View major layoffs at American companies
Hiring freezes and layoffs are becoming more common in 2022 as U.S. businesses seek to cut costs ahead of a possible recession.
Naturally, this worries many people. In June 2022, Insight Global discovered that 78% of American workers fear losing their jobs in the next recession. In addition, 56% said they were not prepared financially, and 54% said they would take a pay cut to avoid being fired.
In this infographic, we visualized the major layoffs announced in 2022 by publicly traded US companies.
Note: Due to reporting gaps, as well as the very large number of US companies, this list may not be comprehensive.
An emerging trend
Layoffs have increased significantly since April this year. See the chart below for high profile cases of mass layoffs.
|Robin Hood||Financial services||~400||April|
|JP Morgan Chase & Co.||Financial services||~500||June|
|Robin Hood||Financial services||~795||August|
Here is a brief overview of these layoffs, sorted by sector.
Ford announced the largest round of layoffs this year, totaling around 8,000 salaried employees. Many of those jobs are in Ford’s former combustion engine business. According to CEO Jim Farley, these cuts are necessary to fund the company’s transition to electric vehicles.
We are absolutely overcrowded in some places, there is no doubt about that.
–Jim Farley, CEO, Ford
Speaking of VE, Rivian laid off 840 employees in July, i.e. 6% of its total workforce. The EV startup pointed to inflation, rising interest rates and rising commodity prices as factors. The company’s most established competitor, You’re hereTo cut 200 jobs in its autopilot division over the previous month.
Last but not least is the online used car retailer, carvanawho cuts 2,500 jobs in May. The company grew rapidly during the pandemic, but has since fallen out of favor. Since the start of the year, the company’s shares have fallen by more than 80%.
Fearing an impending recession, Coinbase downpour 1,100 employees, or 18% of its total workforce. Interestingly, Coinbase has no physical headquarters, which means the entire company operates remotely.
A recession could lead to another crypto winter and could last for an extended period. Over past crypto winters, trading revenue has declined significantly.
Brian Armstrong, CEO of Coinbase
around the same time, JPMorgan Chase & Co. announced that it would lay off hundreds of home loan employees. Although an exact number is not available, we have estimated it to be approximately 500 jobs, based on the original Bloomberg article. Wells Fargoanother major US bank, also reduced 197 jobs in its mortgage division.
The main reason for these reductions is the rise in mortgage rates, which is having a negative impact on housing demand.
Within technology, Meta and Twitter are two of the most prominent companies to have started layoffs. In the case of Meta, 350 custodial staff were laid off due to reduced use of company offices.
However, many more cuts are expected, as Facebook recently announced its first revenue drop in 10 years. CEO Mark Zuckerberg has made it clear he expects the company to do more with fewer resources, and managers have been encouraged to point to “poor performance” for “bringing the company down”.
Realistically, there’s probably a bunch of people in the business who shouldn’t be here.
– Mark Zuckerberg, CEO, Meta
Also in July, Twitter fired 30% of its talent acquisition team. An exact number was not available, but the team was estimated to have fewer than 100 employees. The company has also enacted a hiring freeze as it stumbles over a botched acquisition by Elon Musk.
More layoffs to come…
Layoffs are expected to continue through the rest of this year as metrics such as consumer sentiment decline. Rising interest rates, which make it more expensive for companies to borrow money, also have a negative impact on growth.
In fact, just a few days ago, the trading platform Robin Hood announced that he was letting go 23% of its staff. After taking into account his previous dismissals in April (9% of the workforce), it is fair to estimate that this latest cycle will have an impact of almost 800 people.
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