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Retail layoffs in 2024 and how software tools may help

Written by Celia Ting | Feb 29, 2024 2:47:31 AM

Your bi-weekly e-commerce dose drops here - Feb. 14-27, 2024

In this digest, you can find

  • A list of companies with layoff plans in 2024

  • dipp’s insights for retailers

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:

  1. Diversify Product Offerings: Expand product offerings to cater to changing consumer preferences and diversify revenue streams, thereby reducing reliance on any single market segment.

  2. 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.

  3. 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