Major US companies have laid off thousands of employees so far this summer, as CEOs fear soaring inflation could tip the economy into a recession.
iRobotthe maker of Roomba, cut 10% of its workforce (140 employees), as the company restructures after being purchased by Amazon for $1.7 billion, the company told Forbes, adding the job cuts were not related to the acquisition.
California-based video game developer Jam City laid off between 150-200 employees — roughly 17% of its workforce — VentureBeat reported, stating the cuts come “in light of the challenging global economy and its impact on the gaming industry.”
Walmart—the largest private employer in the United States—plans to cut 200 of its corporate employees as the company seeks to restructure, the Wall Street Journal reported, citing anonymous sources.
Online brokerage Robinhood cut 23% of its staff, with CEO Vlad Tenev citing a drop in trading activity, high inflation and a “broad crypto market crash”—the move comes after Robinhood laid off 9% of its full-time employees in April, a set of cuts Tenev says “did not go far enough.”
Texas-based data technology giant Oracle started laying off an undisclosed number of its estimated 143,000 employees, as part of a larger plan to cut thousands, The Information reported, citing an unnamed source (rumors of job cuts at Oracle have been speculated for nearly a month).
Fitness company F45 Training laid off 110 employees, or 45% of its workforce, as CEO Adam Gilchrist stepped down.
E-commerce company Shopify became the latest company to lay off employees, cutting ties with 1,000 (10% of its workforce), CEO Tobi Lutke announced, saying skyrocketing demand for online shopping during the pandemic has leveled off, and that the company made a bet that “didn’ t pay off.”
Boston tech-watch company Whoop slashed 15% of its workforce, telling the Boston Globe it now has 550 employees (meaning it cut close to 97) adding in a statement, “given how negatively the macro environment has evolved, we need to grow responsibly and control our own destiny.”
7-Elevenwhich operates 13,000 convenience stores across North America, cut 880 US corporate jobs, just over a year after it completed a $21 billion deal to purchase Speedway.
Seattle real estate startups Flyhome axed 20% of its staff, reported to be close to 200 workers, as the company navigates “uncertain economic conditions.”
Ford plans to lay off up to 8,000 employees as the automaker seeks to pivot away from gas-powered cars and toward electric vehicle production, Bloomberg reported.
Vimeo CEO Anjali Sud announced on LinkedIn the online video company is cutting 6% of its workforce to “come out of this economic downturn a stronger company.”
Ohio-based automated health software startup Olive laid off 450 employees, nearly 35% of the company, as CEO Sean Lane admitted the company’s commitment to “act with urgency” led to a hiring spree that proved to be too much to handle, prompting him to “rethink this approach.”
Crypto exchange Gemini cut 68 employees—or 7% of its staff—less than two months after it let go of 10% of its workforce, according to TechCrunch.
tweet it laid off 20% of its staff over fears of “broad macroeconomic instability” with the possibility of “prolonged downturn.”OpenSeathe New-York based non-fungible token (NFT) company, announced in a
Online ordering startup ChowNow laid off 100 people, TechCrunch reported, as it reels back from a “large and ambitious” budget it couldn’t meet amid fears a stunted market could fuel a recession.
Tonalthe at-home fitness company, cut 35% of its workforce amid a worsening “macroeconomic climate and global supply chain challenges.”
Tesla laid off 229 employees, primarily in its autopilot division, and shut down its San Mateo, California, office, just weeks after CEO Elon Musk sent an email to executives, saying he had a “super bad feeling” about the economy and planned to cut 10% of his workforce, Reuters reported.
Some 1,500 employees at the international delivery startup Gopuff were let go, (10% of its staff) and 76 of its US warehouses were shut down, according to a letter to investors first reported by Bloomberg, as the company moves away from a growth-at-all-costs model.
California-based mortgage lender loanDepot announced plans to lay off 2,000 workers by the end of the year, bringing its 2022 layoffs to 4,800 — more than half of the company’s 8,500 employees — amid a precipitous downturn in the housing market that’s “contracted sharply and abruptly,” CEO Frank Martell said. in a statement.
Electric automaker Rivian unveiled plans to lay off 5% of the company’s 14,000 employees in areas that grew “too quickly” during the pandemic and to halt hiring of non-factory workers, according to an internal email from CEO RJ Scaringe, Bloomberg reported.
Real estate firm Re/Max announced plans to lay off 17% of its workforce by the end of the year, with a goal of bringing in $100 million in annual mortgage-related revenue by 2028.
JPMorgan Chase — the nation’s largest bank — laid off and reassigned more than 1,000 of its 274,948 employees, citing rising mortgage rates and increased inflation.
Real estate companies Compass and Redfin announced plans to cut 10% and 8% of their workforces, respectively, following a 3.4% drop in home sales from April to May, according to the National Association of Realtors, amid concerns the once red-hot housing market had cooled.
Some 1,100 Coinbase employees learned they had been released after losing access to their work emails, marking an 18% reduction in the crypto company’s staff — a move that CEO Brian Armstrong called essential to “stay healthy during this economic downturn” — and a warning sign of a recession. and a “crypto winter” after a 10-plus-year crypto boom.
used car seller Carvana CEO Ernie Garcia III sent an email to 2,500 employees — 12% of the company’s workforce — informing them they had lost their jobs, one week after freezing new hiring, as the company embraced for what looked like a looming recession in car sales, and reports. of a “spendthrift” business style had come back to bite the company.
Many experts warned the US may be headed toward recession following reports the economy contracted 1.6% in the first quarter of the year. The Federal Reserve’s announcement in June to raise interest rates by 75 basis points, its largest rate hike in 28 years, reignited fears of economic turmoil and recession. Last month, economists at S&P Global Ratings forecast a 2.4% drop in GDP by year’s end, a reverse in course from earlier forecasts of 2.4% growth. Bank of America issued a warning Wednesday that “economic momentum has faded,” and a “mild recession” is possible by the end of the year. Meanwhile, stocks continue to drop as inflation soars. The latest report from the Bureau of Labor Statistics revealed a 9.1% spike in inflation from June, 2021, with gas, housing and food making up the largest increases.
Even with the layoffs, the unemployment rate remains low, holding on at 3.6% for the past four months. In an interview with the Washington Post Last month, US Deputy Secretary of Labor Julie Su said she was optimistic the economy will rebound, citing 9 million jobs created since President Joe Biden took office, and 372,000 new jobs in June.