Nearly 60,000 were laid off in January as big companies increase cuts

Nearly 60,000 were laid off in January as big companies increase cuts

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Nearly 60,000 US workers have lost their jobs to large-company layoffs so far this month — the highest monthly total since forbes began chasing layoffs fueled by recession fears last year — with Google, Microsoft, Amazon, Goldman Sachs and Salesforce laying off thousands of employees.

Important facts

Google parent Alphabet’s announcement on Friday that it would cut about 12,000 employees was its biggest layoff so far in January, and brought the number of employees affected by big cuts this month above last November’s total (47,412 employees) — the highest in a specific month of the previous year.

In a press release, CEO Sundar Pichai said the layoff comes after two years of “dramatic growth” and over-hiring due to a “different economic reality than we’re facing today” — reflecting a sentiment employers have felt for most of the time of the year 2022 have expressed. when almost 125,000 people were laid off in large rounds of layoffs across the US

Microsoft cut 10,000 employees earlier this week when the software giant announced it would lay off nearly 5% of its workforce – its second round of cuts in recent months after announcing in October it would lay off another 1% of its 180,000 employees.

Also this week, multiple reports claimed that banking giant Capital One would cut its headcount by 1,100, mostly affecting technology positions, a spokesman said forbes that dismissed employees could apply for other positions in the company.

San Francisco-based software company Salesforce announced Jan. 4 that it would cut 7,900 employees amid a “challenging” economic climate, as well as a round of cuts at Goldman Sachs that could reportedly cut up to 3,200 jobs.

Layoffs ranged from technology companies to banks, including Boston-based online furniture retailer Wayfair, which announced it would cut 10% of its global workforce, as well as student loan company Nelnet (350 employees), telemedicine company Teladoc Health (300) and supply Chain management company Flexport (estimated to affect 662 of its 3,300 employees, based on PitchBook data).

tangent

Several large layoffs this month have hit cryptocurrency workers as employers fear a possible imminent crypto market downturn dubbed “crypto winter” and market speculation by investors following the collapse of Sam Bankman-Fried’s crypto exchange FTX that could hurt the Market. Earlier this month, crypto exchange Coinbase announced that it was shedding a quarter of its staff (950 employees) to weather “downturns” in the crypto market. Three days later, Crypto.com revealed plans to cut 20% of its workforce (500 employees) as CEO Kris Marszalek said it was facing “unpredictable industry events” like the collapse of FTX that were “significantly damaging confidence in the industry.” had.

Surprising fact

Alphabet and Wayfair, both of which announced cuts on Friday, rallied in the hours after announcing their plans, with Wayfair stock up about 11% to $46.79 and Alphabet stock up nearly 10% $98.02 rose. This was announced by Wedbush analyst Daniel Ives forbes He believes the company’s shares will continue to rise as employers look to cut costs amid fears of a recession.

What to look out for

More layoffs. Troubled homewares retailer Bed Bath & Beyond has reportedly begun laying off employees, according to an internal memo from CNBC, though the memo omitted a number of affected jobs. There has also been speculation that Apple, which hasn’t phased in the face of recent massive layoffs in the tech space, may be dodging them entirely because it hasn’t made any hiring increases for the past two years. Apple’s biggest round of layoffs came 25 years ago when former boss Steve Jobs cut 4,100 employees.

Further reading

Layoffs 2023: Google cuts 12,000 employees while Wayfair cuts 1,750 (Forbes)

Goldman Sachs will reportedly cut more than 3,000 jobs – while major layoffs continue into 2023 (Forbes)

Alphabet’s massive layoffs fuel a $50 billion market recovery — and analysts expect more job cuts to boost tech stocks (Forbes)

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