New Amazon layoffs will now affect 300 staff in California, as the retail giant prepares to close two major facilities in the state.
Amazon has announced it will not renew leases for its warehouse facilities in Irvine and West Sacramento, California, leading to significant layoffs.
According to spokesperson Sam Stephenson, the closure in Irvine will result in 162 job losses, with the facility set to shut down on November 7.
In West Sacramento, 159 employees will be affected, with the closure effective October 30.
The decision to close these sites is part of Amazon’s ongoing evaluation of its network to ensure alignment with business needs and to enhance both employee and customer experiences.
Stephenson noted that the company is committed to assisting affected employees in finding new roles within Amazon, including opportunities at nearby fulfillment centers.
Amazon has been actively restructuring its operations by closing underperforming sites, upgrading existing facilities, and launching new ones to optimize its logistics network.
Following a period of rapid expansion during the pandemic, the company is now implementing significant cost-cutting measures to address excess capacity in its fulfillment operations, per Retail Dive.
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A battery giant now announces unexpected layoffs as the market slows, resulting in huge cost-cutting measures and contraction.
Northvolt, a major battery manufacturer for Europe’s electric vehicle sector, revealed on Monday its plans to reduce its workforce and shut down one of its production sites.
The company is also entering discussions with partners and investors regarding the future of its facility in Poland, per CNBC.
Headquartered in Stockholm, Northvolt has established itself as one of Europe’s most valuable privately held technology firms, specializing in lithium-ion batteries for electric vehicles.
The company has formed partnerships with several major automakers, including Volkswagen and Volvo.
In a strategic review, Northvolt stated it faced the need to make “difficult decisions” to align its workforce with a reduced scale of operations.
While the company did not specify how many jobs would be impacted, it emphasized that no final decisions have been made regarding the specifics of the layoffs.
“We remain in constructive discussions with the unions and will make every effort to minimize redundancies,” the company said.
The decision to implement cost-cutting measures stems from a “challenging macroeconomic environment” and a reassessment of Northvolt’s immediate priorities.
CEO and co-founder Peter Carlsson expressed that focusing on core operations is essential for establishing a solid foundation for long-term growth and supporting the development of a domestic battery industry in the West.
Northvolt has encountered various challenges recently, particularly with the broader electric vehicle market facing demand issues.
According to data from the European Alternative Fuels Observatory, electric vehicle registrations in Europe fell by 3% year-over-year in May, while plug-in hybrid registrations dropped by 10%, totaling 226,000.
Adding to its difficulties, Northvolt faced a major setback in June when BMW canceled a €2 billion contract for EV battery deliveries starting in 2024, citing Northvolt’s inability to meet deadlines.
In addition to job reductions, Northvolt is consolidating its battery production operations across Europe.
In Skellefteå, Sweden, the company has placed its cathode active material production facility, Northvolt Ett Upstream 1, into maintenance mode to optimize production costs.
Furthermore, the Northvolt Fem program in Kvarnsveden will be terminated, with the site already sold to an undisclosed buyer.
In Poland, Northvolt plans to discuss potential partnerships regarding Northvolt Systems, which includes its battery systems production site, Northvolt Dwa.
In the U.S., Northvolt intends to integrate its California-based subsidiary, Cuberg, into its Northvolt Labs unit in Sweden.
Last valued at $12 billion by investors, Northvolt has backing from prominent investors including BlackRock, Goldman Sachs, and Volkswagen.
The company is considered a strong candidate for an initial public offering (IPO) in Europe’s tech landscape, with reports suggesting it could be preparing for a stock market listing that might value it at over $20 billion.
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A new round of surprising layoffs now hits California as more businesses file WARN notices advising of the upcoming job cuts.
California is bracing for a significant wave of layoffs as multiple companies across diverse industries have recently filed Worker Adjustment and Retraining Notification (WARN) notices.
From biotech firms to technology giants, thousands of employees are poised to lose their jobs in the coming months, particularly in major cities like San Francisco, Irvine, and San Diego.
These WARN notices underscore the ongoing challenges workers face in an increasingly uncertain job market.
It’s important to note that the Worker Adjustment and Retraining Notification (WARN) Act requires employers to provide 60 days’ notice to employees and local government officials before implementing mass layoffs or closing facilities.
This federal law aims to give workers time to seek new employment or explore retraining options.
Enervenue: 65 employees to be laid off in Fremont in November.
ChargePoint: 64 employees to be let go in Campbell on November 4.
Edwards Lifesciences: 192 staff in Irvine facing layoffs.
Hogan Personnel: 92 staff in Fontana to be laid off on November 2.
Intel: Additional staff cuts across California.
In September alone, several companies submitted WARN notices, including:
Cisco: 53 employees in San Jose laid off on October 18.
Genentech: 93 staff in San Francisco to be let go on October 8.
Vir Biotechnology: 141 employees in San Francisco facing layoffs.
Ajinomoto Bio-Pharma Services: 127 staff in San Diego to be laid off on September 30.
Illumina: 49 employees in San Diego laid off on October 1.
FibroGen: 127 staff in San Francisco facing layoffs.
Velo3D: 42 employees in Fremont to be laid off.
Mosaic Culver: Staff layoffs in Culver City.
Mama’s Ladera Ranch: Permanent closure leading to job losses in October.
Menzies Aviation: 91 employees in Los Angeles to be laid off on October 31.
AT&T: 20 employees terminated in San Ramon.
Fermented Sciences: 50 staff cuts in Ventura.
Bright Innovations Lab: Facility closure in Santa Clarita resulting in mass layoffs.
As these layoffs unfold, the economic landscape in California continues to shift, reflecting the broader challenges faced by workers in today’s unpredictable job market.
Market News Today – A New Round of Surprising Layoffs Now Hits California.
Applications for unemployment benefits now surge to new highs, a sign that the white-hot labor market is starting to cool off.
First-time applications for unemployment benefits rose last week to 231,000, the highest level since August, per CNN.
Thursday’s data also showed that the number of continuing claims, or applications from people who have filed for unemployment for at least one week, was 1.78 million.
That’s an increase of 17,000 from the prior week, according to the Bureau of Labor Statistics.
The latest numbers come less than a week after the monthly jobs report showed the US economy added just 175,000 positions in April, less than economists expected and a steep drop-off from prior months.
US employers have now added an average of 245,500 jobs per month, versus 2023’s 251,000-per-month average.
Still, hiring remains strong.
Although the unemployment rate ticked up to 3.9%, it as seen the 27th consecutive month that the jobless rate has held under 4%, matching a streak last seen in the late 1960s.
Weekly jobless claims data tends to be volatile but, while one week’s worth of data “does not a trend make,” said Chris Rupkey, chief economist at Fwdbonds.
“We can no longer be sure that calm seas lie ahead for the US economy if today’s weekly jobless claims are any indication.”
“Company layoffs are picking up, hinting at caution on the part of companies as they weigh the outlook for the second half of the year,” he wrote in a note Thursday.
The Federal Reserve has been battling inflation by raising its key lending rate in the hopes of slowing the economy.
While the labor market has so far resisted those efforts, remaining white hot for the past 18 months despite 11 rate hikes from the central bank, Fed Chair Jerome Powell said last week that demand has “cooled from its extremely high level of a couple of years ago.”
Ian Shepherdson at Pantheon Economics said in a note earlier this quarter: “We’d need to see at least a month of elevated readings to convince us that the trend really has turned.”
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Two giant companies are now laying off thousands in Michigan, leading state officials to offer incentives to keep unemployment down.
Stellantis and General Motors (GM) are cutting thousands of jobs in Michigan despite receiving substantial incentives from state officials aimed at preserving and expanding automotive employment.
GM announced it will lay off a total of 1,000 white-collar workers, including 634 at its Global Technical Center in Warren.
This follows Stellantis’s decision to reduce its workforce by up to 2,450 jobs at the Warren Truck Assembly plant.
These layoffs are part of a larger trend of workforce reductions by both companies in Michigan.
Stellantis’s employee count in the state has decreased by 7% over the past year, bringing its total to 38,913, while GM’s workforce has fallen by 9%, now totaling 50,316.
The job cuts highlight ongoing challenges in the automotive sector, such as Stellantis’s declining sales in the U.S. and GM’s difficulties with its electrification strategy and software issues in new pickup models.
These layoffs are part of broader initiatives to streamline operations and cut costs.
While Ford also faces industry challenges, it has distinguished itself from other Detroit automakers with an 11% increase in its Michigan workforce over the past year.
However, Ford recently announced a $1.9 billion shift in its electric vehicle (EV) strategy, which includes canceling plans for a three-row SUV and delaying the production of its next-generation electric pickup.
Mass layoffs are a common occurrence in the cyclical automotive industry, but Detroit automakers are facing increasing pressure due to rising labor costs and the need to develop affordable EVs amid falling demand.
Despite the job cuts, both Stellantis and GM have reaffirmed their commitment to Michigan.
Stellantis highlighted its long-standing presence in the state and ongoing investments in manufacturing, while GM noted its position as one of Michigan’s top employers and its recent investment in a new headquarters in downtown Detroit.
The recent layoffs are unlikely to affect the incentives provided by Michigan, as these deals are generally tied to job creation metrics, and economic development officials have mentioned that layoffs seldom lead to the recovery of funds.
Stellantis and GM are expected to seek additional state support for future projects, even as the auto industry undergoes significant changes.
Michigan officials are closely monitoring the situation and looking for ways to diversify the state’s economy beyond its heavy reliance on the automotive sector, per CBT News.
While manufacturing remains a priority, there is a growing awareness of the need to attract and develop other industries for long-term economic stability.
Layoff News Today – Two Giant Companies Are Now Laying Off Thousands in Michigan.
Applications for unemployment benefits now surge to new highs, a sign that the white-hot labor market is starting to cool off.
First-time applications for unemployment benefits rose last week to 231,000, the highest level since August, per CNN.
Thursday’s data also showed that the number of continuing claims, or applications from people who have filed for unemployment for at least one week, was 1.78 million.
That’s an increase of 17,000 from the prior week, according to the Bureau of Labor Statistics.
The latest numbers come less than a week after the monthly jobs report showed the US economy added just 175,000 positions in April, less than economists expected and a steep drop-off from prior months.
US employers have now added an average of 245,500 jobs per month, versus 2023’s 251,000-per-month average.
Still, hiring remains strong.
Although the unemployment rate ticked up to 3.9%, it as seen the 27th consecutive month that the jobless rate has held under 4%, matching a streak last seen in the late 1960s.
Weekly jobless claims data tends to be volatile but, while one week’s worth of data “does not a trend make,” said Chris Rupkey, chief economist at Fwdbonds.
“We can no longer be sure that calm seas lie ahead for the US economy if today’s weekly jobless claims are any indication.”
“Company layoffs are picking up, hinting at caution on the part of companies as they weigh the outlook for the second half of the year,” he wrote in a note Thursday.
The Federal Reserve has been battling inflation by raising its key lending rate in the hopes of slowing the economy.
While the labor market has so far resisted those efforts, remaining white hot for the past 18 months despite 11 rate hikes from the central bank, Fed Chair Jerome Powell said last week that demand has “cooled from its extremely high level of a couple of years ago.”
Ian Shepherdson at Pantheon Economics said in a note earlier this quarter: “We’d need to see at least a month of elevated readings to convince us that the trend really has turned.”
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A Wyoming bank is now laying off amid a Federal lawsuit over a denied ‘master account’, which is limiting the company from growing.
Custodia Bank, a digital asset-focused institution chartered in Wyoming, has laid off some employees as it continues its legal battle with the Federal Reserve over a denied master account.
Founder and CEO Caitlin Long explained in a statement to Banking Dive that the bank is “right-sizing” to ensure it can continue operations while conserving capital during the lawsuit against the Fed.
She also mentioned the layoffs would last until the conclusion of what she described as “Operation Choke Point 2.0,” referring to a perceived ongoing crackdown on digital assets under the Biden administration.
This term recalls an Obama-era initiative aimed at restricting access to banking for high-risk industries such as payday lending and gambling.
Custodia informed its staff on Thursday that nine out of its 36 employees would be laid off, according to Fox Business.
Custodia Bank was denied a master account early last year, which would allow it access to the Federal Reserve’s liquidity facilities, including payment services.
In April, a federal judge ruled that there is no federal requirement for the Fed to grant a master account to every eligible institution, leaving the lawsuit ongoing.
According to a source familiar with the situation, Custodia is facing challenges due to the significant costs associated with not having its own Fed master account.
The bank has been debanked twice by partner institutions and has reportedly faced pressure from Fed regulators behind the scenes.
Caitlin Long stated in an email that the crackdown on digital assets has severely impacted the compliant U.S. crypto industry, and Custodia has felt the effects despite its strong risk management and compliance history.
This month, leading Democrats held a Zoom meeting with members of the crypto industry in an effort to mend relations.
However, tensions arose when Deputy Treasury Secretary Wally Adeyemo asserted that there was no coordinated effort to exclude the crypto sector from traditional banking.
In response, a crypto executive asked attendees to indicate how many had been denied banking services due to White House policies, prompting nearly all industry representatives to raise their hands.
A Custodia spokesperson did not provide details about which roles were affected by the recent layoffs.
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Banking News Today – A Wyoming Bank Is Now Laying Off Amid Federal Lawsuit.
Citibank now fires a whistleblower for ‘underperformance’, after the former employee provided records requested by the OCC.
Citi has filed a countersuit against its former employee, Kathleen Martin, alleging that she was terminated not for refusing to falsify records for the Office of the Comptroller of the Currency (OCC), as she claimed in her lawsuit from May, but rather for being unable to properly fulfill the duties of her role.
Martin, who was let go from her position as Citi’s interim data transformation chair in September 2023 after nearly two years with the bank, had alleged in her lawsuit that she was fired for not agreeing to Chief Operating Officer Anand Selva’s request to conceal information from the OCC that would make the lender “look bad.”
In a revised lawsuit, Kathleen Martin has accused Citi’s Chief Operating Officer Anand Selva of intentionally deceiving the bank by wanting to misrepresent Citi’s compliance metrics to the Office of the Comptroller of the Currency (OCC).
Martin claims Selva sought to conceal information from the OCC that would have made the bank “look bad.”
However, Citi maintains that Martin’s termination in September 2023 was not due to her refusal to falsify records, but rather because she lacked the necessary “leadership and engagement skills” to effectively execute the role of interim Data Transformation Chair, which she had been appointed to after the previous chair, Rob Casper, departed the company.
Citi asserts that during Martin’s interviews and assessment for the interim role, it was identified that she needed to improve in areas like her “dogmatic nature, lack of innovation and lack of experience driving the execution of complex change across Citi.”
Once Casper left, Citi’s senior leadership, including COO Selva, determined that Martin could not successfully fulfill the demands of the interim chair position.
According to Citi, COO Anand Selva tried to help the plaintiff, Kathleen Martin, improve her performance in the interim Data Transformation Chair role.
Selva allegedly set up one-on-one meetings and working groups to facilitate better collaboration and working relationships with stakeholders.
Selva’s HR team also provided Martin with a senior mentor to support her development.
In May 2023, Citi leadership discussed a plan to improve Martin’s performance.
In July, Selva conveyed Martin’s mid-year review before she raised any concerns about his behavior.
Soon after, Martin contacted HR and expressed fears about her job security.
Citi claims that Martin “felt her position was at risk,” but the bank asserts that internal documents showed she “exceeded expectations” and that CEO Jane Fraser had commended her for her “gravitas” and ability to build “strong relationships” at the bank.
However, Citi says Martin failed to heed the feedback provided, and she was ultimately removed from the Data Transformation Chair role because she lacked the “executive level relationships” and leadership needed to successfully execute the data transformation efforts.
Citi says the data transformation work was too critical for the bank to tolerate Martin’s underperformance.
Citi denies Martin’s claims that she protested the reporting of a key metric accurately or that Selva objected to it.
The bank says Selva and Martin met in September 2023 to discuss reporting certain metrics using red, amber, and green scales.
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