10 Companies Cutting the Most Jobs

Through August, planned job cuts were slightly lower than they were during the first eight months of 2013. In all, companies have announced just under 333,000 planned layoffs so far this year, down 4% from roughly 347,000 layoffs announced between January and August of 2013.

According to data compiled by Challenger, Gray & Christmas, 10 companies alone have accounted for more than 20% of the announced job cuts, planning nearly 72,000 job cuts this year combined. No company announced more layoffs than Microsoft, with 18,000. Based on data from global outplacement firm Challenger, Gray & Christmas, 24/7 Wall St. reviewed the companies cutting the most jobs.

Click here to see the 10 companies cutting the most jobs.

In some cases, companies face difficult obstacles to return to profitability, or are insolvent, and are forced to shed jobs. However, in an interview with 24/7 Wall St., Challenger, Gray & Christmas CEO John Challenger explained that this is not the case for most companies. “Generally, we’re not seeing layoffs that occur because companies are doing poorly, [or] they are near insolvency.”

In many cases, Challenger told 24/7 Wall St., layoffs are conducted as part of a company restructuring to become more lean. With the economy improving, he added, “more of the layoffs are occurring now because companies are shifting their business strategies, they’re buying other companies and they don’t need two headquarters.”

Technology companies have been the largest downsizers so far this year with several long time stalwarts leading the way. Microsoft (NASDAQ: MSFT), Hewlett-Packard (NYSE: HPQ), and Cisco Systems (NASDAQ: CSCO) announced the most job cuts, not only among tech companies, but also overall.

The industry with the second largest planned layoffs so far in 2014 has been retail, with nearly 30,000 job cuts announced through August. This figure is actually down from last year, despite layoffs at Best Buy (NYSE: BBY), as well as Coldwater Creek, which declared bankruptcy in April.

Financial companies, too, were among the top companies cutting jobs. Both JPMorgan Chase (NYSE: JPM) and Bank of America (NYSE: BAC) were among the 10 companies with the most planned layoffs so far in 2014.

One factor that often drives job cuts is industry evolution. According to Challenger, this is especially true in the retail sector, where “it’s an area of low margins and fierce competition and technology is making a big difference in how consumers are coming to stores.” As a result of such changes, he added, retailers are making cuts due to the changing retail landscape, especially the fact that more shopping is being done online.

Best Buy is probably the best example of this. With the increased popularity of online sales, the phenomenon of showrooming has undercut sales at the electronics retailer as many customers visited stores to try out a product before buying it online, oftentimes at Amazon.com (NASDAQ: AMZN). The online retailer has long been famous for its low prices and has even been willing to sacrifice profits to grow its market footprint.

Other companies cut jobs in an effort to continue to stay competitive. Shareholders invest in companies with the hope that shares will generate higher returns than they could elsewhere. In order to provide such returns, companies often restructure their operations to trim costs and increase profits, which can lead to layoffs. Layoffs at many of the employers cutting the most jobs are often motivated by such initiatives.

However, in some cases, companies that announced layoffs truly had no choice. For example, Coldwater Creek had to close all of its stores after filing for bankruptcy protection. Not only were shareholders wiped out in the bankruptcy, but the company had to close all of its stores in order to pay off its creditors, eliminating thousands of jobs in the process.

Many of the companies with the most layoffs are also among the largest employers in the United States. JPMorgan Chase announced an additional 5,500 planned layoffs earlier this year, on top of more than 19,000 job cuts announced in 2013. However, this total represents just a small share of JPMorgan Chase’s total headcount, which was more than 245,000 as of the second quarter of the current fiscal year.

Challenger Gray & Christmas provided 24/7 Wall St. with all job cut announcements affecting at least 500 positions this year. 24/7 Wall St. combined all planned cuts by company to identify the companies that have announced the most job cuts this year. We only considered publicly traded American companies. However, job cuts did not need to be entirely within the United States. Some cuts announced this year may not be completed until 2015 or later. Consolidated revenues and employee totals are from each company’s most recent financial report filed with the Securities and Exchange Commission. If the company did not disclose headcount for the quarter, figures from its last annual report were used.

These are the 10 companies cutting the most jobs.

10. Amgen, Inc. (NASDAQ: AMGN)
> Job cuts: 2,950
> Number of employees: 20,000
> YTD share price change: +24.7%

In recent years, drug manufacturer Amgen has reduced its global workforce as part of its plans to concentrate more on drug development. While layoffs in the technology sector more than doubled between the first halves of 2013 and this year, job cuts in the pharmaceutical industry declined in that time, falling 15.4%. . The overall industry trend is likely small consolation to Amgen workers, as the company announced it would cut nearly 3,000 employees in August. The restructuring plan will reduce the company’s workforce by up to 15% and includes the closing of several facilities in Washington and Colorado. Despite the cutback, Amgen reported exceptionally strong earnings in 2013 and the most recent quarter. According to the company, the layoffs are part of “natural steps in a long-term strategy.”

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9. Best Buy Co. Inc.
> Job cuts: 3,000
> Number of employees: 140,000
> YTD share price change: -14.8%

Best Buy announced in January it would lay off 950 employees at its Future Shop and Best Buy stores in Canada. A month later, Best Buy announced plans to cut 2,000 store managers in the U.S. These reductions are part of Best Buy’s “Renew Blue” ongoing restructuring plan designed to revitalize the company. After Best Buy shares rebounded in 2013, the retailer reported a disappointing 2013-2014 holiday season and shares plummeted in January 2014. The retailer’s comparable store sales have been dropping consistently for years, including during the all-important holiday season.

8. Bank of America Corp.
> Job cuts: 4,146
> Number of employees: 233,000
> YTD share price change: +10.3%

One of the world’s largest banks, Bank of America operated in all 50 states and employed roughly 233,000 people as of June. At the beginning of this year, Bank of America announced it would cut a total of roughly 600 jobs in Texas and California. Then, in April, the Bank announced it would close a number of its operations overseas, resulting in about 3,000 layoffs. Most recently, 540 mortgage workers in Charlotte, North Carolina were laid off in June. While mass layoffs at many company are often indicative of problems, the cutbacks at Bank of America’s cutbacks may reflect an improving housing market and national economy. The company was forced to expand its workforce to process bad mortgages during the housing crisis and is in the process of laying off the extra workers as it clears those bad mortgages.

7. Intel Corporation (NASDAQ: INTC)
> Job cuts: 5,350
> Number of employees: 107,600
> YTD share price change: +33.9%

At the start of 2014, after poor earnings and growth forecasts, Intel announced plans to reduce its global workforce by 5,350 people, or 5%, throughout the year as part of its cost cutting measures. According to Chris Kraeuter, spokesmen for Intel, the cuts would primarily consist of “people retiring, redeploying, or leaving voluntarily.” And yet, in April the chip maker announced that it was shutting down its assembly and test operations in Costa Rica. While this eliminated 1,500 jobs, Intel continued to employ more than 1,000 engineering, finance, and human resources workers in the country.

6. JPMorgan Chase & Co.
> Job cuts: 5,500
> Number of employees: 245,192
> YTD share price change: +5.4%

After announcing some of the largest job cuts in 2013, JPMorgan Chase is on this list again this year. Job cuts at the banking giant are tied to announcements made in the past. In 2013, JPMorgan Chase announced it would lay off 15,000 workers in its mortgage operations and 4,000 more consumer banking employees. This year, the bank increased those figures to 17,000 and 7,500, respectively, thus increasing planned layoffs by 5,500. At the end of its last year, the bank’s headcount was 251,196. Through two quarters this year, JPMorgan Chase’s total employee count fell by roughly 6,000 to 245,192. A continued slump in trading revenues, especially in fixed income, commodities, and currencies — which are often grouped together — may also be a headwind for the bank and a potential motivation for future job cuts.

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5. Coldwater Creek Inc.
> Job cuts: 5,500
> Number of employees: N/A
> YTD share price change: -98.8%

Women’s apparel retailer Coldwater Creek filed for bankruptcy in April, after it was unable to find a buyer. Shareholders in the company were wiped out as it began the process of closing its 350 stores and laying off its 5,500 workers. However, there may be a silver lining for at least a few employees. As part of bankruptcy proceedings, other retailers bought a number of Coldwater Creek’s leases. While former employees may be out of luck, customers may also be able to soon buy Coldwater Creek merchandise again. Private equity firm Sycamore Partners bought the Coldwater Creek brand name. The new owner plans to relaunch the brand as Coldwater Creek Direct, which will sell to women online and via catalog.

4. United Continental Holdings (NYSE: UAL)
> Job cuts: 5,521
> Number of employees: 86,000
> YTD share price change: +27.4%

Last year, Chicago transportation company United Continental Holdings announced it would make $2 billion in cost cuts annually over the next four years. At the beginning of this year, more than 2,000 workers were let go through voluntary severance agreements. In June, the company reported nearly 3,000 additional layoffs. The plan was announced several years after UAL Corp bought Continental Airlines for more than $3 billion. Despite hopes the merger would improve productivity, profitability since the merger has been inconsistent. Additionally, labor representatives have been critical of the company’s operations. As Greg Davidowitch, president of the Association of Flight Attendants, told Reuters, “Successful airlines do not lay off workers.” The company employed roughly 82,000 full-time employees as of June, down from 85,200 the year before, a decrease of nearly 4%.

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3. Cisco Systems, Inc.
> Job cuts: 6,000
> Number of employees: 74,042
> YTD share price change: +11.4%

On August 24, Cisco announced plans to eliminate 6,000 jobs, or about 8% of its global staff. Couninting its most recent cuts, Cisco has eliminated nearly 26,000 jobs since the start of 2009.Stagnant growth forecasts are likely the chief catalyst in Cisco’s job cuts. The company faces a challenging shift as customers move from purchasing Cisco’s core expensive hardware to new, less expensive software advancements. And while Cisco has been buying software companies and ramping up its development of more competitive products, a transition to a more software-oriented business model will likely result in revenues continuing to come under pressure. This likely also means the company will continue to reduce headcount, according to a statement made by Brian Marshall, an analyst at International Strategy & Investment Group LLC, on Bloomberg.

2. Hewlett-Packard Company
> Job cuts: 16,000
> Number of employees: 317,500
> YTD share price change: +28.5%

Likely due in part to falling demand for personal computers, Hewlett-Packard’s revenue has fallen each year since 2011, when it reported revenue of $127 billion. The company employed roughly 350,000 people at that time, but this figure has fallen in proportion with the computer maker’s sales. Earlier this year, HP announced it would fire about 16,000 employees as part of a multi-year restructuring plan. The plan could eventually reduce HP’s workforce by as much as 50,000 employees.

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1. Microsoft Corporation
> Job cuts: 18,000
> Number of employees: 128,000
> YTD share price change: +25.9%

No company has announced more job cuts than Microsoft this year. In July, the company stated it would cut roughly 18,000 jobs over the course of a year as part of its restructuring plan. More than 12,000 of these layoffs are related to the company’s recent acquisition of Nokia Devices and Services. Other cuts included the closure of the company’s Silicon Valley research facility. In addition to layoffs, Microsoft also announced it would take a restructuring charge of between $1.1 billion and $1.6 billion. The impact this may have on the company’s bottom line, however, could be quite small — Microsoft reported nearly $22 billion in net earnings last year.