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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PWC is now laying off a whopping 1,800 employees after announcing a major restructuring plan in the United States.
PricewaterhouseCoopers (PwC) has revealed a significant restructuring plan that will result in the layoffs of approximately 1,800 employees in the United States.
This marks the firm’s first major workforce reduction since 2009, affecting about 2.5% of its U.S. staff.
The layoffs impact a range of positions, from associates to managing directors across business services, audit, and tax, according to a report from the Wall Street Journal (WSJ).
The job cuts are largely concentrated in the advisory and technology sectors, with many of those affected being based offshore.
PwC’s U.S. leader, Paul Griggs, communicated these changes in a memo, stating, “We are positioning our firm for the future, creating capacity to invest, and anticipating and reacting to the market opportunities of today and tomorrow.”
In addition to the layoffs, PwC plans to integrate its products and technology teams into various business lines.
These adjustments are part of a broader restructuring effort initiated by Griggs, who assumed his role as U.S. leader in May.
The firm aims to remain competitive amid a slowdown in certain advisory services.
“To remain competitive and position our business for the future, we are continuing to transform areas of our firm and aligning our workforce to better support our strategy,” said Tim Grady, PwC’s U.S. Chief Operating Officer, as quoted by WSJ.
Meanwhile, PwC’s office in China is facing challenges after losing a major client, Country Garden Holdings.
This setback comes amid ongoing scrutiny of PwC’s auditing role for China Evergrande Group, which is embroiled in a $78 billion fraud case.
In response, PwC China has implemented cost-cutting measures, including layoffs, following the severance of ties with over 50 firms, including Bank of China, due to missed audit deadlines.
This restructuring marks a significant shift for PwC, which had managed to avoid major layoffs in the U.S. since 2009, setting it apart from competitors like Ernst & Young (EY), KPMG, and Deloitte.
Market News Today – PWC Is Now Laying Off A Whopping 1,800 Employees.
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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This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.
A California tech company is now cutting nearly 100 jobs after revising its sales forecast this year, according to a WARN notice.
Penumbra is set to lay off a total of 71 employees from its Immersive Healthcare division, as indicated in a Worker Adjustment and Retraining Notification (WARN) obtained by MedTech Dive.
This division, which includes virtual reality products for rehabilitation and mindfulness, was acquired by Penumbra in 2021.
In a WARN letter dated August 20, the company announced it would “permanently discontinue” this segment due to “changing business needs.”
The layoffs will commence on November 1 at Penumbra’s headquarters in Alameda, California.
The company did not provide further comments at the time of publication.
CEO Adam Elsesser mentioned in July that Penumbra was exploring “alternative avenues” for the Immersive Healthcare business.
He emphasized that while there is confidence in the long-term potential of the platform, the company’s immediate focus must shift to maximizing impact in its interventional business.
In the second quarter, Penumbra reported a $110.3 million impairment charge associated with the Immersive Healthcare segment.
The company had acquired Sixense Enterprises in 2021, having previously collaborated with them on healthcare applications for virtual reality, valuing the acquisition at $170 million.
CFO Maggie Yuen stated during an earnings call that the company anticipates reducing ongoing operating expenses by over $20 million and achieving additional savings in the next year as part of this strategic shift.
These changes are expected to positively affect Penumbra’s operating margin by 2025.
Additionally, Penumbra revised its sales forecast for 2024 downward by $60 million, projecting a range of $1.18 billion to $1.2 billion.
This adjustment is attributed to decreased business in China, delays in product launches in Europe, the discontinuation of the Immersive Healthcare segment, and revised expectations for U.S. thrombectomy growth.
The layoffs occur amid broader challenges faced by digital health technologies in the medtech sector.
Other companies, like OssoVR and AppliedVR, have also implemented layoffs recently.
In contrast, Augmedics, which focuses on augmented reality for spine surgery, acquired assets from the bankrupt company Surgalign and raised $82.5 million in funding last year.
Market News Today – A California Tech Company Is Now Cutting Nearly 100 Jobs.
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.”
For more news and updates like this, join the newsletter or opt-in for push notifications.
This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.
