Your bi-weekly e-commerce dose drops here - Feb. 14-27, 2024
In this digest, you can find
Estée Lauder plans job cuts, up to 3,100 positions (3-5% of the global workforce), due to declining sales in China; Nike announced on Thursday that, as part of a broader restructuring plan, it will be reducing its existing workforce by 2%; and The Body Shop, a well-known cosmetics and skincare retailer, has entered administration in the United Kingdom. The company's financial challenges have led to this collapse, prompting the need for administrative intervention.
In 2024, layoffs continue to be prevalent across industries worldwide. Even in some profitable companies like Nike, Estée Lauder, and Levi Strauss. Estee Lauder being one of the latest additions to the list of companies implementing workforce reductions due to challenges in the Asian market. Here's an updated summary:
Companies with Layoff Plans in 2024:
|
Company
|
Industry
|
Number of Jobs Affected
|
Reason for Layoffs
|
|
Amazon
|
Retail
|
Up to 400
|
Streamlining operations, optimizing efficiency
|
|
Estee Lauder
|
Retail
|
Up to 3,100
|
Adapting to shrinking Asian market, restructuring
|
|
NIKE
|
Retail
|
1,700
|
Cost cuts
|
|
Google
|
Tech
|
Hundreds
|
Streamlining Google Assistant division and the team that manages Pixel, Nest and Fitbit hardware.
|
|
Microsoft
|
Tech
|
1,900
|
Across its gaming divisions following its acquisition of Activision Blizzard.
|
|
Meta Platforms Inc.
|
Tech
|
10,000
|
Streamlining operations, focusing on core products
|
|
Twitch
|
Tech
|
500
|
Struggle to achieve profitability in the face of rising costs and community backlash.
|
|
SNAP
|
Tech
|
528
|
Restructuring and focus more on profit growth
|
|
Discord
|
Tech
|
170
|
Streamlining operations
|
|
Cisco
|
Tech
|
More than 4,000
|
Streamlining operations
|
|
Toast
|
Software
|
550
|
Operating expense efficiency.
|
|
Grammarly
|
Software
|
230
|
Advance its focus on “the AI-enabled workplace of the future.”
|
|
Marriott International
|
Hospitality
|
Not disclosed
|
Adapting to reduced travel demand
|
|
Delta Air Lines
|
Travel
|
Not disclosed
|
Responding to fluctuating demand, rising costs
|
What can retailers do:
This trend of cost reduction is partly due to companies seeking alternative ways to manage budgets and increase profits in response to high costs and changing consumer demands. For online business, retailers should consider the following strategies to navigate through the downturn:
-
Diversify Product Offerings: Expand product offerings to cater to changing consumer preferences and diversify revenue streams, thereby reducing reliance on any single market segment.
-
Focus on Online Channels: Invest in e-commerce capabilities and digital marketing strategies to reach a broader audience and capture market share in the online retail space, which has seen significant growth.
-
Cost Optimization: Conduct a thorough review of operational expenses and identify areas for cost optimization without compromising product quality or customer experience, ensuring efficient resource allocation.
News source:
2024 Estée plans to cut up 3100 jobs
Why are there layoffs in 2024?
The full list of major US companies slashing staff this year
Tech layoffs in 2024
Nike cutting 2% of workforce
Companies make 2024 the year of cost cuts