The Great American Layoff 2023: 194000+ Employees Laid Off across U.S. companies this year

There are over 158 million people employed in the United States workforce. These people work in different sectors, ranging from IT and tech to media and manufacturing. In the latter half of 2022, inflation reached its highest peak in the country, and to combat it, the Federal Reserve Bank increased its interest rates seven consecutive times in 2022 alone. The higher rates sparked a surge of layoffs all across the country, with over 120 companies firing tens of thousands of employees last year. The most significant round of layoffs occurred at Meta, which laid off 11,000 employees in November. 

We are now in the second half of 2023, and 93 companies have conducted layoffs so far, according to Forbes. Approximately 194,000 people across the country lost their jobs due to layoffs in the first half of 2023. According to Labor Department Data, the unemployment rate in the US is 3.7% as of May 2023. There are presently 6.1 million unemployed people in the country. 

The Great American Layoff 2023: A Timeline

The first half of 2023 has witnessed a wave of massive layoffs hitting numerous large companies across various industries, forcing hundreds and thousands of employees to lose their jobs. Meta, Amazon, and Twitter were the top three companies that laid off the most number of employees in the first quarter of 2023 amid rising unemployment rates and fears of an upcoming recession. 

The following are the major companies that have gone through significant downsizing up until now:

JANUARY

• Amazon: Jeff Bezos owned Amazon, one of the largest companies in the world, conducted one of the biggest layoffs of 2023, after firing over 10,000 employees in November. In 2023, the e-commerce behemoth slashed 18,000 of its workforce beginning January 18. 

• Microsoft: The tech giant announced a workforce reduction impacting approximately 10,000 employees, which accounts for less than 5% of its overall workforce of 180,000 employees. This decision follows another round of layoffs conducted three months prior. 
• Alphabet: The parent company of Google, reduced its global workforce by cutting approximately 12,000 jobs. 
• Spotify: The biggest online music streaming platform in the world, Spotify, has planned to reduce its workforce of roughly 10,000 by approximately 6%. 

FEBRUARY

• Dell Technologies: As a cost-cutting measure, the laptop maker went through a workforce reduction of approximately 6,650 employees.  
• Boeing: The renowned jet maker reduced approximately 2,000 jobs in finance and human resources. The company is also planning to hire 10,000 people for engineering and manufacturing jobs. 

• Twitter: After Elon Musk took over and downsized the social networking company’s workforce of 7,500 by half, the microblogging site went through another round of layoffs, forcing over 200 employees out of their jobs. 

MARCH

• Amazon: After laying off 18000 employees, the e-com giant cut 9,000 positions, marking the second major layoff in just three months. 
• Indeed: The job search platform underwent a round of cuts that impacted approximately 2,200 employees. 
• Warner Music Group: The company cut 275 positions in an effort to evolve. 

APRIL

• Walmart: The largest employer in the U.S., conducted layoffs at five of its plants, resulting in the dismissal of over 2,000 employees. The affected locations include facilities in Florida, New Jersey, Pennsylvania, and Texas.
• Gap: The company cut down on 1,800 of its employees at the end of the month. 

MAY

• LinkedIn: Out of its 20,000 employees, the professional networking application laid off over 700 of them. 
• Disney: The company conducted one of the biggest layoffs of the year so far. Over 6,500 people have lost their jobs so far. 
• Meta: The tech giant let go of roughly 6,000 employees, marking this as the second major layoff for the company in the year so far. 

JUNE

• Spotify: The streaming giant conducted its second wave of layoffs, cutting 2% of its workforce, which is roughly 200 employees. 
• Ford: The automaker laid off approximately 1,000 of its employees and is shifting its focus on key areas that need to be addressed. 

Why is this happening?

In 2022, inflation in the U.S. was at its peak, the highest in forty years. To curb rising prices and an economic downturn that first started after the COVID-19 pandemic, the US Federal Reserve Bank started increasing its interest rates. The bank hiked its rates seven times in a row by major basis points last year. The Fed rate hikes sparked fear that a recession was underway. Amidst economic uncertainties, rising interest rates, the collapse of significant banking institutions, and the ongoing digital transformation, companies all across the country resorted to layoffs as a means of cost reduction. And it has not stopped since then. The Federal Reserve has continued to raise interest rates consistently, reaching its ninth consecutive increase as of May 2023. Furthermore, the pandemic brought many changes, including the dependence on the digital world. All the above factors combined have contributed in large part to these massive layoffs. 

What’s Next?

There are still uncertainties and challenges ahead for both employees and companies. Major corporations such as Disney and Alphabet have already announced their intentions to implement further layoffs by the end of the year. As the Federal Reserve continues to raise interest rates and the fear of a recession grows, it remains to be seen how businesses will navigate the evolving economic landscape. Another important thing to consider is the AI revolution. AI has taken centre stage in the digital world with the emergence of powerful AI tools like ChatGPT, Google Bard, and Bing AI. As AI continues to evolve, there are concerns about its potential impact on job markets and employment opportunities in the coming future.

Conclusion

Rising inflation, interest rate hikes, and the ongoing digital transformation have contributed to the wave of layoffs across various industries in the United States. Hundreds and thousands of people are losing their jobs every day. As the world continues to shift and change, it is crucial to explore new avenues for employment and skill development. In this backdrop, the ability to adapt to emerging technologies and seize new opportunities will become even more essential for individuals and organizations alike.