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Fitness equipment sellers shift to home gyms

As coronavirus stay-at-home orders have shut gyms, their customers are turning to home workouts to keep in shape during the pandemic......»»

Category: videoSource: reutersMay 15th, 2020

4 Stocks to Ride the Favorable Athleisure Wear Trends for 2022

The athleisure market is poised for growth in 2022, owing to the increased demand for comfort wear at home and outside. Trends have largely evolved with activewear moving from gyms to workplaces. The athleisure market has been witnessing robust trends as customers continue to look for comfortable attire to spend the days at home and shift to exercising more than ever. Rising health consciousness, the willingness to live an active lifestyle and look fit have led consumers to incorporate sports and fitness routines into their daily lives. The demand for activewear/athleisure products has increased significantly over time, which is expected to accelerate in 2022.As health consciousness rules people’s minds these days, they are more inclined toward mindful exercises like yoga and meditation, as uncertainties regarding the pandemic remain and work-from-home continues. As a result, apart from athleisure wear, there is likely to be a strong demand for virtual fitness apps, wearable technology, workout footwear, activewear, workout equipment and other accessories. Consumers are adding a variety of activewear to their wardrobes more than ever. Companies selling footwear and fitness gear are reinventing their products to suit the at-home fitness needs of consumers.Earlier, athletes wore workout clothes only while exercising, but now people wear athletic and casual clothing at all times. This has changed the dynamics of the athleisure market, leading to rapid growth of the sector in the past decade.Apart from being comfortable, customers look for fashionable activewear clothes that can be worn to gym as well as workplace, without being uncomfortable. As a result, companies are now offering sportswear that can be worn at work, for hiking, outings, picnics and while exercising.Athletic goods and apparel companies now offer everything from sweatshirts, leggings, pants, jackets and tops to yoga wear, and running clothes for both men and women. People are clubbing athleisure styles like tops with blazers to give it a formal look at an office meeting. The companies continue to innovate styles, materials and colors as well as incorporate functional designs to grab a large share of the fast-growing market. Furthermore, the increased participation of women in sports and outdoor activities in recent years has been a boon for the athleisure market. Grand View Research recently quoted that the women segment accounted for the largest revenue share of more than 41% in 2020.E-commerce has also been playing a great role in the athleisure market’s growth. The companies in the segment are looking to build a customer base through websites, social media and other digital channels. As consumers continue to show interest in shopping from home despite the lifting of the pandemic-led bans, growth of athletic-inspired apparel and digital sales are likely to stay. Companies focused on expanding their athletic-based apparel lines and building on e-commerce capabilities are expected to witness growth in 2022.Per a September 2021 report by Grand View Research, the global athleisure market size was $284.73 billion in 2020 and is expected to have reached $306.62 billion in 2021. Moreover, the athleisure market is expected to grow, witnessing a compound annual growth rate (CAGR) of 8.6% from 2021 to 2028.Stocks in FocusWe have shortlisted four stocks set to ride the boom in the athleisure trends. These companies carry a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), and have witnessed robust growth in 2021. You can see the complete list of today’s Zacks #1 Rank stocks here.One-Year Performance Image Source: Zacks Investment Research Under Armour, Inc. UAA is one of the leading designers, marketers and distributors of authentic athletic footwear, apparel and accessories for a wide variety of sports and fitness activities in the United States and internationally. Based in Baltimore, MD, the company currently carries a Zacks Rank #2 and has rallied 16.9% in the past year. UAA has been benefiting from its robust operating model, and investments across product and marketing.Under Armour is progressing well with its multi-year transformation plan. Efforts to build brand image, strengthen the supply chain, manage inventory and contain costs should benefit the company in the long run. The Zacks Consensus Estimate for UAA’s 2022 sales and earnings indicates a rise of 6.1% and 5%, respectively, from the year-ago period’s reported levels. The company delivered a positive earnings surprise of 244.5%, on average, in the trailing four quarters.NIKE, Inc. NKE is a leader in the athletic footwear, apparel, equipment and accessories business. Based in Beaverton, OR, the company currently carries a Zacks Rank #3 and has rallied 16.8% in a year’s time. The return of sports activities, improved traffic trends and continued digital momentum are key to NIKE’s growth despite the ongoing impacts of supply-chain disruptions in its marketplace. Product innovation, brand strength and scale of operations have been driving digital sales.In fiscal 2022, NIKE expects demand to remain robust, driven by its strong customer connections and brand momentum. The Zacks Consensus Estimate for NKE’s fiscal 2022 sales and earnings indicates a rise of 5.6% and 1.4%, respectively, from the year-ago period’s reported levels. The company delivered a positive earnings surprise of 34.4%, on average, in the trailing four quarters.lululemon athletica inc. LULU, a Vancouver-based yoga-inspired athletic apparel company that creates lifestyle components, has been a pioneer in the athleisure wear business. It has the credit of introducing the concept of leggings to the world. LULU remains optimistic about the innovations it plans to bring in its assortments for both men and women. Management intends to keep investing in strategies to maintain customer footfall, including augmenting its store base and enhancing shopping experiences.lululemon expects to capture the growing online demand and ensure a robust shopping experience through its accelerated e-commerce investments this year. The company delivered an earnings surprise of 21%, on average, in the trailing four quarters. The Zacks Consensus Estimate for LULU’s fiscal 2022 sales and earnings indicates growth of 16.4% and 19.7 %, respectively, from the year-ago period’s reported levels. The company currently carries a Zacks Rank #3 and has risen 10.6% in a year.Winston-Salem, NC, Hanesbrands Inc. HBI engages in designing, manufacturing, sourcing, and selling apparel essentials for men, women, and children in the United States and internationally. The company’s Activewear segment offers casual wear and activewear clothing for men, women and children. Hanesbrands is on track with its Full Potential plan, which includes growing the global Champion brand, re-igniting innerwear growth, driving consumer-centricity and focusing on its portfolio.Hanesbrands is focused on making incremental investments in its online business to keep pace with consumers’ evolving shopping patterns due to increased digital shopping penetration. The company delivered an earnings surprise of 28.6%, on average, in the trailing four quarters. The Zacks Consensus Estimate for HBI’s 2022 sales and earnings indicates growth of 4% and 5.2 %, respectively, from the year-ago period’s reported levels. The company currently carries a Zacks Rank #3 and has risen 10.7% in a year. Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through November, the Zacks Top 10 Stocks gained an impressive +962.5% versus the S&P 500’s +329.4%. Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIKE, Inc. (NKE): Free Stock Analysis Report Hanesbrands Inc. (HBI): Free Stock Analysis Report lululemon athletica inc. (LULU): Free Stock Analysis Report Under Armour, Inc. (UAA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 23rd, 2021

Peloton isn"t selling as many bikes and treadmills anymore because people are going back to the gym

After blockbuster growth during the pandemic, Peloton is under pressure to keep the momentum going now customers have the option to work out in gyms. Peloton reported weaker-than-expected earnings on Thursday. Michael Loccisano/Getty Images Peloton reported weaker-than-expected earnings results on Thursday, sending its stock price lower. The company is facing more challenging conditions as the world reopens and people return to gyms. Data shows that foot traffic to fitness centers in the US is reaching 2019 levels. Peloton's pandemic-fueled sales peak is officially over.The high-tech fitness company reported weaker-than-expected first-quarter earnings results and lowered its forecast for fiscal 2022 on Thursday, sending its stock price down by as much as 33% in premarket trading on Friday. Sales of its connected fitness products - its high-tech treadmill and bike - fell by 17% during the quarter. It also saw its smallest quarterly gain in connected fitness subscriber growth since the company went public in September 2019.After blockbuster growth at the height of the pandemic, the company is under pressure to keep the momentum going as the world starts to return to normal and customers have the option to head back to gyms.In a call with investors on Thursday, Peloton CEO, John Foley, acknowledged that the coming year would be hard to forecast because of unusually high demand in fiscal 2021.The company is confident that the consumer shift to at-home fitness services is still in its infancy and there is plenty more room for growth."This trend was well-underway prior to the pandemic, and has clearly been accelerated by the growing awareness and adoption of connected fitness," Peloton said in a statement Thursday.But data shows that customers may be tiring of home workouts and are choosing to return to gyms. According to foot traffic data from Jefferies, visits to fitness centers in the US are returning to 2019 levels. Gym visits were down by about 8% in early October compared with the same period in 2019, according to the firm."We're definitely seeing clear data that show people are getting comfortable again to return to the gym," Jefferies analyst Randal Konik told CNBC."What's likely going to happen is demand for gyms will accelerate pretty dramatically," he said, while demand for at-home fitness equipment "is likely to stay somewhat strong." Earlier Thursday, gym chain Planet Fitness reported its third-quarter results and celebrated a near return to its pre-pandemic peak in terms of membership numbers. It currently has 15 million members - at its peak, it had 15.5 million. "People are choosing bricks and mortar. They're coming back faster than we've ever seen. They're rejoining our clubs faster than we've ever seen. The Gen Z's are joining faster than we've ever seen," CEO Chris Rondeau said on CNBC's Mad Money."All the winds are blowing the right direction, and the sails are wide open," he said.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 5th, 2021

Fitness equipment sellers shift to home gyms

As coronavirus stay-at-home orders have shut gyms, their customers are turning to home workouts to keep in shape during the pandemic......»»

Category: videoSource: reutersMay 15th, 2020

DoorDash is reportedly cutting 6% of its global workforce. Here are the other major US companies that have made cuts so far, from Amazon to Twitter.

DoorDash has become the latest major company to start slashing its headcount as business growth slows and costs increase. A booze delivery from DoorDash.DoorDash A wave of layoffs has swept across American business in 2022. The cuts stem from slower business growth, paired with rising labor costs. The layoffs span across industries, from mortgage lending to digital-payment processing. DoorDash is the latest major company to slash its headcount in 2022. The company is gutting 6% of its global workforce to slash operating costs and offset mounting losses, Bloomberg reported. While DoorDash experienced a significant boom during the pandemic as Americans flocked to takeout meals, it has struggled to keep up against growing competition and slowed economic growth. It's one of countless major American businesses that have picked up the pace of firing in 2022: Earlier this month, Amazon announced plans to lay off as many as 10,000 workers across divisions, including devices, retail, and human resources. Peloton has laid off thousands of employees this year. Twitter slashed 50% of its workforce.Even traditionally layoff-resistant companies like Netflix have made cuts, and now companies that saw a pandemic-era boom, like Shopify, are cutting hundreds of jobs.The reason, broadly, is twofold: business growth is slowing, while labor costs are increasing. The combination is causing American companies across a variety of industries to slash headcount.Here are some of the most notable examples so far: Carvana: another 1,500 peopleErnest Garcia III, CEO of online car dealer Carvana.Brendan McDermid/ReutersCarvana plans to lay off 1,500 people, or about 8% of its workforce. The cuts will mainly impact Carvana's corporate and tech departments, CNBC reported."Today is a difficult day. The world around us has continued to get tougher and to do what is best for the business, we have to make some painful choices to adapt," CEO Ernest Garcia III wrote in an email to employees obtained by CNBC.It's the second round of layoffs for Cavana this year. In May, the online car dealer cut 12% of its staff, or about 2,500 employees, according to a regulatory filing. Amazon: as many as 10,000 employeesAmazon CEO Andy Jassy.Jerod Harris/Getty Images for Vox MediaAmazon is planning to cut roughly 10,000 tech and corporate roles, The New York Times first reported. The cuts, which would be equivalent to about 3% of Amazon's corporate workforce, would be the largest in company history. This comes after Amazon abandoned multiple projects this year in an effort to cut costs, which led to at least 560 layoffs. The employees worked on some of Amazon's physical store concepts and its shuttered telehealth unit, as well as other divisions like robotics and online education. The company also laid off workers in two of its warehouses in Maryland in October. DoorDash: about 1,250 employeesA booze delivery from DoorDash.DoorDashDoorDash is laying off an estimated 1,250 employees, or 6% of its global workforce, to reduce operating costs after a period of mounting losses. The food delivery company grew rapidly during the pandemic, but has struggled against rising competition in the sector and the looming economic recession. "While our business continues to grow fast, given how quickly we hired, our operating expenses — if left unabated — would continue to outgrow our revenue," DoorDash CEO Tony Xu wrote in a letter to staff on Nov. 30, per Bloomberg.Juul: about 400 peopleAssociated PressE-cigarette company Juul plans to lay off about a third of its workforce, or roughly 400 people. The cuts come amid broader cost-saving measures for Juul, including a fresh infusion of cash to help it avoid filing for bankruptcy. The company also plans to reduce its operating budget by as much as 40%, the Wall Street Journal reported. Coinbase: about 1,000 employees, plus another 60 peopleCoinbase CEO Brian Armstrong.Patrick T. Fallon / Getty ImagesCrypto exchange platform Coinbase will cut another 60 jobs, The Information reported. The cuts come after Coinbase previously reduced its staff by 18% "to ensure we stay healthy during this economic downturn." That same day, over 1,000 employees were notified they'd been laid off when they were unable to log into their work email accounts — the company said in a regulatory filing at the time that its workforce would be reduced to about 5,000 employees by the end of the second quarter of 2022.Redfin: 13% of its staffRedfin CEO Glenn KelmanRedfinReal-estate firm Redfin plans to lay off 862 employees, or about 13% of its workforce. The company plans to shut down its home-flipping business, RedfinNow, which will result in 264 staffers getting cut, the company said in a financial filing.Another 218 employees' roles will be eliminated, but the workers are being offered a new job within the company, Redfin said. This is the second round of layoffs for Redfin this year. The company cut 6% of its workforce in June, or about 470 employees. Meta: more than 11,000 employeesMark Zuckerberg.Stephen Lam/ReutersMeta plans to cut more than 11,000 employees, or about 13% of its workforce. "I want to take accountability for these decisions and for how we got here," CEO Mark Zuckerberg wrote in a blog post. "I know this is tough for everyone, and I'm especially sorry to those impacted."The company plans to reduce headcount across divisions — including its metaverse division, Reality Labs — but said that some teams, like recruiting, would be more impacted than others. Salesforce: as many as 2,500 employeesSalesforce founder Marc Benioff.NICHOLAS KAMM/AFP via Getty ImagesSalesforce plans to cut thousands of jobs ahead of Thanksgiving, Protocol reported.It's unclear when the layoffs will begin or which divisions will be impacted, though as many as 2,500 workers could be impacted, according to Protocol. Twitter: about 50% of its workforceTwitter Losing Its Most Active Users(Photo by STR/NurPhoto via Getty Images)An estimated 3,700 Twitter employees, or about 50% of the company's workforce, woke up to emails saying that they had been laid off on Nov. 4, shortly after new owner Elon Musk took over the social platform. Terminated employees were notified in blunt emails that Twitter was "conducting a workforce reduction to help improve the health of the company" and offered severance.Though staffers had been previously warned about a pending "workforce reduction," several employees were immediately locked out of their laptops and company systems before they were notified they were terminated, Insider reported. Musk tweeted after the mass layoffs that he had "no choice when the company is losing over $4M/day." Gap: about 500 jobsPeople pass by the Gap clothing retail store in Manhattan.Reuters/Eduardo MunozGap will cut 5% of its corporate workforce, or about 500 employees, The Wall Street Journal reported. "We've let our operating costs increase at a faster rate than our sales, and in turn our profitability," Gap's interim CEO, Bob Martin, wrote in a memo to employees obtained by The Journal. The layoffs will reportedly impact employees in a wide range of departments and will mainly take place at Gap's offices in San Francisco, New York, and Asia.Snap: 20% of employeesRichard Drew/APSnap planned to lay off about 20% of its employees beginning in late August, The Verge reported.The cuts to Snap's 6,400-person workforce will be concentrated in divisions like Zenly, a social mapping app Snap acquired in 2017, as well as a team working on ways for developers to build apps inside Snapchat. Snap's hardware division will also see cuts, weeks after the company announced it was canceling its Pixy drone camera, The Verge reports. A spokesperson for Snap declined to comment.Wayfair: about 870 employeesPavlo Gonchar/SOPA Images/LightRocket via Getty ImagesFurniture and home goods company, Wayfair, said it would layoff about 870 employees — 5% of its global workforce — the Wall Street Journal reported. The layoffs represent about 10% of Wayfair's corporate team, the company said, and will cost between $30 million and $40 million for severance and benefits for laid-off employees.The layoffs are part of Wayfair's efforts to manage expenses and investments, it said. The company said it's also making cuts to third-party labor costs.After the company announced the layoffs, Wayfair shares fell almost 10% in premarket trading, the WSJ reported.Robinhood: more than 1,000 people in 2022Robinhood CEO Vlad Tenev.AP/David MartinDuring the pandemic, so-called "meme stocks" from GameStop and AMC exploded. Much of that explosion in stock value was driven by accessible trading platforms like Robinhood.And while new users piled in during the pandemic, Robinhood hired rapidly. Between 2020 and 2021, Robinhood staff grew dramatically: from 700 people to around 3,800, according to CEO Vlad Tenev. But that growth was apparently too much and too fast, and Robinhood was forced to slash headcount by 9% — more than 300 people altogether — in April. Then, in August, the company announced it would cut another 800 jobs, or about 23% of its staff.In the message to employees, CEO Vlad Tenev said that the earlier round of layoffs "did not go far enough" to bring down costs amid record inflation and the crypto market crash, which has reduced trading activity on the platform, he said. Peloton: over 4,600 peopleScott Heins/Getty ImagesIn early October, Peloton announced its fourth set of layoffs, bringing the total loss in headcount at the company to more than 4,600 this year. CEO Barry McCarthy called it "the final phase of the company's transformation journey." In February, Peloton fired over 2,800 people and announced its former CEO, John Foley, would depart amid an ongoing downturn in the company's business.Its second round of layoffs hit Taiwan-based employees in July, and a third wave of employees got cut in August.Peloton was once a pandemic darling, but the fading popularity of at-home fitness and mishandling of its logistics operation has put a strain on the business. The company's current chief exec Barry McCarthy has taken several measures in an attempt to revive the business. Shopify: about 1,000 workersShopify CEO Tobi Lutke.Reuters/Lucas JacksonShopify laid off roughly 1,000 employees, equivalent to 10% of its workforce worldwide.In a memo to employees, CEO Tobi Lutke said that the company — which makes the tech that powers businesses' online stores — had bet big on the pandemic-era e-commerce boom. "It's now clear that bet didn't pay off. Ultimately, placing this bet was my call to make and I got this wrong," Lutke wrote in the letter, which was posted on the company's website. 7-Eleven: 880 jobsPaul Sakuma/APConvenience store chain 7-Eleven cut 880 corporate jobs in Ohio and Texas in 2022 in the wake of the company's 2020 purchase of rival Speedway.A 7-Eleven spokesperson told Insider that the company has been assessing its new corporate structure and undergoing an "integration process" that led to the cuts, which took place at its support centers and field-support operations in Irving, Texas, and Enon, Ohio. Vimeo: 6% of its workforceAnjali Sud, CEO of Vimeo.AP Photo/Mark LennihanVideo-hosting platform Vimeo cut 6% of its staff in July."We are making this decision in order to ensure we come out of this economic downturn a stronger company," Vimeo CEO Anijali Sud wrote in a blog post. "Our people are what makes Vimeo great, and losing any of them is a personal failure that I feel deeply. But after assessing the challenging market conditions and uncertainty ahead, I believe this is the responsible action to take."Tesla: more than 200 employeesTesla CEO Elon Musk.Yasin Ozturk/Getty ImagesTesla laid off 229 people in late June, according to WARN filings. The layoffs primarily impacted employees in its Autopilot division. Tesla also closed an entire office in San Mateo, California, and moved some of the office's workers to another location, Bloomberg reported.In an interview in June, Elon Musk said he planned to cut between 3% and 3.5% of Tesla's workforce, including 10% of salaried staff. Insider reported that some ex-employees confirmed they had been laid off, though the total number is not known.  Rivian: around 6% of its workforceRivian CEO RJ Scaringe and a Rivian truck.Kevin Dietsch/Getty ImagesElectric car-maker Rivian confirmed in July that it would cut around 800 employees, or about 6% of its 14,000-person workforce, as it worked to cut costs. The layoffs came less than a year after Rivian went public in the largest IPO of 2021.Gopuff: 10% of its staffA delivery driver is shown picking up a Gopuff bagHannah YoonDelivery startup Gopuff laid off 10% of its staff, Insider reported in July."As a business, during these uncertain times, we owe it to our investors and customers to accelerate our timeline to profitability. As such, we have decided to confront the current moment by making difficult decisions about our core business," cofounders Rafael Ilishayev and Yakir Gola wrote in an email to employees. The latest round of layoffs come after Gopuff cut 3% of its workforce, or more than 400 workers, in March. Re/Max: 17% of its workforceAn "Open House" sign is seen outside of a house for sale.Tim Boyle/Getty ImagesReal estate firm Re/Max will lay off 17% of its workforce by the end of the year, the company announced.The cuts will primarily affect employees in the technology division, the result of a "shift in strategy" as it partners with a third-party technology vendor, Re/Max said.  Microsoft: less than 1% of employeesMicrosoft CEO Satya Nadella.Stephen Brashear/Getty ImagesMicrosoft announced in July that it was cutting a "small number" of employees across several groups, including consulting and customer and partner solutions, a company spokesperson told Bloomberg.JPMorgan: over 1,000 workersAmr Alfiky/ReutersIn June, JPMorgan confirmed that it would lay off over 1,000 employees in its home-lending department. The cuts came amid slowing demand for mortgages and refinances. "Our staffing decision this week was a result of cyclical changes in the mortgage market," a JPMorgan spokesperson said in a statement to Insider at the time. "We were able to proactively move many impacted employees to new roles within the firm and are working to help the remaining affected employees find new employment within Chase and externally."Netflix: about 500 peopleNetflix Co-CEO Reed Hastings.Getty Images LatamNetflix has seen 4 rounds of layoffs this year, totaling around 500 workers. The company laid off around 450 people this summer - with one round of layoffs affecting 150 workers in May, and another round affecting 300 in June. Before that, in April, the company laid off 25 marketing employees from its new fan site, Tudum. Most recently, Netflix downsized its animation department, announcing it would lay off 30 employees.  The company may be seeing a turnaround in its financials, though. The streaming company reported losing 200,000 subscribers in the first quarter and nearly 1 million in the second. However, in mid-October, Netflix added 2.4 million subscribers, reversing its decline. Compass: 450 employeesA house for sale marketed by the real-estate brokerage Compass.Smith Collection/Gado/Getty ImagesReal estate brokerage Compass cut about 10% of its workforce, or 450 employees, the company announced in a regulatory filing. The cuts were part of a series of new cost-cutting measures that include pausing expansion, consolidating offices, and halting mergers and acquisitions, Bloomberg reported.Reef: about 750 peopleEmployees unload at a Reef location.Pat Greenhouse/The Boston Globe via Getty ImagesGhost-kitchens company Reef Technology laid off 5% of its global workforce in May.The SoftBank-backed startup cut about 750 employees as it worked toward profitability amid a challenging economic environment, CEO Ari Ojalvo wrote in a memo to staff obtained by Insider.The layoffs come months after Reef said it would pause operations on some of its "underperforming" locations. Current and former employees told Insider that Reef had closed one-third of its kitchens and focused on its partnerships with major chains like Wendy's and Buffalo Wild Wings.Better: about 4,000 peopleVishal Garg is the founder and CEO of Better.com. He was responsible for laying off hundreds of people right before the holidays in 2021.Better.comStarting in late 2021 and continuing through the first several months of 2022, mortgage startup Better.com laid off approximately 4,000 people.The first wave started right before the holiday season in 2021, when CEO Vishal Garg laid off "hundreds" of people.Garg told employees during a Zoom call that the company "lost $100 million last quarter," which he said, "was my mistake." He then said the layoffs shouldn't have happened right before the holiday, but, "three months ago." Better followed up with another 3,000 layoffs in March, and began accepting voluntary layoffs in some departments.Noom: 495 peopleSaeju Jeong, cofounder & CEO of Noom.Sam Barnes/Sportsfile for Web Summit via Getty ImagesIn April, the weight-loss app maker Noom laid off hundreds of coaches, Insider reported — part of a bigger-picture pivot for the company toward more video-based coaching.The company, through its app of the same name, pairs dieting with personal coaches to achieve weight loss for users. Interactions with those coaches were often through text, which users critiqued as "canned advice." Some coaches told Insider they were responsible for giving advice to hundreds of users at any given time.Going forward, Noom said it would focus on offering users scheduled video calls with coaches.Thrasio: up to 20% of staff, sources sayThrasio founder and CEO Carlos Cashman.ThrasioThrasio, the company known for creating the Amazon aggregator market, laid off an unknown number of people in May. Additionally, the company's CEO and founder, Carlos Cashman, stepped down from leadership. In a memo sent to employees, Thrasio leadership said the layoffs were due to the company's "hypergrowth" in acquiring companies."At times we have been acquiring a new company almost every week," the memo said, "and running hard to build the infrastructure to support this growth."Two sources told Insider at the time that the layoffs would impact up to 20% of Thrasio's staff.Wells Fargo: an unknown number of people in mortgage lendingREUTERS/ Shannon StapletonAs mortgage revenues fell at Wells Fargo in the first quarter of 2022, the company began laying off employees in mortgage-related positions, Insider reported in late April.Loan processors and underwriters, among other positions, were reportedly affected by the layoffs. Wells Fargo representatives declined to say how many people were impacted by the cuts, but did confirm the layoffs in an emailed statement."We are carrying out displacements in a transparent and thoughtful manner and providing assistance, such as severance and career counseling. Additionally, we are committed to retaining as many employees as possible and will do everything we can to help them identify other opportunities within Wells Fargo," a Wells Fargo spokesperson said in a statement provided to Insider at the time.Canopy Growth: 250 peopleMaster Grower Ryan Douglas smells a marijuana plant in Smiths Falls, Ontario, on February 20, 2014.Blair Gable/ReutersOne of the world's largest publicly traded cannabis companies, Canopy Growth, slashed 250 jobs in Canada earlier this year as it faces increasing competition in the burgeoning cannabis market.Layoffs were among several cost-cutting measures that Canopy Growth is taking "to ensure the size and scale of our operations reflect current market realities and will support the long-term sustainability of our company," Canopy Growth CEO David Klein said in a statement at the time.Food52: about 20 peopleCofounder and CEO of Food52, Amanda Hesser.Food52After raising $80 million from investing firm The Chernin Group last December, the content-creation team at food publication and retailer Food52 was suddenly laid off in early April.About 20 of the company's 200 employees were let go in the layoffs, which came as a major surprise to those affected."Everyone on the team and my immediate boss were gut-punched," one of these employees told Insider. "We all had gotten raises and bonuses just a month prior."Two of the employees who were laid off said Food52 executives told them the company was "pivoting to commerce," and away from the type of content that was created by the affected employees: recipes and other instructional cooking content.Cameo: 87 peopleCameo operates a service where users can pay celebrities to record personalized audio or video clips.CameoVideo app Cameo laid off 87 people in early May."Today has been a brutal day at the office," CEO Steven Galanis wrote on Twitter. "I made the painful decision to let go of 87 beloved members of the Cameo Fameo."Galanis described the layoffs as a "course correction" in a statement to Variety. The cuts followed a staffing boom during the pandemic, when the company grew from around 100 employees before 2020 to about 400 in 2022. PayPal: 83 peoplePayPal headquarters in San Jose, California, on February 2, 2022.Justin Sullivan/Getty ImagesIn April, PayPal quietly laid off 83 people, according to a regulatory filing. The company employed more than 30,000 people worldwide, over a third of whom are based in the US. The cuts appear to be tied to the company downsizing its presence in the San Francisco Bay Area, according to TechCrunch.Gorillas: 'nearly 300' peopleGorillas CEO Kagan Sumer.GorillasGerman grocery-delivery company Gorillas announced layoffs of "nearly 300" people around the world in May. The layoffs, the company said, were part of a larger "shift to long-term profitability," which meant trimming staff as Gorillas focuses on its five "core" markets: Germany, France, the Netherlands, the UK, and the US.Impacted employees, who were mostly corporate staff, were shocked by the sudden layoffs."It's not a secret that the company hasn't been doing well, but I didn't expect to wake up and lose my job," a Berlin-based employee who was laid off by Gorillas told Insider. "My managers weren't even aware or consulted. It's not the laying off that hurts, it's the way it's been done."Hello Fresh: about 600 peopleA HelloFresh meal kit in a box.HelloFreshThe Germany-based meal kit company announced it planned to close a Richmond, California, warehouse and eliminate 611 workers' roles by December 11. HelloFresh saw a spike in sales early in the pandemic as more people were forced to cook at home, but sales have faded lately. The company's stock is down more than 70% so far this year — and meal kit rival Blue Apron has seen a similar plunge in its share price. "The lease for HelloFresh's production facility in Richmond is expiring at the beginning of 2023 and after an extensive analysis of our production network, HelloFresh has decided not to extend the lease," a spokesperson said in a statement to Insider.Walmart: at least 1,700Walmart CEO Doug McMillonDrew Angerer/Getty ImagesWalmart announced layoffs in its corporate division, as well as at one of its fulfillment centers. In mid-October, the retail giant filed a Worker Adjustment and Retraining Notification, or WARN notice in Georgia, announcing its plans to let go of nearly 1,500 workers. The company said it plans to turn a fulfillment center in the Atlanta area to support third-party sellers for Walmart. Earlier this year, the Wall Street Journal reported that Walmart planned to cut around 200 corporate jobs amid a company restructuring effort. Walmart's sales growth — which exploded during the height of the pandemic — has leveled off recently. In the second quarter of 2022, Walmart's e-commerce sales grew by 12% year-over-year, compared to 97% growth in the second quarter of 2020. Oracle: at least 60, but potentially much moreLarry Ellison, the founder of Oracle.Robert Galbraith/ReutersThe scope of Oracle's layoffs this year remains murky.In July, Insider reported that Oracle's advertising division quietly had two rounds of layoffs, totaling a loss of 60 workers. In August and October, Insider reported that Oracle held two rounds of layoffs that included the company's marketing, customer experience, and cloud divisions.Insider estimates the August round of layoffs potentially affected thousands of jobs across the world. What is clear is that the number of employees laid off is higher than the company has publicly let on. In an SEC filing, Oracle said it expects to incur $519 million in restructuring costs "primarily related to employee severance" through August 2023. Nordstrom: 222 workersJeff Greenberg/Contributor/Universal Images Group Editorial via GettyIn September, Nordstrom filed a WARN notice in Iowa announcing that it planned to cut 222 employees at a distribution center in Cedar Rapids. The layoffs were set to be completed by October 18, according to the filing. Despite rising inflation, Nordstrom is still growing its bottom line. The company reported that its revenue grew by 12% year-over-year in the second quarter, and the company said it's focused on boosting e-commerce sales. Credit Suisse: 2,700 peopleUlrich Körner, chief executive of Credit Suissevia ReutersThe embattled investment bank announced in late October that it plans to "radically restructure" and cut 5% of its headcount, or 2,700 workers. The company said it plans to reduce its headcount by 9,000 workers in the next 3 years. Credit Suisse has been hit with several catastrophes in recent years, including a $5 billion blow from the collapse of Archegos Capital Management last year. VF Corp: 300 workersStreet style brand Supreme is owned by VF Corp.Edward Berthelot/Getty ImagesVF Corp, which owns various retail brands like The North Face, Vans, and Supreme, confirmed to Insider it told employees about plans to lay off 300 employees and eliminate 300 open positions in early September. VF Corp reported a 4% decline in revenue for its second quarter, attributing the slowdown to a covid-related disruption in China and broader macroeconomic headwinds. Gannett: 3% of its US workforceGannett announced widespread layoffs this year.Associated PRessGannett, the largest newspaper chain in the US, reportedly laid off 3% of its US-based workforce or about 400 employees.Poynter reported that CEO Mike Reed informed staff of the layoffs — as well as Gannett's plan to eliminate 400 open positions — at a companywide Q&A in August. Poynter reports that the layoffs started one week after the company reported weak quarterly results. The company, which owns USA Today, along with local newspapers in 46 states, reported a net loss of nearly $54 million in the second quarter. Ford: about 3,000 workersFord CEO Jim FarleyJEFF KOWALSKY / Contributor / GettyFord plans to lay off roughly 3,000 salaried and contract workers as part of a restructuring and shifting focus toward producing electric vehicles. The automaker has estimated that electric cars require 30% less labor than conventional vehicles. Ben Gilbert contributed to an earlier version of this article.United Furniture IndustriesUnited Furniture Industries/FacebookUnited Furniture Industries, one of the largest furniture companies in the country, laid off 2,700 employees on Nov. 21.The company cited "unforeseen business circumstances" in emails and texts sent to staffers overnight just a few days before Thanksgiving, according to local reports. In a follow-up email, fired staffers were told "all benefits will be terminated immediately without provision of COBRA," leaving them without health insurance. The terminations impacted "all employees" at the company's facilities in Verona, Mississippi; Victorville, California; and Winston-Salem, North Carolina. Read the original article on Business Insider.....»»

Category: dealsSource: nytNov 30th, 2022

Amazon will reportedly lay off 10,000 workers. Here are the other major US companies that have made cuts so far, from Meta to Twitter.

Amazon reportedly will be the next company to start slashing its headcount as business growth slows and costs increase. Elaine Thompson/AP A wave of layoffs has swept across American business in 2022. The cuts stem from slower business growth, paired with rising labor costs. The layoffs span across industries, from mortgage lending to digital-payment processing. Amazon could be the next tech firm to slash its headcount in 2022. The e-commerce giant plans to lay off as many as 10,000 workers across divisions, including devices, retail, and human resources, The New York Times reported. It's one of countless major American businesses that have picked up the pace of firing in 2022: Peloton has laid off thousands of employees this year. Twitter slashed 50% of its workforce. Even traditionally layoff-resistant companies like Netflix have made cuts, and now companies that saw a pandemic-era boom, like Shopify, are cutting hundreds of jobs.The reason, broadly, is twofold: business growth is slowing, while labor costs are increasing. The combination is causing American companies across a variety of industries to slash headcount.Here are some of the most notable examples so far: Amazon: as many as 10,000 employeesAmazon CEO Andy Jassy.Jerod Harris/Getty Images for Vox MediaAmazon is planning to cut roughly 10,000 tech and corporate roles, The New York Times reported. The cuts, which would be equivalent to about 3% of Amazon's corporate workforce, would be the largest in company history. This comes after Amazon abandoned multiple projects this year in an effort to cut costs, which led to at least 560 layoffs. The employees worked on some of Amazon's physical store concepts and its shuttered telehealth unit, as well as other divisions like robotics and online education. The company also laid off workers in two of its warehouses in Maryland in October. Juul: about 400 peopleAssociated PressE-cigarette company Juul plans to lay off about a third of its workforce, or roughly 400 people. The cuts come amid broader cost-saving measures for Juul, including a fresh infusion of cash to help it avoid filing for bankruptcy. The company also plans to reduce its operating budget by as much as 40%, the Wall Street Journal reported. Coinbase: about 1,000 employees, plus another 60 peopleCoinbase CEO Brian Armstrong.Patrick T. Fallon / Getty ImagesCrypto exchange platform Coinbase will cut another 60 jobs, The Information reported. The cuts come after Coinbase previously reduced its staff by 18% "to ensure we stay healthy during this economic downturn." That same day, over 1,000 employees were notified they'd been laid off when they were unable to log into their work email accounts — the company said in a regulatory filing at the time that its workforce would be reduced to about 5,000 employees by the end of the second quarter of 2022.Redfin: 13% of its staffRedfin CEO Glenn KelmanRedfinReal-estate firm Redfin plans to lay off 862 employees, or about 13% of its workforce. The company plans to shut down its home-flipping business, RedfinNow, which will result in 264 staffers getting cut, the company said in a financial filing.Another 218 employees' roles will be eliminated, but the workers are being offered a new job within the company, Redfin said. This is the second round of layoffs for Redfin this year. The company cut 6% of its workforce in June, or about 470 employees. Meta: more than 11,000 employeesMark Zuckerberg.Stephen Lam/ReutersMeta plans to cut more than 11,000 employees, or about 13% of its workforce. "I want to take accountability for these decisions and for how we got here," CEO Mark Zuckerberg wrote in a blog post. "I know this is tough for everyone, and I'm especially sorry to those impacted."The company plans to reduce headcount across divisions — including its metaverse division, Reality Labs — but said that some teams, like recruiting, would be more impacted than others. Salesforce: as many as 2,500 employeesSalesforce founder Marc Benioff.NICHOLAS KAMM/AFP via Getty ImagesSalesforce plans to cut thousands of jobs ahead of Thanksgiving, Protocol reported.It's unclear when the layoffs will begin or which divisions will be impacted, though as many as 2,500 workers could be impacted, according to Protocol. Twitter: about 50% of its workforceTwitter Losing Its Most Active Users(Photo by STR/NurPhoto via Getty Images)An estimated 3,700 Twitter employees, or about 50% of the company's workforce, woke up to emails saying that they had been laid off on Nov. 4, shortly after new owner Elon Musk took over the social platform. Terminated employees were notified in blunt emails that Twitter was "conducting a workforce reduction to help improve the health of the company" and offered severance.Though staffers had been previously warned about a pending "workforce reduction," several employees were immediately locked out of their laptops and company systems before they were notified they were terminated, Insider reported. Musk tweeted after the mass layoffs that he had "no choice when the company is losing over $4M/day." Gap: about 500 jobsPeople pass by the Gap clothing retail store in Manhattan.Reuters/Eduardo MunozGap will cut 5% of its corporate workforce, or about 500 employees, The Wall Street Journal reported. "We've let our operating costs increase at a faster rate than our sales, and in turn our profitability," Gap's interim CEO, Bob Martin, wrote in a memo to employees obtained by The Journal. The layoffs will reportedly impact employees in a wide range of departments and will mainly take place at Gap's offices in San Francisco, New York, and Asia.Snap: 20% of employeesRichard Drew/APSnap planned to lay off about 20% of its employees beginning in late August, The Verge reported.The cuts to Snap's 6,400-person workforce will be concentrated in divisions like Zenly, a social mapping app Snap acquired in 2017, as well as a team working on ways for developers to build apps inside Snapchat. Snap's hardware division will also see cuts, weeks after the company announced it was canceling its Pixy drone camera, The Verge reports. A spokesperson for Snap declined to comment.Wayfair: about 870 employeesPavlo Gonchar/SOPA Images/LightRocket via Getty ImagesFurniture and home goods company, Wayfair, said it would layoff about 870 employees — 5% of its global workforce — the Wall Street Journal reported. The layoffs represent about 10% of Wayfair's corporate team, the company said, and will cost between $30 million and $40 million for severance and benefits for laid-off employees.The layoffs are part of Wayfair's efforts to manage expenses and investments, it said. The company said it's also making cuts to third-party labor costs.After the company announced the layoffs, Wayfair shares fell almost 10% in premarket trading, the WSJ reported.Robinhood: more than 1,000 people in 2022Robinhood CEO Vlad Tenev.AP/David MartinDuring the pandemic, so-called "meme stocks" from GameStop and AMC exploded. Much of that explosion in stock value was driven by accessible trading platforms like Robinhood.And while new users piled in during the pandemic, Robinhood hired rapidly. Between 2020 and 2021, Robinhood staff grew dramatically: from 700 people to around 3,800, according to CEO Vlad Tenev. But that growth was apparently too much and too fast, and Robinhood was forced to slash headcount by 9% — more than 300 people altogether — in April. Then, in August, the company announced it would cut another 800 jobs, or about 23% of its staff.In the message to employees, CEO Vlad Tenev said that the earlier round of layoffs "did not go far enough" to bring down costs amid record inflation and the crypto market crash, which has reduced trading activity on the platform, he said. Peloton: over 4,600 peopleScott Heins/Getty ImagesIn early October, Peloton announced its fourth set of layoffs, bringing the total loss in headcount at the company to more than 4,600 this year. CEO Barry McCarthy called it "the final phase of the company's transformation journey." In February, Peloton fired over 2,800 people and announced its former CEO, John Foley, would depart amid an ongoing downturn in the company's business.Its second round of layoffs hit Taiwan-based employees in July, and a third wave of employees got cut in August.Peloton was once a pandemic darling, but the fading popularity of at-home fitness and mishandling of its logistics operation has put a strain on the business. The company's current chief exec Barry McCarthy has taken several measures in an attempt to revive the business. Shopify: about 1,000 workersShopify CEO Tobi Lutke.Reuters/Lucas JacksonShopify laid off roughly 1,000 employees, equivalent to 10% of its workforce worldwide.In a memo to employees, CEO Tobi Lutke said that the company — which makes the tech that powers businesses' online stores — had bet big on the pandemic-era e-commerce boom. "It's now clear that bet didn't pay off. Ultimately, placing this bet was my call to make and I got this wrong," Lutke wrote in the letter, which was posted on the company's website. 7-Eleven: 880 jobsPaul Sakuma/APConvenience store chain 7-Eleven cut 880 corporate jobs in Ohio and Texas in 2022 in the wake of the company's 2020 purchase of rival Speedway.A 7-Eleven spokesperson told Insider that the company has been assessing its new corporate structure and undergoing an "integration process" that led to the cuts, which took place at its support centers and field-support operations in Irving, Texas, and Enon, Ohio. Vimeo: 6% of its workforceAnjali Sud, CEO of Vimeo.AP Photo/Mark LennihanVideo-hosting platform Vimeo cut 6% of its staff in July."We are making this decision in order to ensure we come out of this economic downturn a stronger company," Vimeo CEO Anijali Sud wrote in a blog post. "Our people are what makes Vimeo great, and losing any of them is a personal failure that I feel deeply. But after assessing the challenging market conditions and uncertainty ahead, I believe this is the responsible action to take."Tesla: more than 200 employeesTesla CEO Elon Musk.Yasin Ozturk/Getty ImagesTesla laid off 229 people in late June, according to WARN filings. The layoffs primarily impacted employees in its Autopilot division. Tesla also closed an entire office in San Mateo, California, and moved some of the office's workers to another location, Bloomberg reported.In an interview in June, Elon Musk said he planned to cut between 3% and 3.5% of Tesla's workforce, including 10% of salaried staff. Insider reported that some ex-employees confirmed they had been laid off, though the total number is not known.  Rivian: around 6% of its workforceRivian CEO RJ Scaringe and a Rivian truck.Kevin Dietsch/Getty ImagesElectric car-maker Rivian confirmed in July that it would cut around 800 employees, or about 6% of its 14,000-person workforce, as it worked to cut costs. The layoffs came less than a year after Rivian went public in the largest IPO of 2021.Gopuff: 10% of its staffA delivery driver is shown picking up a Gopuff bagHannah YoonDelivery startup Gopuff laid off 10% of its staff, Insider reported in July."As a business, during these uncertain times, we owe it to our investors and customers to accelerate our timeline to profitability. As such, we have decided to confront the current moment by making difficult decisions about our core business," cofounders Rafael Ilishayev and Yakir Gola wrote in an email to employees. The latest round of layoffs come after Gopuff cut 3% of its workforce, or more than 400 workers, in March. Re/Max: 17% of its workforceAn "Open House" sign is seen outside of a house for sale.Tim Boyle/Getty ImagesReal estate firm Re/Max will lay off 17% of its workforce by the end of the year, the company announced.The cuts will primarily affect employees in the technology division, the result of a "shift in strategy" as it partners with a third-party technology vendor, Re/Max said.  Microsoft: less than 1% of employeesMicrosoft CEO Satya Nadella.Stephen Brashear/Getty ImagesMicrosoft announced in July that it was cutting a "small number" of employees across several groups, including consulting and customer and partner solutions, a company spokesperson told Bloomberg.JPMorgan: over 1,000 workersAmr Alfiky/ReutersIn June, JPMorgan confirmed that it would lay off over 1,000 employees in its home-lending department. The cuts came amid slowing demand for mortgages and refinances. "Our staffing decision this week was a result of cyclical changes in the mortgage market," a JPMorgan spokesperson said in a statement to Insider at the time. "We were able to proactively move many impacted employees to new roles within the firm and are working to help the remaining affected employees find new employment within Chase and externally."Netflix: about 500 peopleNetflix Co-CEO Reed Hastings.Getty Images LatamNetflix has seen 4 rounds of layoffs this year, totaling around 500 workers. The company laid off around 450 people this summer - with one round of layoffs affecting 150 workers in May, and another round affecting 300 in June. Before that, in April, the company laid off 25 marketing employees from its new fan site, Tudum. Most recently, Netflix downsized its animation department, announcing it would lay off 30 employees.  The company may be seeing a turnaround in its financials, though. The streaming company reported losing 200,000 subscribers in the first quarter and nearly 1 million in the second. However, in mid-October, Netflix added 2.4 million subscribers, reversing its decline. Compass: 450 employeesA house for sale marketed by the real-estate brokerage Compass.Smith Collection/Gado/Getty ImagesReal estate brokerage Compass cut about 10% of its workforce, or 450 employees, the company announced in a regulatory filing. The cuts were part of a series of new cost-cutting measures that include pausing expansion, consolidating offices, and halting mergers and acquisitions, Bloomberg reported.Carvana: about 2,500 peopleErnest Garcia III, CEO of online car dealer Carvana.Brendan McDermid/ReutersIn May, Carvana cut 12% of its staff, or about 2,500 employees, the online car dealer announced in a regulatory filing. In an email to employees, CEO Ernest Garcia III said that the company has overestimated growth amid a challenging time in the auto industry.By cutting staff, Carvana aims to find "a better balance between its sales volumes and staffing levels," the company said in the SEC filing. Carvana was founded by Garcia in 2012 as a subsidiary of his father's company, DriveTime Automotive. Carvana's service allows customers to buy cars online, which are delivered to customers' doors or picked up at a Carvana vending machine. Both father and son saw their fortunes skyrocket during the pandemic as demand for used cars hit new highs. Carvana said in its SEC filing that executives would forego their salaries for the rest of 2022 to help cover employee severance pay.Reef: about 750 peopleEmployees unload at a Reef location.Pat Greenhouse/The Boston Globe via Getty ImagesGhost-kitchens company Reef Technology laid off 5% of its global workforce in May.The SoftBank-backed startup cut about 750 employees as it worked toward profitability amid a challenging economic environment, CEO Ari Ojalvo wrote in a memo to staff obtained by Insider.The layoffs come months after Reef said it would pause operations on some of its "underperforming" locations. Current and former employees told Insider that Reef had closed one-third of its kitchens and focused on its partnerships with major chains like Wendy's and Buffalo Wild Wings.Better: about 4,000 peopleVishal Garg is the founder and CEO of Better.com. He was responsible for laying off hundreds of people right before the holidays in 2021.Better.comStarting in late 2021 and continuing through the first several months of 2022, mortgage startup Better.com laid off approximately 4,000 people.The first wave started right before the holiday season in 2021, when CEO Vishal Garg laid off "hundreds" of people.Garg told employees during a Zoom call that the company "lost $100 million last quarter," which he said, "was my mistake." He then said the layoffs shouldn't have happened right before the holiday, but, "three months ago." Better followed up with another 3,000 layoffs in March, and began accepting voluntary layoffs in some departments.Noom: 495 peopleSaeju Jeong, cofounder & CEO of Noom.Sam Barnes/Sportsfile for Web Summit via Getty ImagesIn April, the weight-loss app maker Noom laid off hundreds of coaches, Insider reported — part of a bigger-picture pivot for the company toward more video-based coaching.The company, through its app of the same name, pairs dieting with personal coaches to achieve weight loss for users. Interactions with those coaches were often through text, which users critiqued as "canned advice." Some coaches told Insider they were responsible for giving advice to hundreds of users at any given time.Going forward, Noom said it would focus on offering users scheduled video calls with coaches.Thrasio: up to 20% of staff, sources sayThrasio founder and CEO Carlos Cashman.ThrasioThrasio, the company known for creating the Amazon aggregator market, laid off an unknown number of people in May. Additionally, the company's CEO and founder, Carlos Cashman, stepped down from leadership. In a memo sent to employees, Thrasio leadership said the layoffs were due to the company's "hypergrowth" in acquiring companies."At times we have been acquiring a new company almost every week," the memo said, "and running hard to build the infrastructure to support this growth."Two sources told Insider at the time that the layoffs would impact up to 20% of Thrasio's staff.Wells Fargo: an unknown number of people in mortgage lendingREUTERS/ Shannon StapletonAs mortgage revenues fell at Wells Fargo in the first quarter of 2022, the company began laying off employees in mortgage-related positions, Insider reported in late April.Loan processors and underwriters, among other positions, were reportedly affected by the layoffs. Wells Fargo representatives declined to say how many people were impacted by the cuts, but did confirm the layoffs in an emailed statement."We are carrying out displacements in a transparent and thoughtful manner and providing assistance, such as severance and career counseling. Additionally, we are committed to retaining as many employees as possible and will do everything we can to help them identify other opportunities within Wells Fargo," a Wells Fargo spokesperson said in a statement provided to Insider at the time.Canopy Growth: 250 peopleMaster Grower Ryan Douglas smells a marijuana plant in Smiths Falls, Ontario, on February 20, 2014.Blair Gable/ReutersOne of the world's largest publicly traded cannabis companies, Canopy Growth, slashed 250 jobs in Canada earlier this year as it faces increasing competition in the burgeoning cannabis market.Layoffs were among several cost-cutting measures that Canopy Growth is taking "to ensure the size and scale of our operations reflect current market realities and will support the long-term sustainability of our company," Canopy Growth CEO David Klein said in a statement at the time.Food52: about 20 peopleCofounder and CEO of Food52, Amanda Hesser.Food52After raising $80 million from investing firm The Chernin Group last December, the content-creation team at food publication and retailer Food52 was suddenly laid off in early April.About 20 of the company's 200 employees were let go in the layoffs, which came as a major surprise to those affected."Everyone on the team and my immediate boss were gut-punched," one of these employees told Insider. "We all had gotten raises and bonuses just a month prior."Two of the employees who were laid off said Food52 executives told them the company was "pivoting to commerce," and away from the type of content that was created by the affected employees: recipes and other instructional cooking content.Cameo: 87 peopleCameo operates a service where users can pay celebrities to record personalized audio or video clips.CameoVideo app Cameo laid off 87 people in early May."Today has been a brutal day at the office," CEO Steven Galanis wrote on Twitter. "I made the painful decision to let go of 87 beloved members of the Cameo Fameo."Galanis described the layoffs as a "course correction" in a statement to Variety. The cuts followed a staffing boom during the pandemic, when the company grew from around 100 employees before 2020 to about 400 in 2022. PayPal: 83 peoplePayPal headquarters in San Jose, California, on February 2, 2022.Justin Sullivan/Getty ImagesIn April, PayPal quietly laid off 83 people, according to a regulatory filing. The company employed more than 30,000 people worldwide, over a third of whom are based in the US. The cuts appear to be tied to the company downsizing its presence in the San Francisco Bay Area, according to TechCrunch.Gorillas: 'nearly 300' peopleGorillas CEO Kagan Sumer.GorillasGerman grocery-delivery company Gorillas announced layoffs of "nearly 300" people around the world in May. The layoffs, the company said, were part of a larger "shift to long-term profitability," which meant trimming staff as Gorillas focuses on its five "core" markets: Germany, France, the Netherlands, the UK, and the US.Impacted employees, who were mostly corporate staff, were shocked by the sudden layoffs."It's not a secret that the company hasn't been doing well, but I didn't expect to wake up and lose my job," a Berlin-based employee who was laid off by Gorillas told Insider. "My managers weren't even aware or consulted. It's not the laying off that hurts, it's the way it's been done."Hello Fresh: about 600 peopleA HelloFresh meal kit in a box.HelloFreshThe Germany-based meal kit company announced it planned to close a Richmond, California, warehouse and eliminate 611 workers' roles by December 11. HelloFresh saw a spike in sales early in the pandemic as more people were forced to cook at home, but sales have faded lately. The company's stock is down more than 70% so far this year — and meal kit rival Blue Apron has seen a similar plunge in its share price. "The lease for HelloFresh's production facility in Richmond is expiring at the beginning of 2023 and after an extensive analysis of our production network, HelloFresh has decided not to extend the lease," a spokesperson said in a statement to Insider.Walmart: at least 1,700Walmart CEO Doug McMillonDrew Angerer/Getty ImagesWalmart announced layoffs in its corporate division, as well as at one of its fulfillment centers. In mid-October, the retail giant filed a Worker Adjustment and Retraining Notification, or WARN notice in Georgia, announcing its plans to let go of nearly 1,500 workers. The company said it plans to turn a fulfillment center in the Atlanta area to support third-party sellers for Walmart. Earlier this year, the Wall Street Journal reported that Walmart planned to cut around 200 corporate jobs amid a company restructuring effort. Walmart's sales growth — which exploded during the height of the pandemic — has leveled off recently. In the second quarter of 2022, Walmart's e-commerce sales grew by 12% year-over-year, compared to 97% growth in the second quarter of 2020. Oracle: at least 60, but potentially much moreLarry Ellison, the founder of Oracle.Robert Galbraith/ReutersThe scope of Oracle's layoffs this year remains murky.In July, Insider reported that Oracle's advertising division quietly had two rounds of layoffs, totaling a loss of 60 workers. In August and October, Insider reported that Oracle held two rounds of layoffs that included the company's marketing, customer experience, and cloud divisions.Insider estimates the August round of layoffs potentially affected thousands of jobs across the world. What is clear is that the number of employees laid off is higher than the company has publicly let on. In an SEC filing, Oracle said it expects to incur $519 million in restructuring costs "primarily related to employee severance" through August 2023. Nordstrom: 222 workersJeff Greenberg/Contributor/Universal Images Group Editorial via GettyIn September, Nordstrom filed a WARN notice in Iowa announcing that it planned to cut 222 employees at a distribution center in Cedar Rapids. The layoffs were set to be completed by October 18, according to the filing. Despite rising inflation, Nordstrom is still growing its bottom line. The company reported that its revenue grew by 12% year-over-year in the second quarter, and the company said it's focused on boosting e-commerce sales. Credit Suisse: 2,700 peopleUlrich Körner, chief executive of Credit Suissevia ReutersThe embattled investment bank announced in late October that it plans to "radically restructure" and cut 5% of its headcount, or 2,700 workers. The company said it plans to reduce its headcount by 9,000 workers in the next 3 years. Credit Suisse has been hit with several catastrophes in recent years, including a $5 billion blow from the collapse of Archegos Capital Management last year. VF Corp: 300 workersStreet style brand Supreme is owned by VF Corp.Edward Berthelot/Getty ImagesVF Corp, which owns various retail brands like The North Face, Vans, and Supreme, confirmed to Insider it told employees about plans to lay off 300 employees and eliminate 300 open positions in early September. VF Corp reported a 4% decline in revenue for its second quarter, attributing the slowdown to a covid-related disruption in China and broader macroeconomic headwinds. Gannett: 3% of its US workforceGannett announced widespread layoffs this year.Associated PRessGannett, the largest newspaper chain in the US, reportedly laid off 3% of its US-based workforce or about 400 employees.Poynter reported that CEO Mike Reed informed staff of the layoffs — as well as Gannett's plan to eliminate 400 open positions — at a companywide Q&A in August. Poynter reports that the layoffs started one week after the company reported weak quarterly results. The company, which owns USA Today, along with local newspapers in 46 states, reported a net loss of nearly $54 million in the second quarter. Ford: about 3,000 workersFord CEO Jim FarleyJEFF KOWALSKY / Contributor / GettyFord plans to lay off roughly 3,000 salaried and contract workers as part of a restructuring and shifting focus toward producing electric vehicles. The automaker has estimated that electric cars require 30% less labor than conventional vehicles. Ben Gilbert contributed to an earlier version of this article.Read the original article on Business Insider.....»»

Category: dealsSource: nytNov 14th, 2022

A wave of layoffs is sweeping the US. Here are the major companies that have announced cuts so far, from Meta to Redfin.

Meta is the latest company to start slashing its headcount as business growth slows and costs increase. Drew Angerer/Getty Images A wave of layoffs has swept across American business in 2022. The cuts stem from slower business growth, paired with rising labor costs. The layoffs span across industries, from mortgage lending to digital-payment processing. Meta is the latest tech firm to slash its headcount. Facebook's parent company plans to cut 13% of its workforce in sweeping layoffs across divisions, CEO Mark Zuckerberg wrote in a blog post Wednesday. It's one of countless major American businesses that have picked up the pace of firing in 2022: Peloton has laid off thousands of employees this year. Twitter slashed 50% of its workforce. Even traditionally layoff-resistant companies like Netflix have made cuts, and now companies that saw a pandemic-era boom, like Shopify, are cutting hundreds of jobs.The reason, broadly, is twofold: business growth is slowing, while labor costs are increasing. The combination is causing American companies across a variety of industries to slash headcount.Here are some of the most notable examples so far: Juul: About 400 peopleAssociated PressE-cigarette company Juul plans to lay off about a third of its workforce, or roughly 400 people. The cuts come amid broader cost-saving measures for Juul, including a fresh infusion of cash to help it avoid filing for bankruptcy. The company also plans to reduce its operating budget by as much as 40%, the Wall Street Journal reported. Coinbase: About 60 peopleCoinbase CEO Brian Armstrong.Patrick T. Fallon / Getty ImagesCrypto exchange platform Coinbase will cut another 60 jobs, The Information reported. The cuts come after Coinbase previously reduced its staff by 18% "to ensure we stay healthy during this economic downturn." That same day, over 1,000 employees were notified they'd been laid off when they were unable to log into their work email accounts — the company said in a regulatory filing at the time that its workforce would be reduced to about 5,000 employees by the end of the second quarter of 2022.Redfin: 13% of its staffRedfin CEO Glenn KelmanRedfinReal-estate firm Redfin plans to lay off 862 employees, or about 13% of its workforce. The company plans to shut down its home-flipping business, RedfinNow, which will result in 264 staffers getting cut, the company said in a financial filing.Another 218 employees' roles will be eliminated, but the workers are being offered a new job within the company, Redfin said. This is the second round of layoffs for Redfin this year. The company cut 6% of its workforce in June, or about 470 employees. Meta: More than 11,000 employeesMark Zuckerberg.Stephen Lam/ReutersMeta plans to cut more than 11,000 employees, or about 13% of its workforce. "I want to take accountability for these decisions and for how we got here," CEO Mark Zuckerberg wrote in a blog post. "I know this is tough for everyone, and I'm especially sorry to those impacted."The company plans to reduce headcount across divisions — including its metaverse division, Reality Labs — but said that some teams, like recruiting, would be more impacted than others. Salesforce: As many as 2,500 employeesSalesforce founder Marc Benioff.NICHOLAS KAMM/AFP via Getty ImagesSalesforce plans to cut thousands of jobs ahead of Thanksgiving, Protocol reported.It's unclear when the layoffs will begin or which divisions will be impacted, though as many as 2,500 workers could be impacted, according to Protocol. Twitter: About 50% of its workforceTwitter Losing Its Most Active Users(Photo by STR/NurPhoto via Getty Images)An estimated 3,700 Twitter employees, or about 50% of the company's workforce, woke up to emails saying that they had been laid off on Nov. 4, shortly after new owner Elon Musk took over the social platform. Terminated employees were notified in blunt emails that Twitter was "conducting a workforce reduction to help improve the health of the company" and offered severance.Though staffers had been previously warned about a pending "workforce reduction," several employees were immediately locked out of their laptops and company systems before they were notified they were terminated, Insider reported. Musk tweeted after the mass layoffs that he had "no choice when the company is losing over $4M/day." Gap: About 500 jobsPeople pass by the Gap clothing retail store in Manhattan.Reuters/Eduardo MunozGap will cut 5% of its corporate workforce, or about 500 employees, The Wall Street Journal reported. "We've let our operating costs increase at a faster rate than our sales, and in turn our profitability," Gap's interim CEO, Bob Martin, wrote in a memo to employees obtained by The Journal. The layoffs will reportedly impact employees in a wide range of departments and will mainly take place at Gap's offices in San Francisco, New York, and Asia.Snap: 20% of employeesRichard Drew/APSnap planned to lay off about 20% of its employees beginning in late August, The Verge reported.The cuts to Snap's 6,400-person workforce will be concentrated in divisions like Zenly, a social mapping app Snap acquired in 2017, as well as a team working on ways for developers to build apps inside Snapchat. Snap's hardware division will also see cuts, weeks after the company announced it was canceling its Pixy drone camera, The Verge reports. A spokesperson for Snap declined to comment.Wayfair: About 870 employeesPavlo Gonchar/SOPA Images/LightRocket via Getty ImagesFurniture and home goods company, Wayfair, said it would layoff about 870 employees — 5% of its global workforce — the Wall Street Journal reported. The layoffs represent about 10% of Wayfair's corporate team, the company said, and will cost between $30 million and $40 million for severance and benefits for laid-off employees.The layoffs are part of Wayfair's efforts to manage expenses and investments, it said. The company said it's also making cuts to third-party labor costs.After the company announced the layoffs, Wayfair shares fell almost 10% in premarket trading, the WSJ reported.Robinhood: More than 1,000 people in 2022Robinhood CEO Vlad Tenev.AP/David MartinDuring the pandemic, so-called "meme stocks" from GameStop and AMC exploded. Much of that explosion in stock value was driven by accessible trading platforms like Robinhood.And while new users piled in during the pandemic, Robinhood hired rapidly. Between 2020 and 2021, Robinhood staff grew dramatically: from 700 people to around 3,800, according to CEO Vlad Tenev. But that growth was apparently too much and too fast, and Robinhood was forced to slash headcount by 9% — more than 300 people altogether — in April. Then, in August, the company announced it would cut another 800 jobs, or about 23% of its staff.In the message to employees, CEO Vlad Tenev said that the earlier round of layoffs "did not go far enough" to bring down costs amid record inflation and the crypto market crash, which has reduced trading activity on the platform, he said. Peloton: Over 4,600 peopleScott Heins/Getty ImagesIn early October, Peloton announced its fourth set of layoffs, bringing the total loss in headcount at the company to more than 4,600 this year. CEO Barry McCarthy called it "the final phase of the company's transformation journey." In February, Peloton fired over 2,800 people and announced its former CEO, John Foley, would depart amid an ongoing downturn in the company's business.Its second round of layoffs hit Taiwan-based employees in July, and a third wave of employees got cut in August.Peloton was once a pandemic darling, but the fading popularity of at-home fitness and mishandling of its logistics operation has put a strain on the business. The company's current chief exec Barry McCarthy has taken several measures in an attempt to revive the business. Shopify: About 1,000 workersShopify CEO Tobi Lutke.Reuters/Lucas JacksonShopify laid off roughly 1,000 employees, equivalent to 10% of its workforce worldwide.In a memo to employees, CEO Tobi Lutke said that the company — which makes the tech that powers businesses' online stores — had bet big on the pandemic-era e-commerce boom. "It's now clear that bet didn't pay off. Ultimately, placing this bet was my call to make and I got this wrong," Lutke wrote in the letter, which was posted on the company's website. 7-Eleven: 880 jobsPaul Sakuma/APConvenience store chain 7-Eleven cut 880 corporate jobs in Ohio and Texas in 2022 in the wake of the company's 2020 purchase of rival Speedway.A 7-Eleven spokesperson told Insider that the company has been assessing its new corporate structure and undergoing an "integration process" that led to the cuts, which took place at its support centers and field-support operations in Irving, Texas, and Enon, Ohio. Vimeo: 6% of its workforceAnjali Sud, CEO of Vimeo.AP Photo/Mark LennihanVideo-hosting platform Vimeo cut 6% of its staff in July."We are making this decision in order to ensure we come out of this economic downturn a stronger company," Vimeo CEO Anijali Sud wrote in a blog post. "Our people are what makes Vimeo great, and losing any of them is a personal failure that I feel deeply. But after assessing the challenging market conditions and uncertainty ahead, I believe this is the responsible action to take."Tesla: More than 200 employeesTesla CEO Elon Musk.Yasin Ozturk/Getty ImagesTesla laid off 229 people in late June, according to WARN filings. The layoffs primarily impacted employees in its Autopilot division. Tesla also closed an entire office in San Mateo, California, and moved some of the office's workers to another location, Bloomberg reported.In an interview in June, Elon Musk said he planned to cut between 3% and 3.5% of Tesla's workforce, including 10% of salaried staff. Insider reported that some ex-employees confirmed they had been laid off, though the total number is not known.  Rivian: Around 6% of its workforceRivian CEO RJ Scaringe and a Rivian truck.Kevin Dietsch/Getty ImagesElectric car-maker Rivian confirmed in July that it would cut around 800 employees, or about 6% of its 14,000-person workforce, as it worked to cut costs. The layoffs came less than a year after Rivian went public in the largest IPO of 2021.Gopuff: 10% of its staffA delivery driver is shown picking up a Gopuff bagHannah YoonDelivery startup Gopuff laid off 10% of its staff, Insider reported in July."As a business, during these uncertain times, we owe it to our investors and customers to accelerate our timeline to profitability. As such, we have decided to confront the current moment by making difficult decisions about our core business," cofounders Rafael Ilishayev and Yakir Gola wrote in an email to employees. The latest round of layoffs come after Gopuff cut 3% of its workforce, or more than 400 workers, in March. Re/Max: 17% of its workforceAn "Open House" sign is seen outside of a house for sale.Tim Boyle/Getty ImagesReal estate firm Re/Max will lay off 17% of its workforce by the end of the year, the company announced.The cuts will primarily affect employees in the technology division, the result of a "shift in strategy" as it partners with a third-party technology vendor, Re/Max said.  Microsoft: Less than 1% of employeesMicrosoft CEO Satya Nadella.Stephen Brashear/Getty ImagesMicrosoft announced in July that it was cutting a "small number" of employees across several groups, including consulting and customer and partner solutions, a company spokesperson told Bloomberg.JPMorgan: Over 1,000 workersAmr Alfiky/ReutersIn June, JPMorgan confirmed that it would lay off over 1,000 employees in its home-lending department. The cuts came amid slowing demand for mortgages and refinances. "Our staffing decision this week was a result of cyclical changes in the mortgage market," a JPMorgan spokesperson said in a statement to Insider at the time. "We were able to proactively move many impacted employees to new roles within the firm and are working to help the remaining affected employees find new employment within Chase and externally."Netflix: About 500 peopleNetflix Co-CEO Reed Hastings.Getty Images LatamNetflix has seen 4 rounds of layoffs this year, totaling around 500 workers. The company laid off around 450 people this summer - with one round of layoffs affecting 150 workers in May, and another round affecting 300 in June. Before that, in April, the company laid off 25 marketing employees from its new fan site, Tudum. Most recently, Netflix downsized its animation department, announcing it would lay off 30 employees.  The company may be seeing a turnaround in its financials, though. The streaming company reported losing 200,000 subscribers in the first quarter and nearly 1 million in the second. However, in mid-October, Netflix added 2.4 million subscribers, reversing its decline. Compass: 450 employeesA house for sale marketed by the real-estate brokerage Compass.Smith Collection/Gado/Getty ImagesReal estate brokerage Compass cut about 10% of its workforce, or 450 employees, the company announced in a regulatory filing. The cuts were part of a series of new cost-cutting measures that include pausing expansion, consolidating offices, and halting mergers and acquisitions, Bloomberg reported.Carvana: About 2,500 peopleErnest Garcia III, CEO of online car dealer Carvana.Brendan McDermid/ReutersIn May, Carvana cut 12% of its staff, or about 2,500 employees, the online car dealer announced in a regulatory filing. In an email to employees, CEO Ernest Garcia III said that the company has overestimated growth amid a challenging time in the auto industry.By cutting staff, Carvana aims to find "a better balance between its sales volumes and staffing levels," the company said in the SEC filing. Carvana was founded by Garcia in 2012 as a subsidiary of his father's company, DriveTime Automotive. Carvana's service allows customers to buy cars online, which are delivered to customers' doors or picked up at a Carvana vending machine. Both father and son saw their fortunes skyrocket during the pandemic as demand for used cars hit new highs. Carvana said in its SEC filing that executives would forego their salaries for the rest of 2022 to help cover employee severance pay.Reef: About 750 peopleEmployees unload at a Reef location.Pat Greenhouse/The Boston Globe via Getty ImagesGhost-kitchens company Reef Technology laid off 5% of its global workforce in May.The SoftBank-backed startup cut about 750 employees as it worked toward profitability amid a challenging economic environment, CEO Ari Ojalvo wrote in a memo to staff obtained by Insider.The layoffs come months after Reef said it would pause operations on some of its "underperforming" locations. Current and former employees told Insider that Reef had closed one-third of its kitchens and focused on its partnerships with major chains like Wendy's and Buffalo Wild Wings.Better: About 4,000 peopleVishal Garg is the founder and CEO of Better.com. He was responsible for laying off hundreds of people right before the holidays in 2021.Better.comStarting in late 2021 and continuing through the first several months of 2022, mortgage startup Better.com laid off approximately 4,000 people.The first wave started right before the holiday season in 2021, when CEO Vishal Garg laid off "hundreds" of people.Garg told employees during a Zoom call that the company "lost $100 million last quarter," which he said, "was my mistake." He then said the layoffs shouldn't have happened right before the holiday, but, "three months ago." Better followed up with another 3,000 layoffs in March, and began accepting voluntary layoffs in some departments.Noom: 495 peopleSaeju Jeong, cofounder & CEO of Noom.Sam Barnes/Sportsfile for Web Summit via Getty ImagesIn April, the weight-loss app maker Noom laid off hundreds of coaches, Insider reported — part of a bigger-picture pivot for the company toward more video-based coaching.The company, through its app of the same name, pairs dieting with personal coaches to achieve weight loss for users. Interactions with those coaches were often through text, which users critiqued as "canned advice." Some coaches told Insider they were responsible for giving advice to hundreds of users at any given time.Going forward, Noom said it would focus on offering users scheduled video calls with coaches.Thrasio: Up to 20% of staff, sources sayThrasio founder and CEO Carlos Cashman.ThrasioThrasio, the company known for creating the Amazon aggregator market, laid off an unknown number of people in May. Additionally, the company's CEO and founder, Carlos Cashman, stepped down from leadership. In a memo sent to employees, Thrasio leadership said the layoffs were due to the company's "hypergrowth" in acquiring companies."At times we have been acquiring a new company almost every week," the memo said, "and running hard to build the infrastructure to support this growth."Two sources told Insider at the time that the layoffs would impact up to 20% of Thrasio's staff.Wells Fargo: Unknown number of people in mortgage lendingREUTERS/ Shannon StapletonAs mortgage revenues fell at Wells Fargo in the first quarter of 2022, the company began laying off employees in mortgage-related positions, Insider reported in late April.Loan processors and underwriters, among other positions, were reportedly affected by the layoffs. Wells Fargo representatives declined to say how many people were impacted by the cuts, but did confirm the layoffs in an emailed statement."We are carrying out displacements in a transparent and thoughtful manner and providing assistance, such as severance and career counseling. Additionally, we are committed to retaining as many employees as possible and will do everything we can to help them identify other opportunities within Wells Fargo," a Wells Fargo spokesperson said in a statement provided to Insider at the time.Canopy Growth: 250 peopleMaster Grower Ryan Douglas smells a marijuana plant in Smiths Falls, Ontario, on February 20, 2014.Blair Gable/ReutersOne of the world's largest publicly traded cannabis companies, Canopy Growth, slashed 250 jobs in Canada earlier this year as it faces increasing competition in the burgeoning cannabis market.Layoffs were among several cost-cutting measures that Canopy Growth is taking "to ensure the size and scale of our operations reflect current market realities and will support the long-term sustainability of our company," Canopy Growth CEO David Klein said in a statement at the time.Food52: About 20 peopleCofounder and CEO of Food52, Amanda Hesser.Food52After raising $80 million from investing firm The Chernin Group last December, the content-creation team at food publication and retailer Food52 was suddenly laid off in early April.About 20 of the company's 200 employees were let go in the layoffs, which came as a major surprise to those affected."Everyone on the team and my immediate boss were gut-punched," one of these employees told Insider. "We all had gotten raises and bonuses just a month prior."Two of the employees who were laid off said Food52 executives told them the company was "pivoting to commerce," and away from the type of content that was created by the affected employees: recipes and other instructional cooking content.Cameo: 87 peopleCameo operates a service where users can pay celebrities to record personalized audio or video clips.CameoVideo app Cameo laid off 87 people in early May."Today has been a brutal day at the office," CEO Steven Galanis wrote on Twitter. "I made the painful decision to let go of 87 beloved members of the Cameo Fameo."Galanis described the layoffs as a "course correction" in a statement to Variety. The cuts followed a staffing boom during the pandemic, when the company grew from around 100 employees before 2020 to about 400 in 2022. PayPal: 83 peoplePayPal headquarters in San Jose, California, on February 2, 2022.Justin Sullivan/Getty ImagesIn April, PayPal quietly laid off 83 people, according to a regulatory filing. The company employed more than 30,000 people worldwide, over a third of whom are based in the US. The cuts appear to be tied to the company downsizing its presence in the San Francisco Bay Area, according to TechCrunch.Gorillas: 'Nearly 300' peopleGorillas CEO Kagan Sumer.GorillasGerman grocery-delivery company Gorillas announced layoffs of "nearly 300" people around the world in May. The layoffs, the company said, were part of a larger "shift to long-term profitability," which meant trimming staff as Gorillas focuses on its five "core" markets: Germany, France, the Netherlands, the UK, and the US.Impacted employees, who were mostly corporate staff, were shocked by the sudden layoffs."It's not a secret that the company hasn't been doing well, but I didn't expect to wake up and lose my job," a Berlin-based employee who was laid off by Gorillas told Insider. "My managers weren't even aware or consulted. It's not the laying off that hurts, it's the way it's been done."Hello Fresh: about 600 peopleA HelloFresh meal kit in a box.HelloFreshThe Germany-based meal kit company announced it planned to close a Richmond, California, warehouse and eliminate 611 workers' roles by December 11. HelloFresh saw a spike in sales early in the pandemic as more people were forced to cook at home, but sales have faded lately. The company's stock is down more than 70% so far this year — and meal kit rival Blue Apron has seen a similar plunge in its share price. "The lease for HelloFresh's production facility in Richmond is expiring at the beginning of 2023 and after an extensive analysis of our production network, HelloFresh has decided not to extend the lease," a spokesperson said in a statement to Insider.Walmart: at least 1,700Walmart CEO Doug McMillonDrew Angerer/Getty ImagesWalmart announced layoffs in its corporate division, as well as at one of its fulfillment centers. In mid-October, the retail giant filed a Worker Adjustment and Retraining Notification, or WARN notice in Georgia, announcing its plans to let go of nearly 1,500 workers. The company said it plans to turn a fulfillment center in the Atlanta area to support third-party sellers for Walmart. Earlier this year, the Wall Street Journal reported that Walmart planned to cut around 200 corporate jobs amid a company restructuring effort. Walmart's sales growth — which exploded during the height of the pandemic — has leveled off recently. In the second quarter of 2022, Walmart's e-commerce sales grew by 12% year-over-year, compared to 97% growth in the second quarter of 2020. Oracle: at least 60, but potentially much moreLarry Ellison, the founder of Oracle.Robert Galbraith/ReutersThe scope of Oracle's layoffs this year remains murky.In July, Insider reported that Oracle's advertising division quietly had two rounds of layoffs, totaling a loss of 60 workers. In August and October, Insider reported that Oracle held two rounds of layoffs that included the company's marketing, customer experience, and cloud divisions.Insider estimates the August round of layoffs potentially affected thousands of jobs across the world. What is clear is that the number of employees laid off is higher than the company has publicly let on. In an SEC filing, Oracle said it expects to incur $519 million in restructuring costs "primarily related to employee severance" through August 2023. Nordstrom: 222Jeff Greenberg/Contributor/Universal Images Group Editorial via GettyIn September, Nordstrom filed a WARN notice in Iowa announcing that it planned to cut 222 employees at a distribution center in Cedar Rapids. The layoffs were set to be completed by October 18, according to the filing. Despite rising inflation, Nordstrom is still growing its bottom line. The company reported that its revenue grew by 12% year-over-year in the second quarter, and the company said it's focused on boosting e-commerce sales. Amazon: at least 560, likely moreAmazon CEO Andy JassyJerod Harris/Getty Images for Vox MediaAmazon abandoned multiple projects this year in an effort to cut costs, which led to at least 560 layoffs.In April, the company shuttered physical-store concepts like Amazon 4-star, Amazon Books, and some pop-up stores. The company said it laid off 51 employees in New York due to those store closures. This summer, Amazon filed a WARN notice in Maryland that it would lay off 353 workers from two Amazon warehouses, effective October 25. In September, Amazon announced it shut down its telehealth unit and lay off 159 employees.Amazon also ditched several robotics ventures, blue-sky research initiatives, and an online educational business this year. For some of those projects, Amazon gave workers a choice to leave with a severance package or find another position within the company. It's unclear how many of those workers were laid off. Amazon shaved its headcount by 99,000 people in the second quarter, and the e-commerce giant is clearly taking steps to shrink its workforce, though Insider cannot confirm that headcount shrunk solely due to layoffs. Credit Suisse: 2,700 peopleUlrich Körner, chief executive of Credit Suissevia ReutersThe embattled investment bank announced in late October that it plans to "radically restructure" and cut 5% of its headcount, or 2,700 workers. The company said it plans to reduce its headcount by 9,000 workers in the next 3 years. Credit Suisse has been hit with several catastrophes in recent years, including a $5 billion blow from the collapse of Archegos Capital Management last year. VF Corp: 300 workersStreet style brand Supreme is owned by VF Corp.Edward Berthelot/Getty ImagesVF Corp, which owns various retail brands like The North Face, Vans, and Supreme, confirmed to Insider it told employees about plans to lay off 300 employees and eliminate 300 open positions in early September. VF Corp reported a 4% decline in revenue for its second quarter, attributing the slowdown to a covid-related disruption in China and broader macroeconomic headwinds. Gannett: 3% of its US workforceGannett announced widespread layoffs this year.Associated PRessGannett, the largest newspaper chain in the US, reportedly laid off 3% of its US-based workforce or about 400 employees.Poynter reported that CEO Mike Reed informed staff of the layoffs — as well as Gannett's plan to eliminate 400 open positions — at a companywide Q&A in August. Poynter reports that the layoffs started one week after the company reported weak quarterly results. The company, which owns USA Today, along with local newspapers in 46 states, reported a net loss of nearly $54 million in the second quarter. Ford: about 3,000 workersFord CEO Jim FarleyJEFF KOWALSKY / Contributor / GettyFord plans to lay off roughly 3,000 salaried and contract workers as part of a restructuring and shifting focus toward producing electric vehicles. The automaker has estimated that electric cars require 30% less labor than conventional vehicles. Ben Gilbert contributed to an earlier version of this article.Read the original article on Business Insider.....»»

Category: worldSource: nytNov 11th, 2022

A wave of layoffs is sweeping the US. Here are the major companies that have announced cuts so far, from Twitter to Peloton.

Elon Musk has reportedly ordered layoffs at Twitter. The move comes amid rising firings across industries as business growth slows and costs increase. Chesnot/Getty Images A wave of layoffs has swept across American business in 2022. The cuts stem from slower business growth, paired with rising labor costs. The layoffs span across industries, from mortgage lending to digital-payment processing. Twitter is the latest high-profile company to get hit with layoffs this year after its new owner, Elon Musk, reportedly ordered a 25% headcount reduction. Major American businesses have picked up the pace of firing in 2022.Peloton has laid off thousands of employees this year. Real estate firm Re/Max slashed 17% of its workforce. Even traditionally layoff-resistant companies like Netflix have made cuts, and now companies that saw a pandemic-era boom, like Shopify, are cutting hundreds of jobs.The reason, broadly, is twofold: business growth is slowing, while labor costs are increasing. The combination is causing American companies across a variety of industries to slash headcount.Here are some of the most notable examples so far: Gap: About 500 jobsPeople pass by the Gap clothing retail store in Manhattan.Reuters/Eduardo MunozGap will cut 5% of its corporate workforce, or about 500 employees, The Wall Street Journal reported. "We've let our operating costs increase at a faster rate than our sales, and in turn our profitability," Gap's interim CEO, Bob Martin, wrote in a memo to employees obtained by The Journal. The layoffs will reportedly impact employees in a wide range of departments and will mainly take place at Gap's offices in San Francisco, New York, and Asia.Snap: 20% of employeesRichard Drew/APSnap planned to lay off about 20% of its employees beginning in late August, The Verge reported.The cuts to Snap's 6,400-person workforce will be concentrated in divisions like Zenly, a social mapping app Snap acquired in 2017, as well as a team working on ways for developers to build apps inside Snapchat. Snap's hardware division will also see cuts, weeks after the company announced it was canceling its Pixy drone camera, The Verge reports. A spokesperson for Snap declined to comment.Wayfair: About 870 employeesPavlo Gonchar/SOPA Images/LightRocket via Getty ImagesFurniture and home goods company, Wayfair, said it would layoff about 870 employees — 5% of its global workforce — the Wall Street Journal reported. The layoffs represent about 10% of Wayfair's corporate team, the company said, and will cost between $30 million and $40 million for severance and benefits for laid-off employees.The layoffs are part of Wayfair's efforts to manage expenses and investments, it said. The company said it's also making cuts to third-party labor costs.After the company announced the layoffs, Wayfair shares fell almost 10% in premarket trading, the WSJ reported.Robinhood: More than 1,000 people in 2022Robinhood CEO Vlad Tenev.AP/David MartinDuring the pandemic, so-called "meme stocks" from GameStop and AMC exploded. Much of that explosion in stock value was driven by accessible trading platforms like Robinhood.And while new users piled in during the pandemic, Robinhood hired rapidly. Between 2020 and 2021, Robinhood staff grew dramatically: from 700 people to around 3,800, according to CEO Vlad Tenev. But that growth was apparently too much and too fast, and Robinhood was forced to slash headcount by 9% — more than 300 people altogether — in April. Then, in August, the company announced it would cut another 800 jobs, or about 23% of its staff.In the message to employees, CEO Vlad Tenev said that the earlier round of layoffs "did not go far enough" to bring down costs amid record inflation and the crypto market crash, which has reduced trading activity on the platform, he said. Peloton: Over 4,600 peopleScott Heins/Getty ImagesIn early October, Peloton announced its fourth set of layoffs, bringing the total loss in headcount at the company to more than 4,600 this year. CEO Barry McCarthy called it "the final phase of the company's transformation journey." In February, Peloton fired over 2,800 people and announced its former CEO, John Foley, would depart amid an ongoing downturn in the company's business.Its second round of layoffs hit Taiwan-based employees in July, and a third wave of employees got cut in August.Peloton was once a pandemic darling, but the fading popularity of at-home fitness and mishandling of its logistics operation has put a strain on the business. The company's current chief exec Barry McCarthy has taken several measures in an attempt to revive the business. Shopify: About 1,000 workersShopify CEO Tobi Lutke.Reuters/Lucas JacksonShopify laid off roughly 1,000 employees, equivalent to 10% of its workforce worldwide.In a memo to employees, CEO Tobi Lutke said that the company — which makes the tech that powers businesses' online stores — had bet big on the pandemic-era e-commerce boom. "It's now clear that bet didn't pay off. Ultimately, placing this bet was my call to make and I got this wrong," Lutke wrote in the letter, which was posted on the company's website. 7-Eleven: 880 jobsPaul Sakuma/APConvenience store chain 7-Eleven cut 880 corporate jobs in Ohio and Texas in 2022 in the wake of the company's 2020 purchase of rival Speedway.A 7-Eleven spokesperson told Insider that the company has been assessing its new corporate structure and undergoing an "integration process" that led to the cuts, which took place at its support centers and field-support operations in Irving, Texas, and Enon, Ohio. Vimeo: 6% of its workforceAnjali Sud, CEO of Vimeo.AP Photo/Mark LennihanVideo-hosting platform Vimeo cut 6% of its staff in July."We are making this decision in order to ensure we come out of this economic downturn a stronger company," Vimeo CEO Anijali Sud wrote in a blog post. "Our people are what makes Vimeo great, and losing any of them is a personal failure that I feel deeply. But after assessing the challenging market conditions and uncertainty ahead, I believe this is the responsible action to take."Tesla: more than 200 employeesTesla CEO Elon Musk.Yasin Ozturk/Getty ImagesTesla laid off 229 people in late June, according to WARN filings. The layoffs primarily impacted employees in its Autopilot division. Tesla also closed an entire office in San Mateo, California, and moved some of the office's workers to another location, Bloomberg reported.In an interview in June, Elon Musk said he planned to cut between 3% and 3.5% of Tesla's workforce, including 10% of salaried staff. Insider reported that some ex-employees confirmed they had been laid off, though the total number is not known.  Rivian: Around 6% of its workforceRivian CEO RJ Scaringe and a Rivian truck.Kevin Dietsch/Getty ImagesElectric car-maker Rivian confirmed in July that it would cut around 800 employees, or about 6% of its 14,000-person workforce, as it worked to cut costs. The layoffs came less than a year after Rivian went public in the largest IPO of 2021.Gopuff: 10% of its staffA delivery driver is shown picking up a Gopuff bagHannah YoonDelivery startup Gopuff laid off 10% of its staff, Insider reported in July."As a business, during these uncertain times, we owe it to our investors and customers to accelerate our timeline to profitability. As such, we have decided to confront the current moment by making difficult decisions about our core business," cofounders Rafael Ilishayev and Yakir Gola wrote in an email to employees. The latest round of layoffs come after Gopuff cut 3% of its workforce, or more than 400 workers, in March. Re/Max: 17% of its workforceAn "Open House" sign is seen outside of a house for sale.Tim Boyle/Getty ImagesReal estate firm Re/Max will lay off 17% of its workforce by the end of the year, the company announced.The cuts will primarily affect employees in the technology division, the result of a "shift in strategy" as it partners with a third-party technology vendor, Re/Max said.  Microsoft: Less than 1% of employeesMicrosoft CEO Satya Nadella.Stephen Brashear/Getty ImagesMicrosoft announced in July that it was cutting a "small number" of employees across several groups, including consulting and customer and partner solutions, a company spokesperson told Bloomberg.JPMorgan: Over 1,000 workersAmr Alfiky/ReutersIn June, JPMorgan confirmed that it would lay off over 1,000 employees in its home-lending department. The cuts came amid slowing demand for mortgages and refinances. "Our staffing decision this week was a result of cyclical changes in the mortgage market," a JPMorgan spokesperson said in a statement to Insider at the time. "We were able to proactively move many impacted employees to new roles within the firm and are working to help the remaining affected employees find new employment within Chase and externally."Netflix: About 500 peopleNetflix Co-CEO Reed Hastings.Getty Images LatamNetflix has seen 4 rounds of layoffs this year, totaling around 500 workers. The company laid off around 450 people this summer - with one round of layoffs affecting 150 workers in May, and another round affecting 300 in June. Before that, in April, the company laid off 25 marketing employees from its new fan site, Tudum. Most recently, Netflix downsized its animation department, announcing it would lay off 30 employees.  The company may be seeing a turnaround in its financials, though. The streaming company reported losing 200,000 subscribers in the first quarter and nearly 1 million in the second. However, in mid-October, Netflix added 2.4 million subscribers, reversing its decline. Compass: 450 employeesA house for sale marketed by the real-estate brokerage Compass.Smith Collection/Gado/Getty ImagesReal estate brokerage Compass cut about 10% of its workforce, or 450 employees, the company announced in a regulatory filing. The cuts were part of a series of new cost-cutting measures that include pausing expansion, consolidating offices, and halting mergers and acquisitions, Bloomberg reported.Redfin: About 6% of total employeesRedfin CEO Glenn Kelman.RedfinReal estate brokerage Redfin conducted layoffs in June, a sign that the hot pandemic-era housing market had begung cooling off due to rising interest rates.CEO Glenn Kelman wrote in a blog post that about 6% of the company's total workforce would be cut, which equates to 470 employees, according to a regulatory filing. "I said we wouldn't lay people off unless we had to. We have to," Kelman wrote. "Mortgage rates increased faster than at any point in history. We could be facing years, not months, of fewer home sales, and Redfin still plans to thrive."Coinbase: About 18% of its workforceCoinbase CEO Brian Armstrong.Patrick T. Fallon / Getty ImagesCrypto exchange platform Coinbase announced it would reduce its staff by 18% "to ensure we stay healthy during this economic downturn." That same day, over 1,000 employees were notified they'd been laid off when they were unable to log into their work email accounts — the company said in a regulatory filing that its workforce will be reduced to about 5,000 employees by the end of the second quarter of 2022.The layoffs come amid a crypto crash that has resulted in traders losing roughly $2 trillion since November, NBC News reported.Coinbase CEO Brian Armstrong wrote in a blog post that the layoffs are the result of the company growing too quickly, changing economic conditions, and the need to keep costs low during a downturn. Carvana: About 2,500 peopleErnest Garcia III, CEO of online car dealer Carvana.Brendan McDermid/ReutersIn May, Carvana cut 12% of its staff, or about 2,500 employees, the online car dealer announced in a regulatory filing. In an email to employees, CEO Ernest Garcia III said that the company has overestimated growth amid a challenging time in the auto industry.By cutting staff, Carvana aims to find "a better balance between its sales volumes and staffing levels," the company said in the SEC filing. Carvana was founded by Garcia in 2012 as a subsidiary of his father's company, DriveTime Automotive. Carvana's service allows customers buy cars online, which are delivered to customers' doors or picked up at a Carvana vending machine. Both father and son saw their fortunes skyrocket during the pandemic as demand for used cars hit new highs. Carvana said in its SEC filing that executives would forego their salaries for the rest of 2022 to help cover employee severance pay.Reef: About 750 peopleEmployees unload at a Reef location.Pat Greenhouse/The Boston Globe via Getty ImagesGhost-kitchens company Reef Technology laid off 5% of its global workforce in May.The SoftBank-backed startup cut about 750 employees as it worked toward profitability amid a challenging economic environment, CEO Ari Ojalvo wrote in a memo to staff obtained by Insider.The layoffs come months after Reef said it would pause operations on some of its "underperforming" locations. Current and former employees told Insider that Reef had closed one-third of its kitchens and focused on its partnerships with major chains like Wendy's and Buffalo Wild Wings.Better: About 4,000 peopleVishal Garg is the founder and CEO of Better.com. He was responsible for laying off hundreds of people right before the holidays in 2021.Better.comStarting in late 2021 and continuing through the first several months of 2022, mortgage startup Better.com laid off approximately 4,000 people.The first wave started right before the holiday season in 2021, when CEO Vishal Garg laid off "hundreds" of people.Garg told employees during a Zoom call that the company, "lost $100 million last quarter," which he said, "was my mistake." He then said the layoffs shouldn't have happened right before the holiday, but, "three months ago." Better followed up with another 3,000 layoffs in March, and began accepting voluntary layoffs in some departments.Noom: 495 peopleSaeju Jeong, cofounder & CEO of Noom.Sam Barnes/Sportsfile for Web Summit via Getty ImagesIn April, the weight-loss app maker Noom laid off hundreds of coaches, Insider reported — part of a bigger-picture pivot for the company toward more video-based coaching.The company, through its app of the same name, pairs dieting with personal coaches to achieve weight loss for users. Interactions with those coaches were often through text, which users critiqued as "canned advice." Some coaches told Insider they were responsible for giving advice to hundreds of users at any given time.Going forward, Noom said it would focus on offering users scheduled video calls with coaches.Thrasio: Up to 20% of staff, sources sayThrasio founder and CEO Carlos Cashman.ThrasioThrasio, the company known for creating the Amazon aggregator market, is laid off an unknown number of people in May. Additionally, the company's CEO and founder, Carlos Cashman, stepped down from leadership. In a memo sent to employees, Thrasio leadership said the layoffs were due to the company's "hypergrowth" in acquiring companies."At times we have been acquiring a new company almost every week," the memo said, "and running hard to build the infrastructure to support this growth."Two sources told Insider at the time that the layoffs would impact up to 20% of Thrasio's staff.Wells Fargo: Unknown number of people in mortgage lendingREUTERS/ Shannon StapletonAs mortgage revenues fell at Wells Fargo in the first quarter of 2022, the company began laying off employees in mortgage-related positions, Insider reported in late April.Loan processors and underwriters, among other positions, were reportedly affected by the layoffs. Wells Fargo representatives declined to say how many people were impacted by the cuts, but did confirm the layoffs in an emailed statement."We are carrying out displacements in a transparent and thoughtful manner and providing assistance, such as severance and career counseling. Additionally, we are committed to retaining as many employees as possible and will do everything we can to help them identify other opportunities within Wells Fargo," a Wells Fargo spokesperson said in a statement provided to Insider at the time.Canopy Growth: 250 peopleMaster Grower Ryan Douglas smells a marijuana plant in Smith's Falls, Ontario, on February 20, 2014.Blair Gable/ReutersOne of the world's largest publicly traded cannabis companies, Canopy Growth, slashed 250 jobs in Canada earlier this year as it faces increasing competition in the burgeoning cannabis market.Layoffs were among several cost-cutting measures that Canopy Growth is taking "to ensure the size and scale of our operations reflect current market realities and will support the long-term sustainability of our company," Canopy Growth CEO David Klein said in a statement at the time.Food52: About 20 peopleCofounder and CEO of Food52, Amanda Hesser.Food52After raising $80 million from investing firm The Chernin Group last December, the content-creation team at food publication and retailer Food52 was suddenly laid off in early April.About 20 of the company's 200 employees were let go in the layoffs, which came as a major surprise to those affected."Everyone on the team and my immediate boss were gut-punched," one of these employees told Insider. "We all had gotten raises and bonuses just a month prior."Two of the employees who were laid off said Food52 executives told them the company was "pivoting to commerce," and away from the type of content that was created by the affected employees: recipes and other instructional cooking content.Cameo: 87 peopleCameo operates a service where users can pay celebrities to record personalized audio or video clips.CameoVideo app Cameo laid off 87 people in early May."Today has been a brutal day at the office," CEO Steven Galanis wrote on Twitter. "I made the painful decision to let go of 87 beloved members of the Cameo Fameo."Galanis described the layoffs as a "course correction" in a statement to Variety. The cuts followed a staffing boom during the pandemic, when the company grew from around 100 employees before 2020 to about 400 in 2022. PayPal: 83 peoplePayPal headquarters in San Jose, California, on February 2, 2022.Justin Sullivan/Getty ImagesIn April, PayPal quietly laid off 83 people, according to a regulatory filing. The company employed more than 30,000 people worldwide, over a third of whom are based in the US. The cuts appear to be tied to the company downsizing its presence in the San Francisco Bay Area, according to TechCrunch.Gorillas: 'Nearly 300' peopleGorillas CEO Kagan Sumer.GorillasGerman grocery-delivery company Gorillas announced layoffs of "nearly 300" people around the world in May. The layoffs, the company said, were part of a larger "shift to long-term profitability," which meant trimming staff as Gorillas focuses on its five "core" markets: Germany, France, the Netherlands, the UK, and the US.Impacted employees, who were mostly corporate staff, were shocked by the sudden layoffs."It's not a secret that the company hasn't been doing well, but I didn't expect to wake up and lose my job," a Berlin-based employee who was laid off by Gorillas told Insider. "My managers weren't even aware or consulted. It's not the laying off that hurts, it's the way it's been done."Hello Fresh: about 600 peopleA HelloFresh meal kit in a box.HelloFreshThe Germany-based meal kit company announced it planned to close a Richmond, California, warehouse and eliminate 611 workers' roles by December 11. HelloFresh saw a spike in sales early in the pandemic as more people were forced to cook at home, but sales have faded lately. The company's stock is down more than 70% so far this year — and meal kit rival Blue Apron has seen a similar plunge in its share price. "The lease for HelloFresh's production facility in Richmond is expiring at the beginning of 2023 and after an extensive analysis of our production network, HelloFresh has decided not to extend the lease," a spokesperson said in a statement to Insider.Walmart: at least 1,700Walmart CEO Doug McMillonDrew Angerer/Getty ImagesWalmart announced layoffs in its corporate division, as well as at one of its fulfillment centers. In mid-October, the retail giant filed a Worker Adjustment and Retraining Notification, or WARN notice in Georgia, announcing its plans to let go of nearly 1,500 workers. The company said it plans to turn a fulfillment center in the Atlanta area to support third-party sellers for Walmart. Earlier this year, the Wall Street Journal reported that Walmart planned to cut around 200 corporate jobs amid a company restructuring effort. Walmart's sales growth — which exploded during the height of the pandemic — has leveled off recently. In the second quarter of 2022, Walmart's e-commerce sales grew by 12% year-over-year, compared to 97% growth in the second quarter of 2020. Oracle: at least 60, but potentially much moreLarry Ellison, the founder of Oracle.Robert Galbraith/ReutersThe scope of Oracle's layoffs this year remains murky.In July, Insider reported that Oracle's advertising division quietly had two rounds of layoffs, totaling a loss of 60 workers. In August and October, Insider reported that Oracle held two rounds of layoffs that included the company's marketing, customer experience, and cloud divisions.Insider estimates the August round of layoffs potentially affected thousands of jobs across the world. What is clear is that the number of employees laid off is higher than the company has publicly let on. In an SEC filing, Oracle said it expects to incur $519 million in restructuring costs "primarily related to employee severance" through August 2023. Nordstrom: 222Jeff Greenberg/Contributor/Universal Images Group Editorial via GettyIn September, Nordstrom filed a WARN notice in Iowa announcing that it planned to cut 222 employees at a distribution center in Cedar Rapids. The layoffs were set to be completed by October 18, according to the filing. Despite rising inflation, Nordstrom is still growing its bottom line. The company reported that its revenue grew by 12% year-over-year in the second quarter, and the company said it's focused on boosting e-commerce sales. Amazon: at least 560, likely moreAmazon CEO Andy JassyJerod Harris/Getty Images for Vox MediaAmazon abandoned multiple projects this year in an effort to cut costs, which led to at least 560 layoffs.In April, the company shuttered physical-store concepts like Amazon 4-star, Amazon Books, and some pop-up stores. The company said it laid off 51 employees in New York due to those store closures. This summer, Amazon filed a WARN notice in Maryland that it would lay off 353 workers from two Amazon warehouses, effective October 25. In September, Amazon announced it shut down its telehealth unit and lay off 159 employees.Amazon also ditched several robotics ventures, blue-sky research initiatives, and an online educational business this year. For some of those projects, Amazon gave workers a choice to leave with a severance package or find another position within the company. It's unclear how many of those workers were laid off. Amazon shaved its headcount by 99,000 people in the second quarter, and the e-commerce giant is clearly taking steps to shrink its workforce, though Insider cannot confirm that headcount shrunk solely due to layoffs. Credit Suisse: 2,700 peopleUlrich Körner, chief executive of Credit Suissevia ReutersThe embattled investment bank announced in late October that it plans to "radically restructure" and cut 5% of its headcount, or 2,700 workers. The company said it plans to reduce its headcount by 9,000 workers in the next 3 years. Credit Suisse has been hit with several catastrophes in recent years, including a $5 billion blow from the collapse of Archegos Capital Management last year. VF Corp: 300 workersStreet style brand Supreme is owned by VF Corp.Edward Berthelot/Getty ImagesVF Corp, which owns various retail brands like The North Face, Vans, and Supreme, confirmed to Insider it told employees about plans to lay off 300 employees and eliminate 300 open positions in early September. VF Corp reported a 4% decline in revenue for its second quarter, attributing the slowdown to a covid-related disruption in China and broader macroeconomic headwinds. Gannett: 3% of its US workforceGannett announced widespread layoffs this year.Associated PRessGannett, the largest newspaper chain in the US, reportedly laid off 3% of its US-based workforce or about 400 employees.Poynter reported that CEO Mike Reed informed staff of the layoffs — as well as Gannett's plan to eliminate 400 open positions — at a companywide Q&A in August. Poynter reports that the layoffs started one week after the company reported weak quarterly results. The company, which owns USA Today, along with local newspapers in 46 states, reported a net loss of nearly $54 million in the second quarter. Ford: about 3,000 workersFord CEO Jim FarleyJEFF KOWALSKY / Contributor / GettyFord plans to lay off roughly 3,000 salaried and contract workers as part of a restructuring and shifting focus toward producing electric vehicles. The automaker has estimated that electric cars require 30% less labor than conventional vehicles. Ben Gilbert contributed to an earlier version of this article.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 1st, 2022

Peloton went from a pandemic-era success story worth $50 billion to laying off more than 4,000 workers. Here"s how the company"s meteoric rise turned into an equally swift fall.

Peloton was at the top of the connected-fitness food chain during the pandemic. Now, it has replaced its CEO and is laying off over 4,000 workers. John Smith/VIEWpress Peloton has laid off thousands of workers this year and its former CEO, cofounder John Foley, has cut ties with the company.  It's a stunning turnaround for a company that became a Wall Street darling during the pandemic. But increased competition and the return to gyms has hurt Peloton's business in recent months. In the height of the pandemic, Peloton was on top of the world. Its stock pushed $171 per share and its market cap hovered around $50 billion.Now, just this year the company has laid off more than 4,000 staff members, replaced its CEO, and reportedly is considering a potential sale to the likes of Amazon, Apple, or Nike. Peloton's stock has been trading well below the IPO price of $29 per share, at one point dropping as low as $8.22.It's a stunning reversal for a company once at the top of the connected-fitness food chain, and it's the result of a culmination of factors, including the fading popularity of at-home fitness and a mishandled logistics operation. Here's how Peloton got its start and became a fitness world darling, and how it crashed and burned.Peloton was founded in 2012 by a group of ex-IAC employeesPeloton's five cofounders.PelotonJohn Foley, Hisao Kushi, Tom Cortese, and Graham Stanton — four of Peloton's five cofounders — met working at media and internet company IAC. The fifth cofounder, Yony Feng, met the group through his roommate who worked at IAC. Foley has said that the vision for the company was his, but that his four cofounders "took it, ran with it, and built it while I was gone" raising money, he told Fortune last year.Prior to founding Peloton, Foley was president at Barnes & Noble, overseeing its e-commerce business. The early version of its bike was 'janky,' and it struggled to find investorsJen Van Santvoord rides her Peloton exercise bike at her home on April 7, 2020.Ezra Shaw/Getty ImagesFoley is a self-professed "boutique fitness addict," as well as an avid cyclist. But the early versions of the Peloton bike didn't look like something you'd find in a high-end fitness studio, the company's first instructor, Jenn Sherman, told Fortune last year. "They had this little tiny corner of the office that was sectioned off by black velvet curtains. There was a camera on a tripod sticking through a circle people literally cut out of the curtain. There was a janky, broken bike in there — the instructor bike was like this rusted piece of crap. It was ridiculous," she said. Still, Sherman signed on. Meanwhile, Foley was on the road for the first three years, pitching what he told Insider in 2018 was as many as 400 investors. "I got 400 'nos,'" he said at the time. "The worst part is that we're not talking about 400 individual pitches. A lot of people would want me to come back four or five times and have me meet more partners and pitch again. I would say that I've been turned down maybe five or six thousand times."Still, the company scraped together funding from more than 200 angel investors and put its first bike on Kickstarter in 2013 for an "early bird" price of $1,500.Peloton quickly developed a cult followingInstructor Hannah Corbin teaching a live class at Peloton's Manhattan studio.PelotonPeloton began shipping bikes in 2014, with Foley and the other cofounders showing off how they worked at pop-up stores inside shopping centers.But it didn't take long for the company to develop a cult following, thanks in large part to its roster of high-wattage instructors. When the company opened its own studio in New York City, owners of the company's $2,000 bike would make a pilgrimage to Manhattan in order to take a live class with their favorite instructor. Eventually, big-name investors came calling. "I would say that it took about five years for the really smart money to start getting involved," Foley told Insider in 2018. "When Mary Meeker is calling you to say, 'Hey, I want to invest' — that's pretty cool."That year, Peloton raised $550 million in venture capital funding at a valuation of $4.1 billion, according to Pitchbook. Peloton expanded its offerings as spinning faded in popularityPeloton unveiled the Tread at the 2018 Consumer Electronics Show.Avery Hartmans/Business InsiderPeloton introduced its second product, a $4,000 treadmill called the Peloton Tread, in 2018, and added new types of classes, like high-intensity interval training and yoga, to keep users engaged or get new customers to sign onto a digital subscription, no equipment required. By 2019, the company had sold 577,000 bikes and treadmills. In August of that year, Peloton filed for an initial public offering, revealing it had over 500,000 paying subscribers, but also spiraling losses from major investments in marketing and licensing music for its classes. Peloton went public on September 26, 2019 in what was at the time the third-worst trading debut for a major IPO since the financial crisis.Peloton's stock plummeted following its 2019 holiday adA still from the "Peloton wife" ad.PelotonAhead of the holidays in 2019, Peloton made what was seen as a major public misstep with its infamous "Peloton wife" ad. The ad, featuring a woman whose husband gifts her a Peloton bike for Christmas, was viewed as being sexist and playing into outdated standards of beauty. Public outrage over the ad sent Peloton's stock plunging 9%, wiping out $942 million in market value in a single day. But Peloton stood by the commercial, issuing a statement saying it was "disappointed" by how people had "misinterpreted" the ad. The pandemic became a major boon for Peloton's businessCari Gundee rides her Peloton exercise bike at her home on April 06, 2020 in San Anselmo, California.Ezra Shaw/Getty ImagesThen, in early 2020, the pandemic hit. Suddenly stuck inside, people turned to at-home fitness and found connection in Peloton's streamed workout classes. The company's share price took off. By May 2020, Peloton reported a 66% increase in sales and a 94% increase in subscribers. In September of that year, Peloton said that it had had its first profitable quarter, with sales spiking 172% since the same quarter the year prior and revenue rising to $607 million. But the unexpected uptick in demand showed the cracks in Peloton's logistics operation. Delivery times for new equipment became longer and longer, and Peloton's typically diehard fans began expressing their frustration online. Then, some customers began experiencing issues with their bikes where pedals snapped off mid-ride. The company took weeks or months to make repairs, further frustrating users. After 120 reports of bikes breaking and 16 reports of customers getting injured, the company issued a recall affecting 30,000 bikes. Still, 2020 was all around a stellar year for Peloton that included debuting new, higher-end versions of the bike and treadmill and inking a multi-year deal with Beyoncé. A year after the "Peloton wife" ad, the company's market value had hit $34 billion. In early 2021, Peloton reported its first-ever billion-dollar quarter, driven by holiday sales and sustained demand for at-home fitness as the pandemic raged on. Foley pledged to manufacture "tens of millions" of treadmills and bikes to keep up with surging sales and spend $100 million to speed up deliveries hampered by port congestion. Peloton had to issue a treadmill recall following a child's deathA user runs on the Peloton Tread.Michael Loccisano/Getty ImagesBut in March, tragedy struck when a child was fatally injured in an accident with a Peloton treadmill. Shares dipped 4% following the news and regulators urged a recall.Foley initially pushed back, calling the warnings "inaccurate and misleading," but by May, the company announced a recall of the higher-end Tread+. In an effort to make the treadmill safer, Peloton also made a change that resulted in it becoming unusable unless users paid $39 per month. Following customer outrage, the company said it would work on a fix. As the pandemic began to recede, so did Peloton's popularityPeloton's New York City studio.John Smith/VIEWpressAs the nation continued to move toward reopening — and returning to the gym and fitness studios — Peloton's business took a punch. The company's stock dropped 34% following its fiscal first-quarter earnings in November, which included a dismal outlook for the months ahead.  "It is clear that we underestimated the reopening impact on our company and the overall industry," Foley said in a call with shareholders.Peloton was also being chased by rivals like Echelon and iFit Health, which offer similar, cheaper products. Peloton filed a lawsuit against them in November, accusing them of patent infringement. In the meantime, Peloton had been taking reputational hits. A hiring freeze set in, and Black employees voiced concerns over their pay compared to the industry standard. A character in the "Sex and the City" reboot died after using his bike, and then the same thing happened to a "Billions"character soon after. And in December, Foley threw a lavish holiday party as the company's stock tanked. By January, the company was discussing layoffs, reportedly pausing production of new equipment, and halting plans to open a new $400 million factory. Employees told Insider the company's warehouses were filled with excess bikes. Peloton began laying off employees, replaced Foley, and was eyeing a potential acquisitionAn instructor during a Peloton class.Scott Heins/Getty ImagesIn February, The Wall Street Journal reported that Amazon may be eyeing Peloton as a potential acquisition — soon after, the Financial Times reported that Nike was considering the same. Wall Street analysts posited that Apple would be another natural fit as the new owner of Peloton. The possibility of a sale sent Peloton's stock jumping 25%.Days later, Foley announced that he would step down as Peloton's CEO and that the company was slashing 2,800 jobs, about 20% of its workforce. The company said that the fired employees would receive a free year's subscription to the platform, along with a "meaningful cash severance allotment" and other benefits. Its roster of instructors will not be impacted by the layoffs.During a conference call following the company's second-quarter earnings, Foley said was taking responsibility for what happened at Peloton. "We've made missteps along the way. To meet market demand, we scaled our operations too rapidly. And we overinvested in certain areas of our business," he said. "We own this. I own this. And we're holding ourselves accountable," he added.Experts told Insider's Emma Cosgrove that the company fell prey to the "bullwhip effect," spending big on logistics while expecting that demand would remain high — when demand cooled, Peloton was left with costly supply chain operations that now require a major overhaul. Barry McCarthy, the former chief financial officer of Spotify and Netflix, replaced Foley as CEO. In a leaked memo to employees, McCarthy called the layoffs "a bitter pill" but said that the company needs to accept "the world as it is, not as we want it to be if we're going to be successful.""Now that the reset button has been pushed, the challenge ahead of us is this…… do we squander the opportunity in front of us or do we engineer the great comeback story of the post-Covid era?" he wrote. "I'm here for the comeback story."Now Foley has severed his remaining ties to the companyPeloton co-founder John FoleyMark Lennihan/APJuly brought news of 570 additional job cuts, and in August, the company announced yet another round of layoffs, slashing roughly 800 customer-service and distribution team members – and raising prices on some equipment. In September, Peloton announced that Foley had stepped down as executive chairman and that cofounder and Chief Legal Officer Hisao Kushi also was leaving the company.In a statement, Foley said: "Now it is time for me to start a new professional chapter. I have passion for building companies and creating great teams, and I am excited to do that again in a new space. I am leaving the company in good hands."  Lead independent director Karen Boone takes over as chair. Read the original article on Business Insider.....»»

Category: topSource: businessinsiderSep 13th, 2022

Bull of the Day: JD.com (JD)

This Chinese internet play has shown relative strength on the back of solid earnings. JD.com (JD) is a Zacks Rank #1 (Strong Buy) that operates as an online direct sales company in China. The company offers a diverse range of products, from electronics to food.Unlike many Chinese related stocks, JD has held up well in 2022 and is down just slightly year to date. One reason for the relative strength is a stretch of earnings beats that stretches back to 2019.With the market recently gaining some traction, investors are looking at stocks like JD that have held up well. Let’s take a look at the bullish case for JD as we head into the back half of the year.About the Company JD was incorporated in 2006 and is headquartered in Beijing, China. It employs 385,000 people and has a market cap of $80 Billion.Trough its website and mobile applications, JD offers a selection of products including home appliances, clothing, luxury goods, jewelry, household products, personal care items, food, books, media products, toys, fitness equipment and virtual goods.The stock has Zacks Style Scores of “A” in Growth as well as Momentum, and sports a “B” in Value. JD has a Forward PE of 28 and pays no dividend.Q2 Earnings Beat In late August, JD reported a 32% EPS beat for Q2. The company also beat on the top line and saw its EBITDA margin go from 1.5% last year to 2.7%. Management commented that they are pleased with the topline growth considering the challenging period. They added that the premium membership program of JD.com has exceeded the milestone of 30 million registered members in July 2022, setting a new record in scale.The stock reacted very well to the earnings report, moving from the $55 area to and august high of $67.87 in just four days. The stock has pulled back since that up move, but rising estimates should keep any future selling at bay.Analyst Estimates Over the last 30 days, estimates have been trending higher across all time frames. For the current quarter, we have seen numbers taken from $0.55 to $0.62 or 13%. For next quarter, they have ticked 13% higher over that same time frame.Looking down the road, analysts see the momentum continuing. Over the last 60 days, the current year has seen estimates go from $1.86 to $2.15, or 11%. For next year, analysts have taken numbers 3% higher.Analyst are also taking price targets above current trading levels. Susquehanna reiterated JD with a Neutral after earnings, lifting their targets to $62 from $55. Benchmark reiterated JD with their Buy rating and price target of $109.The TechnicalsThe stock made highs early in 2021 at $107. After that high, the stock dropped 62% to bottom around the $40 level. JD has bounced 50% from that low made back in March and has traded sideways around the $60 area.Now down 10% on the year, investors are looking for those post-earnings highs above $67 to get green on the year.Looking at the moving averages, the stock is above the 50-day at $60.50, but below the 200-day at $63.25. If the bulls want some momentum higher in price, that 200-day must be taken back.If the bulls get a breakout above that area, they should watch for the $73-75 spot for profit taking. This was the resistance back in February, which likely brings in some sellers.The bulls can lean on the $54 level, which was the pre-earnings lows and the 61.8% retracement drawn from May lows to June highs.Bottom Line The bulls have seen some relative strength in JD.com, something that has been rare for a Chinese stock in 2022.Investors should be watching this name for a potential breakout over the 200-day moving average. Traders have a nice setup above the 50-day MA at $60.50 and with the 61.8% support area at $54.If the overall market can gain traction, the bulls should expect the stock to get 2022 highs before the year is over. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JD.com, Inc. (JD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 13th, 2022

You can now buy a Peloton bike on Amazon, thanks to a major new deal for the embattled fitness company

The partnership comes as Peloton has shifted its logistics strategy, slashing thousands of jobs and eliminating in-house production and delivery. Cari Gundee rides her Peloton exercise bike at her home on April 6, 2020, in San Anselmo, California.Ezra Shaw/Getty Images Peloton now sells its bikes, apparel, and workout accessories through Amazon. It marks a major strategy shift for Peloton, which has only sold its products directly until now. Peloton has had a tumultuous 2022 that's included multiple rounds of layoffs. You can now buy a Peloton bike on Amazon.Peloton announced Wednesday that its equipment and apparel are now for sale on Amazon in the fitness company's first partnership with another retailer. Before now, Peloton fans could only buy directly through the company. Not all Peloton gear will be available through Amazon. As of Wednesday, only the original bike, workout accessories, apparel, and the Peloton Guide — a camera that tracks your workouts — are available to buy on Peloton's Amazon shop.Customers who purchase a bike through Amazon can opt to assemble it themselves, or add in-home delivery and assembly for no extra cost, Peloton said.Peloton Chief Commercial Officer Kevin Cornils told CNBC that there are already roughly 500,000 searches for Peloton product on Amazon every month. He said in a statement Wednesday that selling through Amazon "is a natural extension of our business and an organic way to increase access to our brand.""We want to meet consumers where they are, and they are shopping on Amazon," Cornils said. "Providing additional opportunities to expose people to Peloton is a clear next step, as we continue to generate excitement for our unparalleled connected fitness experience." The partnership highlights a major shift in Peloton's strategy. Over the past few years, Peloton built an expensive logistics network that brought production, sales, and delivery in-house; at a Barclay's conference in 2019, former Peloton CEO John Foley described the connected-fitness firm as "a logistics company."But the strategy hit snags beginning in 2020 that required Peloton to spend big to gets its bikes to customers. Though Peloton saw a pandemic-era boom that sent its market cap soaring to $50 billion, it struggled to find its footing once demand began to cool. It's resulted in three waves of layoffs at the company in 2022, most recently this month, when it slashed nearly 800 roles on its customer-service and distribution teams. The cuts were the result of a decision to shutter Peloton's in-house logistics division and instead rely on third-party companies to deliver equipment and set it up in customers' homes. Peloton also plans to close many of its retail showrooms next year.The company also announced recently that it would begin outsourcing production of its bikes and treadmills, another step toward "simplifying our supply chain and variablizing our cost structure — a key priority for us," CEO Barry McCarthy said at the time. Do you have a Peloton-related story to share? Contact the reporter from a non-work email at ahartmans@insider.comRead the original article on Business Insider.....»»

Category: personnelSource: nytAug 24th, 2022

A wave of layoffs is sweeping the US. Here are firms that have announced cuts so far, from Shopify to Tesla.

The reason behind the layoffs, broadly, is twofold: business growth is slowing, while labor costs are increasing. Elon Musk, CEO of Tesla and SpaceX.Marcio Jose Sanchez/AP A wave of layoffs has swept across American business in 2022. The cuts stem from slower business growth, paired with rising labor costs. The layoffs span across industries, from mortgage lending to digital-payment processing. Layoffs are sweeping across American businesses in 2022.Peloton laid off thousands of employees earlier this year. Real estate firm Re/Max slashed 17% of its workforce. Even traditionally layoff-resistant companies like Netflix have made cuts, and now companies that saw a pandemic-era boom, like Shopify, are cutting hundreds of jobs.The reason, broadly, is twofold: business growth is slowing, while labor costs are increasing. The combination is causing American companies across a variety of industries to slash headcount.Here are some of the most notable examples so far: Shopify: About 1,000 workersShopify CEO Tobi Lutke.Reuters/Lucas JacksonShopify plans to lay off roughly 1,000 employees, equivalent to 10% of its workforce worldwide, the Wall Street Journal reported. In a memo to employees, CEO Tobi Lutke said that the company — which makes the tech that powers businesses' online stores — had bet big on the pandemic-era e-commerce boom. "It's now clear that bet didn't pay off. Ultimately, placing this bet was my call to make and I got this wrong," Lutke wrote in the letter, which was posted on the company's website. 7-Eleven: 880 jobsPaul Sakuma/APConvenience store chain 7-Eleven cut 880 corporate jobs in Ohio and Texas following the company's puchase of rival Speedway in 2020.A 7-Eleven spokesperson told Insider that the company has been assessing its new corporate structure and undergoing an "integration process" that led to the cuts, which will take place at its support centers and field-support operations in Irving, Texas, and Enon, Ohio. Vimeo: 6% of its workforceAnjali Sud, CEO of Vimeo.AP Photo/Mark LennihanVideo-hosting platform Vimeo cut 6% of its staff in July."We are making this decision in order to ensure we come out of this economic downturn a stronger company," Vimeo CEO Anijali Sud wrote in a blog post. "Our people are what makes Vimeo great, and losing any of them is a personal failure that I feel deeply. But after assessing the challenging market conditions and uncertainty ahead, I believe this is the responsible action to take."Tesla: 229 employeesTesla CEO Elon Musk.Yasin Ozturk/Getty ImagesTesla laid off 229 people in late June, according to WARN filings. The layoffs primarily impacted employees in its Autopilot division. Tesla also closed an entire office in San Mateo, California, and moved some of the office's workers to another location, Bloomberg reported.The cuts came after CEO Elon Musk said in early June that he wanted to cut jobs and that he had a "super bad feeling" about the economy.Rivian: Potentially around 5% of its workforceRivian CEO RJ Scaringe and a Rivian truck.Kevin Dietsch/Getty ImagesElectric car-maker Rivian is planning hundreds of layoffs after growing too quickly, Bloomberg reported. Rivian has more than 14,000 employees, and the layoffs could result in about 5% of the workforce being cut. While these cuts are still in the planning stages, Bloomberg reports that they will mostly likely focus on nonmanufacturing positions. Gopuff: 10% of its staffA delivery driver is shown picking up a Gopuff bagHannah YoonDelivery startup Gopuff will lay off 10% of its staff, according to an internal email obtained by Insider."As a business, during these uncertain times, we owe it to our investors and customers to accelerate our timeline to profitability. As such, we have decided to confront the current moment by making difficult decisions about our core business," cofounders Rafael Ilishayev and Yakir Gola wrote in an email to employees. The latest round of layoffs come after Gopuff cut 3% of its workforce, or more than 400 workers, in March. Re/Max: 17% of its workforceAn "Open House" sign is seen outside of a house for sale.Tim Boyle/Getty ImagesReal estate firm Re/Max will lay off 17% of its workforce by the end of the year, the company announced.The cuts will primarily affect employees in the technology division, the result of a "shift in strategy" as it partners with a third-party technology vendor, Re/Max said.  Microsoft: Less than 1% of employeesMicrosoft CEO Satya Nadella.Stephen Brashear/Getty ImagesMicrosoft announced in July that it was cutting a "small number" of employees across several groups, including consulting and customer and partner solutions, a company spokesperson told Bloomberg.JPMorgan: Over 1,000 workersAmr Alfiky/ReutersIn June, JPMorgan confirmed that it would lay off over 1,000 employees in its home-lending department. The cuts came amid slowing demand for mortgages and refinances. "Our staffing decision this week was a result of cyclical changes in the mortgage market," a JPMorgan spokesperson said in a statement to Insider at the time. "We were able to proactively move many impacted employees to new roles within the firm and are working to help the remaining affected employees find new employment within Chase and externally."Compass: 450 employeesA house for sale marketed by the real-estate brokerage Compass.Smith Collection/Gado/Getty ImagesReal estate brokerage Compass will lay off about 10% of its workforce, or 450 employees, the company announced in a regulatory filing. The cuts are part of a series of new cost-cutting measures that include pausing expansion, consolidating offices, and halting mergers and acquisitions, Bloomberg reported.Redfin: About 6% of total employeesRedfin CEO Glenn Kelman.RedfinReal estate brokerage Redfin is also conducting layoffs, a sign that the hot pandemic-era housing market is starting to cool off due to rising interest rates.CEO Glenn Kelman wrote in a blog post that about 6% of the company's total workforce will be laid off, which equates to 470 employees, according to a regulatory filing. "I said we wouldn't lay people off unless we had to. We have to," Kelman wrote. "Mortgage rates increased faster than at any point in history. We could be facing years, not months, of fewer home sales, and Redfin still plans to thrive."Coinbase: About 18% of its workforceCoinbase CEO Brian Armstrong.Patrick T. Fallon / Getty ImagesCrypto exchange platform Coinbase announced it would reduce its staff by 18% "to ensure we stay healthy during this economic downturn." That same day, over 1,000 employees were notified they'd been laid off when they were unable to log into their work email accounts — the company said in a regulatory filing that its workforce will be reduced to about 5,000 employees by the end of the second quarter of 2022.The layoffs come amid a crypto crash that has resulted in traders losing roughly $2 trillion since November, NBC News reported.Coinbase CEO Brian Armstrong wrote in a blog post that the layoffs are the result of the company growing too quickly, changing economic conditions, and the need to keep costs low during a downturn. Carvana: About 2,500 peopleErnest Garcia III, CEO of online car dealer Carvana.Brendan McDermid/ReutersCarvana plans to cut 12% of its staff, or about 2,500 employees, the online car dealer announced in a filing with the Securities and Exchange Commission. In an email to employees viewed by The Wall Street Journal, CEO Ernest Garcia III said that the company has overestimated growth amid a challenging time in the auto industry.By cutting staff, Carvana aims to find "a better balance between its sales volumes and staffing levels," the company said in the SEC filing. Carvana was founded by Garcia in 2012 as a subsidiary of his father's company, DriveTime Automotive. Carvana's service allows customers buy cars online, which are delivered to customers' doors or picked up at a Carvana vending machine. Both father and son saw their fortunes skyrocket during the pandemic as demand for used cars hit new highs. Carvana said in its SEC filing that executives will forego their salaries for the rest of 2022 to help cover employee severance pay.Reef: About 750 peopleEmployees unload at a Reef location.Pat Greenhouse/The Boston Globe via Getty ImagesGhost-kitchens company Reef Technology will cut 5% of its global workforce.The SoftBank-backed startup is laying off about 750 employees as it works toward profitability amid a challenging economic environment, CEO Ari Ojalvo wrote in a memo to staff obtained by Insider.The layoffs come months after Reef said it would pause operations on some of its "underperforming" locations. Current and former employees told Insider in recent weeks that Reef had closed one-third of its kitchens and focused on its partnerships with major chains like Wendy's and Buffalo Wild Wings.Better: About 4,000 peopleVishal Garg is the founder and CEO of Better.com. He was responsible for laying off hundreds of people right before the holidays in 2021.Better.comStarting in late 2021 and continuing through the first several months of 2022, mortgage startup Better.com laid off approximately 4,000 people.The first wave started right before the holiday season in 2021, when CEO Vishal Garg laid off "hundreds" of people.Garg told employees during a Zoom call that the company, "lost $100 million last quarter," which he said, "was my mistake." He then said the layoffs shouldn't have happened right before the holiday, but, "three months ago." Better followed up with another 3,000 layoffs in March, and is now accepting voluntary layoffs in some departments.Noom: 495 peopleSaeju Jeong, cofounder & CEO of Noom.Sam Barnes/Sportsfile for Web Summit via Getty ImagesThe weight-loss app maker Noom recently laid off hundreds of coaches, Insider reported in April — part of a bigger-picture pivot for the company toward more video-based coaching.The company, through its app of the same name, pairs dieting with personal coaches to achieve weight loss for users. Interactions with those coaches were often through text, which users critiqued as "canned advice." Some coaches told Insider they were responsible for giving advice to hundreds of users at any given time.Going forward, Noom is focusing on offering users scheduled video calls with coaches.Peloton: Over 2,800 peoplePeloton makes a popular treadmill with a subscription service.Peloton / YoutubeIn February, Peloton fired over 2,800 people — including 20% of its corporate workforce — because of an ongoing downturn in the company's business.Peloton faced a major setback after home-fitness products spiked in popularity during the height of the coronavirus pandemic in 2020.With gyms reopening as vaccination rates increased, Peloton's business took a huge hit: The company's market value has dropped from $50 billion last year to around $4.4 billion as of early June 2022.Thrasio: Up to 20% of staff, sources sayThrasio founder and CEO Carlos Cashman.ThrasioThrasio, the company known for creating the Amazon aggregator market, is laying off an unknown number of people. Additionally, the company's CEO and founder, Carlos Cashman, is stepping down from leadership. Amazon aggregators work by identifying product leaders on Amazon, then buying the companies that make those products and consolidating them under one umbrella company. In a memo sent to employees, Thrasio leadership said the layoffs were due to the company's "hypergrowth" in acquiring companies. "At times we have been acquiring a new company almost every week," the memo said, "and running hard to build the infrastructure to support this growth."Two sources told Insider the layoffs could impact up to 20% of Thrasio's staff.Robinhood: More than 300 peopleRobinhood CEO Vlad Tenev.AP/David MartinDuring the pandemic, so-called "meme stocks" from GameStop and AMC exploded. Much of that explosion in stock value was driven by accessible trading platforms like Robinhood.And while new users piled in during the pandemic, Robinhood hired rapidly. Between 2020 and 2021, Robinhood staff grew dramatically: from 700 people to around 3,800, according to CEO Vlad Tenev. But that growth was apparently too much and too fast, and Robinhood was forced to slash headcount by 9% — more than 300 people altogether."This rapid headcount growth has led to some duplicate roles and job functions, and more layers and complexity than are optimal," Tenev said in April. "After carefully considering all these factors, we determined that making these reductions to Robinhood's staff is the right decision to improve efficiency, increase our velocity, and ensure that we are responsive to the changing needs of our customers."Wells Fargo: Unknown number of people in mortgage lendingREUTERS/ Shannon StapletonAs mortgage revenues fell at Wells Fargo in the first quarter of 2022, the company began laying off employees in mortgage-related positions, Insider reported in late April.Loan processors and underwriters, among other positions, were reportedly affected by the layoffs. Wells Fargo representatives declined to say how many people were impacted by the cuts, but did confirm the layoffs in an emailed statement."We are carrying out displacements in a transparent and thoughtful manner and providing assistance, such as severance and career counseling. Additionally, we are committed to retaining as many employees as possible and will do everything we can to help them identify other opportunities within Wells Fargo," a Wells Fargo spokesperson said in a statement provided to InsiderCanopy Growth: 250 peopleMaster Grower Ryan Douglas smells a marijuana plant in Smith's Falls, Ontario, on February 20, 2014.Blair Gable/ReutersOne of the world's largest publicly traded cannabis companies, Canopy Growth, slashed 250 jobs in Canada earlier this year as it faces increasing competition in the burgeoning cannabis market.Layoffs are among several cost-cutting measures that Canopy Growth is taking "to ensure the size and scale of our operations reflect current market realities and will support the long-term sustainability of our company," Canopy Growth CEO David Klein said in a statement.Canopy's stock has suffered as a result: It was trading around $6 a share as of early May, down from $9.30 in early January.Food52: About 20 peopleCofounder and CEO of Food52, Amanda Hesser.Food52After raising $80 million from investing firm The Chernin Group last December, the content-creation team at food publication and retailer Food52 was suddenly laid off in early April.About 20 of the company's 200 employees were let go in the layoffs, which came as a major surprise to those affected."Everyone on the team and my immediate boss were gut-punched," one of these employees told Insider. "We all had gotten raises and bonuses just a month prior."Two of the employees who were laid off said Food52 executives told them the company was "pivoting to commerce," and away from the type of content that was created by the affected employees: recipes and other instructional cooking content.Cameo: 87 peopleCameo operates a service where users can pay celebrities to record personalized audio or video clips.CameoCameo is laying off 87 people, CEO Steven Galanis confirmed in early May."Today has been a brutal day at the office," he wrote on Twitter. "I made the painful decision to let go of 87 beloved members of the Cameo Fameo."Through Cameo, people pay celebrities to make personalized audio and video recordings.Galanis described the layoffs as a "course correction" in a statement to Variety. The cuts follow a staffing boom during the pandemic — from around 100 employees before 2020 to about 400 in 2022.  PayPal: 83 peoplePayPal headquarters in San Jose, California, on February 2, 2022.Justin Sullivan/Getty ImagesPayPal quietly laid off 83 people, according to a Securities and Exchange Commission filing spotted by The Information.The company employs more than 30,000 people worldwide, over a third of whom are based in the United States. The cuts appear to be tied to the company downsizing its presence in the San Francisco Bay Area, according to TechCrunch.Gorillas: 'Nearly 300' peopleGorillas CEO Kagan Sumer.GorillasGerman grocery-delivery company Gorillas announced layoffs of "nearly 300" people around the world in May 2022. The layoffs, the company said, are part of a larger "shift to long-term profitability," which means trimming staff as Gorillas focuses on its five "core" markets: Germany, France, the Netherlands, the UK and the US.Impacted employees, who were mostly corporate staff, were shocked by the sudden layoffs."It's not a secret that the company hasn't been doing well, but I didn't expect to wake up and lose my job," a Berlin-based employee who was laid off by Gorillas told Insider. "My managers weren't even aware or consulted. It's not the laying off that hurts, it's the way it's been done."Netflix: About 150 peopleNetflix Co-CEO Reed Hastings.Getty Images LatamNetflix laid off around 150 people in mid-May, its second round of layoffs in 2022.The latest layoffs, which impact "mostly US-based" staff, are due to "slowing revenue growth," according to a statement from a Netflix spokesperson. "These changes are primarily driven by business needs rather than individual performance," the statement said, "which makes them especially tough." Earlier this year, Netflix revealed that it had lost around 200,000 subscribers to its video-streaming service in Q1 — its first subscriber loss in over a decade. And executives warned at the time that further subscriber losses were predicted for the future. They blamed "revenue growth headwinds" in a report to shareholders and said that heavy Netflix use during the height of the COVID-19 pandemic had "obscured the picture until recently."These are not the first layoffs to hit the streaming incumbent this year.After assertively recruiting high-profile writers and editors for its new fan site, Tudum, last year, Netflix laid off nearly a dozen contracted staffers from the editorial project in late April, in addition to about 25 employees in its marketing department.Outside, ClickUp, Zulily, and Latch all laid off peopleA Zulily logo on display at QVC Studio Park in West Chester, Pennsylvania, in 2018.Brendan McDermid/ReutersLayoffs aren't only impacting major corporations — a variety of smaller and lesser known companies are also firing people to save money:Online retailer Zulily laid off "fewer than 100" members of its corporate staff, Geekwire reported earlier this month. "Last week, we announced to our team members some hard choices we have made for our organization to bring our operating expenses in line with our revenue and position our business for future growth," a spokesperson said in a statement.Outside, the magazine conglomerate and publication, laid off 66 people as part of a larger restructuring to make the company a digital-first publishing house, Aspen Public Radio reported this week.ClickUp, a software company that makes a productivity app, cut 7% of its staff, "to ensure ClickUp's profitability and efficiency in the future," the company told Protocol. It's unclear how many people were impacted, but estimates put the company's total staff at over 500.Latch, a company that makes a smart lock, laid off about 130 people — 28% of the company's total staff, it said. The layoffs are intended to, "better align staffing and expense levels with current sales volumes and the current macroeconomic environment."Ben Gilbert contributed to an earlier version of this article.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderJul 26th, 2022

Disaster on Denali: What happens when adventure-seekers are in over their heads?

What really happened on Denali, North America's tallest peak, on the day a 31-year-old mountaineer from Canada fell 1,000 feet? Hokyoung Kim for InsiderNone of them noticed the fall. One moment, Adam Rawski was with them on the mountain. The next, he was gone.It was May 24, 2021, around Day 15 of their trek up Denali, North America's tallest peak. There was Grant Wilson and Sarah Maynard, Alaska natives and close friends since high school who were now in their early 20s; Rawski, a 31-year-old clean technology executive from Canada, who had befriended them on the mountain a week earlier; and Dr. Jason Lance, a 48-year-old radiologist from Utah who had paired up with Rawski at the last minute after both of their climbing partners turned back.The four had hoped to summit that day. But Rawski was exhausted and showing signs of altitude sickness. He couldn't go any further. Just over a thousand feet from the summit, they had no choice but to stop and turn back.Now on the descent, at around 18,200 feet, they had just crossed Denali Pass, a relatively flat, open snowfield with sweeping views of the Alaska Range and surrounding wilderness. In front of them lay the Autobahn, a notoriously dangerous icy slope that descends 1,000 feet. At least 13 deadly falls have been recorded here since 1980.The Autobahn's terrain can vary from rock solid ice to several feet of snow. If climbers lose their footing and fall, there's nothing to slow their momentum and prevent a fast and almost certainly fatal tumble down the slope. It's said some German climbers died at this spot years ago, which is how it became known as the Autobahn — as in, Germany's highway with no speed limit.Perhaps the most dangerous thing about the Autobahn is that it doesn't look very dangerous. It's steep enough to cause climbers to fall with great speed, but not so steep that all climbers exercise proper caution. The park service strongly encourages roping up with protection at this spot, but every year, teams ignore that advice. If the slope was just a bit steeper, it's likely fewer climbers would take the risk.Most falls on the Autobahn happen on the descent, when climbers are exhausted, having just pushed for the summit after two weeks on the unforgiving mountain, perhaps slightly impaired by the effects of altitude, and quite possibly a little cocky from having made it this far. Despite his condition, Rawski was not roped up. Standing at the top of the Autobahn, the others had scattered a bit. Wilson had stepped out of sight for a bathroom break. Maynard was slightly downhill from Lance. And then, Rawski was gone.As Maynard would tell me later, her mind raced through the possibilities: "Is he so hypoxic that he is taking his clothes off and wandering around? Is he so delusional that he's going for another summit attempt? Does his stomach hurt so bad that he's puking somewhere or just huddled up?"Then she heard Lance: "Oh, fuck." She followed his eyes down to the bottom of the Autobahn, 1000 feet below. There, Rawski's body in his bright blue puffer was lying, motionless.It was quiet, with no wind. But Maynard hadn't heard a thing. "That's what was so spooky and haunting," she said. "I didn't hear his ice axe hit the ground. I didn't hear his body tumble. I didn't hear a yelp from him."Maynard and Wilson huddled under a rock, all but certain their friend was dead. They held each other, and cried.Amazingly, Rawski didn't die that day. He's one of the only climbers known to have survived a fall down the Autobahn. But that's not where the story ends. What none of them knew then was that five months later, one of them would be criminally charged and brought before a judge — and they'd all have to relive the worst day of their lives.The Great OutdoorsWhen throngs of novice adventurers take on challenges without the proper training or expertise, disaster often follows — which is part of the story of what happened on Denali last May.Visits to America's national parks have exploded in recent years as more and more people seek out wild, majestic places to visit and color their Instagram feeds. More than 600,000 people came to Denali National Park in 2019, a 65% increase from 2000. Things were quiet in 2020 due to COVID-19, but by 2021 the mountain was nearly as busy as before the pandemic, with 1,007 climbers attempting to summit.Shortly after Rawski's fall, Denali's park rangers, all of them expert mountaineers, took the extraordinary step of publishing a finger-wagging report. "We have seen a disturbing amount of overconfidence paired with inexperience in the Alaska Range," they said, warning climbers that mountaineering in the Lower 48 doesn't necessarily prepare you for the high-altitude and extreme conditions of the Alaskan wilderness.A clear morning view of Denali from inside the national park.C. Fredrickson Photography/Getty ImagesDenali soars 20,310 feet above sea level and, for some mountaineers, is considered a stepping stone to Mount Everest (though without the help of Sherpas). Its official title was changed from Mt. McKinley in 2015, when Denali, the name given to the mountain by Alaskan Natives — meaning "the tall one" or "the great one" — was restored.The peak is located among 6 million acres of protected wilderness. To reach the mountain, climbers hop on a small plane in Talkeetna, a tiny town south of the park, and fly over 75 miles of terrain that changes from lush greenery to jagged granite and snow-covered slopes.They're dropped off at Denali's base camp, located on the Kahiltna Glacier, at 7,200 feet elevation — already 1,000 feet higher than Mount Washington, the tallest peak of New Hampshire's White Mountains. From there, the expedition to the summit and back usually takes 17 to 21 days.Typically only about half of the climbers attempting Denali every year will reach the summit. Determining whether or not a climber is prepared to take on Denali is difficult even for rangers and guides.Temperatures can dip below -40 degrees Fahrenheit. Climbers face snow storms, freezing rain, 100 mph winds, and blazing sunlight. The gear weighs over 100 pounds and includes clothes, tents, stoves, skis, or snowshoes, crampons, protective equipment, and a sled to haul it all. Climbers take on steep vertical grades and glacier travel, during which they can encounter crevasses that go hundreds of feet deep into the ice — and that's all on top of the sheer physical challenge of climbing a mountain at an altitude few humans ever experience.Base Camp on the Kahiltna Glacier in Denali National Park. Mountaineers climbing Denali, the highest mountain in North America, are dropped off here by ski planes, visible in photo.Getty ImagesThere are specific skill sets climbers should have, like snow and ice climbing, glacier travel, cold-weather camping, and exceptional cardiovascular fitness. But even then, it is hard to gauge if a person is ready.The most basic measure for whether or not a climber is prepared — physically, technically, psychologically — for a Denali expedition is straightforward: Would you attempt what you are doing if you were alone on this mountain?If the answer is no, you shouldn't be there.A shared passionMaynard and Wilson teamed up to tackle Denali in late 2020.The two were high school classmates in Fairbanks, the largest and coldest city in Alaska's Interior region and the closest city to Denali. It's known for being one of the best places to see the northern lights, and for long summer days when the sun never sets.They both ran cross country, traveling with the team to faraway meets on weekends, and were part of a large friend group of cross country skiers. But they bonded most over their shared passion for mountaineering.They stayed close even after Maynard moved to Montana to get a degree in exercise science and work as a ski instructor, keeping up with each other's adventures through texts and social media, and planned excursions whenever their schedules aligned. Whenever Maynard returned home to Alaska, she'd check in with Wilson. "I'm always trying to get invited on his adventures because he stays busy," she said. Wilson has lived in Alaska his whole life. When not climbing, skiing, surfing, or recreating outdoors in some capacity, he worked as a commercial fisherman in Bristol Bay."I grew up winter camping with my family and doing wintertime hunting and all these things that I feel like was preparation leading up to this Denali climb," Wilson told me. They had both skied pristine backcountry landscapes and conquered peaks in Alaska and elsewhere. They had lots of training with rope systems, including on past climbs and through courses. Neither had much experience above 14,000 feet.But having grown up in Alaska, Denali always loomed large. It's a famously challenging expedition for any mountaineer, but, more than that, it's their home mountain."My grandpa used to take me out of school on bluebird days" — clear, sunny days that follow a night of snowfall, Maynard told me. "He's a pilot and he would fly me around Denali.""One time he got close enough that you could see the climbers. And I remember that moment just being like, 'Wow.'"Base CampIn early May of 2021, Maynard and Wilson finally stepped out onto Kahiltna Glacier.The plan was to tackle the West Buttress, Denali's most popular, and least technical, route. It's a 15-mile journey to the summit, gaining more than 13,000 feet in elevation along the way. As with the other camps higher up the mountain, base camp has room for dozens of tents but no physical infrastructure.From camp to camp, climbers make their way up the mountain in strategic bursts. Moving too quickly can be dangerous. Climbers will take full days to wait out bad weather, rest, and acclimatize to the higher altitudes as the air gets thinner and thinner.There's also some essential backtracking. To lighten the load they're carrying, climbers will bury some of their gear in the snow, marking it with a flag, and then double back for it once they've set up camp higher up the mountain.  When the mountain is busy, especially in late spring when there's near round-the-clock sunlight, the camps come alive, forming makeshift towns. Killing time at the camps is part of the experience, and can involve kicking around a hacky sack, doing yoga, or getting to know other climbers.One morning, still early on the route, Maynard and Wilson were flying kites when they first met Adam Rawski. Rawski, tall with dark hair, was about a decade older and lived on Canada's west coast. He worked as the VP of finance at a clean technology company in Vancouver, and spent as much time as he could in the wilderness. "Backcountry skiing, downhill mountain biking, rock climbing, ice climbing," he would tell me later. "You name it, I would do it." After climbing most major peaks in the Pacific Northwest — including Mount Rainier, which at 14,417 feet, is considered a precursor to Denali — he decided to take on "the great one." He had come to Alaska with a fellow climber from back home. Rawski was a friendly presence at the camps, going out of his way to meet other climbers. "I would just walk around and say hi to people," he said.  He and his partner started out around the same time as Maynard and Wilson, so the teams were moving up the mountain at a similar pace. During rest periods, Rawski would join them for a game of cards. One day, when Maynard and Wilson needed butter, Rawski gave them some of his. "We made friends with him pretty quickly," Maynard told me.When they reached 14 Camp — one of two potential launching pads to take the summit — there was a problem: Rawski's partner had decided to pull out.A new partner for the upper mountainAt 14,200 feet — just shy of the height of Mount Whitney, the highest peak in the Lower 48 — 14 Camp marks the start of what rangers call the upper mountain. From here, the weather gets even more unpredictable and climbers are more likely to face relentless whiteout conditions — as well as unbearable wind, altitude sickness, frostbite, or hypothermia.Many climbers reach 14 Camp and decide not to go any further. Others, eager to minimize the time spent lugging heavy equipment in this increasingly desolate and punishing environment, store their gear here and — skipping the final resting spot, High Camp, at 17,200 feet — make their final push to the summit. This goes against park rangers' recommendation. Climbers who do not have prior experience above 14,000 feet in arctic conditions have "no real conception of how their body will respond to such stresses," they explained in the report published days after Rawski's fall. "There are very few mountaineers capable of moving fast enough to accomplish this safely." Setting up camp at High Camp gives climbers more time to acclimate to the higher elevation and makes for a shorter trek to and from Denali's summit. Despite this, the report said, more climbers were choosing the more dangerous route of trying to summit from 14 Camp.Sarah Maynard making her way along the 16,000 ft ridge of Denali during an early morning attempt to reach the summit.Grant WilsonThe issue had been compounded, the rangers said, by the reshuffling that's all too common at 14 Camp. Climbers who want to continue even after their teammates bow out end up forming new teams. (The risk of a crevasse fall, sickness, or serious accident are too high to make solo climbing a safe option.)But team dynamics is one of the biggest factors impacting safety and success on a Denali expedition. Strangers won't know the skill level or risk tolerance of their teammates, or be able to spot when the other person is sick or exhausted. "In many cases, these determined climbers end up forming loose coalitions with other individuals who they have just met for the first time and who are equally summit-driven," the report said."Collectively, this is a recipe for disaster."This was the position that Rawski found himself in that day. He heard that Jason Lance, a military vet who had served in Afghanistan and a father of four from Mountain Green, Utah, was also looking for a partner. The two teamed up and decided to push for the summit the next day. (Lance declined multiple interview requests from Insider and did not respond to a detailed list of questions.)"It was a very last-minute, hasty decision," Rawski later said."In hindsight, probably not the best idea."Summit day: 'Push through it and get by'A few hours after midnight on May 24, Rawski and Lance left 14 Camp and set off for the summit. Aided by the almost constant daylight, they figured the early start would give them enough time to summit and capitalize on the clear weather.A couple hours later, Maynard and Wilson also set off from 14 Camp. At around 9 a.m., they stopped to rest at High Camp and ran into Rawski and Lance.Immediately it was clear to them that Rawski was not himself. He was quiet, dehydrated, and had diarrhea. Another team that was staying at High Camp was boiling snow into potable water for Rawski to drink.Rawski told me he remembers being dehydrated and exhausted, but at the time didn't think his condition was especially worrisome. "I've been tired in that sort of situation before in the past. So I was sort of like, 'Push through it and get by.'"Maynard and Wilson — who were meeting Lance for the first time — both said they wondered if Rawski was better off turning back, but decided it wasn't their place to push it."When somebody's that sick, you don't continue with the original plan." Wilson told me later. "Jason Lance, as his partner that day, should have made some serious adjustments to their plan knowing how dehydrated Adam was."After some time resting at High Camp, Lance and Rawski resumed the climb, as did Maynard and Wilson.Adam Rawski finishing a dangerously exposed portion of the climb known as the Autobahn.Grant WilsonAt 18,200 feet, Maynard and Wilson stopped at Denali Pass and took a minute to enjoy the breathtaking views. "We were kind of geeking out, looking around and going, 'Oh my gosh, there's the Hayes Range' and 'Oh, there's Hunter,'" Maynard said. "It was really cool, being from Alaska, to just kind of be on top and see all the ranges that we recreate in."A short while later, Maynard and Wilson caught up to Rawski and Lance. Lance motioned to them to huddle up. Turning to Maynard, he suggested that she and Rawski turn back together, and that Lance and Wilson continue up the mountain as a pair. As Maynard remembers it, Lance said, "Sarah, I see you've slowed down. Why don't you take Adam down? Why don't you guide him down and Grant and I can go for the summit."She and Wilson were incredulous. This was their mountain. Who was Lance, not even an Alaskan, to boss them around, Wilson told me later. "It was like, dude, look, we're young, but we're not idiots here."But even as they shut the idea down, they were getting increasingly concerned about Rawski. He was clearly out of it but still saying he wanted to keep going. "Was I experiencing symptoms of altitude sickness? Maybe, I just couldn't realize it myself," Rawski told me later.So, they kept going, letting Rawski set the pace. Wilson later described it as a "zombie march."Then, according to Maynard and Wilson, Lance started moving faster, slowly pushing ahead of the group. "We stayed on either side of Adam, and Jason just got farther and farther and farther ahead, until he disappeared over a little pass," Wilson said. "It wasn't verbalized. There was no discussion involved. It was quite obvious what was going on." Lance was ditching them with his partner and going for a solo summit attempt.Lance later disputed this account, saying he went up ahead in hopes of waving down another team, climbers Maynard knew from Montana. But Maynard said he didn't say that at the time and, in any event, she was in radio contact with her friends.I asked Rawski about whether or not he felt Lance had abandoned him. "I don't really feel like he abandoned me too much," Rawski said. Lance, he said, "just felt like more of that sort of lone wolf who wanted to make it to the summit, no matter how, whether it be solo or with the group." At 19,200 feet, .2 miles from the summit, Maynard and Wilson decided they had to turn back. Lance was out of sight, Rawski was in bad shape, and they too were starting to slow down.But first, the three of them paused to look around and take it all in, their high point on Denali. "For the first time in the day, Adam kind of seemed like himself for a little bit. He asked us to take some videos of him," Wilson said.Rawski wanted to take a video for his girlfriend. Maynard remembered him playfully shouting out his love from the highest point on the continent."I was able to look back and see my hometown, where I've seen Denali on the horizon for most of my life," Wilson said. "That was a really amazing feeling."The fallMaynard guided Rawski as the three climbers began their descent. Around every 100 feet, Rawski would have to sit down, and his stomach hurt so badly that he wasn't able to eat or drink anything, Maynard and Wilson said.By the time they reached Denali Pass, Lance — having apparently abandoned his own summit attempt — caught back up with them. Maynard and Wilson figured they would return to their original configuration: Maynard and Wilson, Rawski and Lance.Ahead of them lay the Autobahn.To catch themselves in the case of a fall, climbers jam long, T-shaped pieces of metal called pickets several feet into the ice or snow. They secure a carabiner to the picket, run a rope through it, and attach the rope to their harness. If they trip, the rope goes taught and breaks the fall.Once again, they were going against the advice of Denali's park rangers. Maynard and Wilson planned to ski down the Autobahn, during which they would not use ropes. But Lance and Rawski planned to down climb it, traversing at a downward angle. They were not roped into protection."We had the rope. We had the pickets. We had our carabiners. We had everything," Rawski said. "But from what I recall, Jason was in a bit more of a rush to get down there. So I think we decided to opt out of roping up." In hindsight, he said, this was clearly a mistake. At the time he weighed the benefits and risks and decided not to waste time arguing.Climbers taking on the exposed headwall above 14 Camp. Rangers and volunteers fix lines for climbers to offer protection. In the event that a climber stumbles, the lines will arrest the fall.Grant WilsonIronically, it's the less experienced climbers on Denali who are more likely to descend the Autobahn without the protection of ropes.Tucker Chenoweth, Denali's South District ranger who oversees rescues on Denali, told me he would never do that section of the climb without protection. In his experience, climbers who have mastered rope skills won't think twice about using them "because it's not a hindrance to them.""But if you're not good at it, then it's a pain," he said. Indeed, no one who has died on the Autobahn was roped up with protection.There was also the matter of altitude. "Altitude can give you a somewhat intoxicated feeling, where things don't seem as important as they are," Chenoweth told me. "Even if you're climatized, you're feeling the effects of altitude sickness that challenges not only your physical ability, but your decision-making ability." At this point, Maynard was positioned slightly lower on the pass than Lance. She clipped herself into a picket before grabbing her skis. Wilson was briefly out of sight after just stepping away from the group to go to the bathroom.Lance was standing a bit higher and around a slight ledge.Maynard was pulling on her skis when all of a sudden Lance shouted down to her: "Where's Adam?""I thought he was climbing up to you," Maynard said. At first they thought maybe he had also gone to the bathroom, but when Wilson returned a few minutes later he was alone."That's the hard part about splitting partners," Wilson would tell me. "It's like, 'Whose problem is this incapacitated climber? We're handing him back off now, who's taking care of him?'"They started calling out for Rawski: "Adam! Adam! Where'd you go?"Lance was the one who spotted him, lying at the bottom of the Autobahn some 1,000 feet below. It didn't seem possible that he could have survived. Wilson thought he was going to puke.Lance was carrying Rawski's Garmin inReach, a satellite communications device, and used it to request a rescue crew.From the top of the Autobahn, there was nothing more they could do for Rawski. And they still had to get themselves down safely.A risky rescueGuides at High Camp who saw the fall alerted the park service within seconds of Rawski landing at the bottom of the Autobahn. Helicopter pilot Andy Hermansky was sitting at Base Camp, twiddling his thumbs, when he got the call. He wouldn't normally be there. The helicopter would normally be parked in Talkeetna. But he had flown a team of scientists up to take some glacial samples and was just waiting for them.Hermansky made a quick stop at 14 Camp to pick up Chris Erickson, a Denali ranger and law enforcement officer who was on the mountain. In the more than ten years they worked together on Denali, the two teamed up on many rescues. They'd become close friends, hanging out even in the off-season and attending each other's birthday parties.The average response time for a rescue helicopter can be several hours. But between the good luck of Rawski falling in full view of High Camp, the helicopter being close by, and the skilled maneuvering of the rescue team, this rescue happened with extraordinary speed — which is very likely why Rawski is alive to talk about it. A ranger waiting to be picked up by a helicopter in Denali National Park. Rangers patrol the mountain between Base Camp and the summit. Helicopter rescues are called only if there's a direct threat to life, limb, or eyesight.Menno Boermans/Getty ImagesThe environment on the upper mountain is inherently dangerous for helicopters, and there wasn't a flat surface close to Rawski to allow for a regular landing. Instead, Hermansky decided to try a high-risk maneuver that's common in snowy mountain terrains.Hovering near Rawski, Hermansky carefully lowered the helicopter so only the front part of the skids were touching the ground, while the back parts remained in the air. The helicopter blades chopped through the air just a few feet from the ground. Hermansky gave Erickson a quick nod, signaling conditions were safe enough to go through with the rescue.With the helicopter in that position, Erickson slowly crawled out onto the skids, careful not to make a sudden weight transfer that would cause Hermansky to lose control, and then onto the ground.Within 30 minutes of Rawski's fall, Erickson was at his side — "frankly shocked," Erickson would tell me later, to find Rawski alive."I fully expected him to be dead," Erickson said. He motioned to a mountain guide — also a friend of his — who had seen the fall from High Camp and trekked over. Together, the two of them did an overhead body press and were able to load Rawski into the helicopter. Erickson carefully climbed back in, and they were off."I've dealt with colder rescues. I've dealt with windier rescues, I've dealt with rescues at a higher elevation," Erickson would say later.But the thing that made this rescue exceptional? Time.'Can't descend safely. Patients in shock.'Up at the top of the Autobahn, time was working against Rawski's climbing companions. Around 16 hours had now passed since Maynard and Wilson set off from 14 Camp, which was a long time to spend at such high altitude. They were exhausted. As Wilson, Maynard, and Lance watched the rescue from atop Denali Pass, they were also in a state of disbelief. Wilson remembers thinking that the helicopter, hovering so far below, almost looked like a toy. "We were just trying to comprehend that they were loading our friend's body onto a helicopter," he said.When Lance proposed calling in another rescue — this one for the three of them — Maynard and Wilson said they considered it. "Of course we were like, 'Yeah, I want a rescue. We just watched someone die. Maybe the slope is too unsafe to down climb,'" Maynard said.But they quickly snapped out of it. "No one's coming for us," she remembers Wilson saying, with so much emotion. "We have to get ourselves down."Lance was set on a rescue. "I paid the climbing fee. I paid for this rescue," he kept saying, according to Maynard and Wilson. (A permit to climb Denali costs $395. The fee goes towards training and maintaining ranger and volunteer patrols on the mountain, providing critical mountaineering information to climbers, and keeping the area clean.) Lance sent a message to a third-party emergency response service, saying that, while none of them were injured, they didn't have the necessary equipment to descend. Rawski had fallen with the pickets. (The park service unofficially maintains pickets on the Autobahn, but climbers are told not to rely on them and be prepared to place their own.)A reply came back, saying he should contact the park service directly. He did that next. "The helicopter cannot come to your location and is not flying any more tonight," the park service replied. "Do you have a rope with you? Your only option tonight is descent." Lance persisted. "Cant decend safely," he wrote. "Patients in shock. Early hypothermia. Cant you land east of pass?"This wasn't true. Neither Maynard and Wilson were in medical shock or hypothermic, and they said they never suggested to Lance that they were. They were getting colder, especially after standing around for so long, and wanted to start descending, but Lance refused. Maynard and Wilson have estimated that they spent a total of three hours in that spot, trying to convince Lance to down climb with them. When they finally said they were leaving, with or without Lance, he agreed to go.From High Camp, guides could see the trio descending and radioed Erickson.Lance's message had in fact gotten the rangers' attention. The park service is explicit that climbers must be self-sufficient and stresses that a rescue should only be requested in the case of a direct threat to life, limb, or eyesight. Even then, a rescue is not guaranteed, as rescuer safety is a top priority. It's not uncommon for the park service to turn down a rescue request.But Lance's message made their situation sound like a true emergency, since medical shock can be fatal. Lance, a radiologist, would likely know that.It was too dangerous to attempt a helicopter rescue at the top of the Autobahn, so Erickson had dispatched a helicopter to drop off supplies for them to set up camp where they were.Unbeknownst to Lance, Maynard, and Wilson, a helicopter was on its way when they finally budged from their location. But since rangers' protocol is that climbers are never told to expect a helicopter — doing so could make a dangerous situation worse, and climbers have died waiting around for a promised rescue — they assumed all they could do was start down climbing.Maynard and Wilson described the two hours the group spent descending the Autobahn essentially as a rescue of Lance. They both said he didn't appear to have a handle on rope skills, and that he kept leaving far too much slack in the lines in between them. Maynard, concerned for their safety, kept shouting at Lance to keep the rope tight.When they finally arrived at High Camp sometime after 10 p.m., Denali guides greeted them with food and camping gear. But the next chapter of their ordeal was just beginning.Maynard and Wilson said they listened, flabbergasted, as Lance told the guides how the two Alaskans had been in serious need of a rescue. But, between their exhaustion and the fact that they still had to share a tent with him that night, they didn't bother correcting him.Jason Lance in the tent with mountain guides who had provided him, Sarah Maynard, and Grant Wilson with food and shelter at High Camp after their ordeal.Grant WilsonThe next day, Erickson met them at 14 Camp and questioned them about what had happened. Maynard and Wilson said they were not in shock or hypothermic on Denali Pass. When Erickson asked Lance about this, Lance — according to Erickson — insisted that as a doctor he would recognize signs of hypothermia before the climbers and that he "did not need to be lectured on hypothermia."When Erickson asked Lance to hand over Rawski's personal items, including his inReach device, Lance retreated into his tent. It would later be alleged that Lance had used this time to delete the original message where he said the group required equipment, but not medical attention. After several requests from Erickson, Lance eventually handed over the device.The three were told they were free to return to the base of the mountain. Maynard and Wilson avoided Lance the rest of the descent.Lance's storyOn November 9 — six months after the climb — Lance was charged with three misdemeanor counts: violating a lawful order of a government employee, interfering with a rescue operation, and making a false report.The prosecutor said Lance's actions displayed a "selfishness and indifference to the scarcity of public safety and rescue resources that is unacceptable anywhere, let alone on the tallest peak in North America."In April, in exchange for pleading guilty to the first count, the other two charges were dropped. Lance was banned from Denali for five years and ordered to pay $10,000 — half to the government, half as a charitable donation to the nonprofit Denali Rescue Volunteers.Appearing in court on the day of Lance's sentencing, Wilson and Erickson both gave extensive testimony about everything that happened that day on Denali — how Lance had pushed ahead, how he'd behaved toward Rawski, despite his fragile state. Even though the charges related to Lance's actions after Rawski's fall, it was clear that Lance's behavior throughout the last leg of their climb was of interest to the court.Finally, it was Lance's turn to address the court. And, naturally, he painted a very different picture of himself than the one the others had presented. He opened by saying the day's events had been "life-changing" – "You know, life-changing for me and, you know, tragic in Adam's case."Lance insisted he always had the group's safety at top of mind. When he separated from the others on the ascent, he said he was just trying to get a good vantage point to wave down another team for help."I had no intention of summiting and ditching the party," he said.After Rawski's fall, and as they tried to collect themselves atop Denali Pass, he said that the three of them, himself included, were experiencing emotional trauma. It reminded him of being in Afghanistan during his 14 years in the military."We would see people come in being shot or witnessing bombings, IED explosions, and whatnot. And it was not uncommon to see people who had witnessed a traumatic event go into psychological shock. And that's clearly what was going on here," he said.His immediate concern was that Rawski had fallen with the pickets, and said that was why he had first radioed for help. He said communicating on the clunky satellite device was like typing into a cell phone from the 1990s. As the hours passed, he said, his concerns about shock and hypothermia were genuine."I had to make a choice, based on what information we had," Lance said, adding that Maynard and Wilson are the same age as his kids. "If my kids were up here with somebody else, what would I have them do? I was reluctant to make that descent until I had exhausted every other means of getting us safely off there."Ultimately, Lance realized the helicopter wasn't coming, and that they could either sit there and freeze to death or make a risky descent. "Make no mistake, that descent was unsafe," he said.When I asked Erickson what he made of Lance's defense, or the idea that his decision-making at that altitude could not be trusted, he didn't buy it. He said rangers work in those conditions everyday, often making high-stakes decisions."We're not superheroes," he said. "We don't acclimatize better or worse than anyone else."As for the charge he pleaded guilty to — violating Erickson's order to hand over the inReach device — Lance said it wasn't clear to him it was an official request and that, either way, he felt he needed it for the remainder of his descent, for safety reasons, even though the device was Rawski's.Lance claimed his interactions with Erickson amounted to a clash of personalities, and that Erickson simply wasn't interested in hearing his thoughts on how the park service could handle things better. "I was tired. I was stressed. And, frankly, I just — I didn't want to really talk to him," Lance said.While Lance stopped short of apologizing, he said he hopes in the future in situations like this he "would have kind of a cooler head."Early morning sunrise on the Alaska Range. Denali's "summit shadow" (left) casting over the Kahiltna and Mt. Foraker (right), North America's sixth tallest peak.Grant WilsonThe aftermathWhen they made it off Denali, Maynard and Wilson visited the hospital in Anchorage. Rawski was unconscious in the ICU and it fell on them to tell his loved ones what happened. Instead of flowers, they left a stick of butter at his bedside — a wink at how Rawski had helped them out early in the climb.Rawski was in a coma for two months. He had broken ribs, collapsed lungs, fractured spinal bones, a broken talus and humerus, and nerve damage in his arm. When he finally emerged from the coma and learned what happened — he says he can remember everything up to about five minutes before the fall — he felt like he was reading about another person. "You're like, 'Oh, what an amateur. They didn't know what they were doing,'" he told me. "'The Adam I know would never do that.'"After seven months in the hospital, he was released in December, but the road to recovery is long.In the months since, his walking has improved substantially, and he can even muster a "very awkward jog." He hopes to get back to being the active, outdoorsy person he was before the fall, but he's not sure what exactly that will look like."I think the most difficult thing was, in the past year, my whole identity was changed," he said, again switching into the third person narrator of his story: "The biggest thing was just sort of accepting that changed identity and trying to pretty much redefine who Adam should be."Maynard and Wilson have also spent the last 14 months working through what went wrong on the mountain that day."I was passionate about guiding before and now, more than ever," Wilson said. "I feel called to be on the mountain… making sure that the same things don't happen that happened to Adam."Maynard went through months of therapy to confront the guilt she felt over not hearing Rawski fall or making sure he was roped up. "Even now, every day I relive it," she said. "It's the exact same moment of clipping myself into the picket at the Autobahn, and then looking over and Adam's gone."Despite the many things she thinks Lance did wrong, she says she can't help but sympathize with him.She chalked up Lance's actions to an "ignorance of climber responsibility and his heightened sense of self importance.""I came across a photo of him in one of the reports that has come out recently and I honestly didn't recognize him without the look of desperation on his face," she said. "He was definitely just trying anything and everything to find the magic words to get off the mountain."Rawski's fall was just one of about 20 search and rescue efforts the park service completed on Denali in the 2021 season, mostly for frostbite or extreme altitude sickness. Two incidents were fatal. Chenoweth said the outdoor climbing boom has resulted in a noticeable shift in the types of people arriving at Denali — more summit chasers, fewer wilderness seekers. It's easy for climbers to forget that in remote corners of the earth like Denali, more often than not, you're on your own. Though Denali is an extreme example, it highlights a disconnect that often exists when humans flee from the comforts and safety of modern society and head outdoors. The places we visit are still wild. And while that doesn't mean we shouldn't go, we should treat them with the reverence they deserve when we do.Climbers typically fly to Alaska on a commercial airplane. They take a shuttle to a hotel and go grocery shopping for supplies. They hop on a smaller plane and get dropped off in the wilderness. Even when they arrive, there are other climbers on the glacier, fostering a deceiving sense of safety in numbers. Better and cheaper satellite communications devices have also helped create a "false sense of security."Most climbers taking on Denali wouldn't be able to get back to civilization if the plane never came back to pick them up, Chenoweth said."They lose this sense of scale and I think people don't quite recognize how deep in the wilderness they are."Read the original article on Business Insider.....»»

Category: topSource: businessinsiderJul 22nd, 2022

A wave of layoffs is sweeping the US. Here are firms that have announced cuts so far, from Coinbase to Tesla.

Peloton laid off nearly 3,000 employees, Better.com slashed 4,000. Now, job cuts are coming for real estate brokerages and crypto firms. Compass A wave of layoffs has swept across American business in 2022. The cuts stem from slower business growth, paired with rising labor costs. The layoffs span across industries, from mortgage lending to digital-payment processing. Layoffs are sweeping across American businesses in 2022.Peloton has already laid off thousands of employees this year. Online car dealer Carvana slashed 12% of its workforce. Even traditionally layoff-resistant companies like Netflix are making cuts, and now real estate brokerages are cutting hundreds of jobs.The reason, broadly, is twofold: business growth is slowing, while labor costs are increasing. The combination is causing American companies across a variety of industries to slash headcount.Here are some of the most notable examples so far: Tesla: 229 employeesTesla CEO Elon Musk.Yasin Ozturk/Getty ImagesTesla laid off 229 people in late June, according to WARN filings. The layoffs primarily impacted employees in its Autopilot division. Tesla also closed an entire office in San Mateo, California, and moved some of the office's workers to another location, Bloomberg reported.The cuts came after CEO Elon Musk said in early June that he wanted to cut jobs and that he had a "super bad feeling" about the economy.Rivian: Potentially around 5% of its workforceRivian CEO RJ Scaringe and a Rivian truck.Kevin Dietsch/Getty ImagesElectric car-maker Rivian is planning hundreds of layoffs after growing too quickly, Bloomberg reported. Rivian has more than 14,000 employees, and the layoffs could result in about 5% of the workforce being cut. While these cuts are still in the planning stages, Bloomberg reports that they will mostly likely focus on nonmanufacturing positions. Gopuff: 10% of its staffA delivery driver is shown picking up a Gopuff bagHannah YoonDelivery startup Gopuff will lay off 10% of its staff, according to an internal email obtained by Insider."As a business, during these uncertain times, we owe it to our investors and customers to accelerate our timeline to profitability. As such, we have decided to confront the current moment by making difficult decisions about our core business," cofounders Rafael Ilishayev and Yakir Gola wrote in an email to employees. The latest round of layoffs come after Gopuff cut 3% of its workforce, or more than 400 workers, in March. Re/Max: 17% of its workforceAn "Open House" sign is seen outside of a house for sale.Tim Boyle/Getty ImagesReal estate firm Re/Max will lay off 17% of its workforce by the end of the year, the company announced.The cuts will primarily affect employees in the technology division, the result of a "shift in strategy" as it partners with a third-party technology vendor, Re/Max said.  Microsoft: Less than 1% of employeesMicrosoft CEO Satya Nadella.Stephen Brashear/Getty ImagesMicrosoft announced in July that it was cutting a "small number" of employees across several groups, including consulting and customer and partner solutions, a company spokesperson told Bloomberg.JPMorgan: Over 1,000 workersAmr Alfiky/ReutersIn June, JPMorgan confirmed that it would lay off over 1,000 employees in its home-lending department. The cuts came amid slowing demand for mortgages and refinances. "Our staffing decision this week was a result of cyclical changes in the mortgage market," a JPMorgan spokesperson said in a statement to Insider at the time. "We were able to proactively move many impacted employees to new roles within the firm and are working to help the remaining affected employees find new employment within Chase and externally."Compass: 450 employeesA house for sale marketed by the real-estate brokerage Compass.Smith Collection/Gado/Getty ImagesReal estate brokerage Compass will lay off about 10% of its workforce, or 450 employees, the company announced in a regulatory filing. The cuts are part of a series of new cost-cutting measures that include pausing expansion, consolidating offices, and halting mergers and acquisitions, Bloomberg reported.Redfin: About 6% of total employeesRedfin CEO Glenn Kelman.RedfinReal estate brokerage Redfin is also conducting layoffs, a sign that the hot pandemic-era housing market is starting to cool off due to rising interest rates.CEO Glenn Kelman wrote in a blog post that about 6% of the company's total workforce will be laid off, which equates to 470 employees, according to a regulatory filing. "I said we wouldn't lay people off unless we had to. We have to," Kelman wrote. "Mortgage rates increased faster than at any point in history. We could be facing years, not months, of fewer home sales, and Redfin still plans to thrive."Coinbase: About 18% of its workforceCoinbase CEO Brian Armstrong.Patrick T. Fallon / Getty ImagesCrypto exchange platform Coinbase announced it would reduce its staff by 18% "to ensure we stay healthy during this economic downturn." That same day, over 1,000 employees were notified they'd been laid off when they were unable to log into their work email accounts — the company said in a regulatory filing that its workforce will be reduced to about 5,000 employees by the end of the second quarter of 2022.The layoffs come amid a crypto crash that has resulted in traders losing roughly $2 trillion since November, NBC News reported.Coinbase CEO Brian Armstrong wrote in a blog post that the layoffs are the result of the company growing too quickly, changing economic conditions, and the need to keep costs low during a downturn. Carvana: About 2,500 peopleErnest Garcia III, CEO of online car dealer Carvana.Brendan McDermid/ReutersCarvana plans to cut 12% of its staff, or about 2,500 employees, the online car dealer announced in a filing with the Securities and Exchange Commission. In an email to employees viewed by The Wall Street Journal, CEO Ernest Garcia III said that the company has overestimated growth amid a challenging time in the auto industry.By cutting staff, Carvana aims to find "a better balance between its sales volumes and staffing levels," the company said in the SEC filing. Carvana was founded by Garcia in 2012 as a subsidiary of his father's company, DriveTime Automotive. Carvana's service allows customers buy cars online, which are delivered to customers' doors or picked up at a Carvana vending machine. Both father and son saw their fortunes skyrocket during the pandemic as demand for used cars hit new highs. Carvana said in its SEC filing that executives will forego their salaries for the rest of 2022 to help cover employee severance pay.Reef: About 750 peopleEmployees unload at a Reef location.Pat Greenhouse/The Boston Globe via Getty ImagesGhost-kitchens company Reef Technology will cut 5% of its global workforce.The SoftBank-backed startup is laying off about 750 employees as it works toward profitability amid a challenging economic environment, CEO Ari Ojalvo wrote in a memo to staff obtained by Insider.The layoffs come months after Reef said it would pause operations on some of its "underperforming" locations. Current and former employees told Insider in recent weeks that Reef had closed one-third of its kitchens and focused on its partnerships with major chains like Wendy's and Buffalo Wild Wings.Better: About 4,000 peopleVishal Garg is the founder and CEO of Better.com. He was responsible for laying off hundreds of people right before the holidays in 2021.Better.comStarting in late 2021 and continuing through the first several months of 2022, mortgage startup Better.com laid off approximately 4,000 people.The first wave started right before the holiday season in 2021, when CEO Vishal Garg laid off "hundreds" of people.Garg told employees during a Zoom call that the company, "lost $100 million last quarter," which he said, "was my mistake." He then said the layoffs shouldn't have happened right before the holiday, but, "three months ago." Better followed up with another 3,000 layoffs in March, and is now accepting voluntary layoffs in some departments.Noom: 495 peopleSaeju Jeong, cofounder & CEO of Noom.Sam Barnes/Sportsfile for Web Summit via Getty ImagesThe weight-loss app maker Noom recently laid off hundreds of coaches, Insider reported in April — part of a bigger-picture pivot for the company toward more video-based coaching.The company, through its app of the same name, pairs dieting with personal coaches to achieve weight loss for users. Interactions with those coaches were often through text, which users critiqued as "canned advice." Some coaches told Insider they were responsible for giving advice to hundreds of users at any given time.Going forward, Noom is focusing on offering users scheduled video calls with coaches.Peloton: Over 2,800 peoplePeloton makes a popular treadmill with a subscription service.Peloton / YoutubeIn February, Peloton fired over 2,800 people — including 20% of its corporate workforce — because of an ongoing downturn in the company's business.Peloton faced a major setback after home-fitness products spiked in popularity during the height of the coronavirus pandemic in 2020.With gyms reopening as vaccination rates increased, Peloton's business took a huge hit: The company's market value has dropped from $50 billion last year to around $4.4 billion as of early June 2022.Thrasio: Up to 20% of staff, sources sayThrasio founder and CEO Carlos Cashman.ThrasioThrasio, the company known for creating the Amazon aggregator market, is laying off an unknown number of people. Additionally, the company's CEO and founder, Carlos Cashman, is stepping down from leadership. Amazon aggregators work by identifying product leaders on Amazon, then buying the companies that make those products and consolidating them under one umbrella company. In a memo sent to employees, Thrasio leadership said the layoffs were due to the company's "hypergrowth" in acquiring companies. "At times we have been acquiring a new company almost every week," the memo said, "and running hard to build the infrastructure to support this growth."Two sources told Insider the layoffs could impact up to 20% of Thrasio's staff.Robinhood: More than 300 peopleRobinhood CEO Vlad Tenev.AP/David MartinDuring the pandemic, so-called "meme stocks" from GameStop and AMC exploded. Much of that explosion in stock value was driven by accessible trading platforms like Robinhood.And while new users piled in during the pandemic, Robinhood hired rapidly. Between 2020 and 2021, Robinhood staff grew dramatically: from 700 people to around 3,800, according to CEO Vlad Tenev. But that growth was apparently too much and too fast, and Robinhood was forced to slash headcount by 9% — more than 300 people altogether."This rapid headcount growth has led to some duplicate roles and job functions, and more layers and complexity than are optimal," Tenev said in April. "After carefully considering all these factors, we determined that making these reductions to Robinhood's staff is the right decision to improve efficiency, increase our velocity, and ensure that we are responsive to the changing needs of our customers."Wells Fargo: Unknown number of people in mortgage lendingREUTERS/ Shannon StapletonAs mortgage revenues fell at Wells Fargo in the first quarter of 2022, the company began laying off employees in mortgage-related positions, Insider reported in late April.Loan processors and underwriters, among other positions, were reportedly affected by the layoffs. Wells Fargo representatives declined to say how many people were impacted by the cuts, but did confirm the layoffs in an emailed statement."We are carrying out displacements in a transparent and thoughtful manner and providing assistance, such as severance and career counseling. Additionally, we are committed to retaining as many employees as possible and will do everything we can to help them identify other opportunities within Wells Fargo," a Wells Fargo spokesperson said in a statement provided to InsiderCanopy Growth: 250 peopleMaster Grower Ryan Douglas smells a marijuana plant in Smith's Falls, Ontario, on February 20, 2014.Blair Gable/ReutersOne of the world's largest publicly traded cannabis companies, Canopy Growth, slashed 250 jobs in Canada earlier this year as it faces increasing competition in the burgeoning cannabis market.Layoffs are among several cost-cutting measures that Canopy Growth is taking "to ensure the size and scale of our operations reflect current market realities and will support the long-term sustainability of our company," Canopy Growth CEO David Klein said in a statement.Canopy's stock has suffered as a result: It was trading around $6 a share as of early May, down from $9.30 in early January.Food52: About 20 peopleCofounder and CEO of Food52, Amanda Hesser.Food52After raising $80 million from investing firm The Chernin Group last December, the content-creation team at food publication and retailer Food52 was suddenly laid off in early April.About 20 of the company's 200 employees were let go in the layoffs, which came as a major surprise to those affected."Everyone on the team and my immediate boss were gut-punched," one of these employees told Insider. "We all had gotten raises and bonuses just a month prior."Two of the employees who were laid off said Food52 executives told them the company was "pivoting to commerce," and away from the type of content that was created by the affected employees: recipes and other instructional cooking content.Cameo: 87 peopleCameo operates a service where users can pay celebrities to record personalized audio or video clips.CameoCameo is laying off 87 people, CEO Steven Galanis confirmed in early May."Today has been a brutal day at the office," he wrote on Twitter. "I made the painful decision to let go of 87 beloved members of the Cameo Fameo."Through Cameo, people pay celebrities to make personalized audio and video recordings.Galanis described the layoffs as a "course correction" in a statement to Variety. The cuts follow a staffing boom during the pandemic — from around 100 employees before 2020 to about 400 in 2022.  PayPal: 83 peoplePayPal headquarters in San Jose, California, on February 2, 2022.Justin Sullivan/Getty ImagesPayPal quietly laid off 83 people, according to a Securities and Exchange Commission filing spotted by The Information.The company employs more than 30,000 people worldwide, over a third of whom are based in the United States. The cuts appear to be tied to the company downsizing its presence in the San Francisco Bay Area, according to TechCrunch.Gorillas: 'Nearly 300' peopleGorillas CEO Kagan Sumer.GorillasGerman grocery-delivery company Gorillas announced layoffs of "nearly 300" people around the world in May 2022. The layoffs, the company said, are part of a larger "shift to long-term profitability," which means trimming staff as Gorillas focuses on its five "core" markets: Germany, France, the Netherlands, the UK and the US.Impacted employees, who were mostly corporate staff, were shocked by the sudden layoffs."It's not a secret that the company hasn't been doing well, but I didn't expect to wake up and lose my job," a Berlin-based employee who was laid off by Gorillas told Insider. "My managers weren't even aware or consulted. It's not the laying off that hurts, it's the way it's been done."Netflix: About 150 peopleNetflix Co-CEO Reed Hastings.Getty Images LatamNetflix laid off around 150 people in mid-May, its second round of layoffs in 2022.The latest layoffs, which impact "mostly US-based" staff, are due to "slowing revenue growth," according to a statement from a Netflix spokesperson. "These changes are primarily driven by business needs rather than individual performance," the statement said, "which makes them especially tough." Earlier this year, Netflix revealed that it had lost around 200,000 subscribers to its video-streaming service in Q1 — its first subscriber loss in over a decade. And executives warned at the time that further subscriber losses were predicted for the future. They blamed "revenue growth headwinds" in a report to shareholders and said that heavy Netflix use during the height of the COVID-19 pandemic had "obscured the picture until recently."These are not the first layoffs to hit the streaming incumbent this year.After assertively recruiting high-profile writers and editors for its new fan site, Tudum, last year, Netflix laid off nearly a dozen contracted staffers from the editorial project in late April, in addition to about 25 employees in its marketing department.Outside, ClickUp, Zulily, and Latch all laid off peopleA Zulily logo on display at QVC Studio Park in West Chester, Pennsylvania, in 2018.Brendan McDermid/ReutersLayoffs aren't only impacting major corporations — a variety of smaller and lesser known companies are also firing people to save money:Online retailer Zulily laid off "fewer than 100" members of its corporate staff, Geekwire reported earlier this month. "Last week, we announced to our team members some hard choices we have made for our organization to bring our operating expenses in line with our revenue and position our business for future growth," a spokesperson said in a statement.Outside, the magazine conglomerate and publication, laid off 66 people as part of a larger restructuring to make the company a digital-first publishing house, Aspen Public Radio reported this week.ClickUp, a software company that makes a productivity app, cut 7% of its staff, "to ensure ClickUp's profitability and efficiency in the future," the company told Protocol. It's unclear how many people were impacted, but estimates put the company's total staff at over 500.Latch, a company that makes a smart lock, laid off about 130 people — 28% of the company's total staff, it said. The layoffs are intended to, "better align staffing and expense levels with current sales volumes and the current macroeconomic environment."Ben Gilbert contributed to an earlier version of this article.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderJul 12th, 2022

A wave of layoffs is sweeping the US. Here are firms that have announced cuts so far, from Coinbase to Re/Max.

Peloton laid off nearly 3,000 employees, Better.com slashed 4,000. Now, job cuts are coming for real estate brokerages and crypto firms. Compass A wave of layoffs has swept across American business in 2022. The cuts stem from slower business growth, paired with rising labor costs. The layoffs span across industries, from mortgage lending to digital-payment processing. Layoffs are sweeping across American businesses in 2022.Peloton has already laid off thousands of employees this year. Online car dealer Carvana slashed 12% of its workforce. Even traditionally layoff-resistant companies like Netflix are making cuts, and now real estate brokerages are cutting hundreds of jobs.The reason, broadly, is twofold: business growth is slowing, while labor costs are increasing. The combination is causing American companies across a variety of industries to slash headcount.Here are some of the most notable examples so far: Rivian: Potentially around 5% of its workforceRivian CEO RJ Scaringe and a Rivian truck.Kevin Dietsch/Getty ImagesElectric car-maker Rivian is planning hundreds of layoffs after growing too quickly, Bloomberg reported. Rivian has more than 14,000 employees, and the layoffs could result in about 5% of the workforce being cut. While these cuts are still in the planning stages, Bloomberg reports that they will mostly likely focus on nonmanufacturing positions. Gopuff: 10% of its staffA delivery driver is shown picking up a Gopuff bagHannah YoonDelivery startup Gopuff will lay off 10% of its staff, according to an internal email obtained by Insider."As a business, during these uncertain times, we owe it to our investors and customers to accelerate our timeline to profitability. As such, we have decided to confront the current moment by making difficult decisions about our core business," cofounders Rafael Ilishayev and Yakir Gola wrote in an email to employees. The latest round of layoffs come after Gopuff cut 3% of its workforce, or more than 400 workers, in March. Re/Max: 17% of its workforceAn "Open House" sign is seen outside of a house for sale.Tim Boyle/Getty ImagesReal estate firm Re/Max will lay off 17% of its workforce by the end of the year, the company announced.The cuts will primarily affect employees in the technology division, the result of a "shift in strategy" as it partners with a third-party technology vendor, Re/Max said.  Microsoft: Less than 1% of employeesMicrosoft CEO Satya Nadella.Stephen Brashear/Getty ImagesMicrosoft announced in July that it was cutting a "small number" of employees across several groups, including consulting and customer and partner solutions, a company spokesperson told Bloomberg.JPMorgan: Over 1,000 workersAmr Alfiky/ReutersIn June, JPMorgan confirmed that it would lay off over 1,000 employees in its home-lending department. The cuts came amid slowing demand for mortgages and refinances. "Our staffing decision this week was a result of cyclical changes in the mortgage market," a JPMorgan spokesperson said in a statement to Insider at the time. "We were able to proactively move many impacted employees to new roles within the firm and are working to help the remaining affected employees find new employment within Chase and externally."Compass: 450 employeesA house for sale marketed by the real-estate brokerage Compass.Smith Collection/Gado/Getty ImagesReal estate brokerage Compass will lay off about 10% of its workforce, or 450 employees, the company announced in a regulatory filing. The cuts are part of a series of new cost-cutting measures that include pausing expansion, consolidating offices, and halting mergers and acquisitions, Bloomberg reported.Redfin: About 6% of total employeesRedfin CEO Glenn Kelman.RedfinReal estate brokerage Redfin is also conducting layoffs, a sign that the hot pandemic-era housing market is starting to cool off due to rising interest rates.CEO Glenn Kelman wrote in a blog post that about 6% of the company's total workforce will be laid off, which equates to 470 employees, according to a regulatory filing. "I said we wouldn't lay people off unless we had to. We have to," Kelman wrote. "Mortgage rates increased faster than at any point in history. We could be facing years, not months, of fewer home sales, and Redfin still plans to thrive."Coinbase: About 18% of its workforceCoinbase CEO Brian Armstrong.Patrick T. Fallon / Getty ImagesCrypto exchange platform Coinbase announced it would reduce its staff by 18% "to ensure we stay healthy during this economic downturn." That same day, over 1,000 employees were notified they'd been laid off when they were unable to log into their work email accounts — the company said in a regulatory filing that its workforce will be reduced to about 5,000 employees by the end of the second quarter of 2022.The layoffs come amid a crypto crash that has resulted in traders losing roughly $2 trillion since November, NBC News reported.Coinbase CEO Brian Armstrong wrote in a blog post that the layoffs are the result of the company growing too quickly, changing economic conditions, and the need to keep costs low during a downturn. Tesla: Hiring freeze, and potential layoffs reportedly coming to 10% of staffTesla CEO Elon Musk.Yasin Ozturk/Getty ImagesThough Tesla has yet to conduct any mass layoffs, an email reportedly from CEO Elon Musk to his executive staff spelled out his intentions to cut 10% of its workforce — approximately 10,000 people. Reuters obtained an email reportedly from Musk titled "pause all hiring worldwide." In the email, Musk said he has a "super bad feeling" about the economy and is attempting to get ahead of potential problems by enacting these two measures, according to Reuters.Tesla has yet to confirm the report. Musk later seemed to retract some of what he said in the email, tweeting that total headcount at the company would increase.Carvana: About 2,500 peopleErnest Garcia III, CEO of online car dealer Carvana.Brendan McDermid/ReutersCarvana plans to cut 12% of its staff, or about 2,500 employees, the online car dealer announced in a filing with the Securities and Exchange Commission. In an email to employees viewed by The Wall Street Journal, CEO Ernest Garcia III said that the company has overestimated growth amid a challenging time in the auto industry.By cutting staff, Carvana aims to find "a better balance between its sales volumes and staffing levels," the company said in the SEC filing. Carvana was founded by Garcia in 2012 as a subsidiary of his father's company, DriveTime Automotive. Carvana's service allows customers buy cars online, which are delivered to customers' doors or picked up at a Carvana vending machine. Both father and son saw their fortunes skyrocket during the pandemic as demand for used cars hit new highs. Carvana said in its SEC filing that executives will forego their salaries for the rest of 2022 to help cover employee severance pay.Reef: About 750 peopleEmployees unload at a Reef location.Pat Greenhouse/The Boston Globe via Getty ImagesGhost-kitchens company Reef Technology will cut 5% of its global workforce.The SoftBank-backed startup is laying off about 750 employees as it works toward profitability amid a challenging economic environment, CEO Ari Ojalvo wrote in a memo to staff obtained by Insider.The layoffs come months after Reef said it would pause operations on some of its "underperforming" locations. Current and former employees told Insider in recent weeks that Reef had closed one-third of its kitchens and focused on its partnerships with major chains like Wendy's and Buffalo Wild Wings.Better: About 4,000 peopleVishal Garg is the founder and CEO of Better.com. He was responsible for laying off hundreds of people right before the holidays in 2021.Better.comStarting in late 2021 and continuing through the first several months of 2022, mortgage startup Better.com laid off approximately 4,000 people.The first wave started right before the holiday season in 2021, when CEO Vishal Garg laid off "hundreds" of people.Garg told employees during a Zoom call that the company, "lost $100 million last quarter," which he said, "was my mistake." He then said the layoffs shouldn't have happened right before the holiday, but, "three months ago." Better followed up with another 3,000 layoffs in March, and is now accepting voluntary layoffs in some departments.Noom: 495 peopleSaeju Jeong, cofounder & CEO of Noom.Sam Barnes/Sportsfile for Web Summit via Getty ImagesThe weight-loss app maker Noom recently laid off hundreds of coaches, Insider reported in April — part of a bigger-picture pivot for the company toward more video-based coaching.The company, through its app of the same name, pairs dieting with personal coaches to achieve weight loss for users. Interactions with those coaches were often through text, which users critiqued as "canned advice." Some coaches told Insider they were responsible for giving advice to hundreds of users at any given time.Going forward, Noom is focusing on offering users scheduled video calls with coaches.Peloton: Over 2,800 peoplePeloton makes a popular treadmill with a subscription service.Peloton / YoutubeIn February, Peloton fired over 2,800 people — including 20% of its corporate workforce — because of an ongoing downturn in the company's business.Peloton faced a major setback after home-fitness products spiked in popularity during the height of the coronavirus pandemic in 2020.With gyms reopening as vaccination rates increased, Peloton's business took a huge hit: The company's market value has dropped from $50 billion last year to around $4.4 billion as of early June 2022.Thrasio: Up to 20% of staff, sources sayThrasio founder and CEO Carlos Cashman.ThrasioThrasio, the company known for creating the Amazon aggregator market, is laying off an unknown number of people. Additionally, the company's CEO and founder, Carlos Cashman, is stepping down from leadership. Amazon aggregators work by identifying product leaders on Amazon, then buying the companies that make those products and consolidating them under one umbrella company. In a memo sent to employees, Thrasio leadership said the layoffs were due to the company's "hypergrowth" in acquiring companies. "At times we have been acquiring a new company almost every week," the memo said, "and running hard to build the infrastructure to support this growth."Two sources told Insider the layoffs could impact up to 20% of Thrasio's staff.Robinhood: More than 300 peopleRobinhood CEO Vlad Tenev.AP/David MartinDuring the pandemic, so-called "meme stocks" from GameStop and AMC exploded. Much of that explosion in stock value was driven by accessible trading platforms like Robinhood.And while new users piled in during the pandemic, Robinhood hired rapidly. Between 2020 and 2021, Robinhood staff grew dramatically: from 700 people to around 3,800, according to CEO Vlad Tenev. But that growth was apparently too much and too fast, and Robinhood was forced to slash headcount by 9% — more than 300 people altogether."This rapid headcount growth has led to some duplicate roles and job functions, and more layers and complexity than are optimal," Tenev said in April. "After carefully considering all these factors, we determined that making these reductions to Robinhood's staff is the right decision to improve efficiency, increase our velocity, and ensure that we are responsive to the changing needs of our customers."Wells Fargo: Unknown number of people in mortgage lendingREUTERS/ Shannon StapletonAs mortgage revenues fell at Wells Fargo in the first quarter of 2022, the company began laying off employees in mortgage-related positions, Insider reported in late April.Loan processors and underwriters, among other positions, were reportedly affected by the layoffs. Wells Fargo representatives declined to say how many people were impacted by the cuts, but did confirm the layoffs in an emailed statement."We are carrying out displacements in a transparent and thoughtful manner and providing assistance, such as severance and career counseling. Additionally, we are committed to retaining as many employees as possible and will do everything we can to help them identify other opportunities within Wells Fargo," a Wells Fargo spokesperson said in a statement provided to InsiderCanopy Growth: 250 peopleMaster Grower Ryan Douglas smells a marijuana plant in Smith's Falls, Ontario, on February 20, 2014.Blair Gable/ReutersOne of the world's largest publicly traded cannabis companies, Canopy Growth, slashed 250 jobs in Canada earlier this year as it faces increasing competition in the burgeoning cannabis market.Layoffs are among several cost-cutting measures that Canopy Growth is taking "to ensure the size and scale of our operations reflect current market realities and will support the long-term sustainability of our company," Canopy Growth CEO David Klein said in a statement.Canopy's stock has suffered as a result: It was trading around $6 a share as of early May, down from $9.30 in early January.Food52: About 20 peopleCofounder and CEO of Food52, Amanda Hesser.Food52After raising $80 million from investing firm The Chernin Group last December, the content-creation team at food publication and retailer Food52 was suddenly laid off in early April.About 20 of the company's 200 employees were let go in the layoffs, which came as a major surprise to those affected."Everyone on the team and my immediate boss were gut-punched," one of these employees told Insider. "We all had gotten raises and bonuses just a month prior."Two of the employees who were laid off said Food52 executives told them the company was "pivoting to commerce," and away from the type of content that was created by the affected employees: recipes and other instructional cooking content.Cameo: 87 peopleCameo operates a service where users can pay celebrities to record personalized audio or video clips.CameoCameo is laying off 87 people, CEO Steven Galanis confirmed in early May."Today has been a brutal day at the office," he wrote on Twitter. "I made the painful decision to let go of 87 beloved members of the Cameo Fameo."Through Cameo, people pay celebrities to make personalized audio and video recordings.Galanis described the layoffs as a "course correction" in a statement to Variety. The cuts follow a staffing boom during the pandemic — from around 100 employees before 2020 to about 400 in 2022.  PayPal: 83 peoplePayPal headquarters in San Jose, California, on February 2, 2022.Justin Sullivan/Getty ImagesPayPal quietly laid off 83 people, according to a Securities and Exchange Commission filing spotted by The Information.The company employs more than 30,000 people worldwide, over a third of whom are based in the United States. The cuts appear to be tied to the company downsizing its presence in the San Francisco Bay Area, according to TechCrunch.Gorillas: 'Nearly 300' peopleGorillas CEO Kagan Sumer.GorillasGerman grocery-delivery company Gorillas announced layoffs of "nearly 300" people around the world in May 2022. The layoffs, the company said, are part of a larger "shift to long-term profitability," which means trimming staff as Gorillas focuses on its five "core" markets: Germany, France, the Netherlands, the UK and the US.Impacted employees, who were mostly corporate staff, were shocked by the sudden layoffs."It's not a secret that the company hasn't been doing well, but I didn't expect to wake up and lose my job," a Berlin-based employee who was laid off by Gorillas told Insider. "My managers weren't even aware or consulted. It's not the laying off that hurts, it's the way it's been done."Netflix: About 150 peopleNetflix Co-CEO Reed Hastings.Getty Images LatamNetflix laid off around 150 people in mid-May, its second round of layoffs in 2022.The latest layoffs, which impact "mostly US-based" staff, are due to "slowing revenue growth," according to a statement from a Netflix spokesperson. "These changes are primarily driven by business needs rather than individual performance," the statement said, "which makes them especially tough." Earlier this year, Netflix revealed that it had lost around 200,000 subscribers to its video-streaming service in Q1 — its first subscriber loss in over a decade. And executives warned at the time that further subscriber losses were predicted for the future. They blamed "revenue growth headwinds" in a report to shareholders and said that heavy Netflix use during the height of the COVID-19 pandemic had "obscured the picture until recently."These are not the first layoffs to hit the streaming incumbent this year.After assertively recruiting high-profile writers and editors for its new fan site, Tudum, last year, Netflix laid off nearly a dozen contracted staffers from the editorial project in late April, in addition to about 25 employees in its marketing department.Outside, ClickUp, Zulily, and Latch all laid off peopleA Zulily logo on display at QVC Studio Park in West Chester, Pennsylvania, in 2018.Brendan McDermid/ReutersLayoffs aren't only impacting major corporations — a variety of smaller and lesser known companies are also firing people to save money:Online retailer Zulily laid off "fewer than 100" members of its corporate staff, Geekwire reported earlier this month. "Last week, we announced to our team members some hard choices we have made for our organization to bring our operating expenses in line with our revenue and position our business for future growth," a spokesperson said in a statement.Outside, the magazine conglomerate and publication, laid off 66 people as part of a larger restructuring to make the company a digital-first publishing house, Aspen Public Radio reported this week.ClickUp, a software company that makes a productivity app, cut 7% of its staff, "to ensure ClickUp's profitability and efficiency in the future," the company told Protocol. It's unclear how many people were impacted, but estimates put the company's total staff at over 500.Latch, a company that makes a smart lock, laid off about 130 people — 28% of the company's total staff, it said. The layoffs are intended to, "better align staffing and expense levels with current sales volumes and the current macroeconomic environment."Ben Gilbert contributed to an earlier version of this article.Read the original article on Business Insider.....»»

Category: dealsSource: nytJul 12th, 2022

A wave of layoffs is sweeping the US. Here are firms that have announced cuts so far, from Compass to Coinbase.

Peloton laid off nearly 3,000 employees, Better.com slashed 4,000. Now, job cuts are coming for real estate brokerages and crypto firms. Compass A wave of layoffs has swept across American business in the first half of 2022. The cuts stem from slower business growth, paired with rising labor costs. The layoffs span across industries, from mortgage lending to digital-payment processing. Layoffs are sweeping across American businesses in the first half of 2022.Peloton has already laid off thousands of employees this year. Online car dealer Carvana slashed 12% of its workforce. Even traditionally layoff-resistant companies like Netflix are making cuts, and now real estate brokerages are cutting hundreds of jobs.The reason, broadly, is twofold: Business growth is slowing, while labor costs are increasing. The combination is causing American companies across a variety of industries to slash headcount.Here are some of the most notable examples so far: Compass: 450 employeesA house for sale marketed by the real-estate brokerage Compass.Smith Collection/Gado/Getty ImagesReal estate brokerage Compass will lay off about 10% of its workforce, or 450 employees, the company announced in a regulatory filing. The cuts are part of a series of new cost-cutting measures that include pausing expansion, consolidating offices, and halting merger-and-acquisitions, Bloomberg reported.Redfin: About 6% of total employeesRedfin CEO Glenn Kelman.RedfinReal estate brokerage Redfin is also conducting layoffs, a sign that the hot pandemic-era housing market is starting to cool off due to rising interest rates.CEO Glenn Kelman wrote in a blog post that about 6% of the company's total workforce will be laid off, which equates to 470 employees, according to a regulatory filing. "I said we wouldn't lay people off unless we had to. We have to," Kelman wrote. "Mortgage rates increased faster than at any point in history. We could be facing years, not months, of fewer home sales, and Redfin still plans to thrive."Coinbase: About 18% of its workforceCoinbase CEO Brian Armstrong.Patrick T. Fallon / Getty ImagesCrypto exchange platform Coinbase announced it would reduce its staff by 18% "to ensure we stay healthy during this economic downturn." That same day, over 1,000 employees were notified they'd been laid off when they were unable to log into their work email accounts — the company said in a regulatory filing that its workforce will be reduced to about 5,000 employees by the end of the second quarter of 2022.The layoffs come amid a crypto crash that has resulted in traders losing roughly $2 trillion since November, NBC News reported.Coinbase CEO Brian Armstrong wrote in a blog post that the layoffs are the result of the company growing too quickly, changing economic conditions, and the need to keep costs low during a downturn. Tesla: Hiring freeze, and potential layoffs reportedly coming to 10% of staffTesla CEO Elon Musk.Yasin Ozturk/Getty ImagesThough Tesla has yet to conduct any mass layoffs, an email reportedly from CEO Elon Musk to his executive staff spelled out his intentions to cut 10% of its workforce — approximately 10,000 people. Reuters obtained an email reportedly from Musk titled "pause all hiring worldwide." In the email, Musk said he has a "super bad feeling" about the economy and is attempting to get ahead of potential problems by enacting these two measures, according to Reuters.Tesla has yet to confirm the report. Musk later seemed to retract some of what he said in the email, tweeting that total headcount at the company would increase.Carvana: About 2,500 peopleErnest Garcia III, CEO of online car dealer Carvana.Brendan McDermid/ReutersCarvana plans to cut 12% of its staff, or about 2,500 employees, the online car dealer announced in a filing with the Securities and Exchange Commission. In an email to employees viewed by The Wall Street Journal, CEO Ernest Garcia III said that the company has overestimated growth amid a challenging time in the auto industry.By cutting staff, Carvana aims to find "a better balance between its sales volumes and staffing levels," the company said in the SEC filing. Carvana was founded by Garcia in 2012 as a subsidiary of his father's company, DriveTime Automotive. Carvana's service allows customers buy cars online, which are delivered to customers' doors or picked up at a Carvana vending machine. Both father and son saw their fortunes skyrocket during the pandemic as demand for used cars hit new highs. Carvana said in its SEC filing that executives will forego their salaries for the rest of 2022 to help cover employee severance pay.Reef: About 750 peopleEmployees unload at a Reef location.Pat Greenhouse/The Boston Globe via Getty ImagesGhost-kitchens company Reef Technology will cut 5% of its global workforce.The SoftBank-backed startup is laying off about 750 employees as it works toward profitability amid a challenging economic environment, CEO Ari Ojalvo wrote in a memo to staff obtained by Insider.The layoffs come months after Reef said it would pause operations on some of its "underperforming" locations. Current and former employees told Insider in recent weeks that Reef had closed one-third of its kitchens and focused on its partnerships with major chains like Wendy's and Buffalo Wild Wings.Gopuff: More than 400 peopleA delivery driver is shown picking up a Gopuff bagHannah YoonGopuff told staff in March that it would cut 3% of its workforce, or more than 400 workers, Insider reported.The cuts impacted both corporate staff and workers at Gopuff's warehouses, as the company works to enter its "next chapter — with a new global business model and corresponding investment priorities," cofounders Rafael Ilishayev and Yakir Gola wrote in an email to employees. Gopuff was founded in 2013 in Philadelphia with the goal of ultrafast delivery of convenience-store items. Better: About 4,000 peopleVishal Garg is the founder and CEO of Better.com. He was responsible for laying off hundreds of people right before the holidays in 2021.Better.comStarting in late 2021 and continuing through the first several months of 2022, mortgage startup Better.com laid off approximately 4,000 people.The first wave started right before the holiday season in 2021, when CEO Vishal Garg laid off "hundreds" of people.Garg told employees during a Zoom call that the company, "lost $100 million last quarter," which he said, "was my mistake." He then said the layoffs shouldn't have happened right before the holiday, but, "three months ago." Better followed up with another 3,000 layoffs in March, and is now accepting voluntary layoffs in some departments.Noom: 495 peopleSaeju Jeong, cofounder & CEO of Noom.Sam Barnes/Sportsfile for Web Summit via Getty ImagesThe weight-loss app maker Noom recently laid off hundreds of coaches, Insider reported in April — part of a bigger-picture pivot for the company toward more video-based coaching.The company, through its app of the same name, pairs dieting with personal coaches to achieve weight loss for users. Interactions with those coaches were often through text, which users critiqued as "canned advice." Some coaches told Insider they were responsible for giving advice to hundreds of users at any given time.Going forward, Noom is focusing on offering users scheduled video calls with coaches.Peloton: Over 2,800 peoplePeloton makes a popular treadmill with a subscription service.Peloton / YoutubeIn February, Peloton fired over 2,800 people — including 20% of its corporate workforce — because of an ongoing downturn in the company's business.Peloton faced a major setback after home-fitness products spiked in popularity during the height of the coronavirus pandemic in 2020.With gyms reopening as vaccination rates increased, Peloton's business took a huge hit: The company's market value has dropped from $50 billion last year to around $4.4 billion as of early June 2022.Thrasio: Up to 20% of staff, sources sayThrasio founder and CEO Carlos Cashman.ThrasioThrasio, the company known for creating the Amazon aggregator market, is laying off an unknown number of people. Additionally, the company's CEO and founder, Carlos Cashman, is stepping down from leadership. Amazon aggregators work by identifying product leaders on Amazon, then buying the companies that make those products and consolidating them under one umbrella company. In a memo sent to employees, Thrasio leadership said the layoffs were due to the company's "hypergrowth" in acquiring companies. "At times we have been acquiring a new company almost every week," the memo said, "and running hard to build the infrastructure to support this growth."Two sources told Insider the layoffs could impact up to 20% of Thrasio's staff.Robinhood: More than 300 peopleRobinhood CEO Vlad Tenev.AP/David MartinDuring the pandemic, so-called "meme stocks" from GameStop and AMC exploded. Much of that explosion in stock value was driven by accessible trading platforms like Robinhood.And while new users piled in during the pandemic, Robinhood hired rapidly. Between 2020 and 2021, Robinhood staff grew dramatically: from 700 people to around 3,800, according to CEO Vlad Tenev. But that growth was apparently too much and too fast, and Robinhood was forced to slash headcount by 9% — more than 300 people altogether."This rapid headcount growth has led to some duplicate roles and job functions, and more layers and complexity than are optimal," Tenev said in April. "After carefully considering all these factors, we determined that making these reductions to Robinhood's staff is the right decision to improve efficiency, increase our velocity, and ensure that we are responsive to the changing needs of our customers."Wells Fargo: Unknown number of people in mortgage lendingREUTERS/ Shannon StapletonAs mortgage revenues fell at Wells Fargo in the first quarter of 2022, the company began laying off employees in mortgage-related positions, Insider reported in late April.Loan processors and underwriters, among other positions, were reportedly affected by the layoffs. Wells Fargo representatives declined to say how many people were impacted by the cuts, but did confirm the layoffs in an emailed statement."We are carrying out displacements in a transparent and thoughtful manner and providing assistance, such as severance and career counseling. Additionally, we are committed to retaining as many employees as possible and will do everything we can to help them identify other opportunities within Wells Fargo," a Wells Fargo spokesperson said in a statement provided to InsiderCanopy Growth: 250 peopleMaster Grower Ryan Douglas smells a marijuana plant in Smith's Falls, Ontario, on February 20, 2014.Blair Gable/ReutersOne of the world's largest publicly traded cannabis companies, Canopy Growth, slashed 250 jobs in Canada earlier this year as it faces increasing competition in the burgeoning cannabis market.Layoffs are among several cost-cutting measures that Canopy Growth is taking "to ensure the size and scale of our operations reflect current market realities and will support the long-term sustainability of our company," Canopy Growth CEO David Klein said in a statement.Canopy's stock has suffered as a result: It was trading around $6 a share as of early May, down from $9.30 in early January.Food52: About 20 peopleCofounder and CEO of Food52, Amanda Hesser.Food52After raising $80 million from investing firm The Chernin Group last December, the content-creation team at food publication and retailer Food52 was suddenly laid off in early April.About 20 of the company's 200 employees were let go in the layoffs, which came as a major surprise to those affected."Everyone on the team and my immediate boss were gut-punched," one of these employees told Insider. "We all had gotten raises and bonuses just a month prior."Two of the employees who were laid off said Food52 executives told them the company was "pivoting to commerce," and away from the type of content that was created by the affected employees: recipes and other instructional cooking content.Cameo: 87 peopleCameo operates a service where users can pay celebrities to record personalized audio or video clips.CameoCameo is laying off 87 people, CEO Steven Galanis confirmed in early May."Today has been a brutal day at the office," he wrote on Twitter. "I made the painful decision to let go of 87 beloved members of the Cameo Fameo."Through Cameo, people pay celebrities to make personalized audio and video recordings.Galanis described the layoffs as a "course correction" in a statement to Variety. The cuts follow a staffing boom during the pandemic — from around 100 employees before 2020 to about 400 in 2022.  PayPal: 83 peoplePayPal headquarters in San Jose, California, on February 2, 2022.Justin Sullivan/Getty ImagesPayPal quietly laid off 83 people, according to a Securities and Exchange Commission filing spotted by The Information.The company employs more than 30,000 people worldwide, over a third of whom are based in the United States. The cuts appear to be tied to the company downsizing its presence in the San Francisco Bay Area, according to TechCrunch.Gorillas: 'Nearly 300' peopleGorillas CEO Kagan Sumer.GorillasGerman grocery-delivery company Gorillas announced layoffs of "nearly 300" people around the world in May 2022. The layoffs, the company said, are part of a larger "shift to long-term profitability," which means trimming staff as Gorillas focuses on its five "core" markets: Germany, France, the Netherlands, the UK and the US.Impacted employees, who were mostly corporate staff, were shocked by the sudden layoffs."It's not a secret that the company hasn't been doing well, but I didn't expect to wake up and lose my job," a Berlin-based employee who was laid off by Gorillas told Insider. "My managers weren't even aware or consulted. It's not the laying off that hurts, it's the way it's been done."Netflix: About 150 peopleNetflix Co-CEO Reed Hastings.Getty Images LatamNetflix laid off around 150 people in mid May, its second round of layoffs in 2022.The latest layoffs, which impact "mostly US-based" staff, are due to "slowing revenue growth," according to a statement from a Netflix spokesperson. "These changes are primarily driven by business needs rather than individual performance," the statement said, "which makes them especially tough." Earlier this year, Netflix revealed that it had lost around 200,000 subscribers to its video-streaming service in Q1 — its first subscriber loss in over a decade. And executives warned at the time that further subscriber losses were predicted for the future. They blamed "revenue growth headwinds" in a report to shareholders and said that heavy Netflix use during the height of the COVID-19 pandemic had "obscured the picture until recently."These are not the first layoffs to hit the streaming incumbent this year.After assertively recruiting high-profile writers and editors for its new fan site, Tudum, last year, Netflix laid off nearly a dozen contracted staffers from the editorial project in late April, in addition to about 25 employees in its marketing department.Outside, ClickUp, Zulily, and Latch all laid off peopleA Zulily logo on display at QVC Studio Park in West Chester, Pennsylvania, in 2018.Brendan McDermid/ReutersLayoffs aren't only impacting major corporations — a variety of smaller and lesser known companies are also firing people to save money:Online retailer Zulily laid off "fewer than 100" members of its corporate staff, Geekwire reported earlier this month. "Last week, we announced to our team members some hard choices we have made for our organization to bring our operating expenses in line with our revenue and position our business for future growth," a spokesperson said in a statement.Outside, the magazine conglomerate and publication, laid off 66 people as part of a larger restructuring to make the company a digital-first publishing house, Aspen Public Radio reported this week.ClickUp, a software company that makes a productivity app, cut 7% of its staff, "to ensure ClickUp's profitability and efficiency in the future," the company told Protocol. It's unclear how many people were impacted, but estimates put the company's total staff at over 500.Latch, a company that makes a smart lock, laid off about 130 people last week — 28% of the company's total staff, it said. The layoffs are intended to, "better align staffing and expense levels with current sales volumes and the current macroeconomic environment."Ben Gilbert contributed to an earlier version of this article.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderJun 14th, 2022

A wave of layoffs is sweeping the US. Here are firms that have announced cuts so far, from Carvana to Wells Fargo.

Peloton cut nearly 3,000 employees in February, Better.com cut 4,000. Staff cuts also taking place at PayPal, Gorillas and Zulily. Employees at Better, one of several companies to make drastic cuts to its workforce in 2022.Courtesy of Comparably In the first few months of 2022, a wave of layoffs swept across American business. The cuts stem from slower business growth, paired with rising labor costs. The layoffs cut across industries, from mortgage lending to digital-payment processing. Layoffs are sweeping across American businesses in the first few months of 2022.Recent startups like Peloton have already laid off thousands of employees this year. Online car dealer Carvana plans to slash 12% of its workforce. Even traditionally layoff-resistant companies like Netflix are making cuts.  The reason, broadly, is twofold: Business growth is slowing, while labor costs are increasing. The combination is causing American companies across a variety of industries to slash headcount.Here are some of the most notable examples so far:Carvana: About 2,500 peopleErnest Garcia III, CEO of online car dealer Carvana.Brendan McDermid/ReutersCarvana plans to cut 12% of its staff, or about 2,500 employees, the online car dealer announced in a filing with the Securities and Exchange Commission. In an email to employees viewed by The Wall Street Journal, CEO Ernest Garcia III said that the company has overestimated growth amid a challenging time in the auto industry.By cutting staff, Carvana aims to find "a better balance between its sales volumes and staffing levels," the company said in the SEC filing. Carvana was founded by Garcia in 2012 as a subsidiary of his father's company, DriveTime Automotive. Carvana's service allows customers buy cars online, which are delivered to customers' doors or picked up at a Carvana vending machine. Both father and son saw their fortunes skyrocket during the pandemic as demand for used cars hit new highs. Carvana said in its SEC filing that executives will forego their salaries for the rest of 2022 to help cover employee severance pay.Reef: About 750 peopleEmployees unload at a Reef location.Pat Greenhouse/The Boston Globe via Getty ImagesGhost-kitchens company Reef Technology will cut 5% of its global workforce.The SoftBank-backed startup is laying off about 750 employees as it works toward profitability amid a challenging economic environment, CEO Ari Ojalvo wrote in a memo to staff obtained by Insider.The layoffs come months after Reef said it would pause operations on some of its "underperforming" locations. Current and former employees told Insider in recent weeks that Reef had closed one-third of its kitchens and focused on its partnerships with major chains like Wendy's and Buffalo Wild Wings.Gopuff: More than 400 peopleA delivery driver is shown picking up a Gopuff bagHannah YoonGopuff told staff in March that it would cut 3% of its workforce, or more than 400 workers, Insider reported.The cuts impacted both corporate staff and workers at Gopuff's warehouses, as the company works to enter its "next chapter — with a new global business model and corresponding investment priorities," cofounders Rafael Ilishayev and Yakir Gola wrote in an email to employees. Gopuff was founded in 2013 in Philadelphia with the goal of ultrafast delivery of convenience-store items. Better: About 4,000 peopleVishal Garg is the founder and CEO of Better.com. He was responsible for laying off hundreds of people right before the holidays in 2021.Better.comStarting in late 2021 and continuing through the first several months of 2022, mortgage startup Better.com laid off approximately 4,000 people.The first wave started right before the holiday season in 2021, when CEO Vishal Garg laid off "hundreds" of people.Garg told employees during a Zoom call that the company, "lost $100 million last quarter," which he said, "was my mistake." He then said the layoffs shouldn't have happened right before the holiday, but, "three months ago." Better followed up with another 3,000 layoffs in March, and is now accepting voluntary layoffs in some departments.Noom: 495 peopleSaeju Jeong, cofounder & CEO of Noom.Sam Barnes/Sportsfile for Web Summit via Getty ImagesThe weight-loss app maker Noom recently laid off hundreds of coaches, Insider reported last month — part of a bigger-picture pivot for the company toward more video-based coaching.The company, through its app of the same name, pairs dieting with personal coaches to achieve weight loss for users. Interactions with those coaches were often through text, which users critiqued as "canned advice." Some coaches told Insider they were responsible for giving advice to hundreds of users at any given time.Going forward, Noom is focusing on offering users scheduled video calls with coaches.Peloton: Over 2,800 peoplePeloton makes a popular treadmill with a subscription service.Peloton / YoutubeIn February, Peloton fired over 2,800 people — including 20% of its corporate workforce — because of an ongoing downturn in the company's business.Peloton faced a major setback after home-fitness products spiked in popularity during the height of the coronavirus pandemic in 2020.With gyms reopening as vaccination rates increased, Peloton's business took a huge hit: The company's market value has dropped from $50 billion last year to around $6 billion as of early May 2022.Thrasio: Up to 20% of staff, sources sayThrasio founder and CEO Carlos Cashman.ThrasioThrasio, the company known for creating the Amazon aggregator market, is laying off an unknown number of people. Additionally, the company's CEO and founder, Carlos Cashman, is stepping down from leadership. Amazon aggregators work by identifying product leaders on Amazon, then buying the companies that make those products and consolidating them under one umbrella company. In a memo sent to employees, Thrasio leadership said the layoffs were due to the company's "hypergrowth" in acquiring companies. "At times we have been acquiring a new company almost every week," the memo said, "and running hard to build the infrastructure to support this growth."Two sources told Insider the layoffs could impact up to 20% of Thrasio's staff.Robinhood: More than 300 peopleRobinhood CEO Vlad Tenev.AP/David MartinDuring the pandemic, so-called "meme stocks" from GameStop and AMC exploded. Much of that explosion in stock value was driven by accessible trading platforms like Robinhood.And while new users piled in during the pandemic, Robinhood hired rapidly. Between 2020 and 2021, Robinhood staff grew dramatically: from 700 people to around 3,800, according to CEO Vlad Tenev. But that growth was apparently too much and too fast, and Robinhood was forced to slash headcount by 9% — more than 300 people altogether."This rapid headcount growth has led to some duplicate roles and job functions, and more layers and complexity than are optimal," Tenev said in April. "After carefully considering all these factors, we determined that making these reductions to Robinhood's staff is the right decision to improve efficiency, increase our velocity, and ensure that we are responsive to the changing needs of our customers."Wells Fargo: Unknown number of people in mortgage lendingREUTERS/ Shannon StapletonAs mortgage revenues fell at Wells Fargo in the first quarter of 2022, the company began laying off employees in mortgage-related positions, Insider reported in late April.Loan processors and underwriters, among other positions, were reportedly affected by the layoffs. Wells Fargo representatives declined to say how many people were impacted by the cuts, but did confirm the layoffs in an emailed statement."We are carrying out displacements in a transparent and thoughtful manner and providing assistance, such as severance and career counseling. Additionally, we are committed to retaining as many employees as possible and will do everything we can to help them identify other opportunities within Wells Fargo," a Wells Fargo spokesperson said in a statement provided to InsiderCanopy Growth: 250 peopleMaster Grower Ryan Douglas smells a marijuana plant in Smith's Falls, Ontario, on February 20, 2014.Blair Gable/ReutersOne of the world's largest publicly traded cannabis companies, Canopy Growth, slashed 250 jobs in Canada earlier this year as it faces increasing competition in the burgeoning cannabis market.Layoffs are among several cost-cutting measures that Canopy Growth is taking "to ensure the size and scale of our operations reflect current market realities and will support the long-term sustainability of our company," Canopy Growth CEO David Klein said in a statement.Canopy's stock has suffered as a result: It was trading around $6 a share as of early May, down from $9.30 in early January.Food52: About 20 peopleCofounder and CEO of Food52, Amanda Hesser.Food52After raising $80 million from investing firm The Chernin Group last December, the content-creation team at food publication and retailer Food52 was suddenly laid off in early April.About 20 of the company's 200 employees were let go in the layoffs, which came as a major surprise to those affected."Everyone on the team and my immediate boss were gut-punched," one of these employees told Insider. "We all had gotten raises and bonuses just a month prior."Two of the employees who were laid off said Food52 executives told them the company was "pivoting to commerce," and away from the type of content that was created by the affected employees: recipes and other instructional cooking content.Cameo: 87 peopleCameo operates a service where users can pay celebrities to record personalized audio or video clips.CameoCameo is laying off 87 people, CEO Steven Galanis confirmed in early May."Today has been a brutal day at the office," he wrote on Twitter. "I made the painful decision to let go of 87 beloved members of the Cameo Fameo."Through Cameo, people pay celebrities to make personalized audio and video recordings.Galanis described the layoffs as a "course correction" in a statement to Variety. The cuts follow a staffing boom during the pandemic — from around 100 employees before 2020 to about 400 in 2022.  PayPal: 83 peoplePayPal headquarters in San Jose, California, on February 2, 2022.Justin Sullivan/Getty ImagesPayPal quietly laid off 83 people, according to a Securities and Exchange Commission filing spotted by The Information.The company employs more than 30,000 people worldwide, over a third of whom are based in the United States. The cuts appear to be tied to the company downsizing its presence in the San Francisco Bay Area, according to TechCrunch.Gorillas: 'Nearly 300' peopleGorillas CEO Kagan Sumer.GorillasGerman grocery-delivery company Gorillas announced layoffs this week of "nearly 300" people around the world. The layoffs, the company said, are part of a larger "shift to long-term profitability," which means trimming staff as Gorillas focuses on its five "core" markets: Germany, France, the Netherlands, the UK and the US.Impacted employees, who were mostly corporate staff, were shocked by the sudden layoffs."It's not a secret that the company hasn't been doing well, but I didn't expect to wake up and lose my job," a Berlin-based employee who was laid off by Gorillas told Insider. "My managers weren't even aware or consulted. It's not the laying off that hurts, it's the way it's been done."Outside, ClickUp, Zulily, and Latch all laid off people.A Zulily logo on display at QVC Studio Park in West Chester, Pennsylvania, in 2018.Brendan McDermid/ReutersLayoffs aren't only impacting major corporations — a variety of smaller and lesser known companies are also firing people to save money:Online retailer Zulily laid off "fewer than 100" members of its corporate staff, Geekwire reported earlier this month. "Last week, we announced to our team members some hard choices we have made for our organization to bring our operating expenses in line with our revenue and position our business for future growth," a spokesperson said in a statement.Outside, the magazine conglomerate and publication, laid off 66 people as part of a larger restructuring to make the company a digital-first publishing house, Aspen Public Radio reported this week.ClickUp, a software company that makes a productivity app, cut 7% of its staff, "to ensure ClickUp's profitability and efficiency in the future," the company told Protocol. It's unclear how many people were impacted, but estimates put the company's total staff at over 500.Latch, a company that makes a smart lock, laid off about 130 people last week — 28% of the company's total staff, it said. The layoffs are intended to, "better align staffing and expense levels with current sales volumes and the current macroeconomic environment."Got a tip? Contact Insider senior correspondent Ben Gilbert via email (bgilbert@insider.com), or Twitter DM (@realbengilbert). Use a non-work device to reach out. PR pitches by email only, please.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderMay 25th, 2022

Peloton is finally launching its long-rumored rowing machine

Peloton instructor Adrian Williams teased the new machine, calling it a "game-changer" for users' fitness routines. A still from Peloton's video teasing its forthcoming rowing machine.Peloton Peloton finally teased its upcoming rowing machine, which has been rumored since 2020. The company still hasn't revealed the name, price, or release date.  The announcement comes after bleak quarterly earnings and a tough few months for Peloton. Peloton just gave us our first look at its long-awaited rowing machine. Peloton instructor Adrian Williams teased the new machine during a keynote address Friday at the company's annual Homecoming member event, calling it a "game-changer" for users' fitness routines.Peloton hasn't revealed the name of the new machine and hasn't said when it'll be available, other than to say it's "coming soon." There's no word on how much it'll cost, but Peloton's other connected fitness machines — the Bike, Bike Plus, and Tread — range from around $1,200 to around $2,400. "Peloton is excited to add this total body workout into its powerhouse arsenal of content," Peloton said in a blog post. —Peloton (@onepeloton) May 13, 2022Peloton's foray into rowing has been rumored since as far back as 2020, when Bloomberg reported that Peloton was working on a rowing machine. 9to5Google reported last August that Peloton could be building a rowing machine, after spotting language about rowing in an update to its Android app. In February, The Financial Times reported that Peloton would debut the rowing machine at its Homecoming event and that employees had already been testing the machine at home. The FT reported at the time that the machine will give feedback on the user's form and that users will be able to take classes taught by instructors both in the studio and on the water.Peloton cofounder and chief product officer Tom Cortese told The Verge in a recent interview that the rowing machine "feels like the worst-kept secret on Earth." The product announcement comes during a tough week for Peloton: Following a bleak third-quarter earnings report Tuesday, the company's stock plummeted 20% to a record low. Once a Wall Street darling, thanks in large part to the pandemic keeping everyone at home — and using their bikes — Peloton hasn't been able to find its footing as pandemic restrictions have largely subsided. With its latest machine — the first totally new product for Peloton since 2018, when it launched its connected treadmill — Peloton is entering a rapidly growing market. Analysts estimate that the rowing-machine market could hit $1.8 billion by 2031, thanks in large part to a slew of upstart rowing brands: Hydrow, which offers a $2,300 connected rowing machine with similar styling to Peloton's products; Ergatta, which sells a $2,200 connected rowing machine designed to look good in living rooms rather than home gyms; and Cityrow, which sells a $2,200 machine and offers studio classes. Those companies, along with Peloton, will compete against veteran brands like WaterRower and Concept2, as well as rowing equipment sold by fitness companies like NordicTrack and Echelon. Read the original article on Business Insider.....»»

Category: topSource: businessinsiderMay 13th, 2022

Pandemic Winners Turned Losers: Should You Still Buy?

Once prosperous investments throughout the pandemic, the high-flying days for these stocks is well over in 2022. During the pandemic's initial phases, a handful of stocks benefitted massively from the world shutting down, while others suffered. It was a fascinating time to be an investor, and those who flocked to the stay-at-home type of stocks were rewarded handsomely with considerable gains, undoubtedly limiting drawdowns in other portfolio positions.Fast-forward to 2022, and those high-flying days that these pandemic winners experienced has come to a screeching halt. Investors are undoubtedly disappointed in the adverse price action these stocks have recently come under, with many market participants simply writing these stocks off for good until a more precise picture is available.Three of the significant pandemic winners were Peloton Interactive PTON, Shopify SHOP, and Teladoc TDOC. All three companies benefitted from the stay-at-home environment the world was stuck in. The chart below shows the performance of all three companies’ share performances since April 1st, 2020, while blending in the S&P 500 for a benchmark.Image Source: Zacks Investment ResearchAs we can see, once big-time winners have suddenly become big-time losers. The picture becomes even more disappointing when creating a chart that shows the share performances throughout 2022.Image Source: Zacks Investment ResearchAll three companies are currently down more than 60% year-to-date. It’s quite a massive change in sentiment, and it raises a valid question – are these companies worth your hard-earned cash after sizable valuation slashes? Let’s find out.PelotonWhen stay-at-home orders shocked the world and gyms closed down, many people were left with no option to exercise. However, Peloton PTON came to the rescue with its in-home fitness equipment, fueling the massive run that shares went on.Peloton’s rough stretch has caused its forward price-to-sales ratio to retrace down to 1.1X, well below its Q1 2021 high of 12.6X and a fraction of its median of 6.5X since the company went public in September 2019. This level is much more reasonable for the company.The company’s balance sheet showed that cash and equivalents declined 24% from the year-ago quarter. However, it does have a cash ratio of 1.08, meaning that there is just enough cash on hand to meet current liability obligations. It’s worth noting that the ratio was 2.09 in 2021 Q3, a stark difference from where it stands now. Additionally, the company has yet to turn a positive free cash flow.Recent quarterly reports are not great, to say the least. The company has acquired a four-quarter trailing average EPS surprise of a disappointing -44%, and in its latest quarter, the company missed earnings estimates by nearly 16%. Furthermore, earnings are expected to shrink by a massive 515% for the current year.Peloton Interactive, Inc. Price, Consensus and EPS Surprise Peloton Interactive, Inc. price-consensus-eps-surprise-chart | Peloton Interactive, Inc. QuoteShopifyWith the world shut down, e-commerce absolutely boomed. Shopping in-store was no longer an option, and investors noticed Shopify’s SHOP unique business, driving shares upward with no end in sight.SHOP’s forward price-to-sales ratio has come way down to 7.1X, an absolute fraction of its high of 58.2X in 2020 and well below the median of 22.6X over the last five years. Additionally, the value is the lowest that it has ever been in this same timeframe.  The company ended 2022 Q1 with $7.2 billion cash on hand, an 8% decrease from the value in the year-ago quarter. The company has a cash ratio of 10.6, which displays an excellent ability to meet current liability obligations, although the value has decreased in four consecutive quarters. Additionally, the company’s free cash flow turned positive in 2021 Q4 but has since gone negative in 2022 Q1, attributed to a slowdown in online shopping.Over the last four quarters, the company has acquired a 5% average EPS surprise, and in its latest report, the company missed EPS estimates by a sizable 75%. Looking ahead, earnings are forecasted to shrink 52% year-over-year for FY22. Shopify Inc. Price, Consensus and EPS Surprise Shopify Inc. price-consensus-eps-surprise-chart | Shopify Inc. QuoteTeladoc HealthLike PTON and SHOP, the company’s business operations benefitted massively from the shutdown of the world. With the world gripped by fear and uneasiness, Teladoc TDOC provided consumers with high-quality healthcare and solutions from a few buttons instead of being forced into a physical hospital.TDOC’s forward price-to-sales ratio has come down tremendously off its 2020 high of 33.9X and is well below the median of 10.2X over the last five years. Furthermore, the ratio value of 1.9X is the lowest that it has been in this timeframe.TDOC ended 2022 Q1 with $839 million cash on hand, a 16% increase from the year-ago quarter. Although total liabilities outweigh the cash currently on hand, the company’s cash ratio of 2.7 displays an ability to meet short-term debt obligations. Additionally, free cash flow for the company turned negative in 2022 Q1 after a positive value in the prior quarter.Over its last four quarters, the company has tallied a respectable 20% average EPS surprise, and in its latest quarter, TDOC beat the consensus EPS estimate by a sizable 14%. However, earnings are expected to free fall by quad-digits for the current fiscal year.Teladoc Health, Inc. Price, Consensus and EPS Surprise Teladoc Health, Inc. price-consensus-eps-surprise-chart | Teladoc Health, Inc. QuoteBottom LineMany have cut ties with these stocks, and for a good reason. The valuation multiples and growth rates got entirely out of control during their runs; the high-flying days of these stocks are well over for some time. While the ride was undoubtedly beautiful and fun, it’s been a long time coming for these stocks to decline just as far as well.However, they’re all three exciting investments, and investors shouldn’t give up on two of them just yet. The only stock out of the three that I advise investors to heed caution with is Peloton. The company may have to resort to negative ways to raise cash, which is never a good sign. Additionally, a quickly declining cash ratio is also unsettling.SHOP and TDOC, on the other hand, are very innovative investments that won’t be going anywhere anytime soon. Investors need to look at the long-term picture for these stocks and slowly build themselves into a position over the next few years rather than jumping in; these stocks could still have some more room down. Special Report: The Top 5 IPOs for Your Portfolio Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.>>See Zacks’ Hottest IPOs NowWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teladoc Health, Inc. (TDOC): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis Report Peloton Interactive, Inc. (PTON): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksMay 12th, 2022

The Guild expands its flexible living portfolio nationally with addition of four new properties, including its first in Pennsylvania

The Guild, a national flexible living and travel platform that delivers community-based, short- and long-term living experiences with elevated design and the comforts of home, has added four new properties to its growing portfolio.  Following its recent acquisition of CREA Management LLC – which added over 5,000 units to the... The post The Guild expands its flexible living portfolio nationally with addition of four new properties, including its first in Pennsylvania appeared first on Real Estate Weekly. The Guild, a national flexible living and travel platform that delivers community-based, short- and long-term living experiences with elevated design and the comforts of home, has added four new properties to its growing portfolio.  Following its recent acquisition of CREA Management LLC – which added over 5,000 units to the hospitality living platform’s pipeline – The Guild has added BH Club in Bay Harbor, FL; Bishop Arts in Dallas, TX; The Guild Austin l Lofts on 5th in Austin, TX, where the company is headquartered; and 141 North 4th Street in Philadelphia, PA, the company’s first foray into the Pennsylvania market.  “The impact of the pandemic and the way in which people have reemerged with a different approach to living taught us many things, including the importance of offering a seamless flexible living solution both short- and long-term that is laser focused on hospitality living,” said The Guild CEO and Co-founder, Brian Carrico. “With the addition of these new properties, we are not only sharing The Guild lifestyle with new markets and guests, but expanding our footprint nationally as we continue to set the standard for the best flexible living and travel experience.” The Guild’s modern furnished apartments, set in prime locations, feature personalized service such as on-demand grocery stocking and housekeeping, paired with access to best-in-class building amenities like rooftop terraces, outdoor pools, state-of-the-art gyms, and private members’ clubs, all made accessible to travelers and renters through a seamless tech-enabled platform. The brand has grown in demand in recent years as working, traveling, and living have become more linear, specifically among the Millennial and Gen Z generations who relish remote work, long for work-life integration, and already rely heavily on technology for rides, groceries, communication and more. The new property specifics include:  The Guild Austin l Lofts on 5th – Austin, TX Set in the heart of thriving Downtown Austin at 410 East 5th Street are The Guild Austin l Lofts on 5th, slated to come online in June. This property will contain 10 short-term rental units and five to seven extended stay units, all furnished. Each of the loft units offer an industrial feel including polished concrete floors. raw concrete walls and exposed venting and pipes, in addition to beautiful downtown views overlooking historic Sixth Street, Austin’s vibrant entertainment district known for its famed bars, restaurants and live music spots. The property has a gated parking lot, community pool and courtyard.  212 Melba by The Guild – Dallas, TX Located at 212 Melba Street in the chic Bishop Arts District of Downtown Dallas, 212 Melba by The Guild  is a 55-unit multifamily property with ground floor retail, slated to open in July. The project is the first ground up residential development by Mintwood Real Estate, a longtime partner of The Guild. Placing a large emphasis on flex work and nomadic life, Bishop Arts by The Guild has been strategically designed to feature two business centers and two fitness centers with state-of-the-art equipment. Units within the project range from studios to two-bedrooms, with access to the neighborhood’s diverse nightlife, chic independent fashion stores and colorful street art. BH Club by The Guild – Bay Harbor, FL BH Club by The Guild is a tranquil destination located in Bay Harbor Islands – a small, quaint community located off Miami mainland in South Florida. The island-inspired getaway features retro garden-style fully furnished apartments – 32 in total, once complete – ranging from studios to one-bedrooms, and a host of amenities including an outdoor pool and lounge area, lush tropical gardens and community space. Located minutes from the famed Bal Harbour shops, guests enjoy access to a myriad of shopping locations, fine dining options and some of Miami’s trendiest bars and nightlife.  141 North 4th Street – Philadelphia, PA The Guild’s first property in Pennsylvania – yet to be named but located at 141 North 4th Street in the famed and historic town of Old City, Philadelphia – is a full-building, short-term rental property that will boast 36 modern studio-, one-, two-, and three-bedroom apartments available for nightly, weekly or extended stays. Its centralized location places guests minutes away from national treasures like The Betsy Ross House, The National Liberty Museum, the Liberty Bell and Independence Hall, all within walking distance. Guests will also have access to private lounge areas within the property. Set to open in 2023, each of The Guild’s beautifully furnished apartments offer up to 1,600 square feet of space to live, work and play, plus bespoke luxury amenities like eco-friendly Skoah bath products, luxury Parachute linens, Crosley record players and local craft coffee. Each spacious apartment is equipped with designer furniture, high-speed WiFi, fully loaded kitchens and in-unit washer and dryers, for a seamless and convenient hotel-like experience.  With these additions, The Guild is now present in eight markets throughout five states – Colorado, Florida, Ohio, Texas and Pennsylvania. To learn more about The Guild, or to book a stay, visit theguild.co/. The post The Guild expands its flexible living portfolio nationally with addition of four new properties, including its first in Pennsylvania appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyApr 25th, 2022

Park Tower Group’s Prestgious Plaza District Tower enjoys leasing successes as daily occupancy back near pre-pandemic levels

Park Tower Group, prominent real-estate developer and manager, announced it has secured a series of lease extensions totaling 39,315 square feet at 535 Madison, which brings the 37-story office tower to 100 percent occupancy. Park Tower Group also reports that daily headcounts at the Plaza District building have topped 94%... The post Park Tower Group’s Prestgious Plaza District Tower enjoys leasing successes as daily occupancy back near pre-pandemic levels appeared first on Real Estate Weekly. Park Tower Group, prominent real-estate developer and manager, announced it has secured a series of lease extensions totaling 39,315 square feet at 535 Madison, which brings the 37-story office tower to 100 percent occupancy. Park Tower Group also reports that daily headcounts at the Plaza District building have topped 94% percent. Park Tower Group’s agreements with Bain Capital NY LLC, FTV Management Company and Garda Capital Partners brings the 480,000 square-foot office tower to 100 percent leased, with just a single, 14,375-square-foot space across the 12th floor expected to become available in mid-2022. In addition to Park Tower Group’s leasing successes, 535 Madison regularly experiences more than twice the daily population percentages than the average for office buildings in the New York City metro region. Daily headcount at the tower first surpassed 50 percent in June 2021, when the regional average stood at 21 percent, according to Kastle Systems data. 535 Madison surpassed the 85 percent threshold for the first time on March 1, 2022 and has continued to remain above that level during the mid-weeks. That compares to 33 percent for the entire metropolitan area.   “With its inviting blend of collaborative spaces, modern technology, top-tier amenities, public art, and proximity to Grand Central, 535 Madison is a destination where people want to come to work,” said Marian Klein, President at Park Tower Group, whose headquarters are in the tower. “We have a tenant roster that understands the importance and benefits of bringing people together in a warm, welcoming environment.  As a result, the current energy and activity level at 535 Madison has largely returned to its historic level.” Through a unique partnership between Park Tower Group and Christie’s auction house 535 Madison is home to Christie’s Sculpture Garden – an exhibition space that showcases major artwork curated by Christie’s in the outdoor public plaza and indoor lobby. And during the pandemic, part of the plaza has also become home to Nerai, a haute Greek cuisine restaurant with indoor and outdoor seating that has become a popular gathering place for tenants in the building.     In 2017, Park Tower Group introduced a 6,000 square-foot amenity and fitness center for all of 535 Madison’s tenants. Thoughtfully laid out with modern furnishings, contemporary art and striking lighting features, it is a serene space intended as a convenient, healthy work-life balance. The fitness center is run by LivUnLtd and features premium equipment, including Life Fitness machines and Peloton bikes. Other amenities include zoom rooms and nap rooms/mothers’ rooms. And although the amenity center was popular pre-COVID, it is seeing an increase in users now. While many gyms still remained closed, Park Tower Group reopened the gym in the middle of the pandemic with thoughtful health and safety protocols. Defined by its pure sculptural form of glass and aluminum, 535 Madison is a signature work of art in the New York skyline. Located on the northeast corner of Madison Avenue and 54th Street, 535 Madison has been elegantly modernized by Deborah Berke of Deborah Berke Partners,  whose redesign of the grand entrance lobby and elevators blends seamlessly with Edward Larrabee Barnes’ original architecture. The Class A, boutique office property is situated close to a collection of high-end shopping, restaurants, hotels and entertainment, like The Polo Bar, The St. Regis New York and the Museum of Modern Art. The building is a short stroll to Central Park and six subway lines. A CBRE team of Brian Gell, Vice Chairman, and Laurence Briody, Executive Vice President, represented Park Tower Group in all three transactions. Additional details about each lease expansion follows: Bain Capital NY LLC signed a 14,765-square-foot, 11-year lease for the entire 30th floor. Bain doubles their space in the building, adding to its 14,765-square-foot space on the entire 29th floor. The investment firm was represented by Bryan Boisi and Connor Barnes of Cushman & Wakefield Boston. FTV Management Company, L.P. is expanding into 12,275-square-feet on the entire 33rd floor as part of a 13-year lease. FTV extended its 12,275-square-foot space on the entire 32nd floor by 8 years. The investment firm was represented by Howard Grufferman and Reid Longley of Colliers. Garda Capital Partners LP signed a 12,275-square-foot, 10-year lease the entire 34th floor, relocating and expanding from their previous space of 3,824 square foot space on part of the 21st floor. The asset management firm was represented by Brent Ozarowski and Kevin Sullivan of Newmark. The post Park Tower Group’s Prestgious Plaza District Tower enjoys leasing successes as daily occupancy back near pre-pandemic levels appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyApr 18th, 2022