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August 2023 Layoffs: CVS Health, Qualcomm and GM let go of workers

US layoffs surprisingly rose in August, indicating a cooling labor market.

A report by Challenger, Gray & Christmas, a global outplacement and business and executive coaching firm, revealed that US-based employers announced a staggering 75,151 job cuts in August alone.

It marks a 217 percent increase from the comparatively low levels observed in July – the lowest in nearly a year.

Warehousing was the sector hard hit by layoffs last month, with 32,123 job cuts from the collapse of Yellow Corp, one of the country’s largest trucking companies.

This uptick starkly contrasts the labor market’s resilience over the past year, even in the face of the Federal Reserve’s 525 basis points of interest rate hikes since March 2022.

In July, layoffs decreased annually for the first time in over a year.

However, recent data points anticipated softening, as there was a slowdown in private payroll growth and a decline in job openings during July.

The impact of these layoffs is widespread, affecting a diverse range of sectors.

Among the 30 sectors analyzed by Challenger, only five, including automotive, government, entertainment/leisure, industrial goods, and utilities, have avoided layoffs this year.

In August, other sectors experiencing significant terminations included healthcare/products, retail, and telecommunications.

Interestingly, the technology sector, the major layoff contributor for several months, saw fewer staff reductions.

Only 3,198 tech layoffs were made in August, the lowest figure since June 2022.

Companies cutting jobs in August includes CVS Health, Qualcomm, Juul, and General Motors.

The UK saw Accenture, Getir, and UBS announcing job losses.

The once successful Wilko has also collapsed, with 12,000 job losses likely.

In other noteworthy developments, the video-conferencing company Zoom is calling employees back to the office.

Amazon CEO Andy Jassy has also warned staff about potential job losses if they refuse to return to the office.

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