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Wave of layoffs in the US – Bloomberg HT

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The intensification of recession concerns in the global economy has forced many international companies to take steps to reduce their costs.

With recession predictions increasing, many international companies have begun to discontinue their new investments and close their business to reduce costs to exit the process with the least loss.

As rising inflation and slowing demand forced companies to downsize, news of layoffs came one after another from companies in the technology, finance, real estate and media industries.

Especially in the United States, the wave of layoffs manifested itself in the first half of the year, despite the rigidity of the labor market.

Interestingly, the layoffs are concentrated in tech companies. In terms of layoffs, some companies cite the effects of the Kovid-19 outbreak, while others point to excessive hiring during periods of rapid growth.

In the US, major tech companies like Netflix have laid off this year, while Robinhood, Glossier and Better are just some of the tech companies that slashed their headcount in 2022.

As rising inflation and slowing demand put pressure on companies, U.S. tech employers laid off 4,404 jobs last month, according to data from global human resources provider Challenger. , about 9 times more than in the January-April period.

Cryptocurrency layoffs hit 20%.

Cryptocurrency exchange Coinbase, one such company, has announced that it will reduce the number of its employees by 18%. Noting that economic conditions are changing rapidly, Coinbase CEO Brian Armstrong said, “It looks like we are entering a recession after more than 10 years of economic boom.” made the assessment of him. Armstrong noted that the recession could lead to another “crypto winter” and be prolonged.

BlockFi, one of the cryptocurrency platforms, also announced that it will shrink its workforce by around 20%. BlockFi CEO Zac Prince said he was hurt by the “dramatic change in macroeconomic conditions”.

Cybersecurity firm OneTrust has announced that it will lay off 25% of its employees, while the fashion app Stitch Fix has announced that it will cut 15% of its workforce. Used vehicle trading platform Caravana is said to plan to lay off 12% of its employees and the Bird shared scooter app plans to lay off 23% of its employees. The Spotify digital music platform has announced that it will cut hiring by 25%.

While it has been alleged that Facebook and Amazon, one of the large U.S. tech companies, have also slowed hiring, news that Tesla’s top manager Elon Musk has sent an email to the company’s top executives with the title “Stop all hiring around the world” was reflected in the press. In the email in question it was reported that Musk said he had a “bad feeling” about the economy and that the number of employees should be reduced by 10%.

Contraction in the real estate, financial and media sectors

In the real estate sector, Compass and Redfin companies operating in the US have announced that they have decided to reduce the number of employees at a time when mortgage rates were rising and housing sales were falling. In the notifications made to the US Securities and Exchange Commission (SEC), it was stated that the number of employees of Compass will be reduced by 10 percent and Redfin by 8 percent.

Wells Fargo, one of the largest banks in the United States, has reportedly started laying off employees in related positions as mortgage revenues declined in the first quarter of 2022.

It was noted that Credit Suisse, based in Switzerland, also considered the layoffs to reduce costs after warning of losses.

The British national broadcaster, the BBC, said it plans to part with its nearly 1,000 employees over the next few years as part of its £ 500 million annual savings plan.

Online car dealer Cazoo announced it has laid off around 750 jobs in Europe, mostly in the UK, amid recession concerns and consumer cuts.

Telecom Italia (TIM) has also agreed with the trade unions to lay off 1,200 jobs in its internal market by November through a voluntary early retirement plan as part of a savings plan of 1 billion euros by 2024.

On the other hand, it is noteworthy that aviation industry employees, from pilots to baggage handlers, are demanding higher salary increases and better working conditions as the impact of the epidemic diminished after airlines airlines made large cuts in employment and wages in Europe, where travel came to a halt due to Kovid-19.

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