Tue, May 21, 2024

Famous Companies Plan To Reduce the Number of Employees

Companies and coronavirus pandemic

Companies all over the world are struggling to adapt to the new reality. It is not easy to deal with all problems connected with coronavirus pandemic. As a result, many famous companies made the decision to reduce the number of employees.

According to the information provided by the Department of Labor, last week another 1.5 million U.S. workers filed for first-time jobless benefits. Consequently, 45 million Americans lost their jobs during the last couple of months. It is worth mentioning that, large companies started to reduce their headcounts due to the coronavirus pandemic. Let’s have a look at some of the companies that decided to reduce costs. It is hard to blame as the coronavirus pandemic created a lot of problems for many companies even for large companies.

The telecom giant AT&T plans to close 250 stores and reduce several thousand jobs. According to one of its unions, Communications Workers of America, 3,400 technicians, and clerical staff will lose their jobs. Moreover, AT&T plans to cut 1,300 jobs. As a result, 1,300 people who work at AT&T Mobility and Cricket Wireless stores will lose their jobs.

Interestingly, as of March 31, the company had 244,000 employees. The company wants to reduce the number of employees by 4,7 people or 2% of its global staff.

Based on the information provided by the company, the cuts were made necessary by customer preferences, as customers pay less attention to landline phones. Moreover, another factor is the coronavirus pandemic.

Companies and the U.S. economyCoronavirus pandemic and labor market

Unfortunately, as can be seen from the information stated above, AT&T is not the only large company that decided to reduce the headcount. Another company is the world-famous hospitality company, Hilton Worldwide Holdings Inc.

On Tuesday, Hilton Hotels said that it decided to cut 2,100 jobs or roughly 22% of its corporate workforce. The coronavirus pandemic had a devastating impact on leisure and corporate travel. According to CEO Christopher Nassetta, it was a tough decision.

It is worth noting that, the coronavirus pandemic all but destroyed the global tourism industry. Governments around the world imposed travel restrictions to contain the spread of the virus. Unfortunately, large chains such as Hilton, Marriott, and Hyatt suffered due to such decisions. Importantly, Marriot and Hyatt also decided to reduce the number of employees.

HSBC also plans to reduce the number of employees, it plans to reduce its headcount by 35,000 people or roughly 15% of its global workforce. The coronavirus pandemic is a serious problem for the bank. HSBC’s profits fell by 48% to $3.2 billion in the first quarter of 2020 compared to the same period in 2019.

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