There are more than 158 million people employed in the United States workforce. These people work in different sectors, from IT and technology to media and manufacturing. In the second half of 2022, inflation reached its highest peak in the country and to combat it, the Federal Reserve Bank raised its interest rates seven consecutive times in 2022 alone. The higher rates led to a wave of layoffs in across the country, and more than 120 companies laid off tens of thousands of employees last year. The largest round of layoffs came at Meta, which laid off 11,000 employees in November.
We are in the second half of 2023 and so far 93 companies have made layoffs, according to Forbes. Approximately 194,000 people nationwide lost their jobs due to layoffs in the first half of 2023. According to data from the Department of Labor, the unemployment rate in the US is 3.7% as of May 2023. There are currently 6 .1 million unemployed people in the country.
The Great American Layoff of 2023: A Timeline
The first half of 2023 has seen a wave of mass layoffs that has hit numerous large companies across various sectors, forcing hundreds and thousands of employees to lose their jobs. Meta, Amazon and Twitter were the three companies that laid off the most employees in the first quarter of 2023 amid rising unemployment rates and fears of a coming recession.
The following are the main companies that have experienced significant staff reductions so far:
JANUARY
- Amazon: Jeff Bezos, owner of Amazon, one of the largest companies in the world, carried out one of the biggest layoffs of 2023, after laying off more than 10,000 employees in November. In 2023, the e-commerce giant cut 18,000 jobs as of January 18.
- Microsoft: The tech giant announced a reduction to its workforce that will affect approximately 10,000 employees, representing less than 5% of its total workforce of 180,000 employees. This decision follows another round of layoffs three months earlier.
- Alphabet: Google’s parent company, reduced its global workforce by eliminating approximately 12,000 jobs.
- Spotify: Spotify, the world’s largest online music streaming platform, has planned to reduce its workforce of approximately 10,000 people by about 6%.
FEBRUARY
- Dell Technologies: As a cost-cutting measure, the laptop maker underwent a workforce reduction of approximately 6,650 employees.
- Boeing: The renowned aircraft manufacturer cut approximately 2,000 jobs in finance and human resources. The company also plans to hire 10,000 people for engineering and manufacturing jobs.
- Twitter: After Elon Musk took over and halved the social media company’s 7,500-person workforce, the microblogging site went through another round of layoffs, forcing more than 200 employees to leave their jobs. of work.
MARCH
- Amazon: After laying off 18,000 employees, the electronic communications giant eliminated 9,000 positions, marking the second major layoff in just three months.
- In fact: the job search platform suffered a round of cuts that affected approximately 2,200 employees.
- Warner Music Group: The company cut 275 positions in an effort to evolve.
APRIL
- Walmart: America’s largest employer, carried out layoffs at five of its plants, resulting in the layoffs of more than 2,000 employees. Affected locations include facilities in Florida, New Jersey, Pennsylvania and Texas.
- Gap: The company cut 1,800 employees at the end of the month.
CAN
- LinkedIn: Of its 20,000 employees, the professional networking app laid off more than 700.
- Disney: The company carried out one of the largest layoffs of the year so far this year. So far, more than 6,500 people have lost their jobs.
- Target: The tech giant laid off about 6,000 employees, marking the company’s second major layoff so far this year.
JUNE
- Spotify: The streaming giant carried out its second wave of layoffs, cutting 2% of its workforce, which is around 200 employees.
- Ford: The automaker laid off about 1,000 of its employees and is shifting its focus to key areas that need to be addressed.
Why is this happening?
In 2022, inflation in the United States peaked, the highest in forty years. To curb rising prices and the economic recession that began after the COVID-19 pandemic, the US Federal Reserve Bank began raising its interest rates. Last year, the bank raised its rates seven times in a row by significant basis points. The Federal Reserve’s rate hikes sparked fears that a recession was underway. Amid economic uncertainties, rising interest rates, the collapse of major banking institutions, and the ongoing digital transformation, companies across the country turned to layoffs as a means of cost reduction. And since then it hasn’t stopped. The Federal Reserve has continued to steadily raise interest rates, reaching its ninth consecutive increase in May 2023. Additionally, the pandemic brought many changes, including reliance on the digital world. All of the above factors combined have largely contributed to these mass layoffs.
Whats Next?
There are still uncertainties and challenges ahead for both employees and businesses. Large corporations such as Disney and Alphabet have already announced their intention to implement more layoffs before the end of the year. As the Federal Reserve continues to raise interest rates and fears of a recession grow, it remains to be seen how companies will navigate the changing economic landscape. Another important aspect 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 AI continues to evolve, there are concerns about its potential impact on labor markets and employment opportunities in the near future.
Conclusion
Rising inflation, interest rate increases, and the ongoing digital transformation have contributed to the 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 crucial to explore new avenues for employment and skills development. In this context, the ability to adapt to emerging technologies and take advantage of new opportunities will be even more essential for both individuals and organizations.
Categories: Optical Illusion
Source: ptivs2.edu.vn