Layoff 2024: BlackRock, Barclays, Unity and more axe employees in staggering numbers

Layoffs have long been a part of corporate dynamics, but the momentum of job cuts that accelerated in 2022 shows no signs of abating. The year 2023 witnessed an initial surge in layoffs, which gradually subsided. However, at the outset of 2024, the trend has resurged, with staggering numbers. Google has hinted at potential layoffs affecting around 30,000 employees, while Flipkart plans to trim 1000 to 1500 roles. These tech giants' decisions reflect a broader pattern, with numerous companies restructuring or downsizing due to organisational restructuring and economic slowdowns. As we step into the second week of January, several more companies have joined the list of workforce reductions. Here's a list of such companies taking similar actions.

Pitch 

Pitch, the collaborative presentation software creator for businesses, is making substantial changes. CEO Christian Reber is stepping down, and the company is downsizing, resulting in a two-thirds reduction of its workforce—about 80 employees based on Pitch's headcount of 120. Reber announced this shift in a recent social media post, stating that Adam Renklint, the co-founder and CTO, will take over as CEO immediately, while Reber will retain a seat on the company board. Founded in 2018 and launched in private beta in 2019 with an initial $30 million funding, Pitch garnered support from Wunderlist's creators, acquired by Microsoft in 2015. 

It raised over $130 million from investors like Lakestar, Index Ventures, and Tiger Global Management, including contributions from notable figures like Instagram and Zoom's founders. Like many VC-backed startups, Pitch faced challenges meeting growth expectations and investor demands. "2023 was tough for a venture-backed company. We had sky-high expectations for our business, but by the end of last year, we realized they were too ambitious. It led us to choose a new path for Pitch," Reber said, reported Tech Crunch. 

Unity 

Unity Software, the video game software provider, announced plans to cut approximately 1,800 jobs, about 25% of its workforce, reported Reuters. Following this news, Unity's shares surged nearly 5% in after-hours trading. This marks the largest layoff in the San Francisco-based company's history, expected to conclude by March. While Unity may not have widespread recognition beyond gaming circles, over 1.1 million game creators depend on its software toolkit monthly, including developers behind popular games like “Pokemon Go,” “Beat Saber,” and “Hearthstone.” These substantial job cuts are anticipated to affect all aspects of the business, spanning all teams and regions. 

These layoffs come after interim CEO Jim Whitehurst announced a “company reset” in November. Whitehurst emphasised focusing on the core business for long-term success and profitability in a memo to all Unity employees. While specifics about structural changes were not disclosed, a company spokesperson confirmed further adjustments. This latest round of layoffs is the fourth Unity has implemented since July 2022. These developments follow a period of turmoil for Unity, notably its unsuccessful attempt in September last year to introduce new fees for game developers based on revenue and installation thresholds. After backlash and a sharp decline in share prices, the company revised its fee structure.

Barclays

Barclays reduced its workforce by approximately 5,000 jobs as part of a significant cost-cutting initiative outlined the previous year, the bank confirmed on Monday. The bulk of these cuts occurred within Barclays Execution Services (BX), the bank’s support unit, a revelation confirmed for the first time by Reuters. A bank spokesperson stated, “Barclays eliminated about 5,000 positions worldwide throughout 2023 as a component of its continuous efficiency program aimed at streamlining operations, enhancing service, and achieving greater returns.” 

These reductions are integral to the “material structural cost actions” unveiled by CEO C.S. Venkatakrishnan last year, aimed at bolstering profitability, with further details expected during an investor presentation alongside the bank’s annual results in February. While the bank had previously disclosed its overall cost-cutting endeavours and Reuters had reported on BX-related cuts, the bank’s recent statement in response to a Sky News report provides clarity regarding the extent of its actions thus far. Additionally, Barclays has also downscaled its UK chief operating officer function, according to the bank's announcement.

BlackRock

BlackRock is poised to announce a significant reduction in its workforce. Expected to affect roughly 3% of its global employees, the upcoming layoffs will see approximately 600 individuals departing from the company, reported Crypto Potato. Described internally as standard practice, these layoffs align with BlackRock’s past approaches. In 2023, a comparable workforce adjustment occurred, guided by employee performance evaluations. This decision follows a period of considerable market recuperation for BlackRock. After a 21% decline in 2022, the firm witnessed a notable 6% increase in its shares during 2023. 

BlackRock is slated to unveil its fourth-quarter earnings on Friday, with analysts forecasting a 2.46% drop in year-over-year earnings per share. The firm closed the third quarter of 2023 with $9 trillion in assets under management (AUM), a decrease from its peak of over $10 trillion in 2022. Moreover, BlackRock anticipates approval from the Securities and Exchange Commission (SEC) for its new spot Bitcoin ETF. Expectedly greenlit on Wednesday, this approval signifies a substantial foray into the crypto realm, enabling investors to mirror Bitcoin's daily pricing on public stock markets. This strategic move situates BlackRock at the forefront of digital asset investment, alongside other asset managers awaiting similar ETF approvals.

Flexe

Flexe is undergoing another round of layoffs. CEO Karl Siebrecht confirmed the Seattle-based startup's reduction of 38% of its workforce on Monday. A Washington state Worker Adjustment and Retraining Notification (WARN) filing revealed that 99 employees are affected. “We’re dedicated to supporting departing employees and maintaining top-notch service for our customers,” stated Siebrecht to GeekWire. Previously in September, Flexe cut 131 positions in Washington state, though the company hasn’t disclosed its current headcount, estimated around 260 before these recent layoffs. 

These workforce cuts reflect challenges faced by startups like Flexe, once buoyed by venture capital, now navigating industry-specific hurdles and broader market uncertainties. Flexe, aiding online retailers in warehousing and shipping, is among several logistics startups trimming expenses lately. Seattle's Convoy, valued at $3.8 billion in 2022, shut down unexpectedly last year. Flexe, a “unicorn” with a $1 billion valuation in 2022 after a $119 million Series D round, experienced rapid growth during the pandemic-induced surge in online shopping.

Avid Technology

Avid Technology Inc, headquartered in Burlington and specialising in video and audio editing tools for the entertainment industry, confirmed on Monday that it has implemented job cuts following its acquisition by an affiliate of STG, based in Palo Alto, California, reported Biz Journals. This $1.4 billion acquisition concluded in November after being formalised earlier in the summer. Colleen Smith, Avid Technology's Vice President of Marketing, stated, "With the shift from a public to a private entity, certain positions became redundant, resulting in their elimination." Smith didn't disclose the number of affected employees or the specific roles impacted. However, she mentioned that some Massachusetts-based Avid employees opted for a voluntary retirement program introduced in 2023. 

Presently, Avid employs approximately 200 individuals in Massachusetts, with its headquarters situated in Burlington. At the close of 2022, Avid Technology had approximately 1,485 full-time employees and 395 external contractors across more than 30 countries, according to federal securities filings. STG's acquisition took Avid private after the company had been publicly traded on the Nasdaq for three decades. This transaction represented one of 2023's largest tech company acquisitions in Massachusetts, coinciding with private equity firms acquiring several local software companies from the public markets.

Exelixis

The company announced a workforce reduction, affecting around 175 employees, constituting a 13% cut in its workforce. CEO Michael Morrissey stated that the layoffs are part of a broader restructuring aimed at focusing resources on advancing their pipeline. This strategy includes prioritising label expansions for their approved cancer drug Cabometyx and advancing other treatments, like zanzalintinib, in late-stage studies for colorectal cancer and renal cell carcinoma. 

The restructuring, expected to cost around $25 million, aims to create positive cash flow, supporting Exelixis’ $450 million share repurchase program. This initiative follows a successful $550 million share repurchase last year. The company's success with Cabometyx, an FDA-approved treatment for various cancers, contributed significantly to its $1.8 billion revenue in 2023. Analysts at William Blair supported Exelixis’ decision, emphasising the importance of focusing on promising clinical programs amidst macroeconomic uncertainties.