Things are tensing up in corporate America as more large companies unexpectedly announced a few eyebrow-raising decisions over the last two weeks.
While diversity, equity and inclusion continues to be a sensitive, hot topic on social media as more companies are putting DEI initiatives on the chopping block, it isn’t the only controversy unfolding in workplaces.
Layoffs across the nation started to take full effect shortly after people tore down their 2024 Christmas decorations. However, these layoffs aren’t going so smoothly for every company.
In addition, in-office mandates that require employees to work in the office five days a week are gaining steam in corporate America, and more employees are starting to fight back against these efforts.
Here are the top workplace news stories over the last two weeks that highlight the current state of corporate America.
Goldman Sachs bans a strict work policy
Last month, Goldman Sachs (GS) , the fifth-largest bank in the U.S., bravely defended its DEI program during a time when many companies were erasing their diversity efforts.
In a statement to the Wall Street Journal in January, Goldman Sachs said that organizations can benefit from diversity in the workplace and it will remain committed to its DEI policies and programs in compliance with the law.
A person walks towards Goldman Sachs headquarters in New York, US, on Thursday, July 6, 2023. Goldman Sachs Group Inc. is scheduled to release earnings figures on July 18. Photographer: Michael Nagle/Bloomberg via Getty ImagesBloomberg/Getty Images
However, the banking giant recently decided to change its mind about a DEI initiative requiring it to only underwrite U.S. and Western European companies that have at least two diverse board members. Goldman Sachs scrapped the policy due to recent “legal developments.”
In a recent interview with BBC, Goldman Sachs International CEO Richard Gnodde said that the bank’s board diversity requirement “served its purpose.”
“That policy served as a catalyst to try and drive a change in behavior,” said Gnodde in the interview. “What’s important here is that you have a diversity of views on that board, and if you look at these companies – they’ve all embraced diversity.”
Jamie Dimon sounds off on return-to-office complaints
In other banking news, JPMorgan Chase (JPM) CEO Jamie Dimon has made it loud and clear that he is sick of the major tension that is brewing at his company.
After Dimon sent a memo to JPMorgan employees last month warning them that starting in March, they will be required to work from the office five days a week, some employees fought back against the new policy by launching a petition on coworker.org last Sunday.
Jamie Dimon, CEO of JPMorgan Chase & Co., during a Bloomberg Television interview on the sidelines of the JPMorgan Tech Stars Leadership Forum in London on Oct. 2, 2023. Bloomberg/Getty Images
In the petition, which has so far garnered over 1,600 signatures, JPMorgan employees said that the mandate is a “great leap backward.” They demanded that the company retain its hybrid work model, which allows them to work from the office only three or four days a week.
However, that might not happen anytime soon, as Dimon sounded off on recent complaints about the company’s new in-office mandate during a town hall meeting last week.
According to a recent report from Reuters, Dimon allegedly refused to discuss the new policy during the meeting.
“Don’t waste time on it,” said Dimon. “I don’t care how many people sign that f*cking petition.”
He also emphasized that employees should not be mad at him since it is a free country, and they have a choice on whether or not they want to continue working at JPMorgan.
“I’ve had it with this kind of stuff," said Dimon. "I’ve been working seven days a (expletive) week since COVID, and I come in, and — where is everybody else? They’re here, they’re there, the Zooms, and the Zoomers don’t show up.”
The billionaire also clarified that managers will not be able to dictate in-office requirements due to previous “abuse.”
"There is no chance that I will leave it up to managers," said Dimon. "Zero chance. The abuse that took place is extraordinary."
Disney is slowly un-woking itself
For years, Disney (DIS) has been sharply criticized by conservative consumers and a few powerful business leaders for implementing “woke” messaging in its movies and TV shows.
As the anti-woke movement continues to grow legs, especially after President Donald Trump took office last month and cut federal DEI programs, Disney surprisingly confirmed last week that it has recently scaled back some of its DEI initiatives.
Magic Kingdom Park at Walt Disney World in Orlando, FloridaGary Hershorn/Getty Images
This includes cutting its "Diversity & Inclusion" performance factor, which evaluates executive compensation.
Disney also axed its Reimagine Tomorrow initiative, which was focused on “amplifying underrepresented voices and untold stories as well as championing the importance of accurate representation in media and entertainment.”
The company also rebranded its “Business" Employee Resource Groups to “Belonging" Employee Resource Groups.
In addition to these corporate-level changes, Disney also vowed to replace the current content advisory disclaimers on some of its older content on Disney+. Some of Disney’s older movies, such as “Dumbo” and “Peter Pan,” have a content advisory that warns viewers that the film "includes negative depictions and/or mistreatment of peoples or cultures."
This current message will be replaced with one that says: "This program is presented as originally created and may contain stereotypes or negative depictions.”
Meta’s recent layoffs turn dark
Last month, Meta (META) , which owns popular social media platforms Facebook and Instagram, warned employees that it was planning to cut roughly 3,600 jobs. That is about 5% of the company’s workforce.
Meta CEO Mark Zuckerberg said the job cuts would be based on performance, and the company will hire new employees this year to replace those that are laid off.
Mark Zuckerberg, chief executive officer of Meta Platforms Inc., during the Meta Connect event in Menlo Park, California, US, on Wednesday, Sept. 25, 2024. Bloomberg/Getty Images
“I’ve decided to raise the bar on performance management and move out low-performers faster,” said Zuckerberg in a memo sent to employees last month.
The first round of Meta’s job cuts officially kicked off on Feb. 10, and allegedly, it's a hot mess. Some employees who were let go are claiming that they were “blindsided” by being laid off since they had recently received positive performance reviews, according to a recent report from Business Insider.
Former Meta employees told Insider that when they received notification that their jobs were being cut, they were shocked to find out that their high performance ratings had fallen to "Meets Most," which is a low tier in Meta’s performance rating system that means an employee met most, but not all, expectations.
The move from Meta comes after an internal memo last month gave its managers the green light to lay off higher-performing employees if they couldn’t meet reduction targets solely by cutting low-performing employees, according to Insider.
In a statement to TheStreet, a Meta spokesperson said that performance ratings employees received were not downgraded. They also claimed that just because an employee previously met expectations doesn’t mean they have continued to meet the bar.
Southwest Airlines delivers bad news to employees
After suffering significant reputational and financial headwinds over the last few years, Southwest Airlines (LUV) has decided to make a historical cut to its workforce to create a “leaner and more agile organization,” according to a Feb. 17 press release.
The airline announced that it will be laying off 15% of its corporate workforce, which includes senior leadership and directors. The decision will affect 1,750 employees.
A Southwest Airlines Boeing 737 departs Los Angeles International Airport en route to Las Vegas on September 19, 2024 in Los Angeles, California. Kevin Carter/Getty Images
“This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions,” said Southwest Airlines CEO Bob Jordan in the press release.“We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organization.”
In September last year, Southwest Airlines announced a three-year “transformational plan” that it expects will generate $500 million in cost savings by 2027.
The plan includes “minimizing hiring, optimizing scheduling efficiency, capitalizing on supply chain opportunities, and improving corporate efficiency.”
As a result of the recent round of layoffs, Southwest Airlines estimates that partial-year over-year 2025 savings will be $210 million, and its full-year 2026 savings will be $300 million.
