Layoffs and Job Reductions

Subterms

    Latest story

    150 Shares75 Views

    Peloton CEO Barry McCarthy Steps Down as Company Cuts 15% of Workers

    by

    Barry McCarthy took over as C.E.O. in February 2022 to revive Peloton from its late-pandemic slump, but the company has struggled to become profitable.Peloton said on Thursday that its chief executive, Barry McCarthy, was stepping down and it would lay off more workers, as it continued to struggle in the fitness market.The connected-fitness company announced disappointing quarterly earnings on Thursday, with revenue down 4 percent from last year. The company, which has not turned a profit since December 2020, is also looking to refinance more than $1 billion in debt.Peloton had a spectacular rise at the start of the pandemic, when gyms and fitness centers closed and consumers were hungry for at-home workout options. But after gyms reopened, Peloton began to face stiffer competition from companies like Bowflex and Lululemon.Barry McCarthy, a former Spotify and Netflix executive, joined Peloton in 2022.Kevin Dietsch/Getty ImagesIt is reducing its head count by 15 percent, or 400 workers, in an effort to cut its costs this year by $200 million. Peloton has had several other rounds of job cuts in the past couple of years, most recently in October 2022, when it laid off about 12 percent of employees, or about 500 people.“Hard as the decision has been to make additional head count cuts, Peloton simply had no other way to bring its spending in line with its revenue,” Mr. McCarthy said in a statement.Investors appeared optimistic about the news; Peloton’s stock price rose about 9 percent in premarket trading.The company said it was looking to reduce its retail footprint and instead invest in “software, hardware and content portfolio and in improvements” for paying subscribers. Mr. McCarthy, a former Spotify and Netflix executive, joined Peloton in February 2022, taking over from the company’s founder, John Foley. Two board members, Karen Boone and Chris Bruzzo, will serve as interim co-chief executives. More

    More stories

    • 175 Shares188 Views

      in Elections

      The Worst Part of a Wall Street Career May Be Coming to an End

      by

      Artificial intelligence tools can replace much of Wall Street’s entry-level white-collar work, raising tough questions about the future of finance.Pulling all-nighters to assemble PowerPoint presentations. Punching numbers into Excel spreadsheets. Finessing the language on esoteric financial documents that may never be read by another soul.Such grunt work has long been a rite of passage in investment banking, an industry at the top of the corporate pyramid that lures thousands of young people every year with the promise of prestige and pay.Until now. Generative artificial intelligence — the technology upending many industries with its ability to produce and crunch new data — has landed on Wall Street. And investment banks, long inured to cultural change, are rapidly turning into Exhibit A on how the new technology could not only supplement but supplant entire ranks of workers.The jobs most immediately at risk are those performed by analysts at the bottom rung of the investment banking business, who put in endless hours to learn the building blocks of corporate finance, including the intricacies of mergers, public offerings and bond deals. Now, A.I. can do much of that work speedily and with considerably less whining.“The structure of these jobs has remained largely unchanged at least for a decade,” said Julia Dhar, head of BCG’s Behavioral Science Lab and a consultant to major banks experimenting with A.I. The inevitable question, as she put it, is “do you need fewer analysts?”The inevitable question, according to Julia Dhar, head of BCG’s Behavioral Science Lab, is “do you need fewer analysts?”John Lamparski/Getty Images for Concordia SummitWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 125 Shares179 Views

      in Elections

      Inside Amira Yahyaoui’s Claims about Mos, a Student Aid Start-Up

      by

      Amira Yahyaoui, a human rights activist, promoted the success of her student aid start-up, Mos. Some of her statements do not add up, according to internal data and people familiar with the company.As a Tunisian human rights activist in the 2000s, Amira Yahyaoui staged protests and blogged about government corruption. In interviews, she described being beaten by police. When she was 18, she said, she was kidnapped from the street, dropped off at the Algerian border and placed in exile for several years.Ms. Yahyaoui’s compelling background helped her stand out among entrepreneurs when she moved in 2018 to San Francisco, where she founded a student aid start-up called Mos. The app hit the top of Apple’s App Store and Ms. Yahyaoui raised $56 million from high-profile investors, including Sequoia Capital, John Doerr and Steph Curry, according to PitchBook, which tracks start-ups. Mos was valued at $400 million.In podcasts, TV interviews and other media, Ms. Yahyaoui, 39, frequently discussed Mos’s success.Among other things, she said the start-up had helped 400,000 students get financial aid. But internal company data viewed by The New York Times showed that as of early last year, only about 30,000 customers had paid for Mos’s student aid services. The rest of the 400,000 users included anyone who had signed up for a free account and may have gotten an email about applying for student aid, two people familiar with the situation said.After Mos expanded into online banking in September 2021, Ms. Yahyaoui told publications such as TechCrunch that the company had more than 100,000 bank accounts. But those accounts had very small amounts of money in them, according to the internal data. Less than 10 percent of Mos’s roughly 153,000 bank users had put their own money into their accounts, the data showed.Some employees tried to speak up about Ms. Yahyaoui’s claims, said Emi Tabb, who worked at Mos in operations and had roles such as head of financial aid before resigning in late 2022. But Ms. Yahyaoui dismissed and sometimes disparaged employees who tried pushing back against her public comments, five people who witnessed the incidents said.“She created a culture of fear,” Mx. Tabb said.Mos is among a class of tech start-ups that rose during the fast money era of the late 2010s and early in the pandemic, when young companies landed millions of dollars in funding with little more than promises. Now as the money has dried up and many tech start-ups grapple with a downturn, investors are pickier, customers are warier of bold claims and employees are more suspicious of founder pronouncements.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 100 Shares159 Views

      in Elections

      Trump Aides, Taking Over RNC, Order Mass Layoffs

      by

      Days after allies took over the Republican National Committee, Donald J. Trump’s advisers are imposing mass layoffs on the party, with more than 60 officials, including senior staff members, laid off or asked to resign and then reapply for their jobs, according to two people familiar with the matter.The swift changes amount to a gutting of the party apparatus eight months before the November election, with one person familiar with the operations estimating that the R.N.C. had only about 200 people on payroll at the end of February, and about 120 at its headquarters near Capitol Hill. The heads of the communications, data and political departments were among those let go.On Friday, Michael Whatley, a close ally to Mr. Trump, and Lara Trump, the former president’s daughter-in-law, were unanimously elected as the committee’s chair and co-chair. Mr. Trump had pushed out Ronna McDaniel, the committee’s leader since 2017, and endorsed Mr. Whatley and Ms. Trump to take the reins of the national party.Chris LaCivita, one of Mr. Trump’s top campaign advisers, was tapped to serve as the chief operating officer, and he was at the party headquarters meeting with senior staff on Monday.The purge of R.N.C. staff members was first reported by Politico. It is not clear that Mr. Trump is done clearing house.One person with direct knowledge of the changes said the party’s full finance and digital teams were now planned to be moved to Palm Beach, Fla., where the Trump campaign is based. Another person described the party and Trump operations as being functionally fused into one.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 100 Shares149 Views

      in Elections

      U.K. to Cut Taxes Again as Election Nears

      by

      The Conservative government, trailing badly in the polls, proposed the second tax cut in four months.Amid lackluster prospects for economic growth, the British government announced it would cut taxes for workers ahead of a general election this year.Jeremy Hunt, Britain’s top financial official, told lawmakers on Wednesday that he would cut National Insurance, a payroll tax paid by workers and employers that funds state pensions and some benefits, by two percentage points. It would take the rate for about 27 million employees down to 8 percent, and follows a two percentage point cut announced less than four months ago. Together, the cuts would save the average employee about 900 pounds ($1,145) a year, Mr. Hunt said. The rate was also cut for self-employed workers.“We can now help families not just with temporary cost-of-living support but with permanent cuts in taxation,” Mr. Hunt, the chancellor of the Exchequer, said in Parliament. “We do this to give much needed help in challenging times. But also because Conservatives know lower tax means higher growth.”Mr. Hunt also announced a sweep of smaller measures, including freezing taxes on alcohol and fuel, proposals to increase productivity in the public sector, and abolishing the tax advantages for foreign earnings of British residents living abroad.The chancellor has been under political pressure from the governing Conservative Party to lower taxes ahead of the general election, which is expected to take place this year, though a date has not been set yet. The party is substantially lagging the opposition Labour Party in the polls.But Mr. Hunt’s ability to offer sweeteners to voters has been constrained by the fact that the British economy is growing slowly — if at all. Stretched public services need money and there are calls to invest more in infrastructure. The chancellor also has to meet his self-imposed budget rules, which gave him even less fiscal room to maneuver.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 75 Shares99 Views

      in Elections

      Paramount Lays Off Hundreds of Workers

      by

      The company, which is moving away from traditional TV, lost more than $1 billion last year at its streaming division.Paramount, the owner of TV networks like Nickelodeon, MTV and Comedy Central, is laying off hundreds of employees, cutting costs as it continues its painful transition away from traditional television.About 3 percent of the company’s roughly 24,500 employees will be affected by the layoffs, according to a person familiar with the cuts, who spoke on condition of anonymity to discuss sensitive corporate information.Bob Bakish, Paramount’s chief executive, said in a memo to employees that the cuts were part of a bid to “return the company to earnings growth.”“While I realize these changes are in no way easy, as I said last month, I am confident this is the right decision for our future,” Mr. Bakish wrote. “These adjustments will help enable us to build on our momentum and execute our strategic vision for the year ahead — and I firmly believe we have much to be excited about.”Paramount is at a crossroads. The company’s controlling shareholder, Shari Redstone, is considering selling her stake in the company, a deal that could bring decades of family ownership to an end. Skydance, the media company that helped produce Paramount franchises like “Top Gun” and “Mission Impossible,” has expressed interest, but no deal has yet materialized.Like all its peers in traditional media, Paramount has struggled to keep pace with Netflix as streaming services supplant traditional TV and moviegoing. The company’s biggest streaming service, Paramount+, has not yet become profitable, putting a drag on the company’s profits. Paramount’s streaming division, which also includes the ad-supported service Pluto TV, lost more than $1 billion last year.Though viewership of Paramount’s cable networks is in decline, parts of its TV business remain resilient. Paramount’s CBS network, which broadcast the Super Bowl on Sunday, generated record ratings for the game, which saw the Kansas City Chief defeat the San Francisco 49ers in overtime. About 123.4 million people watched the game, according to Nielsen, up from 115.1 million the year before. More

    • 100 Shares129 Views

      in Elections

      Snap Lays Off 10% of Its Work Force

      by

      The company laid off more than 500 of its employees on Monday, or about 10 percent of its global work force.Snap, the parent of messaging app Snapchat, on Monday said it would lay off more than 500 employees, joining other tech companies in a wave of new cost-cutting measures.The layoffs amount to 10 percent of its global work force; the majority will occur in the first quarter of 2024. “We have made the difficult decision to restructure our team,” the company said in a securities filing, adding that it would take pretax charges of $55 million to $75 million, primarily for severance and related costs.Amazon, Google and Microsoft have announced layoffs this year, following tens of thousands across the sector last year. Snap laid off a small number of employees on Friday, Business Insider reported.The company is set to report earnings on Tuesday. Cost-cutting measures at other companies have buoyed stock prices. Snap shares were trading about 2 percent lower before the market opened on Monday.Like other social media companies reliant on advertising, Snap has had a rough couple years. Changes by Apple to its privacy policy in 2021 made it tougher for advertisers to track users — something that hurt Snap and also had a heavy effect on Meta, which owns Facebook and Instagram.Snapchat, which has more than 400 million daily active users, experienced a revenue decline in the first two quarters of last year and only 5 percent growth in its most recent quarter, which ended Sept. 30.In 2022, Snap cut 20 percent of its work force, or 1,300 jobs, and also discontinued at least six products. It let go nearly 20 product managers in November and in September shut a division that sells augmented reality products to businesses, laying off 170 people. More

    • 150 Shares129 Views

      in Elections

      Major Layoffs at Fair Fight, Voting Rights Group Founded by Stacey Abrams

      by

      Fair Fight, the liberal voting rights group founded by Stacey Abrams, is laying off most of its staff and scaling back its efforts in response to mounting debts incurred by court battles.Lauren Groh-Wargo, who led the organization before stepping down to manage Ms. Abrams’s second unsuccessful run for governor in Georgia in 2022, said she was returning as interim chief executive to lead the cuts, including laying off 20 employees — or 75 percent of the current staff.She added that Fair Fight was $2.5 million in debt with only $1.9 million cash on hand. Fair Fight raised some $100 million from 2018 to 2021.The cuts, in a decision made by the group’s board, would decimate a prominent liberal group that was once a fund-raising powerhouse for Democrats. The news was first reported by The Atlanta Journal-Constitution.Fair Fight has been involved in drawn-out legal battles over voting rights — for example, against a right-wing group, True the Vote, that sought in 2020 to remove some 250,000 registered voters in Georgia from voter rolls ahead of runoff elections for the state’s two Senate seats. A federal court ruled narrowly in favor of True the Vote this month.Fair Fight lost another court battle against the state of Georgia in early 2023, having claimed that restrictions on voter registration and absentee ballots violated voting rights. The group was ordered to pay more than $231,000 to cover the state’s legal fees.Ms. Abrams, at one point considered one of the nation’s most influential Democrats, founded Fair Fight after losing her first run for governor against Brian Kemp in 2018, but has not recently been involved with the group. Her efforts at building Democratic infrastructure in Georgia and driving voter turnout among the state’s people of color culminated in Democrats’ flipping both of Georgia’s Senate seats on Jan. 6, 2021.Ms. Abrams then lost her rematch against Mr. Kemp in 2022, and liberal grass-roots organizers and activist groups in Georgia, including Fair Fight, warned late last year that national financial support for their efforts had dried up ahead of the 2024 election. More

    • 113 Shares119 Views

      in Elections

      The Eugene Weekly Will Resume Printing After Embezzlement Discovery

      by

      The Eugene Weekly was forced to lay off all 10 of its staff members last month after it discovered tens of thousands of dollars in unpaid bills.A weekly newspaper in Oregon that laid off all of its workers in December after an employee embezzled tens of thousands of dollars will resume its print edition on Feb. 8 after raising enough money through donations, its editor said on Sunday.The newspaper, The Eugene Weekly, abruptly stopped printing after it discovered financial problems, including money not being paid into employee retirement accounts and $70,000 in unpaid bills to the newspaper’s printer, leading it to lay off all 10 of its staff members just days before Christmas, its editor, Camilla Mortensen, said at the time.Over the past month, however, Ms. Mortensen has continued publishing articles online with the help of interns, freelancers and retired reporters and editors — many of whom were willing to work without pay to keep the paper afloat — she said on Sunday.As of this week, Ms. Mortensen and three other staff members will be brought back onto the payroll in preparation for the Feb. 8 edition, she said, noting that the return to print was made possible by readers and members of the public who raised at least $150,000 after the financial problems were reported.“With all this support from people, there’s just no way we can’t try — we have to try printing,” Ms. Mortensen said.The theft, leaders of the newspaper said in a Dec. 28 letter to readers, had been hidden for years and left its finances “in shambles.” The paper has hired a forensic accountant to investigate.Leaders of the paper said that while the situation was unprecedented, they believed in the newspaper’s mission, and were “determined to keep EW alive.”The Eugene Police Department could not be immediately reached on Sunday evening for comment about the embezzlement but said previously that it was investigating. The now-former employee accused of stealing, who was involved in the newspaper’s finances, has not been publicly identified.The free paper, founded in 1982, previously printed 30,000 copies each week. Copies could be found in bright red boxes in and around Eugene, Oregon’s third-largest city.Ms. Mortensen, who became editor in 2016 after nearly a decade at the paper, said Sunday that the closure had been painful.“Every time I walk by one of our little red boxes, there’s no paper in it, it stabs me in the heart,” she said, noting that the plan was to print 5,000 fewer copies so that the paper could remain sustainable.“Obviously, this outpouring has been amazing,” she said, “but we also want to go back to being this free weekly paper that pays for itself.” More