Special Report

Companies Cutting the Most Jobs

4. JPMorgan Chase
> Job cuts: 5,500
> Number of employees: 241,359
> 1yr. share price change: +4.59%

JPMorgan Chase announced last February it would cut 3,500 jobs in its consumer banking division, and another 2,000 in its mortgage department, the fourth highest combined number of job cuts announced by a U.S. public company. The cuts will continue this year, as the head of the consumer banking division Gordon Smith announced additional layoff plans this month. Smith has attributed layoffs to cost-cutting efforts and the growing popularity of mobile banking, which has grown dramatically in recent years and requires much less personnel. According to the The Columbus Dispatch, the company reduced its labor force by an estimated 27,000 jobs over the two years through 2014. The decline in headcount, while officially part of a restructuring effort, was also likely linked to the fallout from the housing crisis. Earlier this year, JPMorgan agreed to pay $500 million to conclude a six-year class action lawsuit filed against the bank’s subsidiary, Bear Stearns, for negligent mortgage loan practices.

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3. Cisco System Inc.
> Job cuts: 6,000
> Number of employees: 72,247
> 1yr. share price change: +24.33%

On August 24, Cisco announced plans to eliminate 6,000 jobs, or about 8% of its global staff. Counting 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 using its core expensive hardware to using new, less expensive software advancements. 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 Brian Marshall, an analyst at International Strategy & Investment Group LLC, as quoted on Bloomberg.

2. Microsoft
> Job cuts: 18,000
> Number of employees: 128,000
> 1yr. share price change: +12.08%

Only Hewlett-Packard Co. announced more job cuts than Microsoft in 2014. In July, the company said 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 were 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 in July 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 relatively small — Microsoft reported more than $22 billion in net earnings over the 12 months through June last year, up from the same period 2013.

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1. Hewlett-Packard Co.
> Job cuts: 21,000
> Number of employees: 302,000
> 1yr. share price change: +30.90%

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. In May, HP announced it would fire about 16,000 employees as part of a multi-year restructuring plan. The company announced an additional 5,000 job cuts in October, bringing the total cuts announced to 21,000, far more than any other public American company reviewed. In total, the plan could reduce HP’s workforce by at least 50,000 employees. As of October 31st, HP employed 302,000 workers worldwide.

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