Layoffs are occurring quickly at the start of August despite a much stronger than anticipated jobs report for July, with numerous companies making cuts in the previous week.
As the software company struggles with the economy, technology giant Oracle reportedly set the pace by laying off staff in its U.S. customer experience division on Monday. Additional waves of layoffs are anticipated in numerous other departments.
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Ticker Change% Oracle Corporation, ORCL, 77.35 -0.05 -0.06% Previous reports from last month said that thousands of employees at Oracle’s businesses in India, Canada, and Europe will receive pink slips as a result of job cuts.
The Wall Street Journal reports that Oracle has already laid off hundreds of workers.
Which industries hired the most workers last month, according to the July jobs breakdown?
The week also began with news that the insurance GEICO has shut down all 38 of its locations in California and fired hundreds of its phone agents there. The business reaffirmed that Californians can still purchase GEICO coverage in the state by doing so online but did not give any explanation for its choice.
After announcing a 44% decline in sales for the second quarter, Robinhood subsequently said on Tuesday that the brokerage firm will reduce its employees by 23% as part of an organizational restructure.
HOOD ROBINHOOD MARKETS INC., Ticker Security Last Change Change% 10.40 -0.48 -4.41% Walmart, the world’s largest retailer, said on Wednesday that it is also cutting off corporate employees as part of a restructuring process. This comes after Walmart lowered its profit projection for the second quarter and the entire year due to the effects of inflation.
WMT WALMART INC.,
Ticker Security Last Change Change% 126.61 0.97 0.77%
FED Officials predict additional interest rate increases despite rising recession risks.
The same day, Beyond Meat, a manufacturer of plant-based foods, announced it will reduce its workforce by about 4% due to declining demand for its goods in the United States.
BYND BEYOND MEAT INC., Ticker Security Last Change Change% 38.26 6.87 21.89% This week, according to a report from CNET, Verizon also made personnel reductions, joining competitor wireless provider T-Mobile in doing so.
VERIZON COMMUNICATIONS INC.,
Ticker Security Last Change Change% 44.95 0.52 1.17% T-Mobile US Inc., TMUS, was 144.56 0.77 0.54%. However, because many businesses are keeping quiet about how many positions were eliminated, it is impossible to tell whether the stories of layoffs represent a trend that could have a significant effect on the economy as a whole until the August jobs report is out.
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According to the Labor Department’s most recent monthly data, 528,000 new jobs were created to American payrolls in July, far exceeding the 250,000 jobs predicted by Refinitiv economists. However, as businesses make concessions to offset weakening demand amid rising inflation, the pace of employment growth is anticipated to decelerate in the upcoming months.
Reuters, Megan Henney, Phillip Nieto, and Bradford Betz of FOX Business all contributed to this story.