Is the Great Resignation over?
Maybe not quite, but the Great Layoff might be giving this trend a run for its money.
Record-high inflation has led the U.S. government to hike interest rates, meaning less jobs to cut down on costs.
Over the last several months, consumer demand has accelerated the economy to reach pre-pandemic recovery. However, companies are now struggling with over-hiring, leading many to conduct layoffs in order to prepare for a likely recession.
In fact, data from management consulting firm Challenger, Gray & Christmas shows that job cuts jumped 57% in May of 2022, while companies laid off over 32,500 workers last month.
Industries largely impacted by these layoffs include cryptocurrency, tech, and financial, which have all seen a tumble in the stock markets in recent months. But other sectors could soon be next.
Now, some of the largest companies in the world are cutting back on real estate to mitigate costs, leaving the already struggling industry in for a rude awakening.
Amazon and Meta both announced they would be cutting down or walking away from taking up office space in New York, indicating that landlords will need to pivot their target audience in order to mitigate accumulating losses.