Why Are People Getting Laid Off?

The job market has been on a steady incline since the start of the Covid pandemic when companies were in a panic and had quite a few layoffs. In the past week, there have been multiple announcements of companies laying off a large percentage of their employees. People are wondering why this is happening, who is laying-off employees, and how to prepare/prevent from being affected.

The news hit earlier this week that inflation increased 8.6% in the United States, the highest in over 40 years, and increased more in June to 9.1%. Economists predict that we may be heading into a recession, and companies seem to be taking precautions.

In April, GoPuff announced they were laying off 3% of their global workforce, leaving 15,000 employees without a job. As of this past Tuesday, GoPuff is laying off an additional 10% of their global force and closing 76 warehouses.

Although this announcement is not official, this past Tuesday, the news leaked that Meta told their managers to prepare to make layoffs. Companies are preparing heavily for a possible recession and letting go of employees that they believe are not crucial for the function of their business.

Only a couple of models from economists show the possibility of a recession, so it feels a bit haste to see these global companies laying off their employees. Just last week, states reported 244,000 workers filed for unemployment.

It is a terrifying feeling to be unsure about the future of your career and if you will get laid off, but the only thing you can do is to prepare yourself in case you ever are put in that situation. In our most recent blog post, we break down what you can do as an individual to prepare for a possible recession.

We know it’s not something that is easy to come to terms with, but if we are heading into a recession, and unfortunately, this might only be the start of layoffs. We hope these tips and information will help you make well-informed decisions about your career.