Big Layoffs Predicted For 2023
It’s Not Just Tech Laying Off Employees, The Financial Sector Will Feel It Too
Layoffs in the tech industry and at Goldman Sachs have been a frequent occurrence in recent years as companies look to streamline their operations and cut costs.
In the tech industry, layoffs have affected companies of all sizes, from startups to major corporations. In 2020, for example, Uber announced that it would lay off 6,700 employees, or about 14% of its workforce, as a result of the COVID-19 pandemic. Similarly, Airbnb announced in 2020 that it would lay off 25% of its employees, or about 1,900 people, due to the pandemic's impact on the travel industry.
As it confronts broader economic uncertainty and waves of layoffs in 2022, Airbnb CEO Brian Chesky told CNN: “It’s like we’re all in a nightclub and the lights just came on,” Chesky said in an interview on “CNN This Morning.” After a period of “exuberance and euphoria,” he added, “now we all have to, like, take a hard look at things.”
Other well-known tech companies that have undergone layoffs in recent years include Microsoft, which laid off thousands of employees in 2014 and 2017, and Intel, which announced layoffs of 12,000 employees in 2016.
In October 2022 Microsoft announced that it will lay off a substantial number of employees. Around 1,000 employees will be impacted, according to the announcement.
Goldman Sachs, a leading investment bank, has also been hit by layoffs in recent years. In 2020, the bank announced that it would be cutting around 10% of its workforce, or about 10,000 jobs, due to the impact of the COVID-19 pandemic on the financial industry. This followed a similar round of layoffs in 2017, when the bank cut about 1,500 jobs.
Goldman Sachs Group Inc (GS.N) is planning to cut thousands of employees in 2023 to navigate a difficult economic environment, a source familiar with the matter said.
Other major companies in industries ranging from retail to energy have also announced layoffs in recent years as they seek to remain competitive in a rapidly changing business environment. For example, in 2020, General Electric announced that it would lay off 13,000 employees in its power division, and ExxonMobil announced that it would cut 1,900 jobs due to the downturn in the energy industry.
GE announced in October 2022 it is laying off 20% of its U.S. onshore wind workforce, which equates to hundreds of jobs, according to a person familiar with the matter who declined to be named.
Layoffs can be difficult for affected employees and their families, as well as for the companies themselves, as they can lead to a loss of talent and expertise. However, in some cases, layoffs may be necessary for a company to remain financially viable and competitive in the long term. This is only the beginning.
This is why it’s important to have another source of income. It may be also in your best interest to be self employed in order to avoid these types of situations. As you can see layoffs have happened in the past, current, and will continue in the future. Take control of your financial future, don’t put it in the hands of these corporations.