long-term health and ensure we come out of this crisis stronger.”
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guest · May 11, 2020

One third of businesses axe IT staff due to Covid-19 cost concerns
Some are freezing IT budgets
May 11, 2020
https://www.itproportal.com/news/one-third-of-businesses-axe-it-staff-due-to-covid-19-cost-concerns/

In a bid to survive the Covid-19 pandemic, many businesses are cutting IT budgets and axing staff, according to a new report from Leonne International.

Based on a poll of 1,116 business decision-makers in the UK, US, France and Germany, the report states that more than a third (37 percent) of organisations have placed members of their IT team on furlough or made them redundant. At the same time, almost half (47 percent) froze IT budgets to give themselves breathing room during the pandemic.
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guest · May 13, 2020

mood said: ↑

Kickstarter Prepares to Shed 'Up to 45-Percent' Of Staff
May 2, 2020
https://gizmodo.com/kickstarter-prepares-to-shed-up-to-45-percent-of-staff-1843212985

Press Release: Kickstarter United Reaches Agreement with Management to Support Laid-Off Members
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Kickstarter loses 40% of its staff after a wave of layoffs and buyouts
May 13, 2020
https://www.digitaltrends.com/news/kickstarter-layoffs-coronavirus/

According to a recent filing, crowdfunding platform Kickstarter has reduced its staff by nearly 40%, following a sharp decline in the number of projects launched on the site in the wake of the pandemic-fueled economic downturn. The company has laid off 25 employees, while an additional 30 have exited after accepting voluntary buyouts.

The company had previously filed a notice with the state of New York about the layoffs, but confirmed the buyouts later to The Verge, saying affected employees were staying through this week to make for a smoother transition.
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There were 140 employees at the company,85 of which were members of the newly formed Kickstarter workers union. The company did not immediately respond to questions regarding which departments are affected or if this could impact any of the platform’s ongoing campaigns for funding products.
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guest · May 15, 2020

Vice Media Laying Off 155 Employees
...(Quartz laid off 80 employees / Conde Nast laid off 100 staffers)...
May 15, 2020
https://www.hollywoodreporter.com/news/vice-media-laying-155-employees-1294736

Citing business challenges and a low return on investment from resources spent on producing content for digital platforms, Vice Media C.E.O. Nancy Dubuc announced plans on Friday morning for 155 employees to be laid off.

In a memo, Dubuc said that 55 staffers will be cut on Friday in the U.S. and that "approximately" 100 staffers will be cut abroad "over the coming weeks."

"Looking at our business holistically, this imbalance needed to be addressed for the long-term health of our company," she wrote.
The global spread of the novel coronavirus pandemic has completely upended the digital media business model, resulting in layoffs or furloughs at almost every prominent company in the industry. On Thursday, the global business publication Quartz laid off 80 employees, representing 40 percent of its staff, and on Wednesday, magazine giant Conde Nast laid off 100 staffers in the U.S.

VIce Media had been expected to make deep cuts.
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Vice Media's union criticized the layoffs in a statement on Friday morning, claiming that the company "repeatedly refused to discuss workshare programs, like the one that the Los Angeles Times used to avoid layoffs, with our unions" and "did not agree to make further cuts to executive compensation before laying off 100 employees."
Summing up the situation, the union said: "We understand that the entire news industry is hurting. We do not understand why Vice chose to lay off many of our colleagues in the middle of a global pandemic instead of exhausting all options to save these jobs."
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Our statement regarding today's layoffs: pic.twitter.com/CCQlKDRXAX
— VICE Union (@viceunion) May 15, 2020
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guest · May 18, 2020

mood said: ↑

Uber lays off 14 percent of its workforce in COVID-19-related cost-cutting
Uber CEO Dara Khosrowshahi said he will forgo his salary for the rest of the year
May 6, 2020
https://www.theverge.com/2020/5/6/21249131/uber-layoffs-coronavirus-pandemic-cost-cutting-ceo-salary
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Uber lays off 3,000 more employees in latest round of COVID-inspired cuts
More pain for the ride-hailing giant
May 18, 2020
https://www.theverge.com/2020/5/18/21262337/uber-layoff-3000-employees-covid-19-coronavirus

Uber is laying off 3,000 employees in the latest round of COVID-19-inspired cost-cutting, CEO Dara Khosrowshahi said in an email to staff. The news, which was first reported over the weekend by The Wall Street Journal, comes as the ride-hailing company has seen an 80 percent drop in its ride-hailing business as a result of the coronavirus pandemic.

“We have to take these hard actions to stand strong on our own two feet, to secure our future, and to continue on our mission,” Khosrowshahi said in the email.
The move comes less than two weeks after Uber laid off 3,700 employees, or 14 percent of its global workforce. In total, the company has eliminated around a quarter of its staff in less than a month.
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The pain of COVID-19 is being felt across the ride-hailing industry. Lyft, Uber’s main rival, recently announced that it would be laying off nearly 1,000 employees, or about 17 percent of its workforce. Careem, Uber’s Middle Eastern subsidiary, slashed headcount by more than 30 percent and suspended its bus transport app.
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guest · May 21, 2020

The Atlantic Lays Off 68 Employees, or 17% of Staff, Cuts Pay for Executives
May 21, 2020
https://variety.com/2020/digital/news/atlantic-magazine-layoff-68-employees-pay-cuts-1234613048/

The Atlantic is the latest media organization to get whacked by the COVID-19 economic downturn.

The company, steward of the 163-year-old American journalism brand, announced that it is laying off 68 staffers, representing 17% of total employees. The cutbacks affect mainly Atlantic Media’s events, sales and editorial staffs. It’s making other cost-cutting moves, too, instituting pay cuts for executives and a salary freeze for other employees.

“I know that the pandemic is indiscriminate in its course, cutting through various industries and geographies. But, as has been the case for decades, our media economy is especially hard hit,” David Bradley, chairman and owner of Atlantic Media, said in a memo to staff announcing the cutbacks. (Read the full memo below).
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News and digital media companies that have also made layoffs in the wake of the coronavirus-induced crisis include Vice Media Group, Condé Nast, Bustle Digital Group, Quartz (which Atlantic Media sold in 2018 to Japan’s Uzabase), The Economist (which is shutting down the print edition of the 1843 lifestyle mag), and Valence Media’s Hollywood Reporter, Billboard and Vibe — along with dozens of local newspapers. Others, including BuzzFeed and Vox Media, have furloughed workers.
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guest · May 22, 2020

IBM is cutting ‘thousands’ of jobs across the US amid COVID-19 pandemic
May 22, 2020
https://www.newsobserver.com/news/business/article242921881.html

Computer giant IBM, which has a large presence in Research Triangle Park, is laying off an unspecified number of employees, the company said Friday.
The company did not directly blame the economic downturn caused by the coronavirus pandemic for the layoffs.

“IBM’s work in a highly competitive marketplace requires flexibility to constantly remix to high-value skills, and our workforce decisions are made in the long-term interests of our business,” IBM spokesman Ed Barbini said in an email to The News & Observer.
Barbini added that IBM recognizes “the unique current conditions” of the coronavirus, and the company is “offering subsidized medical coverage to all affected U.S. employees through June 2021.”

The layoffs were first reported by Bloomberg News. Citing unnamed sources, both Bloomberg and The Wall Street Journal said that the job cuts would affect several thousands of employees as well as offices across the U.S., like the one in RTP.
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guest · May 22, 2020

Hewlett Packard Enterprise to implement major cost cuts because of COVID-19
May 22, 2020
https://fortune.com/2020/05/21/hewl...mplement-major-cost-cuts-because-of-covid-19/

Amid eroding sales due to the COVID-19 pandemic, business technology giant Hewlett Packard Enterprise plans a major overhaul, including layoffs, that it says will save $1 billion by 2022.

The company, which makes data center hardware and software, announced the plan on Thursday while reporting its fiscal second quarter earnings, which ended April 30. As part of the plan, HPE will temporarily slash employee salaries, from July 1 to Oct. 31, with executives being hit the hardest.
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Asked about the specifics of layoffs, an HPE spokesperson indicated that the number of jobs to be cut had yet to be determined, saying the company would be “working through the details in the next couple months as we evaluate the various areas where we can drive savings.”
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stapp · May 23, 2020

About 2,500 jobs have been lost and 64,000 bookings cancelled with the collapse into administration of Specialist Leisure Group.
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Trade organisation Abta said the company, which specialised in products for the over-50s, was "significantly impacted" by the coronavirus pandemic.
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https://www.bbc.co.uk/news/uk-england-manchester-52776657

stapp · May 24, 2020

Hertz: Car rental firm files for US bankruptcy protection

Car rental company Hertz has filed for bankruptcy protection in the US after the pandemic saw its business plummet.
The firm, which earns much of its income from car rentals at airports, said it had been affected by the sharp downturn in global travel.
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https://www.bbc.co.uk/news/business-52780841

guest · May 24, 2020

FOSS Responders: open community support for COVID-19
May 22, 2020
https://www.computerweekly.com/blog...esponders-open-community-support-for-COVID-19

The FOSS Responders group (get it? … like first responders… but from a group of individuals passionate about Free and Open Source (FOSS) software application development and platforms) has come together to crowd-source support for FOSS contributors and organisations affected by COVID-19 pandemic, especially in the face of event cancellations.

The cancellation of FOSS events has had a significant impact on organisations and projects that either rely on events for funding or to promote their work to potential donors and sponsors.
The group says that canference cancellations have caused financial loss, unmet fundraising trajectories and missed business opportunities in the open tech development space.
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Ain’t no greenbacks
As an example, the Open Source Initiative (the organisation that ratifies open source licences) has said it needs nearly half a million pounds to meet its funding goals for 2020.
Similarly, the Drupal Association has had to layoff employees after cancelling events and needs to fundraise almost the same amount.
Postponed, pushed & poleaxed
According to FOSS Responders’ research, Over 173 events have been cancelled, postponed or pushed into virtual events since the outbreak began.

FOSS Responders has responded to this disruption by raising a $115,000 support fund, which is made from individual donations and generous donations from its partners (DigitalOcean, Ethereum Foundation, GitHub, Google, Linux Fund, Indeed, Open Source Collective, Open Collective, Sentry and the Alfred P. Sloan Foundation).
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guest · May 26, 2020

COVID-19 impact: After Ola, Uber to lay off 600 employees in India
May 26, 2020
https://indianexpress.com/article/b...ay-off-600-employees-due-to-covid-19-6427689/

Uber, one of the world’s top taxi aggregator, has announced that it is laying off 600 of its staff in India in a bid to cut costs amid the ongoing coronavirus (COVID-19) pandemic.

The move comes nearly a week after Uber’s biggest rival in the country Ola announced a lay off of its 1,400 staff as its revenue fell by 95 per cent.

“The impact of Covid-19 and the unpredictable nature of the recovery has left Uber IndiaSA with no choice but to reduce the size of its workforce. Around 600 full time positions across driver and rider support, as well as other functions, are being impacted. [...]” Pradeep Parameswaran, President, Uber India and South Asia said in a statement.
Globally, Uber has let go of 6,700 employees as COVID-19 pandemic has severely affected its business.
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stapp · May 26, 2020

Iconic UK supercar maker and Formula 1 team McLaren plans to cut more than a quarter of its workforce after the coronavirus crisis hit demand.
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https://www.bbc.co.uk/news/business-52808927

guest · May 30, 2020

Amid unprecedented growth on its platform, Acorns cuts roles and shuts down an office
May 30, 2020
https://techcrunch.com/2020/05/29/a...m-acorns-cuts-roles-and-shuts-down-an-office/

Acorns, which helps millions of people invest their spare change in the stock market, has laid off between 50 to 70 people, TechCrunch has learned from multiple sources.
The Irvine, Calif.-based company would not confirm the total number of people laid off, but did confirm that there were cuts at the company as a result of broader business changes.

The news emerged days after the fintech company closed its Portland office earlier this week, one of four offices the company maintained.
Payment processing is a risky space to play in right now because consumer spending has nosedived due to shelter in place orders. It could be a weak spot for the company at the moment. Earlier today, Brex laid off 62 staff members, just one week after raising $150 million in venture capital money.
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So, why does a company like Acorns, that is facing immense growth, need to do layoffs? Even if you’re winning right now, the pandemic and potential of an extended recession is forcing businesses to reevaluate the way they’re spending money.
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guest · Jun 4, 2020

Monzo cutting up to 120 jobs due to coronavirus impact
June 3, 2020
https://uk.reuters.com/article/uk-b...-jobs-due-to-coronavirus-impact-idUKKBN23A2RS

Digital bank Monzo is cutting up to 120 jobs, according to an internal note seen by Reuters on Wednesday, as the impact of the coronavirus pandemic on its business begins to bite.

The bank, founded in 2015, as recently as February told Reuters it planned to hire around 500 people this year as it aimed to continue its rapid growth.
The pandemic however has since made the outlook worse.

“Unfortunately we haven’t been able to achieve the goal of preventing the risk of redundancy at this time. It’s genuinely heartbreaking to share the news,” the memo said.
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stapp · Jun 4, 2020

Lookers and Aston Martin cut 2,000 car jobs

Car dealership Lookers has announced it will cut up to 1,500 jobs with the closure of more showrooms in the UK.
The company reopened its showrooms on Monday after the government lifted coronavirus lockdown restrictions.
Luxury carmaker Aston Martin also announced 500 redundancies, a week after naming a new chief executive.
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https://www.bbc.co.uk/news/business-52917780

guest · Jun 5, 2020

"Sophos is slashing 16 per cent of its worldwide headcount"
Sophos puts 100 at risk of redundancy as future of Naked Security blog hangs in balance
Firm denies shutdown of marketing organ but heads may well roll
June 4, 2020
https://www.theregister.com/2020/06/04/sophos_100_redundancies_naked_security/

Exclusive Sophos has placed 100 staff at risk of redundancy and is said to be shutting down its Naked Security blog, sources have told The Register - although the private equity-owned biz denied this.
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A person familiar with the matter told El Reg that 100 personnel, mainly in the antivirus company's sales engineering division, were told their services would no longer be required yesterday.
The layoffs are hitting staff across multiple divisions and in overseas locations as well as the UK, though we understand that Britain is the worst-hit location.

Other sources claimed to El Reg that Sophos' marketing blog, Naked Security, was due to be shut down – [...]

Sophos spokeswoman Tilly Travers told The Register: "We can assure you that Naked Security is fully functioning and will remain that way."

She added: "Sophos is implementing some internal restructuring to respond to the change in market conditions associated with COVID-19, and to accelerate the evolution already underway to our next-gen product portfolio… A restructuring is always a difficult decision, but we believe it is necessary to position Sophos for continued growth and success in the years to come, and to continue to provide advanced, world-class protection for our customers."
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Updated to add
Other sources have now confirmed to The Register that Sophos is slashing 16 per cent of its worldwide headcount, which, judging by its 2019 total of 3,400 people worldwide, works out at about 540 staff.
In an all-staff email chief exec Kris Hagerman said:

“Affected employees or their Works Council representatives, where applicable, have now been notified. For some affected employees, this is the start of a period of consultation. Others are now entering a transition period leading up to their departure, with some employees leaving Sophos this week. Approximately 16 per cent of all Sophos roles are potentially impacted.”
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stapp · Jun 8, 2020

BP has announced plans to cut 10,000 jobs amid following a global slump in demand for oil because of the coronavirus crisis.
The oil giant had paused redundancies during the peak of the pandemic but told staff on Monday that around 15% will leave by the end of the year.
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"We are spending much, much more than we make - I am talking millions of dollars, every day."
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https://www.bbc.co.uk/news/explainers-52966609

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