12 Companies Laying Off the Most Workers

Print Email

Source: Wikimedia Commons

12. Macy’s (NYSE: M)
> Job cuts: 4,350
> Number of employees: 157,900
> 1-yr. share price change: -35.35%

Macy’s announced earlier this year it would be laying off an average of three to four sales associates in each of its 770 stores, which amounts to roughly 3,000 employees nationwide. The retailer will also be laying off approximately 600 back-office employees, 750 customer service representatives, and offering buyouts to approximately 165 senior executives.

Macy’s is one of many brick-and-mortar stores losing ground to Amazon and other online retailers. The company reported a 5.7% decline in comparable sales in the first half of 2016 compared to the year before, and the stock price has lost more than a third of its value in the past 52 weeks. Macy’s, which closed 41 stores last year, announced on August 11 it would be closing 100 additional stores in early 2017.

Hancock Fabrics
Source: Wikimedia Commons

11. Hancock Fabrics
> Job cuts: 4,500
> Number of employees: 4,500
> 1-yr. share price change: N/A

Brick-and-mortar stores continue to struggle and lose ground to online retail, and Hancock Fabrics, a wholesale fabric store with roughly 250 U.S. locations, is one of the latest victims. Even before the recent troubles, the company was no stranger to financial difficulties, having entered bankruptcy in 2007 and emerging in 2008. After reporting $21 million in operating losses and $110 million in debt, the company again filed for bankruptcy protection in February. At the time, the company planned on only shuttering 70 of its roughly 250 locations. However, when Hancock Fabrics failed to sell its remaining assets to a company that would keep its stores operational, it opted to close all locations and cease operations in April. The closures will result in approximately 4,500 job losses nationwide.

Microsoft Logo
Source: microsoft.com

10. Microsoft (NASDAQ: MSFT)
> Job cuts: 4,700
> Number of employees: 114,000
> 1-yr. share price change: +21.77%

Rapid developments in technology and changing consumer demand — especially from PC-based technology to mobile — are sending shockwaves through the tech industry. Emphasis has been steadily shifting from personal computer hardware development and manufacturing to mobile computing and cloud storage, spurring massive restructuring in companies across the industry.

In an attempt to adapt to the changing marketplace, Microsoft acquired in April 2014 the devices and services business of mobile phone company Nokia. However, the newly acquired mobile business has been underperforming, and last year the company announced 7,800 layoffs, primarily in its mobile division. This June, Microsoft announced additional 4,700 job cuts by the end of fiscal year 2017.