It’s not just job changers who regret … Companies also regret “big hires” in the layoff wave | Business Insider Japan


Layoffs and hiring freezes are brewing across industries, from automakers to tech giants.

Reza Estakhrian / Getty Images

  • Over the past year, companies have continued to hire at a rapid pace as workers “great retirement.”
  • But now, a layoff storm has struck and companies are firing some of their new employees.
  • Just as workers may be “Great Regret” about quitting, companies will also regret hiring.

As fears of a recession began to surface this spring, TikTok, Redfin and JPMorgan quickly announced layoffs and hiring freezes.

The reason is that I realized that I had made a big mistake. Yes, they hired too many people.

On Walmart’s earnings call, CEO Doug McMillon said the company’s “days of overstaffing” were hurting profits. In 2021, the company was hiring new employees in droves to make up for staffing shortages caused by COVID-19.

Walmart is not alone.

“I said I wouldn’t lay people off unless I had to. But the time has come to do so,” said Glenn Kelman, CEO of real estate brokerage firm Redfin. I wrote in a blog announcing that I would lay off 8% of my employees.

“Layoffs are always a big shock. I said I would go through a thorny path to avoid layoffs, and I raised hundreds of millions of dollars to avoid layoffs in just a few months of uncertainty. , even more so, but mortgage rates rose at the fastest rate ever.”

Now that the economy has stagnated due to inflation, the war in Ukraine and the cooling of consumer and investor sentiment, companies across sectors are already laying off workers. It came a year after millions of workers were retiring each month in record time. Meanwhile, companies were hiring aggressively, hoping for continued growth like they experienced during the pandemic.

A wave of layoffs hits America

In May alone, 2.8% of workers, or 4.3 million, submitted their resignations.

The company was waiting. In June, the United States hired 372,000 people, surpassing expectations of economists surveyed by Bloomberg. Prior to that, the number increased by 384,000 in May and 368,000 in April. All show a strong recovery in employment.

For some workers, the Great Resignation means better working conditions, higher wages and even greater flexibility. In fact, a February 2022 study by the Pew Research Center found that 56% of Americans who quit and found a new job in 2021 were getting paid more than before. I know it.

But things are more complicated. There is a limit to the power that workers can actually obtain. That’s what the labor market is. In the United States, where food, medical care, housing, etc. are not guaranteed, workers depend on businesses for the income to obtain them, and companies know that.

Source link

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button