The latest data on the US labour market shows that it remains strong and stable, but corporate America is already giving clear signs that things are starting to change.
However, major technology companies and quite a few financial institutions have already announced their plans to cut staff to lessen the effects of the economic downturn. They are prompted to this step by stubbornly high inflation, weakening consumption and slowing economic development in China.
Many employees question how they will be affected by mass layoffs and what to do if they find themselves holding a pink slip. Mass layoffs are a difficult but typical occurrence in the business world.
The current employment market in the United States is robust, with low unemployment rates and rapid job creation, but this could alter in the near future as many businesses struggle to adjust to the changing economy.
Considering all these factors, several US corporations have already planned huge layoffs this year.
“Amazon” (Amazon.com) – The e-commerce giant plans to cut more than 18,000 employees in the coming months, with a planned workforce reduction of 10,000 until recently.
Beyond Meat – The vegan food maker plans to cut 200 jobs this year to save about $39 million.
Johnson & Johnson – The pharmaceutical giant said it is considering layoffs in light of continued inflationary pressures, and Chief Financial Officer Joseph Wolk said the conglomerate wants to “find the right balance.”
DoorDash – The food delivery company that enjoyed significant growth during the pandemic will lay off 1,250 of its employees.
“AMC Networks” (AMC Networks) – The cable television network plans to cut 20 per cent of its employees in the United States. The move coincides with the resignation of CEO Christina Spade, who took over less than three months ago.
HP – The hardware manufacturer is expected to cut about 6,000 jobs over the next few years.
“Intel” (Intel Corp) – The chip maker plans to cut costs by dollar three billion in 2023, which CEO Pat Gelsinger said includes “employee actions.”
“Coinbase Global” (Coinbase Global) – The digital asset trading exchange plans to cut several dozen jobs from its recruitment and institutional adaptation teams. This is the second wave of layoffs at the company.
Kraken – The cryptocurrency trading platform is laying off 30 per cent of its workforce, or about 1,100 people, due to the crypto market’s woes, which have led to a sharp drop in demand for digital assets.
“Morgan Stanley” (Morgan Stanley) – Over the past two months, the banking giant has been gradually reducing its staff as its business begins to shrink.
“Microsoft” (Microsoft Corp) – The software giant in October cut nearly 1,000 employees in several of its main departments.
Micron Technology – The memory chip maker will cut ten per cent of its workforce in 2023 and cut capital spending plans for 2024, given problems in semiconductor markets.
“Meta Platforms” (Meta Platforms) – The parent company of “Facebook” announced that it will cut 13 per cent of its employees, or more than 11,000 people, as it must cope with reduced advertising revenue and increasing costs.
Seagate Technology Holdings – The memory chip maker is restructuring, cutting 8 per cent of its workforce, or 3,000 people.
Salesforce – The software company will cut 10 per cent of its workforce and close several offices as part of a restructuring plan prompted by a “difficult economic environment.”
Cisco Systems – The network communications technology and services company is starting a restructuring that could affect about 5 per cent of its employees. The changes will occur in the year’s second quarter, and the goal is to save $600 million.
“Citigroup” (Citigroup) – The bank closed hundreds of jobs in its investment division due to the severe decline in transactions in the sector.
Stripe – The digital payments company is cutting its workforce by about 14 per cent. According to an email to employees, about 7,000 people will be out of a job after that.
Twitter – Nearly half of the social media company’s employees were laid off after billionaire Elon Musk acquired it in the fall. However, the company later contacted many of them and asked them to return to work.
Wolverine World Wide – The casual clothing and footwear retailer has begun layoffs and expects them to save the company $30 million by the end of the year.
“Walt Disney” (Walt Disney) – The media giant plans to freeze hiring new employees and cut several jobs but has not yet announced its specific plans.
“Warner Bros. Discovery” (Warner Bros. Discovery) – The division of “Warner Bros. Pictures” (Warner Bros. Pictures) plans to cut several employees in distribution and marketing. According to Bloomberg, it is about 5-10 per cent.
“Phillips 66” (Phillips 66) – The refinery has already cut its workforce by 1,100 people, aiming to save $500 million. The layoffs began in October.
Chesapeake Energy Corp – The shale gas producer is laying off about 3 per cent of its workforce in preparation for the sale of its oil assets in South Texas.
“Chime Financial” (Chime Financial) – The online banking company has already cut 12 per cent of its employees or 160 people, its spokesperson announced.
Fitch Ratings predicted in November 2022 that employment would decline in 2023. It predicted that labour demand — as measured by employment plus job opportunities – currently exceeds labour supply by around 5 million. This mismatch is not anticipated to be corrected by a labour supply rebound. Fitch notes that the expected economic downturn in 2023 will likely reduce labour demand through both job losses and a decline in job postings.
