A new year of hope and prosperity may not be on the cards for employees of some of the largest and most successful organisations in the world, with industry reports stating that 2015 will see a significant number of job losses. According to experts, the number of cost-cutting campaigns are increasing, and with this comes job losses and costly severance packages. This article will identify some of the most noteworthy job culls for 2015.
Ebay Staff to Dread the New Year
Ebay is readying its business model for a split off from PayPal, turning both businesses into two separate publicly traded companies. But with this complete restructuring come thousands of job cuts in 2015. Despite no confirmation from Ebay, industry experts believe that job cuts are inevitable in an overall bid to reduce costs and make the company more attractive for a buyout.
The job cuts are said to be targeted at the company’s marketplace division with an estimated 3,000 jobs (10% of Ebay’s entire staff) at stake. The full report can be viewed at WSJ.com.
Coca-Cola Co. Cost-Cutting Strategy
Reports, according to just-drinks.com, state that Coca-Cola Co’s cost cutting campaign will soon be underway, which will see the company cut costs from all areas, including their workforce. This strategy will enable the soft drinks giant to save US$3bn annually by 2019. The reasoning behind the significant cost cuts is thought to be down to a 9 month long drop in ‘net profits and sales’. A spokesperson for Coca Cola Co. has said that the exact number of job losses is unconfirmed as it is too early in the strategy to estimate this figure.
Microsoft’s March Cull
Microsoft is expected to reduce its workforce by an eye watering 18,000 staff members by March 2015, reports gameinformer.com. This news has been confirmed by the company’s CEO, Satya Nadella, who implies that the job cull will primarily affect management positions in an effort to streamline the organisation ‘sideways’. Nadella informs that 13,000 of the impending job cuts will take place over the next 6 months, which will be damming news to Microsoft employees during a touch recruitment season.
The Microsoft CEO softens the blow by informing employees that severance packages and compensation will be given accordingly, and in some instances, job transition assistance will be offered.
It is evident that this job cull strategy is serious for Microsoft, who have not cut jobs on a scale similar to this since 2009
BP Staff to Suffer from Market Price Slump
The Guardian reports that BP is to spend a staggering £640m slashing their employee numbers in 2015. The continued dip in global oil prices in the marketplace has meant that cost cutting is necessary, and with half the number of offshore fields and pipelines, many ‘back-end jobs are not needed. Reports state that the job cuts will take place in 2015. BP’s Chief Executive Bob Dudley spoke on the cost cutting strategy, stating...
“We have been working very hard....to right-size our organisation as a result of ...$43bn of divestments.”
The divestments, worth $43bn, have come at a time where the oil giant needs to ‘stop unnecessary activity’. And subsequently, staff cuts are part and parcel of this strategy. Despite the job cull expecting to cost the company in the region of £640m in severance packages, the long term goal or streamlining the organisation will be on target.
With a workforce of approximately 84,000 internationally, the cuts are expected to affect employees across the board.
It is evident that 2015 could see many large scale operations reducing their staff count in an effort to save on costs and increase profits.
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