#businesstransformation

Maybe I’m overthinking this, but at some point you have to wonder whether all of the transformation, optimization, prioritization, realignment, simplification, restructuring, strategic focus, operational efficiency and whatever other terminology happens to be in circulation this quarter is actually accomplishing anything, or whether we’ve simply developed a more sophisticated vocabulary for saying, “We’re changing things again.”

Every organization evolves. Priorities change. Markets change. Technology changes. Customers change. Nobody reasonably expects a large company to operate exactly the same way forever.

But there’s a difference between genuine transformation and constantly rearranging the organizational furniture while insisting that everyone admire the new floor plan.

Every new initiative inevitably seems to be the one that will finally simplify everything created by the previous initiative that was also supposed to simplify everything.

First we centralize because decentralization created inefficiencies. Then we decentralize because centralization created bottlenecks. We consolidate roles to eliminate duplication, discover nobody has enough bandwidth, and distribute the responsibilities across three other teams. Layers get eliminated to “flatten the organization,” only for new layers, titles and reporting structures to gradually reappear.

Through all of this, employees are expected to remain agile, engaged, innovative, customer-focused, cost-conscious, strategically aligned and apparently capable of interpreting PowerPoint slides containing six arrows pointing in different directions.

Maybe that’s modern corporate life. Or maybe the machinery of transformation has become a permanent business function unto itself.

The question I keep coming back to is pretty simple: Are we actually building a better organization, or have we just become exceptionally good at continuously reorganizing the existing one?

What makes this harder to dismiss as simply “the way things are in IT” is talking to friends at other technology companies. Their experiences sound completely different. They’re excited about their jobs, optimistic about their companies’ trajectories and enthusiastic about what they’re building and where their organizations are headed.

They talk about growth, innovation, opportunity and the future, rather than another cycle of restructuring, uncertainty and waiting for the next organizational announcement.

And maybe that’s the part worth thinking about.

Perhaps constant disruption isn’t an unavoidable feature of working in technology after all. Maybe there really are companies where transformation means building toward something, rather than repeatedly dismantling, reorganizing and renaming what’s already there.

There’s something to be said for working somewhere with momentum, where leadership appears to have a destination in mind and employees can actually see themselves as part of the journey.

Maybe the ultimate measure of transformation isn’t how many organizations, reporting structures and strategies a company can change. Maybe it’s whether the people who work there can still look at where the company is headed and genuinely say, “I want to be part of that.”

Curious whether others are seeing the same thing.

More layoffs are underway at Scripps, with the company revealing Tuesday it would eliminate 431 positions while adding 100 new jobs as part of an “enterprise-wide transformation.”

https://www.thewrap.com/media-platforms/tv/scripps-lays-off-431-employees-promises-to-create-100-new-positions/

I heard that McKinsey has identified a new business vertical for Comcast, something fundamentally different from the businesses the company has operated for decades (more about it below). The proposed restructuring is designed to position us for this new direction. We need to be gradually shifting resources, investments and priorities away from our traditional business - that's the only way for us to survive and therefore keep our jobs (if we are lucky to survive).

Comcast's legacy businesses face increasing pressure from cord-cutting + changing consumer behavior + competition. We got to build an org capable of competing in markets where future growth and profitability may be stronger.

Still, nobody seems to know exactly what this new vertical will be. But one thing appears seems to be apparent we are preparing for a future that looks VERY different from its past and the current restructuring may be only the beginning.

I got an email this morning that was sent to “Select E3 Employees” saying “Building Our Skills for What’s Next” and it goes on to say we have to take a mandatory training (that’s personalized to our role) by end of November….geared around shaping what’s next for business and preparing for the future.

Should I be nervous?

Kaumil Gajrawala
Analyst, Jefferies LLC Q
Hey, everybody. First of all, Jamie, thank you for all your help over the, I guess, what's now been decades. And
Ramon, a question on the asset base and sort of following on with some of the answers to your questions on one
North America maybe being regional, a focus on agility, a focus on being fast. A lot going on in terms of
innovation and rightsizing. To what degree are you open to the idea of franchising some of these operations on
the beverage side, particularly maybe just from a regional perspective because it feels like many of the intentions
of what you're looking to accomplish, some of could be moved along by pushing sort of a re-franchising initiative.
So curious what you think about that. Thanks.
.....................................................................................................................................................................................................................................................................
Ramon L. Laguarta
Chairman & Chief Executive Officer, PepsiCo, Inc. A
Yeah, listen, we are – Kaumil, as I said, we're going after growth and margin with high speed and a very strong
sense of urgency. We are – at this point, we're open to all the ideas and we appreciate all the perspectives to
create shareholder value. So we'll listen, we'll do what's best for PepsiCo.

https://investor.pepsico.com/docs/default-source/investors/q3-2025/q3-2025-pep_transcript_kza87jr4cih3omqu.pdf

possible,” asking for continued patience.

Pulumbarit said within weeks 3M will be able to reach a point “where most people will already know and have been informed” about their future with the company.

In a separate communication with employees obtained by the Minnesota Star Tribune, 3M officials said the moves were “to better position us for the future.”

The reorganization could stretch as far out as 2028, customer service employees were told in Wednesday’s call.

3M, which makes and sells thousands of products and services, has 60,500 employees, including 22,500 in the United States and 38,000 internationally.

3M opened global service centers in Costa Rica, the Philippines and Poland in 2015 and 2016. Customer service representatives at 3M maintain relationships and solve disputes with customers.

Companies across industries have embraced generative artificial intelligence to work more efficiently and productively and in the process have eliminated scores of jobs.

In July, Microsoft and 3M announced a partnership in which Microsoft would use 3M’s expanded beam optical technology, an easier way to install fiber-to-fiber connections within data centers, inside Microsoft data centers.

As part of the agreement, 3M would use AI technology from Microsoft across key business functions to reach business transformation goals, including those for customer service.

“At 3M, we view AI as a powerful tool that can accelerate growth, improve customer experiences and help our teams work more effectively,” said Jon Van Wyck, executive vice president and chief strategy officer at 3M, in a news release. “Our collaboration with Microsoft supports that vision through targeted optimization opportunities.”

IBM stopped offering VMWare a year ago which prob makes impact small and this one getting little notice in most of the news outlets -

https://www.theregister.com/virtualization/2026/10/08/ibm-offloads-hundreds-of-its-cloudy-vmware-customers/5301849

It can't be only that they can be done remotely, since then most of us would already be out of work. So what is it?

https://www.nytimes.com/2026/10/08/business/pepsico-earnings-splitting.html

And cut all this corporate bloat on frito lay...how many "transformation" people needed?

There are so many people that were hired in 2022-2025 for "risk and resiliency".

Seems like it was all just a hasty response to the 2022 bank crisis, where c-suite said here, go out and hire a bunch of people to make up some BS paperwork to make it seem like we're safe. Though, in reality, these "risk and resiliency" people do very little. All the regulatory paperwork already exists. Seems like "risk and resiliency" is the next "ESG" or "DEI", once management realizes they don't do a thing, it's a major cost center that is easy to cut.

I know in particular the entire "Capital Markets" (located within Asset Servicing) risk and resiliency team is already gone. From 5 people to zero in a matter of months.

This is my two cents, most of you are seeing this as well. I think the mgmt is hitting things on three fronts, some of the things i'll list are familiar/announced, other maybe less so. Anyhow, they are pushing three transformation tracks, I'd name them: Management, Workforce, and Workplace....

On the Management Transformation side this boils down to greater surveilance and monitoring, standardized performance expectations and harsher consequences for noncompliance with policies (yep, RTO and others)...

On the Workforce side this means that we'll have fewer US salaried employees... There will be MUCH more geographic flexibility in sourcing labor. We'll want more lower-cost labor locations.

Workplace is being transformed as well, this means consolidated facilities, hotel desking, selective remotework exceptions, RTO sh-t, etc.

So, yeah, this place is massively changing and nothing is going in the worker's favor.

Nike is implementing further workforce reductions as part of its Pace restructuring program. This initiative aims to achieve approximately $2.5 billion in cumulative savings by fiscal year 2031. The company plans to streamline operations, reduce duplication, and reallocate resources to priority areas. While the exact number of affected roles has not been disclosed, leadership indicated changes to the workforce's size and structure. These layoffs are a component of a broader operating model overhaul designed to drive business turnaround.

https://anz.peoplemattersglobal.com/news/workforce-planning/nike-plans-further-layoffs-as-it-targets-dollar25bn-in-savings-52519

break up the company in few different segments and hire CEOs to run each segments with more independence and flexibility. And report to one big CEO who oversees them all.
VPs are managers without a lot authority and independence and that plans so far did not work so let's not be insane and try something revolutionary and different.

I was widely ridicule by many short sighted people in this platform.
Fast forward today and EH is basically trying to do same except that instead of splitting the company, he is trying to shrink in the hopes that it is more manageable.

Because when Nike was growing in its hey days, they just overgrew and now it is too big and unmanageable.

I think breaking into each manageable segment is better than shrinking small. Followed up by layoffs.

From a former employee looking in - Nike has essentially waves the white flag.

"We can no longer afford to pay a fair wage so they will go somewhere they don't have to"

At the same time they will continue to try to act like they are the "it" brand in the US but that bus left the station a few years ago.

Next will be a failed sale of area buildings - they will try to sell them at a premium because they are "cool", they will sit and be a financial drag.

Marketing and sales will become even more disjointed from operations - leading to even worse mismatched supply.

Overstock due poor planning will continue to drag down revenues in US and further impact the brands image.

Eventually they will sell but at that point they will just be a hollow shell of their former selves - think under armour.

Nike is initiating a significant four-year restructuring plan aimed at achieving $2.5 billion in cost savings. This initiative, named "Pace," will involve trimming the company's size and reorganizing its global operations. Layoffs are expected to commence in calendar year 2027 as part of these efforts. The company's financial performance has been impacted by declining sales and strategic shifts. Nike aims to revitalize its business through these comprehensive changes.

https://www.sportico.com/business/commerce/2026/nike-earnings-revenue-stock-price-1234946372/

Online course platform Thinkific has laid off 96 employees, representing 30 percent of its global staff. This significant reduction is part of a strategic pivot to concentrate solely on enterprise and mid-market clients. The company stated the decision was driven by a desire to invest more in areas with higher growth potential. These layoffs are expected to result in substantial annualized cost savings for the business. Investors responded positively to the news, with the company's stock seeing a notable increase.

Vancouver, British Columbia

https://betakit.com/thinkific-lays-off-30-percent-of-employees-as-part-of-enterprise-push/

Avid Medical, a subsidiary of Owens & Minor, will permanently close its Toano facility. This closure will result in the layoff of 419 employees. The company stated this action is part of a larger strategy to enhance its surgical kitting network. Layoffs are scheduled to commence around November 25th. The affected facility produces and assembles medical kits for hospitals.

Toano, Virginia

https://virginiabusiness.com/owens-minor-subsidiary-to-lay-off-419-employees/

h t t p s : / / wmbdradio dot com /2026 /09/15/ truist-financial-to-sell-5-5-billion-of-auto-loans-amid-overhaul

"Struck a deal to sell $5.5 billion of auto loans.. exit less profitable, non-core businesses"

Where will it invest more? How does these impact employees? We saw few waves layoffs in July and Aug. Will be a surprise if that's the last this year. But the question is ...where?
Reorg may be? As that has been the favourite "strategy" for past 4 years.

Under the “able” leadership of Ben and YL, Shell appears to be setting in the West like the sun. Before Shell finally sets, it is worth taking a hard look at what Shell Bangalore has actually contributed to the company.

Beyond facilitating cross-postings for Indian employees, enabling some to eventually become naturalized Western citizens, and creating opportunities for a number of 35- to 40-year-old Indians to move into JG2 and JG1 positions, what tangible value has Bangalore delivered to Shell’s bottom line?

Supporting projects during the Assess and Select phases is hardly a unique or differentiating contribution. Other P&T hubs, at least, are tied to country-specific assets and operations. Bangalore has no comparable asset base.

There is also a legitimate question about the impact Bangalore has had on international talent mobility. Since its establishment, Western engineers appear to have had far fewer opportunities for cross-postings to Southeast Asia and the Middle East, while Bangalore has increasingly dominated these assignments.

If the primary beneficiaries of this model have been employees in India rather than Shell as a whole, then the fundamental question is straightforward: has the establishment and expansion of Bangalore actually created value for Shell, or has it primarily redistributed opportunities within the organization?

After two decades, Shell should be able to answer that question with hard numbers—not anecdotes, headcount, or internal career progression, but measurable impact on the company’s bottom line.

Back with another one from ya NoCenteam correspondent.

And before I begin: sincere best wishes to everyone leaving Centene today. There's life after Centene. A pretty damn good one, actually. You'll land, you'll remember what it feels like to breathe again, and I suspect a whole lot of you will eventually look back and realize you were better off for it.

Godspeed, fellow Centene employees NoCenteam alumni.

Let’s dig in. Centene has spent a lot of time talking about simplification, efficiency, focus, and Enterprise Optimization, so let's take them at their word. Because at this point, layoffs headcount reduction isn't really the interesting story anymore. The interesting story is: what exactly is Centene optimizing into?

Look around. ACA membership is shrinking. Medicaid membership and mix are changing. State-plan business has been lost or is transitioning in Georgia, Hawaii, and Florida. Centene is choosing to exit Arkansas ARHOME, and Health Net is now exiting traditional commercial group business in California and Oregon to focus on government-sponsored healthcare.

Inside the company, you've got VSPs, ISPs, leadership departures, executive responsibilities being consolidated, and entire functions disappearing. Meanwhile, major work is increasingly being centralized, standardized, automated, outsourced, or handed to outside partners.

None of those things individually proves much. Put them all on the same whiteboard, though, and a pretty interesting picture starts to emerge. This isn't just a smaller Centene. It looks like Centene is deciding which businesses it wants to be in, which capabilities it still wants to own, and who it wants doing the work.

Which brings me to a question I'd really like somebody on an earnings call to ask:

For every dollar Centene expects to remove from employee expense through Enterprise Optimization, how much new spending is being committed to consultants, technology vendors, managed services, and offshore providers? (Attention reporters and analysts… this is the question you should be asking… you’re welcome) 😉

Because reducing payroll isn't necessarily reducing cost. Sometimes you're just eliminating the expense changing who sends the invoice.

And there's another question that's probably even more important:

For every capability Centene removes internally, who owns that capability afterward? (Ahem)

Because if the work still needs to be done after the employee leaves, was the job actually eliminated, or was the employer changed?

Centene has historically sold a pretty compelling proposition: national scale with local knowledge. But there's an interesting tension there. Centralization, outsourcing, and standardization can absolutely make an organization more efficient. They can also slowly remove the local knowledge and institutional memory that made the model work in the first place.

You can consolidate leadership, standardize platforms, outsource operations, automate workflows, and remove people who look redundant on an org chart. Every one of those decisions might make perfect sense individually. The trick is knowing when you've removed cost and when you've removed capability.

That's why I don't think the Centene story anymore is "Why are they laying people off?" We know why companies cut people.

The much more interesting question is:

Managed Healthcare: Managed by Whom?

When Enterprise Optimization is finished, what does Centene still know how to do itself? And perhaps more importantly, what happens when the people who knew how all this sh-t actually worked are gone?

No allegations of wrongdoing here. Just watching the pieces move around the board and asking where they're going to land.

NoCenteam Securities & Organizational Archaeology Division
We read the footnotes so you don't have to.

Seeing signs of L3Harris Communication Systems transitioning more of its footprint and resource allocation out of Upstate New York toward its primary base in Florida. From a strategic standpoint, the driver behind this is clear. ​Labor Overhead: Tapping into lower operational and labor costs in Florida compared to New York.
​Tax Advantages: Leveraging a far more corporate-friendly tax environment in FL.
​Talent Pipeline: Positioning the segment directly in Florida’s heavily concentrated defense tech corridor, providing access to a larger pool of cleared engineering and manufacturing personnel.
​It seems like another example of major defense primes consolidating operations into lower-cost, business-friendly hubs. Has anyone heard timeline specifics or how much of the legacy Rochester presence will ultimately remain?

Part of the Cigna / HealthSpring acquisition here. Over at Cigna part of the business strategy was buying companies and quickly incorporating them into our BO operations. On the other hand, HCSC seems like a kid in fourth grade trying to figure out a college level manual. How are we still waiting on decisions here almost two years in? When will Igor come up with a definitive direction around AI? The townhall where he said "100 years ago, people didn't know they wanted a car, they just wanted faster horses" was a fancy little tidbit. Well, Igor, using your own analogy, we don't want a car or a horse, we just want to start moving. When are you going to get out of the way and let the team race forward?

After reading so many posts on here about rankings I have realized that even though the rankings are a ridiculous practice that the company still needs them because we have so many people that don’t do anything of value for the company and they have to do a rankings system as justification for having so many pointless positions.
Also, the posts about losing execs makes perfect sense as a business to reduce waste especially at that level. Why do we have so many people in Houston when we can’t get enough people to work in the Permian/Delware? Use the extra money from reduced Houston employees to bring in quality employees where the company needs them.

Workplace excellence often ends up meaning:

looking good
sounding good
being visible
being “aligned”
being socially smooth
fitting the corporate narrative
participating in culture, meetings, rituals

It’s about optics and behavior inside the system.

Work excellence usually means:

delivering results
doing the hard work
solving the real problems
carrying the load
improving the bottom line

It’s about actual output and impact.

From Gemini:

Prompt: Rank the top 20 layoffs by number of employees laid off in the last 12 months by company

Feedback:
Over the last 12 months (August 2025 to August 2026), corporate workforce reductions have been heavily concentrated in tech, telecom, automotive, and financial services. The primary drivers remain corporate restructuring to fund massive AI infrastructure expansions, automation of legacy processes, supply-chain shifts, and cost realignment.

Top 20 Mass Layoffs by Headcount (Last 12 Months)

Rank Company Headcount Cut Primary Industry Primary Stated Driver / Context
1 Oracle ~30,000 Tech / Software Enterprise-wide cuts (approx. 18% of workforce) to redirect capital toward AI data center expansion.
2 UPS ~30,000 Logistics & Shipping Operations downsizing driven by reduced Amazon volume and network automation.
3 Citigroup ~20,000 Financial Services Multi-year corporate overhaul streamlining management layers and back-office functions.
4 Volkswagen ~19,000 Automotive Early retirement, voluntary departures, and cost reduction during EV transition in Europe.
5 Amazon ~16,000+ Tech / E-Commerce Management layer reduction, fulfillment automation, and shifts in AWS/retail teams.
6 Nestlé ~16,000 Consumer Goods Global multi-year operational efficiency and supply-chain automation program.
7 Cognizant 12,000–15,000 IT Services "Project Leap" initiative shifting delivery models toward AI-assisted IT operations.
8 Verizon ~13,000 Telecommunications Workforce optimization, debt mitigation, and expanded automated customer operations.
9 Dell ~11,000 Tech / Hardware Restructuring legacy PC/hardware divisions to pivot resources into AI server infrastructure.
10 Microsoft ~8,800 Tech / Software Targeted cuts and voluntary buyout programs (Rule of 70) across cloud and gaming divisions.
11 Meta ~8,000 Tech / Social Media Trimming Reality Labs and corporate operations to fund AI super-talent and compute clusters.
12 Procter & Gamble ~7,000 Consumer Goods Supply chain adjustments and organizational restructuring to counter tariff cost pressures.
13 HP 4,000–6,000 Tech / Hardware Multi-year workforce transformation targeting AI-driven operational efficiency.
14 Takeda Pharmaceutical ~4,500 Pharmaceuticals Centralizing corporate functions and reducing R&D pipeline redundancies.
15 Block ~4,000 Fintech Restructuring to cap headcount and pivot toward an "AI-native" operational model.
16 Cisco ~4,000 Tech / Networking Reallocating enterprise capital into AI networking, security, and optical hardware.
17 Intuit ~3,000 Tech / Software Replacing underperforming roles with investments in AI product development.
18 Morgan Stanley ~2,500 Financial Services Wealth management and investment banking cost-realignment.
19 Nike ~1,600+ Retail / Apparel Corporate overhead reduction and technology group restructuring.
20 Autodesk ~1,350 Software Sales organization restructuring amid shifts to automated self-service and cloud platforms.
Structural Trends
Capital Re-allocation to AI: Over half of the technology and IT service companies on this list explicitly framed workforce reductions not as simple distress cuts, but as cash re-allocation to acquire high-demand AI compute clusters and specialized AI talent.
Shift to Attrition & Voluntary Buyouts: Enterprise giants like Volkswagen and Microsoft favored structured voluntary buyout packages, early retirement programs, and hiring freezes over abrupt mass-termination events.

Jaguar Land Rover is implementing a voluntary exit and redeployment program affecting fewer than 300 salaried and management employees. This move is part of a broader business transformation aimed at improving decision-making and performance. The restructuring follows a significant cyberattack in 2025 that disrupted production and incurred substantial financial losses. Affected employees will be offered support in finding alternative roles or voluntary early exit options. Production line staff are not expected to be impacted by these changes.

Whitley, UK

https://www.peoplematters.in/news/strategic-hr/after-bmws-layoffs-jaguar-land-rover-begins-cutting-up-to-300-salaried-and-management-jobs-51163

When the strategy is "do more with less," somehow it's always the people doing the work who end up doing less... because they no longer have a job.
Another round of collections and IT displacements. The folks who kept systems running, helped customers, solved problems, and cleaned up the messes are thanked with a meeting and a severance packet.
Nothing says "valuing people" quite like calling layoffs a "business transformation."
Wishing everyone impacted the best. Companies can replace positions on an org chart, but they don't replace the experience, dedication, and relationships those employees built.

Happened earlier in July but apparently was largely overlooked and then quickly buried by AK's pre-emptive stock warning.

https://www.bloomberg.com/news/articles/2026-07-09/starbucks-taps-ai-to-reduce-reliance-on-microsoft-ibm-software

By Daniela Sirtori and Brody Ford |
July 9, 2026 at 5:15 AM CDT
Updated on July 9, 2026 at 8:31 AM CDT

• Starbucks Corp. is developing in-house tools with the help of artificial intelligence that could replace some software applications it now buys from companies such as Microsoft Corp. and International Business Machines Corp.
• The coffee chain is building alternatives to a Microsoft system that tracks inventory and an IBM tool that manages maintenance, according to an internal presentation reviewed by Bloomberg News.
• Starbucks spends about $400 million a year on software alone, and building in-house software can be cheaper, an incentive for the company, which is looking to cut costs as part of a broader turnaround effort.

Starbucks Corp. is developing in-house tools with the help of artificial intelligence that could replace some software applications it now buys from companies such as Microsoft Corp. and International Business Machines Corp.

The coffee chain is building alternatives to a Microsoft system that tracks inventory and an IBM tool that manages maintenance, according to an internal presentation reviewed by Bloomberg News. Some of the Starbucks-developed software could roll out by the end of next year, pending the results of testing.

For years, businesses were tethered to their technology vendors due to fear of business disruption and the complexity of building in-house tools. Now AI is shifting that calculus as it makes it easier to develop applications from scratch and as companies push workers to use the technology.

Leading software companies face mounting concerns about whether they’ll be able to fend off competition from products built by upstarts, or their own customers, using AI. This phenomenon has weighed on software stocks this year, with Microsoft and IBM both trailing the S&P 500.

Shares of both companies fell during trading on Thursday, with Microsoft down 2.4% and IBM sinking 5.2% at 9:30 a.m. in New York.

Starbucks spends about $400 million a year on software alone, Chief Technology Officer Anand Varadarajan told workers in an internal forum earlier this year. “There’s clear opportunities to reduce the spend in software,” Varadarajan said, according to a recording of the meeting reviewed by Bloomberg News.

In-house software can be cheaper, an incentive for companies such as Starbucks, which is looking to cut $2 billion in costs as part of a broader turnaround effort. Though in the long run, building can lead a company to pay higher maintenance and labor costs.

When it comes to technology, the company is reviewing “every contract and service,” according to the presentation. In some cases, that includes building products to replace software that its engineers have to heavily tailor anyway.

Starbucks has been working for several years on building a point-of-sale system that would take the place of Oracle Simphony, according to people familiar with the matter who weren’t authorized to speak publicly.

The coffee chain declined to comment. In a blog post earlier this year, the company said AI and other technology advancements will support its long-term growth and free up baristas to focus more on customer service.

Spokespeople for Microsoft, IBM, and Oracle didn’t provide comment.

AI-assisted coding was key to developing the platform that could replace the IBM tool, according to the internal presentation. Starbucks has been pushing tech workers to use artificial intelligence, even factoring usage into their bonuses, Bloomberg News has reported.

There’s skepticism about how much, or how quickly, AI can speed up and automate work. Starbucks recently pulled an AI-powered system to track inventory at stores, reverting to manual counting. It also continues to use software from third-party vendors, including from companies such as Microsoft.

The Starbucks enterprise technology team is on track to reduce its budget by about $30 million in the fiscal year ending in late September, according to the internal presentation. That includes cutting about $10 million in software spending.

Another $13 million will be saved mostly by cutting back on contractors from professional services firms and backfilling some roles with its own staff. Starbucks is setting up offices in Nashville and India that will house some tech workers, while others will remain at its Seattle headquarters. The company has cut about 2,300 jobs since February of last year, including many in tech.

Magic Leap is undergoing a significant business transformation, shifting its focus to become a waveguide supplier for other augmented reality device manufacturers. This strategic pivot coincides with a substantial workforce reduction, impacting nearly 200 employees in engineering and product development roles. The company aims to leverage its expertise in AR innovation and manufacturing to support the broader industry. This move signifies a departure from developing its own first-party AR headsets. Magic Leap will now concentrate on being an essential partner within the AR ecosystem.

Plantation, Florida

https://roadtovr.com/magic-leap-lay-off-2026-waveguide-pivot/

We are evolving our structure and operating model by aligning leadership and decision-making more directly to the needs of each business, while centralizing select capabilities that create value across the organization.

If Project Dolphin is backfiring and employees are no longer being forced between re badging with a vendor or severance (not enjoying that at all, nope), how will they be able to pay off everyone? The remaining Franklin Templeton legacy staff that was scheduled for layoff on 04/27/2026 was re badged over to other Transfer Agent mutual funds, were told that there was no time certain for their continued employment. They were needed to support staffing that was not meeting SLAs. They keep training them to handle more mutual fund clients because even with this talented, tenured help, they are still not meeting goals. It seems likely that they will not be laid off, but who can tell? No savings there, either. Because the business math ain't mathing, Project Dolphin is failing. FIS cannot outrun their sh---y leadership. Glug, glug, glug.

I'm wondering when we'll shift back to growing the business instead of just cutting people. I know the answer is probably "never," but a guy can hope.

Many technology firms are implementing frequent workforce reductions, often termed "continuous tuning," as they navigate evolving business priorities and invest heavily in artificial intelligence. This trend, observed across major companies like Microsoft, Amazon, and Meta, signifies a shift from cyclical layoffs to a more persistent strategy. Companies cite the need to reallocate resources towards AI development and adapt to technological advancements as primary drivers for these adjustments. While some layoffs are attributed to post-pandemic restructuring, the increasing mention of AI alongside workforce cuts on corporate calls highlights its growing influence. Experts suggest this approach, driven by uncertainty and competitive pressures, is likely to become a norm in the tech industry.

https://www.businessinsider.com/why-tech-companies-keep-doing-layoffs-ai-2026-7

Lumen Technologies has confirmed significant layoffs impacting its Global Partner Solutions team. Approximately 90 employees were affected by these cuts, which occurred early this month. The company stated these changes are necessary to align its workforce with evolving business needs and strategic priorities. This marks the second major layoff for Lumen this year as it shifts focus towards network-as-a-service offerings. The company is prioritizing AI infrastructure and deemphasizing legacy products like voice services.

United States

https://www.channeldive.com/news/lumen-confirms-cuts-to-commercial-organization/824897/

Southern Glazer’s Wine & Spirits (SGWS) will slash 1% of its workforce as it implements a more tech-heavy business model, the beverage-alcohol distributor announced Tuesday afternoon.

https://drinks-intel.com/cross-category/southern-glazers-wine-spirits-to-cut-up-to-219-jobs-in-us/

Buckle up. Due to lack of meeting business needs VP shake up w large team shake ups & possible layoffs are on the table. Business behind all of it

Nike is undergoing significant restructuring to correct its business course. The company closed fitness studios and consolidated tech offices. Approximately 1,400 jobs were cut as part of this realignment. Nike also relocated its prominent New York flagship store. These changes aim to stabilize the business after a direct-to-consumer strategy faltered.

Beaverton, Oregon

https://rollingout.com/2026/07/02/nike-closes-flagship-store-after-5-years/

Nike is undergoing a significant business restructuring. The company has ceased operations at its Fitness Studios. It consolidated tech offices, affecting around 1,400 employees. Nike also closed its prominent New York City retail location. These changes reflect a shift towards wholesale partnerships and away from its prior direct-to-consumer model.

https://www.thestreet.com/retail/nike-closes-stores-studios-and-its-flagship-location

Motley Fool Money recently warned investors about "AI washing." Companies may falsely attribute layoffs to artificial intelligence. Many job cuts stem from pandemic overhiring or reduced demand. Genuine AI transformation starts with a clear business problem. Investors must verify specific, measurable AI impacts in company reports.

https://finance.yahoo.com/technology/ai/articles/expert-warns-companies-ai-washing-160407514.html

After reading through some of these posts and thinking back on prior conversations I’ve had over a year ago I think I have an idea of what is going to happen.

I’ve heard for almost 2 years now that the ultimate goal was of course to bring in AI but also to merge everyone between each LOBs. Claims, UM, OPs, etc. They want one group of people for all LOBs that are cross trained and can work everything.

I’m thinking that’s what this will be. Clean house and get rid of people then reorg who is left into the 1 team per department for all LOBs.

I thought I’ve read that they have done it this way before however and that it didn’t go well? Ya know be because each LOB is vastly different?

Could this be what is happening?