The 10 biggest U.S. corporate layoffs of 2012
1. Hewlett-Packard Co.
Even with Citigroup’s huge job cut plans announced Wednesday, Hewlett-Packard Co. HPQ -0.07% remains the leader in corporate job cuts from U.S.-based companies in 2012, according to data from Challenger, Gray & Christmas Inc. Back in May, the ailing Palo Alto, Calif.-based tech giant said it would cut 27,000 jobs to save up to $3.5 billion. H-P contributed to May being the peak month in 2012 for job-cut announcements with more than 61,000 and pointed to computer companies as one of the most vulnerable industries of the year. Shares of H-P are down more than 45% for the year.
2. Hostess Brands
Hostess Brands is the second-largest source of job losses for 2012 so far, and has become a poster child for labor-contract negotiations gone wrong. The iconic maker of Twinkies and Wonder Bread announced in late November it would eliminate 18,500 jobs as it liquidates the company’s assets and sells off its brands. Strikes crippled the company after Hostess and the union representing 5,600 bakers failed to reach a contract agreement.
3. AMR Corp.
In February, AMR Corp. AAMRQ -0.50% , the bankrupt parent company of American Airlines, said it planned to cut up to 14,000 jobs at American but by September that number dwindled to about 11,000 employees getting notices saying they could be subject to layoffs as bankruptcy proceedings continue. Currently, American and US Airways Group Inc. LCC +2.03% are reportedly weighing a merger.
4. Citigroup Inc.
As the most recent, Citigroup Inc. C +0.33% ranks the leader in announced layoffs among U.S.-based financial firms in 2012. On Wednesday, Citi said it planned to cut 11,000 jobs in an effort to save $1 billion. The cuts come under the watch of new Chief Executive Michael Corbat, who replaced Vikram Pandit in October. Shares of Citi jumped more than 6% on the news and are up more than 38% year to date. Read more on Citi's job-cut announcement.
5. PepsiCo Inc.
In February, PepsiCo Inc. PEP +0.22% said it would trim 3% of its global workforce, or 8,700 jobs, to save about $1.5 billion in 2014. Notably, Pepsi announced in the same breath it would hike its annual dividend by 4% to $2.15 a share and buy back at least $3 billion in stock by the end of the year.
6. J.C. Penney Co.
Back in January, J.C. Penney JCP +5.24% announced restructuring measures that would affect 4,700 jobs and added William Ackman of Pershing Square Capital Management and Steven Roth of Vornado Realty Trust to its board. So far, January ranks as the second most active month for job loss announcements for 2012.
7. MetLife Inc.
MetLife Inc. MET -1.65% trimmed a sizeable chunk of its workforce, about 4,300 jobs, at the beginning of 2012 as it closed its Irvine, Texas-based home-loans unit, making good on an announcement made in October 2011 that it planned to get out of the mortgage business to focus on its core insurance and employee-benefits businesses.
8. Procter & Gamble Co.
In February, P&G PG +0.76% said it would eliminate 4,100 jobs in fiscal 2013 as part of an effort to trim costs by $10 billion over the next four years. While not among the top 10, competitor Colgate-Palmolive Co. CL -0.72% recently said it would slash 2,300 jobs.
9. Google Inc.
In August, Google GOOG +0.17% said it would cut 4,000 jobs from the 20,000-person work force of Motorola Mobility, which Google acquired earlier in 2012. According to regulatory filings, Google said about two-thirds of the cuts would take place outside the United States.
10. Morgan Stanley
In July, Morgan Stanley MS -1.12% Chairman James Gorman said he expected a 7% decline in staff from 2011, implying the loss of about 3,200 jobs. But the firm has other personnel issues. On Monday, the firm lost high-producing financial advisers Robert Sackler and Marc Ackerman, who were among a group of about 50 advisers who told senior managers of deficiencies in the brokerage’s policies and software programs in August.