Despite it feeling like a soft landing may actually happen, the S&P 500 hitting a new high, and signs of overall positive sentiment, 2024 is off to a rocky start in regards to a continuing stream of job cuts, layoffs, and workforce reductions. Ebay’s announcement that it is cutting 1,000 employees in a massive restructuring is one of the latest and largest, but January has also seen a number of smaller, struggling companies making deep job cuts as they struggle forward. Below is a look at some of January’s announcements using the Boardroom Alpha Red Flag Monitor.
ALPHA TEKNOVA INC (TKNO)
1-Year TSR: -50.3%
Filing: View the filing
Summary: TKNO is cutting 15% of its current employees in a RIF. It is fighting to conserve cash and expects to save $6.4M. As part of the RIF TKNO also terminated and removed the roles of their Chief Commercial Officer and Chief People Officer.
ATARA BIOTHERAPEUTICS INC (ATRA)
1-Year TSR: -85.6%
Filing: View the filing
Summary: ATRA is cutting 25% of its employees by May 2024. IT expects $4.5M in charges related to the reduction in force. ATRA also cut its Chief Medical Officer and is moving them into a consulting role.
CARA THERAPEUTICS INC (CARA)
1-Year TSR: -95.2%
Filing: View the filing
Summary: CARA is making strategic changes to its clinical trials and is terminating its oral chronic kidney disease program. The company didn’t state the size of the employee cuts, but it expects to be completed by the end of January.
COMPLETE SOLARIA INC (CSLR)
1-Year TSR: -87.7%
Filing: View the filing
Summary: CSLR is cutting approximately 15 employees and 19 contractors, constituting approximately 14% of the company’s workforce. It expects to realize $3.4M in cost savings in 2024.
CUE HEALTH INC (HLTH)
1-Year TSR: -90.4%
Filing: View the filing
Summary: Cue Health is cutting 94 employees, or 13% of the company’s global workforce.
EBAY INC (EBAY)
1-Year TSR: -11.1%
Filing: View the filing
Summary: Cutting 1,000 employees (9% of it’s workforce) in a restructuring plan focused on reducing operating costs, improving operating efficiency and better aligning their people with its strategic priorities to drive long-term sustainable growth. The plan is expected to cost $90-$100M in severance and benefits. It expects the actions to be largely completed by the end of Q2 2024.
IKENA ONCOLOGY INC (IKNA)
1-Year TSR: -67.6%
Filing: View the filing
Summary: Ikena Oncology is cutting 35% of its workforce (20 employees). The cuts are focused in its discovery organization, as well as select employees working in development and general and administrative functions.
INTELLIA THERAPEUTICS INC (NTLA)
1-Year TSR: -28.1%
Filing: View the filing
Summary: Reducing workforce by 15%
KINNATE BIOPHARMA INC (KNTE)
1-Year TSR: -59.2%
Filing: View the filing
Summary: Going down to 12 remaining full-time employees as it cuts 56% of its existing workforce. Kinnate is exploring “strategic alternatives in an effort to maximize shareholder value.”
MEDAVAIL HOLDINGS INC (MDVL)
1-Year TSR: -88.7%
Filing: View the filing
Summary: MedAvail Holdings did an immediate cut of 40% of its employees as of January 22, 2024. It is attempting to reduce operating expenses while it pursues “strategies to address its financial condition and liquidity requirements.”
RENT THE RUNWAY INC (RENT)
1-Year TSR: -85.7%
Filing: View the filing
Summary: Rent the Runway is cutting 10% of its workforce in a restructuring plan mean to support profitability.
SENTI BIOSCIENCES INC (SNTI)
1-Year TSR: -77.4%
Filing: View the filing
Summary: Senti Biosciences, in an attempt to extend its runway into the first quarter of 2025, is cutting 37% of its workforce.
SOLAREDGE TECHNOLOGIES INC (SEDG)
1-Year TSR: -76.8%
Filing: View the filing
Summary: Solaredge is cutting 16% of its workforce over the first half of 2024 through an involuntary workforce reduction plan.
UNITY SOFTWARE INC (U)
1-Year TSR: -2.4%
Filing: View the filing
Summary: Unity Software is cutting 1,800 employees — 25% of its current workforce — as it “refocuses on its core business, and to position itself for long-term and profitable growth”
VINTAGE WINE ESTATES INC (VWE)
1-Year TSR: -83.8%
Filing: View the filing
Summary: Vintage Wine Estates is cutting 15% of its workforce as it does a reorg to monetize and reduce non-core lower margin product and service offerings.
WAYFAIR INC (W)
1-Year TSR: -2.5%
Filing: View the filing
Summary: Wayfair is cutting 1,650 employees — 13% of their global workforce. Expects to incur $70-$80M in costs and to be complete by the end of the 1st quarter. This comes on the heels of its CEO saying that employees need to work harder.