As the U.S tried to print money to save itself from the recession, many companies, politicians, experts and economists knew that it would cause more damage down the road. And that time is finally creeping upon us!
Many major tech companies will be announcing layoffs throughout 2023. Many of these same tech companies announced layoffs in 2022. The U.S. Tech sector laid off over 150,000 workers last year and this is only the beginning. The massive amount of money printed during 2020 and 2021 artificially flooded the U.S. Economy with cash. Many companies like Amazon, Apple, Google, Tesla, Microsoft, Facebook, Walmart, Carvana and Netflix saw their demand skyrocket.
This forced those same companies to not only hire but overhire to meet this new level of demand. But now that the ride is over and the economy is slowing these same companies are having to deal with declining sales and growing expenses. This has led several major tech companies to start announcing layoffs already. Salesforce announced that they will be laying off over 7,000 employees. Amazon announced that they will be laying off 18,000 more employees and rumors are starting to swirl of Andy Jessie being let go as CEO and Jeff Bezos coming back to lead the company.
Disney had a major shake up last year when Bob Chapek was fired and former CEO Bob Iger was brought back to lead the company. This has led to speculation that he will lay off thousands of employees to get the company back on track to meet their 2023 goals. Facebook has been taking hit after hit since 2021 and 2023 will be no different. Facebook is expected to announce layoffs some time in 2023 as their sales continue to slide and investors look for safer places to keep their money.
Elon Musk has laid off over half of Twitter within the first few months of him taking over the company. But this may not be the end of layoffs at the tech company as it is rumored that a few hundred more employees will be laid off in 2023. Elon Musk came into Twitter to clean house and it seems like he is not quite done yet.
Carvana has been decimated over the last two years and this may lead to them filing Chapter 7 bankruptcy. Carvana was forced to buy thousands of overpriced cars to keep up with demand in 2020. But now the car market has started to shift and car prices are expected to plummet. This has left Carvana with millions of dollars in losses and shareholders asking questions that they cannot answer! There is almost nothing that Carvana can do but try to raise as much cash as possible by liquidating as many cars as possible. And many of these cars will be sold at huge losses.
CNN is another company that will be laying off employees in 2023. After the disastrous attempt at launching CNN+, CNN is still reeling from its collapse. CNN lost over $300 million dollars and was barely drawing in 10,000 viewers daily. This was an overall disaster that has still not been recouped financially by the company. The only way that this can be mitigated is by financially tightening their belts and that means layoffs!
Comcast/NBC Universal will face another wave of layoffs as well this year. In 2020 and 2021 many people had extra money to spend on streaming services. This means less money for Comcasts traditional cable services. In 2022 comcast had lost over 4 million cable customers and while they did grow in their broadband sector by 2 million, that is still a loss of 2 million customers. Comcast is expected to lay off 10,000 or more employees in the first half of 2023 but this could only be the start of larger layoffs.
Microsoft is one of the few tech companies to only lay off a handful of employees in 2022. But now that the holiday season is over, this will easily change for the company. As Microsoft will look to cut expenses and please shareholders so that they can maintain a healthy share price in 2023.
Walmart may surprise you but due to growing losses due to theft, Walmart has come out and said that if this does not stop they will be forced to raise prices and or close certain locations. This was announced on the back of Target admitting that they had lost over $400 million dollars due to theft and expected to lose over $600 million by the end of 2022. With Walmart being the largest private employer in the world, closing locations would impact thousands of people overnight. Walmart Employees and Customers have started speaking out on the issue saying that most of the theft happens at self check out and they should bring back cashiers. Time will tell if self checkout was the solution that it hailed to be.