More layoffs are coming for major businesses and corporations this year.
The layoffs are expected for a wide variety of industries too. Worldwide tech companies including Google and Microsoft will make cuts and so will retail businesses including Nike and Amazon. Even finance leaders like BlackRock and Goldman Sachs say their workforce will shrink soon.
A survey conducted in December last year by ResumeBuilder found that almost 40% of business leaders were anticipating layoffs in 2024. Half of those surveyed also believed a recession was possible.
Vance Ginn, President of Ginn Economic Consulting, said a slowing economy is largely to blame.
"You see businesses have higher costs due to inflation and at the same time consumers are cutting back so there's less demand for their product," he said.
As people start to run out of money in their savings, they're also taking on more debt. Inflation, of course, is still a major factor too.
Some companies are trying to implement 48-hour work weeks with some of the employees or offer them other opportunities. Ginn said that can put more stress on a slumping economy.
"CEOs and employers are trying to find new ways to continue to do business and keep workers on board," Ginn said.
AI is also making things more interesting. It's not wiping out the workforce completely, but some industries are fully embracing it's capabilities and that has left workers questioning their next move.
"The technologic revolution that comes with AI is improving a lot of the workforce, but there are some substitution effects," said Ginn.