Likewise, Shopify CEO Tobias Lütke told employees in April that they will have to prove why tasks can’t be performed by AI before asking for more workers and resources.
A Microsoft spokesperson told CNBC at the time that one objective of the cuts was to reduce layers of management.
The company announced a smaller round of layoffs in January that it said were performance-based.
The WBD cuts follow the company’s move to reorganize into two divisions: a global linear networks division and a streaming and studios unit.
Correction: An earlier version of this article misattributed information about Klarna from a 2022 article as being more recent.
Mathisworks | Getty Images | Digitalvision Vectors.
As the Department of Government Efficiency, a government cost-cutting program that led to thousands of federal job cuts, comes to an end, corporate America continues to be rocked by widespread layoffs.
With President Donald Trump’s tariff policies creating economic uncertainty around the world, businesses are feeling more and more pressure to reduce expenses. Price increases have been announced by several companies. Another means of retreating is through layoffs.
Trade disputes have also sparked worries about the United States’ overall health. S. . the job market and the economy. ADP released a separate reading this week that revealed private-sector hiring reached its lowest level in over two years, despite the fact that the April jobs reading was better than anticipated.
Tech leaders are beginning to mention artificial intelligence as a clear factor in hiring and headcount reductions, even though many companies preferred to lump the layoffs in with broader cost-cutting strategies or growth plans rather than offering specific justification for their announced workforce reductions.
The CEO of Klarna, Sebastian Siemiatkowski, told CNBC on May 14 that investments in AI have helped the fintech company reduce its workforce by 40%. Similarly, Shopify CEO Tobias Lütke informed staff in April that before requesting additional staff and resources, they would need to demonstrate why certain tasks couldn’t be completed by AI.
Some of the businesses that have recently announced layoffs are listed below.
Procter and Gamble. .
Procter & Gamble, the company that makes Pampers and Tide, announced on Thursday that it will implement a restructuring program that will result in the loss of 7,000 jobs, or roughly 15% of its non-manufacturing workforce, over the next two years.
The company is planning a larger effort to implement changes across the company’s supply chain, corporate organization, and portfolio, CFO Andre Schulten stated during a presentation.
No information was provided by the company regarding which divisions or regions would be impacted.
Microsoft.
On May 13, Microsoft announced that it would cut roughly 6,000 employees, or 3% of its workforce across all teams, levels, and regions.
One goal of the cuts, a Microsoft representative told CNBC at the time, was to cut management levels. A smaller round of layoffs was announced by the company in January, and it claimed that they were performance-based. Performance had nothing to do with the May cuts, according to the spokesperson.
Citigroup.
Platt, Spencer | Getty Images.
In a statement released Thursday, Citigroup stated that it intends to lay off about 3,500 employees in China.
The information technology services unit, which handles software development, testing, and maintenance, is primarily impacted by the cuts. The bank announced that a portion of the impacted positions would be transferred to other Citi technology centers.
With an eye toward profitability and stock performance, Citi has undergone a significant reorganization under the direction of CEO Jane Fraser. Over the past few years, the bank has continuously underperformed its major bank peers.
In 2024, Citi revealed a larger plan to cut 10% of its workforce, or roughly 20,000 workers worldwide.
Walmart.
With about 1.6 million employees, Walmart is the biggest U.S. S. private worker. Walmart customers should expect price hikes at the beginning of the summer due to tariffs, CFO John David Rainey told CNBC in an interview on May 15.
Klarna. .
After the company implemented a hiring freeze, Siemiatkowski stated in May that attrition and AI were both to blame for the 40% reduction in headcount.
The Swedish company that offers buy now, pay later loans has made no secret of its aggressive use of AI tools throughout the business, especially in the customer service department.
According to the company, 700 customer service agents’ tasks were being performed by AI last year.
CrowdStrike.
CrowdStrike, a cybersecurity software company, announced on May 7 that it would lay off 500 workers, or roughly 5% of its workforce.
In a securities filing, CEO George Kurtz primarily blamed artificial intelligence for the change.
According to him, the company’s “evolving operating model” included the move. “We’re operating in a market and technology inflection point, with AI reshaping every industry, accelerating threats, and evolving customer needs,” he said. “,”.
Disney.
From Getty Images, Mario Tama.
On Monday, The Walt Disney Company announced its intention to lay off several hundred workers across multiple divisions worldwide. The layoffs impact teams working in casting and development, TV publicity, and film and TV marketing.
According to a Disney representative, the reductions are a part of a broader initiative to run more effectively.
Chegg.
Chegg, an online learning company, announced on May 12 that it would lay off 248 workers, or roughly 22% of its workforce. The reductions occur as ChatGPT from OpenAI and other AI-powered tools take over education.
During the company’s May earnings call, CEO Nathan Schultz stated that the layoffs are a part of a cost-cutting strategy and that he anticipates cost savings of between $45 million and $55 million this year, with an additional $100 million to $110 million the following year.
Amazon.
The devices and services division of Amazon, which includes the Alexa voice assistant, Echo hardware, Ring doorbells, and Zoox robotaxis, announced in May that it would be laying off roughly 100 employees.
The move was made as part of a continuous effort to “make our teams and programs operate more efficiently,” an Amazon representative told CNBC at the time. “.”.
The reductions follow Andy Jassy, the company’s CEO, who has been looking for ways to cut costs. Amazon has let go of about 27,000 workers since the start of 2022.
Warner Bros. discovery.
Warner Bros. Several media outlets this week have reported that Discovery will lay off fewer than 100 workers.
According to the reports, no network or channel would be more impacted than others.
The company reorganized into two divisions: a streaming and studios unit and a global linear networks division. The WBD cuts come after this. The first quarter saw the completion of that procedure.
Annie Palmer, Melissa Repko, Jordan Novet, Anniek Bao, Amelia Lucas of CNBC, and Reuters all contributed to this story.
Correction: This article was originally published with information about Klarna from a 2022 article incorrectly attributed to it as being more recent.
