As the year 2022 has passed, many analysts and economists are talking about how worse it had been. However, things are not looking promising for the year 2023 as well.
There are very high chance that the situation may worsen in the year 2023 because of the recession. Many economists fear that the recession is imminent and the entire world will be hit by it.
Therefore, companies have already started taking the necessary actions to save funds so they can make it through difficult times.
In the year 2021, the companies went for mass hiring and the situation repeated in the year 2022. This happened as a result of the post-pandemic recovery phase.
As the world started to recover from the pandemic, companies started to hire employees on very high scales.
It was already understood that the companies were going to remove the extra workforce they had hired.
Now that the world is moving closer to recession in 2023, the companies removing extra resources have started to make sense.
This way, the companies will be cutting down on costs to save more money and ensure they make it through the difficult times.
Several companies have started to go for mass layoffs so they can make it through and not feel much pressure due to the recession.
BlackRock Cuts 500 Jobs
BlackRock had gone on a hiring spree since 2021 and now, the company has decided to lay off the employees.
The company has announced that it will be cutting off 500 of its total employees in the upcoming days. This is going to be the first time since 2019 the company is going to lay off employees at this level.
Although the layoff rate for BlackRock is less than 3% of its overall workforce, still, it is a large layoff since 2019 for the company.
The report shows that in the past three years, the total headcount of the company has increased by more than 22%. The company has communicated it is due to the market environment that is forcing them to make these decisions.
There are claims that Goldman Sachs has predicted that BlackRock may proceed with laying off 5,200 jobs in the entire year of 2023.
Amazon Expected to lay off 10,000 Employees
Amazon is also among the major companies that are planning to lay off a tremendous number of their employees.
There are rumors that the company is planning to lay off 18,000 of its total workforce. Andy Jassy, the CEO of Amazon has recently issued a statement confirming what their plans would be for the year 2023.
According to Jassy, they are planning to start by laying off 10,000 of their total employees. The layoffs will be carried out in the early part of the year 2023.
They will communicate with all of the employees and make sure that things are done in the right manner. For now, the company is planning to reduce the on-field workers.
They are to confirm whether the workforce from other departments will be laid off or not. After the reduction of the workforce by 10,000, they may go with laying off 8,000 more employees.
Amazon is planning to complete its entire process of laying off employees by the end of 2023.
McDonald’s to Cut Off Employees as well
When it comes to McDonald’s, the fast food giant has decided that it is going to cut jobs in the corporate sector.
The food chain giant has confirmed that it will be laying off employees from the corporate sector. They will be evaluating all the roles at the company and will be making a final decision based on that.
Since the announcement, the share prices for BlackRock have experienced a 0.18% dip. The share prices for Amazon have surged by 5.81% while the share prices for McDonald’s have dipped by 0.04%.