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At the beginning of 2023, there was widespread concern that the U.S. economy was heading towards a downturn, leading to a flurry of layoffs. However, the situation took an unexpected turn as the year progressed. A surge in economic activity, particularly in the second half of the year, helped stabilize the labor market and protect numerous American jobs. While there were still job cuts in certain sectors, economists believe that the situation could have been much worse.

Instead of conducting layoffs, many companies opted to pull back on hiring, according to Cory Stahle, an economist at job searching site Indeed. Some of the most notable layoffs occurred in late 2022 and early 2023 in the tech and media sectors. Companies such as Microsoft, Amazon, Salesforce, HP, and the parent companies of Google and Facebook all cut several thousand workers.

Despite these cuts, the U.S. job market remained strong throughout the year, with 199,000 jobs added in November alone. This slower but solid growth resulted in a decrease in the unemployment rate to 3.7 percent. Additionally, inflation dropped to 3.1 percent from its peak of 9.1 percent in 2022, and the economy experienced significant growth in the last quarter.

The expectation of a recession led to cautious spending by many companies due to high interest rates and capital costs. However, as 2024 begins, layoffs have become more measured. Aaron Terrazas, chief economist at employment website Glassdoor, noted that while layoffs continue to occur, their tone has changed. Early in the year, layoffs were motivated by general economic fear, but now they are more surgical.

The article also provides a brief overview of notable layoffs in various technology companies since late 2022. Accenture announced plans to cut 19,000 jobs, Alphabet (Google's parent company) is cutting about 12,000 jobs, Amazon slashed 18,000 corporate jobs, and Apple made some layoffs in its retail teams.

Overall, the article highlights the unexpected stabilization of the labor market despite initial concerns about a downturn in the U.S. economy.

Coinbase, a cryptocurrency exchange, announced in January that it would be cutting 950 jobs in an effort to reduce operating expenses. The decision was made due to the industry's downward trend and the broader macroeconomic conditions in 2022.

Dell, a PC maker, is planning to eliminate about 5 percent of its workforce, which amounts to around 6,650 positions. The company is facing declining demand for personal computers and has implemented a cost-cutting program that includes a hiring freeze and reduced travel. Dell Vice Chairman Jeff Clarke stated that market conditions are deteriorating with an uncertain future.

DocuSign, an e-signature company, revealed in February that it would be laying off approximately 10 percent of its workforce as part of a broader restructuring. This comes after a previous round of layoffs that affected around 9 percent of the company. With these latest cuts, DocuSign's headcount will be reduced to around 700 employees.

DoorDash, a food delivery company, let go of 1,250 corporate jobs in November 2022, which accounts for about 6 percent of its workforce. CEO Tony Xu admitted that the company had not been diligent enough in managing team growth as revenue growth was overshadowed by operating expenses during the pandemic.

Dropbox, a cloud storage and software firm, announced on April 27 that it would be laying off 500 employees, approximately 16 percent of the company. CEO Drew Houston explained that Dropbox's growth had slowed due to the larger economic downturn, although the company remains profitable. He emphasized the need to prioritize investment in artificial intelligence and reorganize staffing accordingly.

Ericsson, a telecommunications giant, plans to cut a total of 8,500 positions, equivalent to 8 percent of its workforce, by the end of 2023. The company experienced lower-than-expected earnings in the fourth quarter due to slowed equipment sales in the United States.

Etsy, an online marketplace platform, announced on December 13 that it would be reducing its staff by 225 employees, which represents 11 percent of its workforce. CEO Josh Silverman attributed the decision to a challenging macro and competitive environment, as well as declining sales and increasing employee expenses.

Grubhub, a food delivery platform, laid off approximately 400 employees, about 15 percent of its workforce, in June. CEO Howard Migdal explained that the company's operating costs were growing faster than revenue.

HP, a computer giant, revealed in November 2022 that it would be cutting 4,000 to 6,000 workers by the end of 2025 to reduce costs. The decision came after the company reported an 11.2 percent drop in fourth-quarter revenue compared to the same period in 2021, with full-year sales also declining by 0.8 percent.

IBM, a technology company, announced in January that it would be cutting around 3,900 positions, approximately 1.5 percent of its global workforce. The job cuts were related to earlier divestitures of its Kyndryl and Watson Health businesses.

Indeed, a job-searching company, announced in March that it would be laying off 2,200 people, which accounts for 15 percent of its staff. CEO Chris Hyams cited a decline in U.S. job openings and predicted further decreases in the coming years. Hyams also stated that the organization was too large for the future job market and he would take a 25 percent pay cut.

Kraken, a cryptocurrency exchange, announced in November 2022 that it would reduce its workforce by 30 percent, laying off 1,100 employees. This decision was made in response to the downturn in the cryptocurrency industry, which resulted in significant losses in investments.

LinkedIn, the networking platform owned by Microsoft, revealed on October 16 that it would lay off 668 employees as part of an ongoing reorganization. In May, the company had already laid off 716 employees due to the discontinuation of its China-based local jobs app.

Lyft, the ride-sharing giant, announced on April 27 that it would lay off 1,072 employees, which accounts for more than a quarter of its workforce. Additionally, the company planned to eliminate 250 vacant positions. These separations are estimated to cost Lyft up to $47 million in severance payments.

Meta, the parent company of Facebook and Instagram, announced in November 2022 that it would cut 11,000 jobs, equal to 13 percent of its workforce. This decision aimed to reduce expenses and focus on transforming its advertising business. The company attributed the cuts to declines in online shopping and advertising competition, as well as its efforts to develop the metaverse. In March, an additional 10,000 workers were slated to be cut.

Microsoft announced in January that it planned to lay off 10,000 employees as part of a restructuring plan to prioritize areas of growth and prepare for an economic downturn.

PayPal, an online payment company, revealed in January that it would lay off 2,000 employees, approximately 7 percent of its global workforce. The CEO stated that while progress had been made in addressing the challenging macroeconomic environment, further restructuring and focus on core priorities were necessary.

Roku, a streaming media device company, disclosed in March that it intended to reduce its workforce by about 6 percent, amounting to approximately 200 employees. The layoffs were part of a restructuring plan to cut operating expenses and prioritize projects with higher returns on investment. The company had already laid off 200 employees in November 2022 due to economic conditions in the industry.

Salesforce, a cloud-computing giant, announced in January that it would lay off 10 percent of its workforce, affecting nearly 8,000 employees. The decision was made to address the hiring excesses during the pandemic when sales surged.

SAP, a European software company, announced in January that it would eliminate 2,800 employees, equivalent to 2.5 percent of its workforce. This was part of a targeted restructuring plan to strengthen the core business and improve overall process efficiency.

Shopify, an e-commerce platform, decided to reduce its staff by approximately 20 percent in May.

Spotify, a music streaming company, announced on December 4 that it would lay off 17 percent of its staff. This marked the third round of layoffs for the company in the same year. The reasons cited were slower economic growth and increased capital expenses, prompting the need to right-size the company for future challenges.

In February, News Corp, the media giant that publishes the Wall Street Journal, announced plans to reduce its workforce by 5 percent, resulting in approximately 1,250 job cuts. This decision was made due to a 10.6 percent decline in advertising revenue and the cancellation of a merger with Fox Corp, which incurred $6 million in one-time costs. Similarly, NPR, the radio broadcaster, revealed that it would lay off around 10 percent of its staff, or roughly 100 people, as it faced a $30 million shortfall. The decline in advertising revenue, particularly in podcasting, and the challenging media industry environment were cited as reasons for the layoffs.

Vox Media, the company behind New York Magazine, the Verge, and Vox, announced on January 20 that it would be cutting about 7 percent of its staff, impacting around 130 employees. The CEO, Jim Bankoff, stated that these cuts would affect multiple teams throughout the company. The Washington Post also laid off 20 employees in January, following the closure of its Sunday magazine and the layoff of 11 newsroom employees in 2022.

Yahoo announced in February that it planned to lay off 20 percent of its workforce as part of a restructuring plan that would primarily impact its advertising unit. The CEO, Jim Lanzone, clarified that these cuts were strategic rather than financial. In 2021, Yahoo and AOL were acquired by the private-equity firm Apollo Global Management in a $5 billion deal with Verizon.

Moving to the finance sector, Goldman Sachs began reducing its workforce by up to 3,200 jobs in January due to a decline in dealmaking. This led to expectations of reduced annual bonuses for employees. However, reports indicated that Goldman's headcount would still be higher than pre-pandemic levels. Similarly, Morgan Stanley cut around 1,600 workers in December 2022 as part of a year-end tradition of removing underperformers. However, discussions about further layoffs totaling approximately 3,000 employees began in May, partly driven by inflation affecting dealmaking.

In the manufacturing and retail industries, 3M announced in January that it would cut 2,500 manufacturing jobs, equivalent to 3 percent of its workforce. This decision was made due to declining consumer-facing markets and slower-than-expected growth. Anheuser-Busch InBev, the parent company of Bud Light, revealed plans to shed 350 corporate positions, representing less than 2 percent of its U.S. workforce, as a result of an ongoing boycott impacting its financial performance.

Bud Light, once the most popular beer in the country, has seen a decline in sales since March due to a marketing campaign featuring transgender influencer Dylan Mulvaney. The campaign upset some conservatives and led to a boycott, causing Anheuser-Busch InBev to distance itself from the ads. This, in turn, caused some liberals to also avoid the brand.

Boeing plans to cut approximately 2,000 non-unionized jobs, primarily in its human resources and finance divisions. However, the company also plans to hire around 10,000 people throughout 2023, following 15,000 hires the previous year. The aim is to focus resources on engineering, manufacturing, and supporting products, services, and technology development efforts.

CVS Health announced in August that it would be cutting 5,000 corporate jobs as part of a larger cost savings plan. However, the company does not expect any impact on its pharmacy operations, walk-in clinics, or retail locations. CVS Health recently completed acquisitions of Oak Street Health and Signify Health.

Deloitte plans to cut approximately 1,200 jobs as part of a broader restructuring. The decision was made to navigate uncertainties and challenging energy markets, particularly in Europe.

Dow, the chemical company, announced in late January that it would reduce its workforce by 2,000 employees, representing about 5.5 percent of its workforce. This move is part of an effort to save $1 billion in 2023. Dow also plans to close certain company assets and align spending levels with the macroeconomic environment.

Ford has been redirecting its focus towards electric vehicles and their batteries. In August, the company let go of around 3,000 white-collar contract employees, mainly affecting workers in the United States, Canada, and India. Ford also announced plans to cut 3,800 jobs in Europe while expanding battery production operations in Michigan. In late June, the company cut another 1,000 white-collar employees in the United States and Canada as part of a broader cost-cutting strategy.

The parent company of Gap, Banana Republic, Old Navy, and Athleta announced that it would eliminate 1,800 leadership roles at its headquarters and stores. This move is part of a plan to simplify and optimize the company's operating model and is expected to save $300 million annually.

Hasbro, the toy and entertainment giant, announced that it would be cutting 15 percent of its global workforce. The company aims to achieve $250 million to $300 million in savings by the end of 2025 through broader organizational changes. Hasbro's consumer products division underperformed in the fourth quarter, leading to the decision to reduce its workforce.

H&M, the world's second-largest fashion retailer, announced in November 2022 that it would be cutting 1,500 positions, about 1 percent of its workforce. This decision was made as part of a cost-cutting effort due to surging inflation in Europe and disappointing third-quarter results. H&M has been facing challenges in keeping up with competitor Inditex, the owner of Zara.

In May, vaccine manufacturer Novavax announced its plans to lay off approximately 25 percent of its global workforce and consolidate facilities and infrastructure. Based on the company's head count on February 21, this would amount to nearly 500 jobs. Tyson Foods, a major food producer, stated on April 26 that it will eliminate around 10 percent of its corporate workforce and 15 percent of senior leadership roles. These cuts are expected to impact hundreds of workers, with the company having 6,000 U.S. corporate employees as of October 1, 2022, according to Reuters. Additionally, Tyson has already reduced some corporate jobs by centralizing its workforce at its Arkansas headquarters, which led to some workers leaving the company.

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