America’s Best States to Do Business

Envisioning Major Layoffs at US Corporations

Hiring freezes and layoffs are becoming more common in 2022, as U.S. businesses look to cut costs ahead of a possible recession.

Obviously, this has a lot of people worried. In June 2022, Insight Global found that 78% American workers fear losing their jobs in another recession. Also, 56% He said he was not financially ready 54% They said they would take a pay cut to avoid work.

In this infographic, we visualize the major layoffs announced by publicly traded US corporations in 2022.

Note: Due to gaps in reporting, as well as the large number of US corporations, this list may not be comprehensive.

An emerging trend

The number of layoffs has increased significantly since April this year. See the table below for high-profile examples of mass layoffs.

Company Industry separation (#) month
Peloton Consumer discretion 2,800 February
Funko Consumer discretion 258 April
Robinhood Financial services ~400 April
Nectar Therapeutics Biotechnology 500 April
Caravan Automotive 2,500 can
at home Financial services 310 can
JP Morgan Chase & Co Financial services ~500 June
Tesla Automotive 200 June
coin base Financial services 1,100 June
Netflix Technology 300 June
CVS Health medicine 208 June
StartTech Technology 472 June
Ford Automotive 8,000 July
Rivian Automotive 840 July
Peloton Consumer discretion 2,000 July
LoanDepot Financial services 2,000 July
the invitation Biotechnology 1,000 July
lift Technology 60 July
Meta Technology 350 July
Twitter Technology July
Vimeo Technology 72 July
Robinhood Financial services ~795 August

Here’s a brief rundown of these layoffs, sorted by industry.

Automotive

Ford has announced the biggest round of layoffs this year, overall 8,000 Salaried employees. Many of these jobs are in Ford’s legacy combustion engine business. According to CEO Jim Farley, these cuts are necessary to fund the company’s transition to EVs.

We have a lot of people in some places, no doubt.
– Jim Farley, CEO, Ford

When it comes to EVs, Rivian 840 employees were laid off in July, amounting to Rs 6% of its total workforce. The EV startup pointed to inflation, rising interest rates, and rising commodity prices as factors. The firm’s more established competitors, Teslacut out 200 Jobs from its Autopilot division in the previous month.

Last but not least is the online used car retailer, Caravanwhich was cut 2,500 Jobs in May. The company experienced rapid growth during the pandemic, but later fell out of favor. The company’s shares have declined compared to last year 80%.

Financial services

Fearing an impending recession, coin base Shed it 1,100 staff, or 18% of its total workforce. Interestingly, Coinbase does not have a physical headquarters, meaning the entire company operates remotely.

A recession could lead to another crypto winter, and last for an extended period. In past crypto winters, trading revenues dropped significantly.
Brian Armstrong, CEO, Coinbase

at the same time, JPMorgan Chase & Co. It has announced that it will lay off hundreds of home loan employees. Although exact numbers are not available, we estimate it to be around 500 Jobs, based on the original Bloomberg article. Wells FargoAnother major US bank also made cuts 197 Jobs from its home mortgage division.

The primary reason for these cuts is rising mortgage rates, which are negatively impacting the demand for homes.

Technology

within technology, Meta and Twitter Two of the most high-profile companies to begin making layoffs. In the case of Meta, 350 Due to the decrease in the use of the company’s office, the detained employees were released.

Several more cuts are expected after Facebook recently reported its first revenue decline in 10 years. CEO Mark Zuckerberg has made it clear that he expects the company to do more with fewer resources, and that managers are encouraged to report “underperformers” for “failing the company.”

Realistically, there might be a bunch of people in the company who shouldn’t be here.
– Mark Zuckerberg, CEO, Meta

In July, Twitter also shut down 30% of its talent acquisition team. Exact numbers were not available, but the team was estimated to have fewer than 100 employees. The company has also implemented a hiring freeze as it stumbles through a botched acquisition by Elon Musk.

More installments to come…

Layoffs are expected to continue throughout the rest of the year, as metrics such as consumer sentiment enter the decline. Rising interest rates, which make it more expensive for businesses to borrow money, are also having a negative impact on growth.

In fact a few days ago, the trading platform Robinhood announced to quit 23% of its employees. After accounting for its previous layoffs (9% of the workforce) in April, it’s reasonable to assume that this latest round will have an impact of approx. 800 people

Leave a Comment

Your email address will not be published.