The main line
Nearly 125,000 workers lost their jobs so far this year as more than 120 major US technology companies, banks and manufacturers implemented massive rounds of layoffs, according to Forbes layoffs tracker, which documented large layoffs (over 100) starting in June as recession fears began to mount.
Outside the Twitter office in New York.
Key facts
More than 60,000 US workers have been laid off since the start of November – including 4,800 estimated to be affected by a 10% cut at semiconductor maker Micron this week – as well as 4,000-6,000 estimated to be hit by a round of layoffs at HP. Inc., and 10,000 are reportedly affected by a round of layoffs at Amazon.
This month alone, banking giant Morgan Stanley cut 1,600 jobs, several outlets reported, while Goldman Sachs reportedly announced plans to lay off perhaps 4,000 employees, joining other big banks such as Barclays (200), online banker Chime (160), Wells Fargo (36). ) and Citigroup, which reportedly cut 50 jobs last month.
Tech startups and online businesses also bore the brunt of the layoffs, with online e-commerce site BigCommerce letting go 180 workers, Airtable cutting 254, online financial services company Plaid cutting 260, utilities company home Thumbtack that cuts 160 and online real estate company Doma. with 515 positions.
Several media outlets have also announced major cuts, including Gannett – the US parent company today, Detroit Free Press AND The Indianapolis Star—which laid off 6% of its roughly 3,400 employees in its media division earlier this month and another 400 in August.
BuzzFeed CEO Jonah Peretti also announced this month that the online outlet plans to lay off 180 employees (12% of its workforce) amid “challenging macroeconomic conditions,” while CNN announced it plans to lay off employees it says are disruptive its cable network HLN, although CNN did not respond to a Forbes investigation seeking further details.
Big number
11,000. That’s the number of employees laid off last month at Facebook and Instagram parent company Meta — the biggest round of layoffs this year, which CEO Mark Zuckerberg called “the most difficult changes we’ve made in Meta’s history.” “. In a company memo, Zuckerberg said the company invested heavily and increased hiring at the start of the Covid-19 pandemic when people increasingly turned to the internet, but acknowledged the company has since suffered financially due to the “macroeconomic downturn”. and “increasing competition”. “
Surprising fact
Peloton underwent four rounds of layoffs this year — the largest of which affected more than 2,800 employees — as the home exercise equipment maker fell behind the Covid-era home exercise trend. Its latest round in October affected roughly 500 employees, just two months after the New York-based company cut 800 jobs and revealed plans to close many stores and raise the price of its bicycles and home treadmills.
tangential
More than 91,000 US tech workers have been laid off so far this year, according to Crunchbase. Tech workers have been hit particularly hard by recent layoffs, including more than 1,000 workers cut in August from online brokerage Robinhood, as well as another 1,000 at Shopify in July, 1,000 at biotech company Invitae and 1,280 on Snap – the developer of Snapchat.
What we don’t know
How big the layoffs could be at some big companies, including Google and Twitter. Last month, Google’s parent company Alphabet reportedly launched a program to identify 10,000 underperforming employees who could be cut. In September, Google reportedly gave 50 employees at the firm’s startup incubator three months to find new positions within the company or face layoffs. Twitter, meanwhile, began a round of layoffs in November, affecting half of the social media giant’s 7,500 employees, after earlier reports indicated CEO Elon Musk could seek to cut up to 75% of his staff. Citing tweets and LinkedIn posts from departing employees, multiple media outlets reported this week that those cuts are still ongoing.
Key background
This year’s holidays came as inflation hit a 40-year high this summer, led by rising gas prices, which hit a record high in June at $5.02 a gallon — though prices they have since fallen. Meanwhile, home sales have fallen in a cold housing market; The Federal Reserve implemented five rounds of interest rate hikes aimed at slowing the economy and curbing rising inflation; and economists warn that recession may be around the corner. In an interview with CNBC’s “Squawk Box” earlier this month, JP Morgan CEO Jamie Dimon warned that inflation will “erode consumer spending power” and that a recession could begin by mid-2023.
What to look for
The yield curve, by any other indication, a recession is inevitable.
Further reading
46,000 laid off in November alone as job cuts increase (Forbes)
2022 Big Cuts Rise: Micron Cuts Thousands of Jobs (Forbes)
Goldman Sachs reportedly plans to cut up to 4,000 jobs (Forbes)
