Concerns about the economy are forcing some companies to move ahead with job cuts. About 50% of surveyed execs say layoffs are on the way.

Simone Del Rosario Business Correspondent

Five sectors facing layoffs amid economic uncertainty and high inflation

Sep 09, 2022

Simone Del Rosario Business Correspondent

By Simone Del Rosario (Business Correspondent), Emma Stoltzfus (Editor), Brent Jabbour (Producer)

Concerns about the state of the economy come with worries about job security. In fact, half of companies are expecting to cut staff according to a PwC survey of more than 700 executives. The same survey found many executives are also planning hiring freezes and even rescinding job offers. But many companies have already trimmed their workforce. Here are the sectors facing layoffs in this week’s Five For Friday.

#5: Mortgage and real estate

The housing market has cooled after the COVID-19 pandemic-induced smorgasbord over the last few years. And as the Federal Reserve raises its interest rate, causing home loan rates to climb, overall mortgage demand has fallen to its lowest point in two decades. Mortgage lender LoanDepot has let go of 2,800 employees this year and announced another 2,000 layoffs are on the way. Real estate firm Redfin also announced it would cut 8% of its staff this year amid falling demand. Meanwhile, big banks JPMorgan Chase, Citigroup and Wells Fargo have shed hundreds of mortgage broker positions.

#4: Fintech

Fintech was really having a moment the past couple of years and where there is a boom, there will likely be a bust. Retail trading platform Robinhood, which has faced some controversy in recent years, laid off 23% of its staff in August. The company’s CEO Vlad Tenev blamed low trading volume, spiking inflation and the ongoing crypto winter as the reasons for the cut. On the cryptocurrency side, Coinbase let go of 18% of its team while the Winklevoss twins-founded Gemini released 7% of its staff after cutting 10% earlier this year.

#3: Retail and ecommerce

Consumer spending was flat for July, and without growth, retailers are tightening their belts. Bed Bath & Beyond announced last week it is closing 150 stores and laying off 20% of its 32,000 employees. Wayfair, which thrived at the height of the COVID-19 pandemic, is cutting 870 jobs. Ecommerce platform Shopify will also slash 10% of its workforce as the sector loses steam.

#2: Streaming

Over the last few years, major distributors and networks have been racing to launch their own streaming services as linear television faces demise. With more players in the game, there is much more competition. After Netflix lost subscribers for the first time, the streaming giant let go of 475 employees. And Warner Bros. Discovery is in the process of cleaning house: After shutting down CNN+, they cut 70 positions at HBO Max and even dropped a number of top executives at the Oprah Winfrey Network.

#1: Tech and Social Media

More than 28,000 tech workers have been laid off this year, according to analysis from Crunchbase. Microsoft said it would lay off around 1% of its 180,000 employees due to concerns about growth in the fourth quarter of this year. Meanwhile, Google CEO Sundar Pichai recently warned of potential layoffs. On the social media front, Snap Inc. got rid of 20% of its team, Facebook is reportedly letting go of contractors at random using an algorithm and TikTok has been shedding employees amid worldwide restructuring.

SIMONE DEL ROSARIO:

IF YOU’RE WORRIED ABOUT YOUR JOB IN THIS ECONOMY, IT’S NOT OUT OF LEFT FIELD. 50% OF COMPANIES ARE EXPECTING LAYOFFS ACCORDING TO A PWC SURVEY OF EXECS. HERE ARE THE SECTORS FACING JOB CUTS IN THIS WEEK’S FIVE FOR FRIDAY:

MORTGAGE AND REAL ESTATE STARTS US OFF AT NUMBER 5. THE HOUSING MARKET HAS COOLED, AND MORTGAGE DEMAND HIT ITS LOWEST POINT IN 2 DECADES. LENDER LOANDEPOT HAS ALREADY LET GO OF 28 HUNDRED EMPLOYEES THIS YEAR WITH 2,000 MORE ON THE WAY. REAL ESTATE FIRM REDFIN ANNOUNCED IT WOULD CUT 8 PERCENT OF ITS STAFF. AND JPMORGAN, CITIGROUP, AND WELLS FARGO HAVE SHED HUNDREDS OF MORTGAGE BROKERS.

AFTER A FINTECH FUNDING BOOM, HERE COMES THE BUST AT NUMBER 4.RETAIL TRADING PLATFORM ROBINHOOD LAID OFF 23 PERCENT OF ITS STAFF IN AUGUST, CITING LOW TRADING VOLUME, SPIKING INFLATION, AND THE ONGOING CRYPTO WINTER. SPEAKING OF, COINBASE CANNED 18 PERCENT OF ITS TEAM AND WINKLEVOSS FOUNDED GEMINI RELEASED 7 PERCENT OF ITS STAFF AFTER CUTTING 10 PERCENT EARLIER THIS YEAR.

WITH CONSUMER SPENDING FLAT, IT’S TIME FOR RETAIL COMPANIES TO TIGHTEN THEIR BELTS. BED BATH AND BEYOND ANNOUNCED LAST WEEK IT IS CLOSING 150 STORES AND LAYING OFF 20 PERCENT OF ITS 32 THOUSAND EMPLOYEES. WAYFAIR THRIVED AT THE START OF THE PANDEMIC, BUT WITH SALES FALLING, THEY NOW HAVE TO CUT 870 JOBS. AND WITH ECOMMERCE LOSING SOME STEAM, SHOPIFY IS SLASHING 10 PERCENT OF ITS WORKFORCE.

STREAMING COMES IN AT NUMBER TWO. AFTER NETFLIX LOST SUBSCRIBERS FOR THE FIRST TIME THE STREAMER LET GO OF 475 STAFFERS. WARNER/DISCOVERY IS IN THE MIDST OF CLEANING HOUSE, AFTER SHUTTING DOWN CNN PLUS, THEY CUT 70 JOBS AT HBO MAX, AND EVEN TOOK OUT SOME TOP EXECS AT THE OPRAH WINFREY NETWORK.

BUT OUR NUMBER ONE IS BIG TECH. MORE THAN 28 THOUSAND TECH WORKERS HAVE BEEN LAID OFF THIS YEAR ACCORDING TO CRUNCHBASE. MICROSOFT SAID IT WOULD LAY OFF AROUND 1 PERCENT OF ITS 180,000 EMPLOYEES, WORRIED ABOUT 4TH QUARTER GROWTH. GOOGLE’S CEO JUST WARNED OF POSSIBLE LAYOFFS. AND ON THE SOCIAL MEDIA FRONT, SNAP GOT RID OF 20 PERCENT OF ITS TEAM, FACEBOOK IS REPORTEDLY CUTTING CONTRACTORS AT RANDOM USING AN ALGORITHM, AND TIKTOK IS SHEDDING WEIGHT AMID RESTRUCTURING.

THIS IS MY LEAST FAVORITE FIVE FOR FRIDAY, THE ONLY THING I CAN LEAVE YOU WITH IS AT LEAST NONE OF THESE CEOS TRIED TO GET IN ON THE CRYING CEO MEME. I’M SIMONE DEL ROSARIO, IT’S JUST BUSINESS AND I’LL SEE YOU NEXT WEEK.