While the unemployment rate remains low, there are rumblings about changes at some corporations.
The U.S. unemployment rate was 3.5% in July, falling to pre-pandemic levels around February 2020, according to the Bureau of Labor Statistics. But some major companies have announced layoffs in recent months due to changes in their economic landscapes.
That could be worrying news if you’re already trying to stop living paycheck to paycheck with your current job or if you’re looking for a new one.
So, which companies are making cuts? Here are a few big names that have announced layoffs recently.
Convenience store chain 7-Eleven announced in July that it would be cutting 800 employees, mainly from its support centers and field support offices.
The company acquired another convenience store chain, Speedway, in 2020, and the layoffs were partially due to integrating both companies’ employees.
The COVID-19 pandemic led to an increase in orders for online retailers like Amazon. But with more people shopping in person again, the retailer decided to make cuts to its staff, particularly those workers fulfilling orders in Amazon’s warehouses.
The company shed 99,000 jobs, mainly in fulfillment and distribution. The retailer also posted an operating loss in the second quarter of this year, which contributed to the cuts in employment numbers.
Online retailer Stitch Fix is another company that ramped up hiring during the pandemic and has now found a need to cut back.
In June, the company announced it had laid off 330 employees, mainly in the styling and corporate departments. The company also announced a drop in revenue due to marketing, labor, and supply chain issues.
In July, Walmart announced it would lay off 200 employees amid a slowdown in sales due to inflation. The company said consumers were pulling back on spending, which had caused Walmart to slash prices and reduce its outlook for the future.
Some of the best jobs during the pandemic may have been with companies that delivered products perfect for people who were working from home. But as more employees go back to the office, a lack of demand is hurting companies like Peloton.
The exercise equipment maker announced 780 job cuts in August as well as the closing of stores and an increase in prices. Those layoffs were in addition to 2,800 job cuts in February.
Elon Musk’s tinkering with Twitter may have contributed to the social media network cutting jobs. Twitter put a hiring freeze in place as part of the acquisition process with Musk’s deal to take over the company. Because of that freeze, Twitter announced in July it was going to lay off 30% of its recruitment team.
Musk’s acquisition of Twitter has not been completed, and he has voiced concerns about the number of bot, or spam, accounts on the platform.
A crash in crypto led the cryptocurrency company Coinbase to make some employee cuts. In June, the company announced it was laying off 1,100 workers.
In a letter to employees, Coinbase CEO Brian Armstrong said the company grew too fast, which is why cuts had to be made. He also warned of a potential drop in prices due to a “crypto winter” and a need to prepare the company to withstand a downturn.
GameStop drew attention last year when some investors described it as a “meme stock,” or a stock that receives an additional boost from online forums and social media sites. But in July, the company announced it would be making cuts to corporate staff as part of a plan to cut costs.
The video game retailer also fired its chief financial officer as part of GameStop’s changes.
Stock trading app Robinhood has gone through some significant changes in the past few years due to an increase in at-home trading as well as its role in the surge of meme stocks last year. The company announced two rounds of layoffs this year that shed more than 1,000 jobs.
The move comes as app users are returning to work and don’t have time to day trade, causing overstaffing at the financial app.
iRobot has seen some major changes in recent weeks, particularly after Amazon acquired the company best known for Roomba, a robot vacuum. The deal is reportedly worth $1.7 billion, with Amazon adding the company to its connected-home products, which include products like Ring and Alexa.
iRobot, however, also announced it would cut about 140 jobs, which it says is independent of the purchase by Amazon. iRobot said the move is part of a company restructuring.
In July, software giant Microsoft announced a small reduction of its workforce due to some realignments after the company started its 2023 fiscal year that month. The cuts amounted to less than 1% of the company’s workforce. Microsoft also has slowed its plans to hire new workers in addition to the cuts to its current workforce.
Shopify announced a 10% cut in its workforce in July, due to a slowdown in e-commerce. Like other online companies, Shopify took a hit as employees went back to in-person work or began shopping in retail stores again.
The company, which gives sellers an online space for their products, said the cut would include around 1,000 employees.
Layoffs can be worrisome for employees whether they are in your company or potentially in your specific field of work. But there are steps you can take to prepare for a potential layoff.
Before you get a pink slip, consider ways to make extra cash now or update your resume so you are ready in case your company decides to downsize.
Earn Cash Taking Surveys
Get Paid to Go Shopping
Find a New, Potentially Better Job