Job cuts rocket as companies look to shave costs

Job cuts rocket as companies look to shave costs

Proactive Investors - Telecom giant BT Group PLC (LON:BT) will be cutting 40% of its workforce by 2030 as 55,000 workers face losing their jobs.

“BT is focusing on digitisation and integrating AI, a shift which is likely to require fewer workers,” Victoria Scholar at Interactive Investor said.

“Telecoms appears to be awash with job cuts,” she added, stating that both had been struggling with inflation, mostly from energy costs.

She noted that BT got caught in a “bitter dispute with workers over wages” last year and that the group is targeting £3bln in cost savings in the next two years.

And it isn’t just the Openreach owner that is reducing employees.

Here is a list of some of the largest job cuts from companies:

Vodafone Group PLC (LON:VOD)

The multinational telecom company confirmed 11,000 workers will be axed by 2026.

The cut represents around 12% of the group’s total workforce and is part of Margherita Della Valle’s plan to stimulate growth through structural changes.

Ericsson (BS:ERICAs)

Another telecom behemoth cutting staff, but this time in Sweden.

The group announced 8,500 will be slashed in the coming year, potentially spilling over to 2024 as it – like most – looks to cut costs.

The job cuts represent just over 8% of its workforce.

Philips (LON:0LNG)

Dutch electrical goods conglomerate will cut 6,000 jobs soon after a recall of respiratory machines and falling sales increased pressure to trim spending.

The axing accounts for around 13% of its global workforce and is expected to be completed by 2025.

Volvo (LON:0HTP)

The Swedish car manufacturer announced it would be cutting 2,900 or around 3% of its workforce.

The move comes after the group said it would restructure its European bus-making operation in the hope of returning it to profitability.

Stellantis NV (LON:0QXR)

The producer of car brands such as Citroën, Fiat and Vauxhall will cut 2,000 Italian workers after agreeing with unions to make the reductions through voluntary redundancies.

While the redundancies amount to less than one percent of the group’s total employees, it makes up around 4% of Stellantis workers in Italy.

International Business Machines Corp. (NYSE:IBM)

The US-based tech firm confirmed at the start of 2023 that 3,900 employees would be axed as part of plans to spin off its Kyndryl and Watson Health units.

The employees at risk account for 1.5% of its global workforce.

The group is also hitting the brakes on certain new job hires as it aims to replace as many as 7,800 roles with artificial intelligence systems.

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