In 2023, big companies will continue to lay off thousands of workers
Although a lot of people already lost their job in 2022, the wave of layoffs isn’t likely to end soon. Companies like Goldman Sachs, Vimeo and Salesforce already announced they’ll be cutting staff in the new year. And now Amazon announced over 18,000 people will lose their job with the company in 2023.
Pandemic
According to CNN, Amazon and other companies had increased their workforce because of the pandemic. The shift in shopping habits that lockdowns and remote school or work caused, made it so people had to rely on tech products. This caused Big Tech companies like Google, Apple, Facebook, Microsoft and Amazon to make over $1.2 trillion combined in gross sales. These numbers are stated in an article by The New York Times. But now that a lot of people revert to shopping in stores and life slowly goes back to the way it was before the pandemic, these big companies need to layoff workers to compensate for a loss in income.
According to Analytics Insight, the current economic climate is also responsible for the wave of layoffs that will hit the US in 2023. Experts have predicted global economic recession and according to Global News, companies “are bracing for a potential economic downturn by shrinking their employee base to streamline operations.”
Amazon
This year, Amazon is said to cut more jobs than they ever had in the history of the company. Amazon’s CEO, Andy Jassy, said in a statement reported by Business Insider, that they would cut over 18,000 workers. Most of these layoffs will occur in the corporate sections of the company. The reason for the layoffs according to Jassy is “the uncertain economy” and rapid hiring within the company. He said that “The layoffs will help Amazon pursue long-term opportunities with a stronger cost structure.” The members of staff that will be laid off, will hear so starting January 18th.
Other companies
Earlier this year, companies like Salesforce, Vimeo and Goldman Sachs also announced planned layoffs within their workforce. Salesforce is expected to layoff 10% of its employees. This comes down to about seven thousand workers that will lose their job in 2023. Vimeo will also cut around 11% of its workforce and Goldman Sachs will fire around 8% of their employees according to an article by Insider.
Global News mentions other companies that will cut back on staff; according to the website, companies like DoorDash, AMC, Intel, Microsoft, Twitter, Lyft and Warner Bros are also laying off a part of their workforce in the new year.
This means that a lot of people could be out of a job this year, adding to the predicted economic hardship that is likely to hit millions of people in 2023.
Also read: Third of the world economy to hit recession this year
Source: The New York Times, Global News, Business Insider, CNN, Analytics Insight | Image: Unsplash, Yender Gonzalez