Tag: job cuts

  • Legal & General Plans 10% Workforce Reduction by Mid-2027 in Business Simplification Push

    Legal & General Plans 10% Workforce Reduction by Mid-2027 in Business Simplification Push

    Legal & General (L&G) has confirmed plans to cut around 1,000 roles, representing about 10% of its workforce, by mid-2027 as part of a sweeping business simplification programme. The insurer and pensions group said the restructuring will streamline operations, reshape business units, and sharpen its focus on areas with the strongest growth potential.

    Voluntary Redundancies First

    Group Chief Executive António Simões informed employees of the proposal on Wednesday. The company will begin by offering voluntary redundancy packages in the UK, and it may move to compulsory job cuts if too few staff take up the voluntary scheme. L&G said unions would be consulted throughout the process.

    In his message to staff, Simões explained that structures, processes and working practices developed across L&G over the past decade had left the organisation “more complex than we need to be.”

    What the Cuts Mean for L&G’s Divisions

    The asset management arm, which manages about GBP 1.2 trillion globally, will be excluded from the programme after completing its own restructuring last year. The latest reductions are expected to fall mainly on group functions and the company’s life insurance and pensions businesses.

    Simões’ Simplification Strategy

    Simões, who joined L&G as group chief executive on 1 January 2024 after senior roles at HSBC and Santander, said the company has spent the past two and a half years simplifying the group around three core businesses.

    Recent strategic moves include the sale of L&G’s US protection business to Japan’s Meiji Yasuda for USD 2.3 billion. Under the transaction, Meiji Yasuda also acquired a 20% economic stake in L&G’s US pension risk transfer unit and a 5% stake in the group. L&G has also abandoned plans for a China license and begun the sale of housebuilder Cala.

    Job Cuts Come After Strong Results

    The redundancy plan follows stronger half-year results announced in August. Core operating profit rose 7% to GBP 918 million, while core operating earnings per share increased 11%. The Solvency II coverage ratio stood at 201%, above the company’s 160%-190% operating target.

    A GBP 1.2 billion share buyback is underway, and L&G expects to return more than GBP 5 billion to shareholders between 2025 and 2027. The company has not yet disclosed expected savings, restructuring costs, or the timing of financial benefits from the job cuts.

  • Jaguar Land Rover Announces 4,000 Job Cuts Globally to Drive Cost Savings

    Jaguar Land Rover Announces 4,000 Job Cuts Globally to Drive Cost Savings

    Jaguar Land Rover (JLR), the luxury automaker owned by Tata Motors, has announced plans to reduce its global workforce by approximately 4,000 roles over the next two years. The move is part of a broader restructuring strategy aimed at cutting costs by £1.7 billion and improving competitiveness in the face of rising expenses, tariffs, and intense market pressure.

    CEO PB Balaji confirmed the job reductions, which will affect salaried and management positions. The company has initiated a voluntary redundancy program, allowing eligible employees to leave voluntarily, with further details to be communicated to staff first.

    The restructuring is designed to streamline operations, enhance efficiency, and lower the company’s breakeven point to 300,000 units annually. JLR cited the need for operational simplification and greater resilience amid shifting global market conditions.

    Key challenges driving the layoffs include declining sales, escalating costs, US tariffs, and stiff competition from Chinese electric vehicle manufacturers. This announcement follows similar job cuts across the European automotive sector, reflecting broader industry pressures.

    JLR’s efforts are part of a wider trend among traditional automakers to adapt to changing consumer preferences and the rise of affordable EVs from China. The company remains focused on achieving long-term sustainability while navigating these industry disruptions.

  • Samsung India Cuts 80-100 Executive Roles in TV and Home Appliance Unit; More Layoffs Expected After Diwali

    Samsung India Cuts 80-100 Executive Roles in TV and Home Appliance Unit; More Layoffs Expected After Diwali

    Samsung India has reportedly laid off 80 to 100 executives from its television and home appliance divisions, marking a significant restructuring in its Indian operations. The affected employees are not junior staff but include director-level executives, team leads, and branch and area managers based at the company’s headquarters.

    The job cuts are attributed to rising operational costs, weakening consumer demand, and a broader reorganization aimed at improving profitability. Memory chip prices have more than doubled, while a weaker rupee and higher raw material costs have further strained margins. The cuts are currently limited to the TV and home appliance segment, but sources indicate that nearly 25% of Samsung India’s sales and marketing workforce in the electronics business—approximately 550 to 600 people—could be affected. The company is also closing some regional offices to reduce expenses, and additional layoffs may follow after the Diwali festival.

    Notably, Samsung’s smartphone business has been spared from the cuts. Mobile phones account for about three-fourths of Samsung India’s revenue, making the division far more critical. Samsung is banking on stronger phone sales during the Diwali season, even as the broader smartphone market has seen shipment declines. The company has raised prices on select phone models by 5% to 10% to offset rising costs.

    In contrast, TV and home appliances represent a much smaller portion of Samsung India’s sales, and the company is exploring cost-cutting and sales-improvement measures for these categories.

    This development comes amid a wave of tech layoffs in India, including recent cuts at Zomato, Oracle, and Visa.

  • Visa Layoffs 2026: 2,600 Jobs Cut Globally as Company Shifts Focus to AI

    Visa Layoffs 2026: 2,600 Jobs Cut Globally as Company Shifts Focus to AI

    Visa has announced the elimination of 2,600 positions worldwide, representing approximately 7% of its global workforce, as part of a strategic pivot toward artificial intelligence. The layoffs, which began on July 29, primarily affect technology and product teams, with India—home to over 3,500 Visa employees across Bengaluru, Mumbai, Chennai, and Hyderabad—experiencing significant cuts.

    Employees in India reported receiving sudden layoff emails between 4 a.m. and 5 a.m., with one team losing 10 of its 28 members. Senior staff and managers were not spared. The company has not disclosed the exact number of Indian employees affected in this round, but the move underscores a broader trend of multinational corporations reallocating resources from traditional tech roles to AI-driven initiatives.

    CEO Ryan McInerney has emphasized the role of agentic AI systems that can perform tasks with minimal human intervention, signaling a shift in how Visa’s technology teams will operate. The company aims to reduce costs and redirect investments toward higher-growth areas, with AI at the center of its strategy.

    Former Visa employee Arnab Das shared his experience on X, stating, “My entire team at Visa just got laid off, including my manager.” He noted that his former manager had strong performance reviews and had owned a product from start to finish. The incident highlights growing anxiety among tech workers about AI’s impact on job security.

    The Visa India layoffs add to mounting concerns in the country’s technology sector, where companies like Oracle, Volkswagen, and others have also trimmed staff while increasing AI investments. The trend suggests that technology workers may need to acquire new skills as organizations reshape their workforces around automation and machine learning.

  • Samsung Slashes Nearly 840 US Jobs as Consumer Electronics Headquarters Relocates to Texas

    Samsung Slashes Nearly 840 US Jobs as Consumer Electronics Headquarters Relocates to Texas

    Samsung Electronics has significantly reduced its US workforce, cutting hundreds of jobs as the company relocates the headquarters of its consumer electronics business from New Jersey to Texas. The restructuring has affected employees across display, smartphone, and other consumer electronics divisions.

    The largest impact has been in New Jersey, where 739 roles at the Englewood Cliffs office have been eliminated. Additionally, around 100 employees in Plano, Texas, including members of the mobile division, have been laid off. Samsung stated that a majority of affected workers were offered relocation opportunities, but did not disclose how many accepted.

    Documents reviewed by Reuters show employees were informed on June 30 about an ‘enterprise-wide reduction-in-force’ with a ‘significant number of impacts.’ More than 30 senior sales and marketing executives from Texas, New Jersey, and other US locations have recently left the company.

    The layoffs come as Samsung’s consumer electronics business faces slowing growth, higher costs, and increased competition. While its semiconductor division benefits from strong AI chip demand, the consumer side is under pressure. The mobile division is expected to report its first-ever loss, and Apple continues to dominate the premium smartphone market. Chinese brands TCL and Hisense are expanding in TV and home appliances, and higher chip costs are squeezing margins.

    The headquarters relocation occurs less than a year after Samsung opened its new office in Englewood Cliffs. The company stated the move aims to ‘foster stronger collaboration and optimize the organization by bringing more teams together within a growing technology and AI ecosystem.’ Samsung joins other tech giants like Tesla and Oracle in expanding operations in Texas. Samsung also clarified that there is no broad global restructuring underway within its consumer products business.

  • Microsoft Layoffs Could Reshape Xbox Gaming Division Amid Shift to AI: 5,700 Jobs at Risk

    Microsoft Layoffs Could Reshape Xbox Gaming Division Amid Shift to AI: 5,700 Jobs at Risk

    Microsoft is reportedly preparing another round of job cuts that could affect nearly 2.5% of its workforce, placing the Xbox gaming division at the center of the restructuring. The move comes as the tech giant continues to pivot heavily toward artificial intelligence, raising questions about the future of its gaming strategy.

    Multiple reports indicate that Microsoft may announce layoffs affecting around 5,700 positions globally, impacting sales, consulting, and the Xbox gaming division. With a current global workforce of approximately 228,000, even a 2.5% reduction represents a significant number of job losses. This would mark one of the largest workforce reductions at Microsoft since the 4% layoff in July 2025.

    Although Microsoft has not officially confirmed which teams will be affected, the gaming division is widely expected to be the most impacted. Xbox has already undergone major changes since the company completed its Activision Blizzard acquisition. Several studios have closed, projects have been canceled, and teams have been reorganized. Recent reports even suggest that Microsoft is about to close Arkane Studios, effectively halting development of Marvel’s Blade.

    The layoffs come at a time when Microsoft is investing billions of dollars in AI infrastructure, cloud services, and new software. Many industry experts believe AI has become Microsoft’s biggest priority. As a result, the gaming division may need to adjust to a new reality where efficiency and cost control take precedence over rapid expansion.

    “If Xbox teams are included in the latest layoffs, it could point to a broader change in Microsoft’s gaming strategy,” the report notes. Instead of pursuing more acquisitions or larger development teams, the company may focus on making existing studios more productive. Services such as Xbox Game Pass are still expected to remain central to the company’s gaming plans.

    Microsoft is unlikely to abandon gaming entirely, given that it owns some of the industry’s biggest franchises. However, the latest reports suggest that the company’s biggest investments are now flowing into AI. For Xbox, that means a stronger emphasis on careful spending rather than breakneck growth.

    As the tech landscape continues to evolve, Microsoft’s next moves will be closely watched by industry observers and gamers alike.

  • Cisco Slashes 471 California Jobs in Major Software Engineering Restructuring

    Cisco Slashes 471 California Jobs in Major Software Engineering Restructuring

    Cisco is cutting 471 positions across three California offices as part of a broader restructuring initiative announced in May. The layoffs affect employees in San José, Milpitas and San Francisco, according to notices filed with the California Employment Development Department.

    The networking and cybersecurity giant previously stated it would eliminate fewer than 4,000 jobs worldwide, representing less than 5% of its workforce. The latest filings offer granular detail on the California roles included in that plan.

    Layoffs Spread Across Bay Area Offices

    Cisco will eliminate 236 positions in San José, 154 in Milpitas and 81 in San Francisco. Employees received notice on May 14, with terminations scheduled to begin July 13. Some affected workers may leave within 13 days of that date.

    The reductions are permanent, as stated in the company’s Worker Adjustment and Retraining Notification letters. California law mandates at least 60 days’ notice before a large layoff or facility closure.

    Cisco declined to provide additional information beyond the May restructuring announcement, which the company described as an effort to lower costs in certain areas while reallocating resources toward targeted investments.

    CEO Chuck Robbins told employees that Cisco expects to benefit from AI growth but reaching that goal requires “making hard decisions — about where we invest, how we’re organized, and how our cost structure reflects the opportunity in front of us.”

    Software Engineering Roles Hit Hardest

    The layoffs span departments including software development, product management, design and business operations. Software engineers represent the largest single group, with 56 positions eliminated: 34 in Milpitas, 19 in San José and three in San Francisco. Additionally, 39 software engineering technical leader positions will be cut, with 27 in Milpitas.

    Other affected roles include 17 engineering product managers, 15 software engineering leaders, 12 directors of software engineering, 12 engineering program managers, nine directors of product management and eight business operations managers. Seven site reliability engineers, seven program managers and seven software quality assurance engineers are also included.

    A Cisco business partner executive described the cuts as a familiar pattern, calling it “the regular Cisco cadence” before quarterly earnings announcements. Cisco did not confirm that assessment.

    AI Investment Rises Amid Broader Tech Layoffs

    The layoffs come as Cisco posts stronger financial results: quarterly revenue of $15.8 billion, its highest for a fiscal third quarter, and net income up 35% to $3.4 billion. The company markets its networking products as critical AI infrastructure, with demand for data centers and AI computing systems boosting spending on networking and cybersecurity.

    Nevertheless, many tech firms are cutting staff while increasing AI investment. Meta, Snap, Block, Oracle and Amazon have all announced job cuts this year, with some executives linking workforce changes to automation and AI tools.

    US technology companies announced 123,653 job cuts from January to May, a 66% increase from the same period in 2025, according to Challenger, Gray & Christmas. The firm noted that AI was cited more often than any other reason for layoffs, though it questioned whether AI alone explains the broader trend.

    Cisco reported approximately 86,200 employees as of July 2025. Its planned global reduction of fewer than 4,000 positions would affect less than 5% of that workforce.