Recent reports of layoffs indicate that ongoing cost-cutting, driven by poor economic conditions, geopolitical concerns, structural reorganisation, and the increased adoption of Artificial Intelligence in the workplace, will continue to affect the global workforce. While organisations in the Middle East region are focused on increasing sustainability investments, including upskilling employees, talent acquisitions and retention, and improving benefits and workplace engagement, the latest layoffs announced by Nike and Google bring attention back to the state of workers in the region. The global workforce employed by industry giants, including those in the Middle East, is bearing the brunt of these layoffs. Through this article, People Matters aims to track the layoffs affecting Middle Eastern workers and provide guidance to address them as they become more prevalent this year.

#1 Nike - Reduces 2% of global workforce including EMEA teams

Nike has announced second round of multiyear layoffs, starting with cutting staff at its European headquarters in Netherlands that employs over 2,000 workers. As part of a global cost-cutting strategy to save $2 billion, the company is laying off 2% of its workforce. 

In an internal memo, CEO John Donahoe stated that the Europe, Middle East, and Africa (EMEA) region would follow a different timeline for layoffs compared to North America, where reductions began in February. Due to local labour laws, layoffs in Europe started more recently. 

With these strategic layoffs, the company aims to streamline its European operations, optimising its global workforce and aligning resources with key growth opportunities amid increasing competition and evolving consumer preferences in the sportswear industry.

#2 Google - Mass layoffs due to restructuring, cost-cutting and investments in AI

Reportedly, tech giant Google is continuing layoffs in 2024, particularly in the finance division, due to restructuring plans. Although the exact number of layoffs is not specified, it is assumed to affect a significant portion of the global workforce, including those in the Middle East. Google's CFO stated in a memo, "The tech sector is in the midst of a tremendous platform shift with AI. As a company, this means we have the opportunity to make more helpful products for billions of users and provide faster solutions to our customers, but it also means we collectively have to make tough decisions, including how and where we work to align with our highest priority areas. We are sad to say goodbye to some talented teammates and friends we care about, and we know this change is difficult."

Last year, the Alphabet-owned tech company laid off over 12,000 workers, which accounted for 6% of its workforce, as part of drastic cost-cutting measures amid concerns about a potential recession. Earlier this year, CEO Sundar Pichai also hinted at further layoffs in 2024, as the company actively reallocates resources to its most critical areas to ensure strategic focus and progress.

He also added that the investments in AI will need a shift in focus, saying, "We're very focused on this set of opportunities we have, and I think there's a lot of work left. There's also an important inflection point with AI. Where we can, we are definitely prioritising and moving people to our most important areas, so that is ongoing work.”

#3 AlShaya Group - Starbucks layoffs due to geopolitical risks, and sales 

Starbucks' Middle East franchise operator, Alshaya Group, recently laid off over 2,000 employees from its coffee shops due to challenging operational conditions. This decision was made amidst boycotts targeting Starbucks over perceived connections with Israel's conflict with Hamas in Gaza, highlighting the significant impact that ongoing geopolitical tensions can have on the job market, particularly within multinational corporations.

Alshaya, in announcing the layoffs affecting 4% of its workforce, stated, “We are committed to providing support to our departing colleagues and their families, and we extend our deepest gratitude for their hard work and dedication to Alshaya Group.”

A Starbucks spokesperson also described the layoffs in the MENA region as a “sad and very difficult decision,” expressing appreciation for the departing employees' contributions. They also mentioned that Starbucks' latest earnings report didn't meet expectations due to reduced sales in the region resulting from ongoing boycotts of Western companies. Furthermore, they highlighted the importance of close collaboration with Alshaya for long-term growth in the region. 

#4 Amazon Prime Video - Layoffs across MENA due to restructuring 

Earlier this year, Barry Furlong, Vice President of Prime Video for Europe, Middle East, and Africa, announced restructuring plans resulting in layoffs of nearly 5% of the workforce. These cost-cutting measures and restructuring efforts, affecting roles across EMEA, are aimed at redirecting investment towards Amazon’s European content division. 

This shift in focus reallocates Amazon’s investment towards emerging markets like Benelux, Central and Eastern Europe, and the Nordics, and reduces funding for Sub-Saharan Africa and MENA regions. Furlong explained that these restructuring and rebalancing plans aim to prioritise resources based on customer needs and focus on areas that drive the highest impact and long-term success saying, “I have carefully evaluated our structure in the region and decided to make some adjustments to our operating model to rebalance and pivot our resources to focus on the areas that drive the highest impact and long-term success. I have listened and considered the feedback received across the teams over the past 12 months; I believe these changes will improve the operational running of our multi-territory business and allow us to be more agile and focused.”

In addition to this, MENA leadership position transitioned to Gaurav Gandhi, who also oversees the APAC region.

#5 Citigroup - Global layoffs due to cost-cutting 

Citigroup recently announced a mass layoff of 20,000 workers, affecting nearly 10% of its global workforce, including over 2000 employees in the Middle East region. These layoffs, scheduled to continue over the next two years, are part of significant cost-cutting and restructuring measures. While the Citibank layoffs are not directly related to Middle East workers, the restructuring and cost-cutting at a global level will indirectly affect them.

The global layoffs provide opportunities for organisations in the Middle East to demonstrate the value of perseverance and adaptation, even amidst ongoing geopolitical and economic changes and the looming impact of AI. Here's a People Matters guide to navigating layoffs successfully, which includes how to restructure with integrity, responsible strategic planning, tips (and compliance considerations) for handling communication and implementing layoffs, and extending support to impacted employees and their colleagues during the transition.