More than 158 million people are employed in the US workforce. These people work in fields ranging from IT and technology to media and production. In the second half of 2022, inflation reached the highest level in the country, and to combat it, the Federal Reserve Bank raised interest rates seven times in a row in 2022 alone. The higher rate caused a There has been a wave of layoffs across the country, with more than 120 companies laying off tens of thousands of employees last year. The most significant round of layoffs took place at Meta, which laid off 11,000 employees in November.
We are in the second half of 2023 and according to Forbes, 93 companies have quit so far. About 194,000 people nationwide lost their jobs due to layoffs in the first half of 2023. According to the Labor Department, the unemployment rate in the US was 3.7% as of May 2023. There are 6.1 million people now. unemployment in this country.
The Great American layoffs in 2023: Timeline
The first half of 2023 saw a wave of mass layoffs hitting several large companies across various industries, leaving hundreds and thousands of employees out of work. Meta, Amazon, and Twitter were the top three companies that laid off the most employees in the first quarter of 2023 due to rising unemployment and fears of an impending recession.
The following are the key companies that have undergone significant downsizing to date:
JANUARY
- Amazon: Amazon, owned by Jeff Bezos, one of the world’s largest companies, conducted one of the biggest layoffs of 2023, after laying off more than 10,000 employees in November. , the e-commerce giant laid off 18,000 of its workforce starting January 18.
- Microsoft: The tech giant has announced workforce cuts that will affect about 10,000 employees, less than 5% of its 180,000 employees. The decision comes after another round of layoffs made three months ago.
- Alphabet: Google’s parent company has cut its global workforce by cutting around 12,000 jobs.
- Spotify: The world’s largest music streaming platform, Spotify, plans to cut about 10,000 of its workforce by about 6%.
FEBRUARY
- Dell Technologies: As a cost-cutting measure, the laptop maker has cut its workforce by about 6,650 employees.
- Boeing: The famous jet maker has cut about 2,000 jobs in its finance and human resources departments. The company also plans to hire 10,000 people in engineering and manufacturing jobs.
- Twitter: After Elon Musk took over and halved the social networking company’s 7,500-person workforce, the microblogging site experienced another round of layoffs, forcing more than 200 employees to leave.
STEPS ARE
- Amazon: After laying off 18,000 employees, the e-com giant cut 9,000 jobs, marking its second-biggest layoff in just three months.
- Indeed: the job search platform has undergone a series of cuts affecting around 2,200 employees.
- Warner Music Group: The company cut 275 positions in an effort to grow.
APRIL
- Walmart, the largest employer in the United States, has laid off five of its factories, resulting in the layoffs of more than 2,000 employees. Affected locations include facilities in Florida, New Jersey, Pennsylvania and Texas.
- Disadvantage: the company reduced the number of 1,800 employees at the end of the month.
MAYBE
- LinkedIn: Of its 20,000 employees, the professional networking app has laid off more than 700 of them.
- Disney: The company has made one of its biggest layoffs of the year so far. So far, more than 6,500 people have lost their jobs.
- Meta: The tech giant laid off about 6,000 employees, marking the company’s second-biggest layoff this year.
JUNE
- Spotify: The streaming giant has conducted a second round of layoffs, cutting 2% of its workforce, or about 200 employees.
- Ford: The automaker has laid off about 1,000 employees and is shifting focus to key areas that need addressing.
Why is this happening?
In 2022, inflation in the US peaked, the highest in 40 years. To limit soaring prices and the recession that began in the wake of the COVID-19 pandemic, the US Federal Reserve Bank started raising interest rates. The bank raised rates seven times in a row by key basis points last year. The Fed’s rate hike has raised fears that a recession is brewing. Amid economic uncertainty, rising interest rates, the collapse of major banking institutions and an ongoing digital transformation, companies across the country have resorted to layoffs. as a cost-cutting measure. And it hasn’t stopped since. The Federal Reserve has continued to raise interest rates consistently, reaching its ninth consecutive increase in May 2023. Moreover, the pandemic has brought about many changes, including its dependence on the world. digital. All of the above factors together contributed greatly to these mass layoffs.
What’s next?
There are still uncertainties and challenges facing employees and companies. Major corporations like Disney and Alphabet have announced their intention to make more layoffs later this year. As the Federal Reserve continues to raise interest rates and recession fears grow, it remains to be seen how businesses will thrive amid the growing economy. Another important thing to consider is the AI revolution. AI has taken center stage in the digital world with the emergence of powerful AI tools like ChatGPT, Google Bard, and Bing AI. As artificial intelligence continues to evolve, there are concerns about its potential impact on the labor market and future job opportunities to come.
Conclusion
Rising inflation, rising interest rates, and the ongoing digital transformation have contributed to a wave of layoffs across various industries in the United States. Hundreds and thousands of people lose their jobs every day. As the world continues to change, it is important to explore new avenues for job and skills development. In this context, the ability to adapt to emerging technologies and take advantage of new opportunities will become even more important for individuals and organizations.
Categories: Trends
Source: HIS Education