Companies are continuing to announce layoffs during 2023, signaling that the downsizing trend from 2022 will stick around a while longer.
- Layoffs in the last year have primarily been focused on the tech sector, though Wall Street is also starting to feel the effects of reduced revenue.
- Beyond the tech world, the labor market has remained strong, though growth has started to slow.
- Tech companies are continuing to announce layoffs. Coinbase announced a 20% staff reduction this year. Amazon is laying off around 18,000 employees. Salesforce and Vimeo are cutting around 10% of their staff.
- Retailers are not immune from layoffs. Bed Bath & Beyond is planning to cut an unspecified number of employees and is considering bankruptcy options. Online clothing retailer Stitch Fix plans to reduce 20% of its workforce.
- Companies in the food industry, like McDonald’s and Wonder Group, are also planning to reduce staff. McDonald’s has announced plans to restructure the corporate staff layout to save money. The fast food giant still has plans for global expansion. Food delivery startup Wonder Group is overhauling its business plan and laying off staff. The company will shift its model from food truck services to restaurant delivery.
- To save on expenses, Goldman Sachs has announced 3,200 job cuts in the coming year. The layoffs begin this week and are in response to reduced deal-making revenue. The company has been planning layoffs since December.
- In addition to layoffs, companies like Macy’s and Old Navy have announced store closures in 2023.
Why it’s news
Layoffs in the tech industry were common in 2022, with companies like Meta announcing major layoffs. Brick-and-mortar retail giants have struggled to keep up with the online competition in recent years.
Bed Bath & Beyond has struggled to keep consumer traffic up within the stores for several years. In November 2022, the company reported a net loss of $385.8 million for the third quarter.
In 2020, Macy’s announced that it would begin a three-year plan to close 125 stores. The company selected which stores were marked for closing by evaluating the least productive locations.
Four Macy’s locations will close in 2023. All are located in malls, and employees are being offered positions at nearby locations. The stores are in Los Angeles; Fort Collins, Colorado; Gaithersburg, Maryland; and Kaneohe, Hawaii.