Companies cutting jobs due to pandemic and recession fears.
The pandemic has led to a drastic change in the job market, with companies that had been rapidly hiring now cutting back their staff. Companies such as Alphabet, Microsoft, Amazon, Goldman Sachs and Salesforce have already announced layoffs that affect more than 22,000 workers, with more expected to follow. The highest level of hiring occurred in 2021 with 6.7 million jobs added, but this was preceded by 9.3 million jobs lost in 2020.
The job cuts are across multiple industries, but tech firms are being hit especially hard. Google’s parent company, Alphabet, is laying off 12,000 workers, Microsoft is cutting 10,000, and Vox Media is reducing its staff by 7%. Wall Street is also feeling the pinch, with Goldman Sachs eliminating 500 jobs, and Salesforce cutting 10% of its workforce.
The pandemic has also seen a shift in consumer buying habits, with more people turning to e-commerce and other online services during lockdown. This led to a hiring spree for tech firms, but now as people return to their offices and in-person shopping is bouncing back, these businesses are looking to reduce their costs.
Other factors such as the increasing likelihood of a recession, higher interest rates and tepid demand due to rising prices are also contributing to the job losses. Companies such as McDonald’s, Coinbase and Stitch Fix are also cutting staff, with Amazon planning to lay off more than 18,000 employees.
The job market is in a state of flux, and the pandemic has revealed the fragility of the global economy. Companies are now having to adjust to a different economic reality, and with more job losses expected, it remains to be seen how the job market will recover.