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HR News: Layoffs at Paramount, LinkedIn, and Intel, Goldman Sachs Settles Pay Equity Case, Affordable Child Care, and RTO

Francesca Di Meglio | 05/11/2023

This is a weekly roundup of the latest in HR News.

In this week's layoffs news, Paramount shut down MTV News as part of a plan to cut 25% of U.S. staff, LinkedIn laid off more than 700 people, and Intel is planning layoffs after its largest quarterly loss ever. In addition, Goldman Sachs settled a pay equity lawsuit, employers are tackling affordable child care, and New York City workers are pushing back on return to office (RTO) policies.

 

Layoffs at Paramount, LinkedIn, and Intel

Inflation decreased, but the number of news articles about layoffs seemed never ending this week. Paramount caught the most attention because it shuttered MTV News, which essentially had been dismantled in layoffs years ago. The company broke the news to employees in a memo that indicated those impacted would be informed by leaders before having one-on-one meetings with Human Resources. There was an attempt at kindness. 

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"To those impacted, we deeply appreciate the passion and creativity you have brought every day. I want to thank you for your many contributions," according to the memo as reported by NBC. "Our leadership team and HR partners are committed to ensuring this process is done with empathy and respect."

LinkedIn is laying off 716 people in a workforce of 20,000 and phased out its jobs app in China. The company's CEO Ryan Roslansky said this move would help create 250 new jobs, for which employees affected by the cuts in its sales, operations, and support teams could apply, according to the BBC.

USA Today reports that Intel, prompted by its largest ever quarterly loss, is planning layoffs across the company. No one knew how many people would be impacted. But the company confronted a first-quarter net loss of $2.8 billion and a decrease in revenue of 36% year-over-year.

WATCH: Conversation on the Inequity of Pay and Opportunity for Women at Work

Goldman Sachs Settles Pay Equity Lawsuit

Wall Street is notorious for its inequity and poor treatment of women at work. For years, the banks have struggled to right their wrongs. Recently, a lawsuit contended that Goldman Sachs' performance review process favored men, so they would get promotions and higher pay more frequently than women. The lawsuit was filed by three former employees and related to women who held associate or vice president titles in Goldman’s investment banking, investment management, and securities divisions. 

On Monday, Goldman Sachs said it would pay $215 million to settle the case, according to The New York Times. It added that the money will be divided among about 2,800 women, and the bank would change some of its practices. The Times reports that each plaintiff will receive about $47,000. 

READ: What Working Parents Want HR to Know

Employers Address Affordable Child Care

LinkedIn raised the issue of affordable child care in its news section this week. With a labor shortage in many sectors, employers cannot afford to lose workers because they don't have feasible child care options. Some companies are recognizing this need and responding with child care subsidies. In this brief blurb, LinkedIn suggests that on-site child care is not preferred, but this requires more explanation. Still, it is an important subject for HR to keep tabs on, especially because insufficient child care costs the United States about $122 billion in lost productivity, earnings, and revenue, according to ReadyNation.

Workers Push Back on Return to Office Policies 

Return to office policies might have been a novelty for people who had been pent up inside during the pandemic, but interest in meeting in person is waning in New York City, according to Axios. This is a concern for New York and other cities that rely on property tax and the economic burst that comes from workers in offices. No one is buying lunch at nearby restaurants, for example. 

INTERVIEW: RTO v. WFH - Which Will Win?

"If you walk around on the streets there's tons of tourists and residents walking around and doing things," said Keith DeCoster, director of market data and policy for REBNY, according to Axios. "But in terms of return to office it's still roughly 40% below where it was this time in 2019." 

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Photo by Ola Dapo for Pexels

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