Mass Layoffs Hit Three States

0
15

Economic experts predicted 2024 would be a year of layoffs, and three companies have announced mass staffing cuts this week.
In three separate WARN notices, ShipMonk, Aludyne and Student Transportation of America said they were letting hundreds of employees go, and three states will bear the brunt of the layoffs.
The heavily impacted states are New Jersey, Georgia and Florida.
In New Jersey, e-commerce fulfillment company ShipMonk will lay off 148 workers by June 30.
During a one-day walkout, Los Angeles Times Guild members rally outside City Hall against “significant” imminent layoffs at the Los Angeles Times newspaper, in Los Angeles, California, on January 19. Three companies announced mass layoffs… During a one-day walkout, Los Angeles Times Guild members rally outside City Hall against “significant” imminent layoffs at the Los Angeles Times newspaper, in Los Angeles, California, on January 19. Three companies announced mass layoffs in the past week. More Mario Tama/Getty Images
In Georgia, lightweight solutions provider Aludyne is saying goodbye to 193 employees. The economy in Florida will be similarly hit by layoffs of 225 staffers at Student Transportation of America.
Keith Spencer, career expert at FlexJobs, said the reasons behind each company’s layoffs can vary, but the larger economic landscape may be pushing companies to these measures to meet their bottom line.
Market disruptions, industry shifts and specific company restructuring can also play a role.
“Regardless of the reasons, these types of layoffs can have a fairly widespread impact,” Spencer told Newsweek. “Companies might be able to reduce costs in the short-run, but could then see morale, productivity, and innovation decline over time or see their reputation within the market suffer.”
The employees will likely face their own uncertainty and financial hardships as they look for new jobs in a market that isn’t too friendly to job-seekers at the moment.
According to the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS), layoffs rose to 1.7 million in February from 1.6 million the month prior. That was the highest number since March 2023.
“It can be incredibly hard to predict the economic impact of these types of layoffs or whether we can expect additional layoffs in the coming months, but there is the possibility that they could contribute to decreased consumer confidence and a reduction in consumer spending, which can then have a negative ripple effect on other companies within those specific industries or the economies of different regions or states,” Spencer said.
There have been signs that mass layoffs were coming.
A recent Resume Builder survey, based on responses from more than 900 companies, found nearly four in 10 said they are likely to see layoffs in 2024. This has many workers concerned about a possible recession. More than half of the companies also said they plan to implement a hiring freeze this year.
When asked why the companies were engaging in the layoffs, half said fears of a recession played a central role. A little less, four in 10, said they are going to lay off employees and replace workers with artificial intelligence (AI).
Before Americans despair, though, they should know there are specific industries most at risk of layoffs.
Construction and software companies were by far the most likely to predict layoffs in the next year, at 66 and 65 percent, respectively.
Information, retail, finance and insurance companies will also likely see some employee turmoil. In the survey, 44 percent of information and retail companies and 38 percent of finance companies said layoffs are anticipated.
Since AI was a key reason many companies were looking to let employees go, hiring managers say learning how to integrate the tool into your career is essential.
“Because AI continues to be a reason for layoffs, take time to learn how to leverage AI in your position and which AI programs might impact your work the most,” Resume Builder’s resume and career strategist Julia Toothacre said. “Learn about them and become the ‘go-to’ person. You want to be the employee your manager can’t imagine going on without.”
Steven Chizen, a California-based employment attorney, said layoffs come down to a combination of business needs, job redundancy and performance. But there are still things you can do to make a departure from your company less likely.
“Workers should always ask themselves, ‘How can I make myself indispensable?’ Then, when an inevitable layoff arrives, they will be lower on the list of potentially impacted employees,” Chizen told Newsweek.

admin

LEAVE A REPLY

Please enter your comment!
Please enter your name here