Who Laid Off the Most Workers in 2008?

1 of 22

Mark Lennihan, AP

Layoff Kings of the Year

The business headlines have been filled with reports of layoffs nearly every day in the last half of the year. A lot of these have been towards big, profitable companies, which says something about what they expect in 2009.

24/7 Wall St. profiles the 20 companies with the most layoffs this year, including how many layoffs, where they are occurring and why they are occurring.

First Up: King of Layoffs

1. Citigroup

Layoffs: Just Over 73,000

The big bank announced last month that it would let go over 50,000 people go on top of 23,000 already fired or that were in the process of leaving. New CEO Vikram Pandit has done an especially poor job of getting Citi back on track. Several stock analysts have cut their fourth quarter earnings estimates. The government’s bailout of the bank, put together last month, may not be enough. Citi may have to raise more capital and fire more people.
Next: Bank of America

2. Bank of America

Layoffs: 35,000

The Bank of America (BAC) buyout of Merrill Lynch will cost 35,000 people their jobs. There are overlaps in the companies, particularly in the research and investment banking divisions. A total of 11% of the combined workforce will be shown the door. The layoffs at the newly merged company may not be over. Bank of America is considered undercapitalized. It took on a lot of home mortgages when it bought Countrywide.
Next: General Motors

3. General Motors

Layoffs: 34,000

General Motors (GM) has said that its cuts for this year add up to almost 34,000 people. That number is modest compared with the number of jobs the company took out in 2006 and 2007. If the firm goes into Chapter 11 cuts for 2009 may go up again.

Next: Hewlett-Packard

4. Hewlett-Packard

Layoffs: 25,000

Hewlett-Packard (HPQ) is one of the most successful tech companies in the world, perhaps because it is ruthless at keeping costs down. It bought IT consulting firm EDS earlier this year and slashed 25,000 people while mashing the two operations together.

Next: Lehman Brothers

5. Lehman Brothers

Layoffs: 23,000

Lehman Brothers simply does not exist anymore. In September, the company filed for Chapter 11. Some of the people in divisions bought by other companies or kept open waiting for buyers may be OK, but more than 23,000 poor souls were shoved out of work.

Next: AT&T

6. AT&T

Layoffs: Over 17,000

AT&T (T) is another company which is doing remarkably well, but does not want to face a hard economy with excess staff. The one part of the firm which has done very badly is its traditional landline business. The number of people and businesses who keep a traditional phone is dropping. The phone company chopped 12,000 people earlier this month. Added to other, smaller cuts and the total for the year is more than 17,000.
Next: DHL Express

7. DHL Express

Layoffs: Almost 15,000

The ground and air shipping industry is being torn up by people who save money through using the post office or electronic delivery. DHL rivals FedEx (FDX) and UPS (UPS) and are also having a hard time. DHL's parent, Deutsche Post World Net, closed its land and air shipping operation in the US in early November.

Next: The California Department of Education

8. California
Department of Education

Layoffs: 14,000

The California Department of Education shows that the public sector is not being spared. California has gone to the federal government for aid because of a massive budget deficit. The state is paying some vendors with IOU's and is threatening to cut some services completely. If governor Arnold Schwarzenegger cannot get California’s books balanced, the state will be letting a lot more people go.

Next: Starbucks

9. Starbucks

Layoffs: More Than 12,000

Starbucks (SBUX) founder Howard Schultz came back to the company as CEO when he saw that the people he had put in place to run the company were screwing it up. His return did not make that any better. No one at the firm wanted to believe that customers would not pay $4 for a fancy cup of coffee in a recession, especially when McDonald’s was selling the same product for $2. To keep Starbucks in the black it closed over 600 stores.
Next: Chrysler

10. Chrysler

Layoffs: 12,000

Chrysler let over 12,000 people off this year on top of all those who left in 2007. Since the car company is on the brink of Chapter 11, the number of workers who leave the company may still move way up.

More: Wells Fargo

Wachovia

11. Wells Fargo

12. Dow Chemical

Layoffs: 5,000 Workers & 6,000 Contractors

Dow Chemical (DOW) is another profitable operation where earnings are being squeezed by the economic downturn. To combat falling margins, the firm is closing 20 plants. All those people being let go will be happy to hear the company is keeping its dividend.

More: NASA

13. NASA

Layoffs: Almost 11,000

NASA has said it will need fewer people when the space shuttle goes into retirement. The agency that put a man on the moon is cutting nearly 11,000 jobs.

More: The State of California

14. State of California

Layoffs: More Than 10,000

The State of California makes the list twice as it chops seasonal jobs to preserve more cash. That means fewer lifeguards and guards at the state capital. It may also take longer to get a driver’s license.

More: Sun Microsystems

15. Sun Microsystems

Layoffs: 9,500

Sun Microsystems (JAVA) is one of the worst run tech companies in the world. To stay ahead of its revenue trouble it likes to make big job cuts every year. Instead of one big layoff, Sun decided to make one announcement early in the year and one last month. Sun will take a charge of about $600 million. No wonder the stock trades at just over $4. A little over a year ago, shares changed hands at $24. What is surprising is that CEO Jonathan Schwartz is still on board.
More: Bennigan's

16. Bennigan's

Layoffs: Over 9,000

Bennigan’s filed for Chapter 7 in July. People just can’t afford to eat out the way that they used to. The restaurant company’s 150 company-owned stores shut down.

More: JP Morgan Chase

17. JP Morgan Chase

Layoffs: Over 9,000

JP Morgan Chase (JPM) bought the banking operations of Washington Mutual, a bank which had become bloated with home mortgage loans made when real estate prices were flying up. JPM raised $10 billion to cover the costs of the transaction.

More: Bear Stearns

18. Bear Stearns

Layoffs: More Than 9,000

Bear Stearns simply disappeared in March after being in business for 85 years. JPMorgan bought the place for $2 a share. Because of rumors about Bear’s mortgage holdings customers started to pull their money out. The investment house was gone before it had a chance to say goodbye to its staff. JPM did not need all those bankers and brokers.

More: American Airlines

19. American Airlines

Layoffs: More Than 8,500

American Airlines (AMR) was a victim of high fuel costs. Faced with rumors it could not finance its operations with oil well above $100, it had to cut the number of routes it was flying, the number of planes it operated, and more than 8,500 jobs.

More: Merck

20. Merck

Layoffs: More Than 8,000

Merck (MRK) was just one of the Big Pharma firms that made big cuts this year. Bristol-Myers (BMY) recently said it would have to go through another round of cuts as patents run out on drugs and price pressure from generics rise. The harsh environment and a forecast of a bad 2009 caused the firm to chop more than 8,000 people.

More: More From AOL

More on AOL

More on AOL:
Defunct Auto Brands

As the auto industry contemplates radical restructuring to save itself, one of the likely fallouts will be the demise of a familiar brand or two. But while disruptive, we have to remember this is nothing new.

Here are a few famous auto brands that have since gone to the great junk heap in the sky.

Next Gallery: To the Junk Heap in the Sky

More Money & Finance:

Top Money Stories

BloggingStocks

Special Features

1 of 22

Skip nav

INVESTING

Stock Quotes
Stock Charts
Portfolio
Stock Screener
Broker Center
Mutual Fund Center
ETF Center

BUSINESS NEWS

Market News
Earnings
Recalls
Tech News
BloggingStocks

Our Most Popular Features

Famous Brands Disappearing From America
11 Fantastic Summer Freebies
Craziest Things Drivers Do Behind the Wheel
Top 5 Loans to Avoid
Best Hospitals in America
Affordable Neighborhoods to Retire

COMMENTS ( 0 )

Newest First

Threaded
Highest Rated
Oldest First
Newest First

GOT SOMETHING TO SAY?

YOU'LL BE ASKED TO REGISTER OR SIGN IN BEFORE POSTING A COMMENT.

Make a Comment

Comment

Can't see this image?

Investing Basics

What Kind of Investor Are You? Take the Quiz
Buying Mutual Funds: The Basics & the Benefits
Best Fund Types for You?
Bonds: What You Need to Know About Them
Keep Your Taxes Low And Boost Returns

Stock Quotes

There's more to investing than just the latest price...
• Free real time stock quotes
• The latest investing news
• Over 30 detailed financial reports

Stock Quotes

My Portfolios

My Portfolios is the web's most popular investing tracker. You'll enjoy...
• Automatic totals for multiple investment portfolios
• Track cash holdings & foreign issues
• Customizable views

My Portfolios

Stock Screener

Tired of hearing about the same old stocks? Use our free stock screener to find the best stocks to suit your investment strategy.
Stock Screener

Who Laid Off the Most Workers in 2008?

Layoff Kings of the Year

Related Links:

1. Citigroup

Related Links:

2. Bank of America

Related Links:

3. General Motors

Related Links:

4. Hewlett-Packard

Related Links:

5. Lehman Brothers

Related Links:

6. AT&T

Related Links:

7. DHL Express

Related Links:

8. CaliforniaDepartment of Education

Related Links:

9. Starbucks

Related Links:

10. Chrysler

Related Links:

Wachovia

Related Links:

12. Dow Chemical

Related Links:

13. NASA

Related Links:

14. State of California

Related Links:

15. Sun Microsystems

Related Links:

16. Bennigan's

Related Links:

17. JP Morgan Chase

Related Links:

18. Bear Stearns

Related Links:

19. American Airlines

Related Links:

20. Merck

Related Links:

More on AOL

More Money & Finance:

INVESTING

BUSINESS NEWS

Our Most Popular Features

Investing Basics

Stock Quotes

My Portfolios

Stock Screener

Headlines From AOL Money & Finance Partners

8. California
Department of Education