Layoffs Imminent in Banking, Technology and Oil Firms

Layoffs are a harsh reality of the business cycle and of a difficult economic climate. Euphemistically called “restructuring” by PR departments, they have a human toll on employees and an inevitable one on company morale. But there may be a silver lining for them - why stay mired in a job where one may be unappreciated? Being let go can be the beginning of a new journey for many who could live up to their true potential elsewhere. And be happier.

These were some of the recent layoff announcements.

BANKING

UBS has laid off a handful of private bankers in recent weeks. According to Reuters, the layoffs included Joseph Poon, a senior executive catering to the super-rich in Southeast Asia.

J.P. Morgan is restructuring its private banking division to handle a smaller pool of high-net-worth individuals, and cutting about 100 jobs. It recently cut 5% of its workforce in Asia, affecting 30 employees in the Singapore and Hong Kong offices.

Nomura cut 30 jobs from its equities division in April 2016. These cuts were in Asia outside of Japan, and followed a dozen layoffs from their Asia investment banking unit in March.

TECHNOLOGY

Foxconn has replaced 60,000 workers with industrial robots. Its factory in China that makes iPhones (and other devices) has reduced its employee strength from 110,000 to 50,000.

IBM is cutting about 14,000 jobs globally as it transitions from a software and services business to a cloud company. However, it is looking to fill 25,000 positions (of which only 7,000 have been advertised) in cloud and cognitive computing, supercomputing, data analytics and cybersecurity.

Nokia is likely to cut 10,000 to 15,000 jobs globally after its acquisition of its Franco-American rival Alcatel-Lucent. The company declined to reveal how it would impact those in Singapore or Malaysia.

Microsoft will streamline their smartphone hardware business, impacting 1,850 jobs globally – 1,350 jobs in Finland as well as another 500 jobs in other parts of the world.

OIL

Royal Dutch Shell will cut at least another 2,200 jobs due to low oil prices, with 475 of those coming from its UK and Ireland oil and gas production business. The firm announced 7,800 job cuts last year and another 2,800 at the beginning of this year. This latest wave will take the total number of job cuts by Shell in 2015-2016 to at least 12,500, equal to the entire workforce of Facebook!

UMW Oil and Gas Corporation has cut 300 jobs in Malaysia, mainly in rig operations, also due to low oil prices. The company currently has 736 employees, about a third of which comprise contract staff.