Multiple sectors announce layoffs in response to changing economy
NEW YORK, NEW YORK — Thousands of layoffs across multiple sectors could be the writing on the wall for an impending recession in the United States.
Major banks, crypto exchanges, and entertainment companies have laid off or plan to lay off hundreds of workers in recent times in response to unexpected economic changes.
For banks, that catalyst was a shift in the mortgage market that will give Americans more of a challenge with owning homes.
As a result, JPMorgan Chase & Co., the US’ biggest bank, announced layoffs in its mortgage department.
A representative confirmed, “Our staffing decision…was a result of cyclical changes in the mortgage market.
“We were able to proactively move many impacted employees to new roles within the firm and are working to help the remaining affected employees find new employment within Chase and externally.”
But while they pledged to assist workers in finding employment, their organization was not alone in layoffs.
Real estate brokerage Redfin Corp., headquartered in Washington, DC, announced plans to lay off nearly 500 of its employees, accounting for about six percent of its staff complement.
Another company in the mortgage business, Compass Inc., also plans to reduce its staff complement by some 450 workers, accounting for around 10 percent of its workforce.
Layoffs in entertainment
On a completely different spectrum of business, streaming service giant Netflix revealed plans to lay off some 300 employees or around three percent of its staff complement.
This was in response to the company losing subscribers in recent times as inflation makes Americans look twice at their bills.
A Netflix representative said, “While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth.
“We are so grateful for everything they have done for Netflix and are working hard to support them through this difficult transition.”
Layoffs in fintech
In another sector still, the cryptocurrency boom of recent times could be falling by the wayside and facing staff layoffs and redundancies accordingly.
The US’ biggest crypto exchange, Coinbase, earlier this year anticipated major growth and new hires but now finds itself in the opposite position.
The crypto market has been falling dramatically as of late. As such, Coinbase, which employs nearly 5,000 people, announced its plans to lay off around 18 percent of its workforce.