The U.S. is experiencing major job cuts. Many major companies laid off their employees. The US Federal Reserve raised the interest rate by 75 basis points. This is the largest interest rate hike in 28 years. As a result, many experts warned that U.S. is heading toward one of the largest recessions in its history.
The effect of the rise in interest rate has resulted in a drastic drop in the job market. The economists at S&P Global Ratings forecast that there will be a 2.4% drop in the U.S GDP.
Apple laid off 100 jobs
In response to the risk of recession, many U.S. major companies have started to lay off their employees. Apple is one of the recent examples, as it laid off 100 jobs.
Other examples of major job cuts in U.S. include Audacy, the second biggest radio company which cuts 5% of its workforce, HBO Max cut 14% of its workforce, Microsoft laid off 200 employees, while Robinhood cuts 23% of its employees.
Walmart, which ranks top in Fortune 500 companies, plans to reduce its workforce by 20o employees according to a report by the Wall Street Journal. Walmart is currently is the largest private employer in the U.S. the major layoff by Walmart is an indicator of the trend of reducing the workforce.
iRobot & Jam City laid off employees
The trend of laying off employees can also be observed in technology companies such as iRobot and Oracle. iRobot, which was purchased by Amazon, cut 10% of its employees while Oracle plans to cut thousands of its workforce from its estimated workforce amounting to 143,000 employees.
The reason for the major layoff is because of the challenging economic situation in different industries. For instance, the video game developer, Jam City cut 200 employees as the gaming industry has been severely affected by the economic downturn.
However, the U.S. unemployment rate remains low for the last few months despite those major layoffs.
