Breaking Digest previously reported that a wave of layoffs is sweeping the United States, due to slow business growth and rising labor costs.
Unfortunately, as 40-year high inflation persists, many CEOs fear a recession is likely sometime next year, resulting in another wave of layoffs.
Rideshare giant Lyft reportedly plans to cut 13% of its workforce, according to a letter from company officials obtained by CNBC, citing “a probable recession sometime in the next year” and rising insurance costs as the reason behind the layoffs.
Online financial services company Stripe announced plans to cut 14% of its workforce as it contends with “stubborn inflation, energy shocks, higher interest rates, reduced investment budgets and sparser startup funding”, CEO Patrick Collison wrote in a memo to staff on Thursday.
Fintech company Chime is laying off 12% of its workforce, or 160 employees, amid a worsening economic outlook, according to a report from CNBC.
Here is a list of some recent US layoffs this year from Forbes:
Nov. 3, 2022: The job cuts at Lyft could affect approximately 650 employees (13% of its staff of roughly 5,000, not including its contracted drivers), marking the company’s second round of layoffs this year, after it laid off 60 workers in July (Lyft did not immediately respond to an inquiry from Forbes).
Nov. 3, 2022: Stripe’s layoffs could hit roughly 1,120 of its employees (14% of its 8,000 positions as of October, according to PitchBook), after the company “overhired” and “underestimated both the likelihood and impact of a broader slowdown,” CEO Patrick Collison announced in a statement to employees.
Nov. 3, 2022: Billionaire Elon Musk reportedly plans to cut roughly 50% of Twitter’s 7,500 employees, multiple outlets reported Thursday—one week after the world’s richest man took over the company, with previous reports indicating he could lay off 25% and as much as 75% of the workforce, although Musk has walked back on that original number.
Nov. 2, 2022: In a blog post released Wednesday, Opendoor CEO Eric Wu blamed the company’s job cuts, which affect 18% of its workforce, on “the most challenging real estate market in 40 years” and a “need to adjust our business”—as the housing market continues to cool in the wake of rising inflation and the Federal Reserve’s four rounds of interest rate hikes this year.
Nov. 1, 2022: Upstart’s layoffs are expected to affect roughly 7% of the cloud-based AI lending company’s workforce, with cuts primarily among employees who work in loan applications, a spokesperson confirmed to Forbes, saying the move comes “given the challenging economy.”
Wall Street Bank, Morgan Stanley, is also planning more layoffs due to inflation and economic downturn, according to Yahoo Finance.
