Even as the Fortune 500 racked up astounding profit growth of 335% last year, a whopping 761,422 Fortune 500 jobs were lost to layoffs, spinoffs, and attrition. These 15 companies saw the worst cutbacks.
1. Citigroup
In the midst of the credit crunch, the bank holding company laid off more than 55,000 employees in 2008. Then last year, as it struggled to regain profitability and pay back a $25 billion government bailout loan, Citi cut its staff again by another 57,700 workers. Despite the cutbacks, the company still posted a loss of $1.6 billion in 2009.
2. Time Warner
In addition to spinning off AOL, along with its 6,700 workers, and subsidiary Time Warner Cable — another 47,000 people — last year Time Warner laid off employees at magazine publisher Time Inc. (parent of Fortune) and entertainment studio Warner Brothers.
3. Starbucks
Throughout 2008 and 2009, the coffee retailer closed more than 800 stores in the U.S., 100 stores overseas, and laid off 34,000 “partners.” As a result of the cost cutting measures, the coffee retailer was able to increase profits last year by 24%, to $390 million.
4. Alcoa
Last year, the New York and Pittsburgh-based aluminum manufacturer sold off a number of its subsidiaries, implemented a global hiring freeze, and laid off thousands of workers, ultimately reducing headcount by a third. In 2007, the company’s global workforce was 107,000, almost twice its current size.
5. General Motors
As part of a reorganizational plan to emerge from bankruptcy, the troubled automaker reduced headcount by 52,000 in late 2008, then cut a further 26,000 workers last year, including 6,000 white-collar jobs. The company has announced a plan to close 15 factories in the U.S. by the end of 2012, affecting 22,000 workers.
6. Berkshire Hathaway
Warren Buffett’s diversified holding company saw staff reductions at a few of its core businesses: more than 8,000 workers were pink-slipped at Fruit of the Loom, carpeting manufacturer Shaw Industries cut 3,500 employees, and Russell Corporation laid off 2,500 workers. Berkshire’s acquisition of Burlington Northern Santa Fe Corporation (and 35,000 jobs) earlier this year increased the company’s total headcount to 257,000.
7. American International Group
After suffering the biggest loss of any Fortune 500 company in history (of $99 billion in 2008, the same year it received a $182 billion government bailout), AIG reduced headcount by an additional 20,000 jobs in 2009 as it sold off a number of its insurance businesses. But despite the sales, the company remained in the red with a loss of $10.9 billion last year.
8. AT&T
The telecom underwent a corporate reorganization, resulting in a 5% reduction of its global workforce, mostly in its landline operations and business services. In December 2008, the company announced it would lay off 12,000 workers, but more cuts followed. By March 2010, AT&T had laid off an additional 6,440 employees.
9. Caterpillar
The machine builder pink-slipped skilled laborers repeatedly throughout 2009 as demand dropped for construction equipment. As recently as March 2010, more than 27,000 Caterpillar employees had been laid off since the housing market soured in 2008.
10. General Electric
The diversified conglomerate reduced staff at a number of its businesses. Credit problems amid a troubled economy combined with an inquiry by the SEC into the company’s accounting practices hurt its finance business, GE Capital, which handed out 11,000 pink slips. GE implemented additional mass layoffs in its transportation and jet engine divisions as well as at NBC Universal, which reduced its staff by 500.
11. YRC Worldwide
The freight and trucking company was hit hard by the recession and hasn’t turned a profit since 2006, resulting in a reorganization and mass layoffs to cut costs. Last year, the company cut more than a third of its workforce and has laid off more employees since January.
12. United Parcel Service
Lower shipping volume and declining sales forced the package deliverer to cut back on its workforce. Earlier this year, the company announced restructuring plans to eliminate 1,800 administrative and management positions and 300 pilots over the next three years.
13. Hewlett-Packard
Though layoffs seem to be commonplace at H-P — the Silicon Valley stalwart has pared away more than 75,000 workers over the past 10 years as it has transformed its business to include laptops and servers — it has also grown quickly through acquisitions, most notably of Compaq and EDS. The acquisition of Palm announced last month will add another 900 workers to the company’s headcount.
14. United Technologies
Weak sales and canceled orders in its aerospace and construction businesses hurt the manufacturing conglomerate, which cut 7% of its global workforce as part of a restructuring plan. Pratt & Whitney, the company’s jet engine business, was hit particularly hard, and its workers have been fighting layoffs in court to prevent their jobs from being outsourced.
15. Sprint Nextel
As subscribers continue to defect to competitors AT&T and Verizon Wireless, the telecom has focused its efforts on pre-paid users by acquiring Virgin Mobile USA in November but continues to suffer from sagging revenues. After suffering a loss of $2.6 billion last year, the third-largest U.S. cell phone carrier reduced headcount by nearly a third.
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