Here are the main US so far

Topline

Topline: Big US corporations have laid off thousands of employees so far this summer as CEOs fear soaring inflation could push the economy into a recession.

Chronology

May 21, 2022used car dealer carvana CEO Ernie Garcia III sent an email to 2,500 employees – 12% of the company’s workforce – informing them that they had lost their jobs, a week after freezing new hiring, while the company was about to face what looked like an impending recession in car sales, and reports of a “spendthrift” business style had come back to bite the company.

June 14, 2022Some 1,100 Coinbase employees learned they had been released after losing access to their work emails, marking an 18% reduction in staff at the crypto company – a move CEO Brian Armstrong called key to “staying healthy during this economic downturn” – and a harbinger of a recession and a “crypto winter” after a crypto boom of more than 10 years.

June 15, 2022Real estate companies Compass and red fin announced plans to cut 10% and 8% of their workforce, respectively, following a 3.4% decline in home sales from April to May, according to the National Association of Realtors, as the housing market once scorching accommodation had cooled.

June 22, 2022JPMorgan Chase – the country’s largest bank – has laid off and reassigned more than 1,000 of its 274,948 staff, citing rising mortgage rates and rising inflation.

July 7, 2022Real estate firm Re/Max announced plans to lay off 17% of its workforce by the end of the year, with the goal of generating $100 million in annual mortgage-related revenue by 2028.

July 11, 2022Electric car manufacturer Rivian unveiled plans to lay off 5% of the company’s 14,000 employees in areas that grew ‘too rapidly’ during the pandemic and stop hiring non-industrial workers, according to an internal email from the CEO RJ Scaringe, Bloomberg reported.

July 12, 2022California-based mortgage lender loanDeposit announced plans to lay off 2,000 workers by the end of the year, bringing its layoffs in 2022 to 4,800 – more than half of the company’s 8,500 employees – amid a precipitous market downturn housing that has “contracted sharply and sharply,” CEO Frank Martell said. in a report.

July 12, 2022You’re here laid off 229 employees, mostly in its Autopilot division, and closed its San Mateo, Calif., office just weeks after CEO Elon Musk emailed executives saying he had a “great bad feeling” about the economy and planned to cut 10% of its workforce, Reuters reported.

July 14, 2022OpenSea, the New York-based non-fungible token (NFT) company, announced in a Tweeter it laid off 20% of its staff over fears of “broad macroeconomic instability” with the possibility of a “prolonged downturn”.

Key Context

Many experts have warned that the United States could be heading into a recession following reports that the economy contracted by 1.6% in the first quarter of the year. The Federal Reserve’s announcement in June of a 75 basis point interest rate hike, its largest rate hike in 28 years, rekindled fears of economic turbulence and recession. Last month, economists at S&P Global Ratings forecast a 2.4% drop in GDP by the end of the year, a pullback from earlier forecasts for growth of 2.4%. Bank of America issued a warning on Wednesday that “economic momentum has faded” and that a “mild recession” is possible by the end of the year. Meanwhile, stocks continue to fall as inflation soars. The latest report from the Bureau of Labor Statistics revealed a 9.1% rise in inflation from June 2021, with gasoline, housing and food making up the largest increases.

Contra

Even with the layoffs, the unemployment rate remains low, holding steady at 3.6% over the past four months. In an interview with the Washington Post On Thursday, U.S. Assistant Labor Secretary Julie Su expressed optimism the economy is recovering, citing 9 million jobs created since President Joe Biden took office and 372,000 new ones. jobs in June.

Large number

244,000. That’s the number of people who applied for unemployment benefits last week, an eight-month high and a 3.4% increase from 235,000 the previous week, according to a Labor Department report. released Thursday.

Further reading

Mortgage giant cuts thousands of jobs – warns of ‘accelerating’ downturn as housing market crashes sharply (Forbes)

No, We’re Not In A Recession Yet: Strong Labor Market Keeps Economy Safe For Now, Says Goldman (Forbes)

JPMorgan lays off mortgage workers as housing market cools (Forbes)

Weekly jobless claims hit new high for 2022 (Forbes)

Inflation soared 9.1% in June to a new 40-year high as soaring prices fuel fears of recession (Forbes)

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