Major companies are laying off people in sweeping cuts
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The latest news in the business world is layoffs, from Meta, through to Redfin, many companies are feeling the pain of slowing growth and rising labor costs.
Meta announced just two days ago it is cutting 13% of its workforce, Twitter cut 50%, and even Netflix, a truly resilient company has been making cuts.
The combination of business growth slowing, and labor costs rising is causing many an American employer to slash workers.
Examples that are notable include:
Meta
Facebook and Instagram parent Meta is reducing the workforce across all divisions by 11,000 people.
The metaverse is losing people, Reality Labs, Facebook and employees from teams like recruiting and going to feel the axe more than other groups. Mark Zuckerberg said of the layoffs in a blog post "I want to take accountability for these decisions and for we got here. I know this is tough for everyone, and I'm especially sorry to those impacted."
There may be reasons for the layoffs that have a something to do with the unfavorable reception the metaverse received. The billions invested in the project, and the fact that a lack luster product was developed, could also be a factor.
Juul
The e-cigarette company plans to lay off about 30% of its employees, totaling roughly 400 people.
There are a great many cost cutting measures at the company that are including an investment in the company by investors to help it avoid bankruptcy. In a report by the Wall Street Journal the company said they would be cutting operating budget by as much as 40%
In recent months a campaign against vaping has been making the rounds on televisions all across the country. Social platforms, media, and tech streaming channels are all running ads against vaping for high school students.
YouTube runs the ads so often, most everyone sees them, during videos. This might have a lasting effect on the company, at this time. The internal problems could have an external reason for reduced sales overall.
Redfin
The well-known website and real estate company Redfin is laying off 862 employees, which translates into about 13% of its total workforce.
The cuts include ending its home-flipping business division and that cut means lost wages for 264 staffers. There are 218 jobs being eliminated, but the company is offering those workers new roles with the company. That means a lateral move for at least 218 employees.
2022 saw a first round of layoffs for the company, when in June, 470 employees were cut, which is about 6% of the workforce at that time.
In general, there are price drops across the housing market, and many of the big Real Estate websites are sending out price updates on their homes touting the price decreases.
There won't be a reckoning in the statistics just yet, but interest rates at 5% are going to be driving down the prices on homes.
Some places like Atlantic County in New Jersey, home prices have dropped significantly. The driver seems to be Atlantic City suburbs are less popular in the last year or two.
It is general knowledge that Twitter laid off 3,700 employees just days after the new owner took the reins, and as a political platform for many millions, right before a major US election.
The problems have escalated to rumors of bankruptcy being eminent and chaos at the company offices.
The social media giant is losing executives at a rapid rate and it prospects seem limited at this time.
The company has been in trouble before, in 2015 it was thought the company would shut its doors for good. But the political landscape during the campaigns for president in the US turned around Twitters fortunes and brought prosperity. Perhaps it can weather this stormy time as well.
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