Nearly 60,000 Laid Off In January So Far As Major Firms Increase Cuts

Topline

Nearly 60,000 employees lost their jobs in large corporate layoffs in the U.S. so far this month—the highest monthly total since Forbes began tracking layoffs fueled by recession fears last year—with Google, Microsoft, Amazon, Goldman Sachs and Salesforce cutting thousands of employees.

Roughly 60,000 U.S. workers lost their jobs in large corporate layoffs so far this month.

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Key Facts

Google parent company Alphabet’s announcement on Friday to cut roughly 12,000 employees was the biggest layoff so far in January, bringing the number of employees affected in large cuts this month over the total last November (47,412 employees)—the most in a given month last year.

In a press release, CEO Sundar Pichai said the layoff comes after two years of “dramatic growth” and over-hiring for a “different economic reality that the one we face today”—echoing a sentiment employers made throughout the better part of 2022, when nearly 125,000 people were let go in large rounds of layoffs in the U.S.

Microsoft cut 10,000 employees earlier this week when the software giant announced it would let go of nearly 5% of its workforce—its second round of cuts in recent months, after it announced in October that it would let go of another 1% of its approximately 180,000 employees.

Also this week, multiple reports claimed banking giant Capital One would reduce its headcount by 1,100, primarily affecting technology positions, while a spokesperson told Forbes that employees who were let go could apply for other positions in the company.

San Francisco-based software company Salesforce announced on January 4 it would cut 7,900 employees amid a “challenging” economic climate, as well as a round of cuts at Goldman Sachs, which could reportedly slash as many as 3,200 positions.

The layoffs have ranged from tech companies to banks, including Boston-based online furniture retailer Wayfair, which said it would cut 10% of its global staff, as well as student loan company Nelnet (350 employees), telemedicine company Teladoc Health (300) and supply chain management company Flexport (estimated to affect 662 of its 3,300 employees, based on data from PitchBook).

Tangent

Several large layoffs this month have affected workers in cryptocurrency, as employers fear a potential upcoming downturn in the crypto market called a “crypto winter,” as well as market speculation from investors following the collapse of Sam Bankman-Fried’s crypto exchange FTX, could hurt the market. Earlier this month, crypto exchange Coinbase announced it would cut a quarter of its staff (950 employees) to “weather downturns” in the crypto market. Three days later, Crypto.com unveiled plans to cut 20% of its workforce (500 employees) as CEO Kris Marszalek said it’s facing “unforeseeable industry events” such as the collapse of FTX, which “significantly damaged trust in the industry.”

Surprising Fact

Shares of Alphabet and Wayfair, which both announced cuts on Friday, rallied in the hours after their plans were unveiled, with Wayfair stock climbing roughly 11%, to $46.79, and Alphabet’s stock increasing by nearly 10%, to $98.02. Wedbush analyst Daniel Ives told Forbes he believes the climb in company shares will continue as employers look to shed costs amid fears of a recession.

What To Watch For

More layoffs. Struggling home goods retailer Bed Bath & Beyond has reportedly started to cut employees, according to an internal memo seen by CNBC, although the memo did not include a number of affected positions. There has also been speculation that Apple, which has been unphased amid the recent massive tech layoffs, could dodge them entirely due to its avoidance of hiring increases over the past two years. Apple’s biggest round of layoffs came 25 years ago, when former head Steve Jobs cut 4,100 employees.

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Key Facts

Tangent

Surprising Fact

What To Watch For

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