Yahoo Finance’s Post

Your firm has been through several rounds of layoffs, and you’re constantly worried about your job security You keep your head down, hoping to avoid being the next one let go. The uncertainty becomes too much, affecting your work and personal life. You decide to seek out a more stable position with a firm known for its strong business foundation. Job security is crucial. Seek stability and peace of mind in your career. It’s time to take control of your career. Get in touch to discuss your options! #JobSecurity #CareerStability

Why the layoffs? Companies that borrowed heavily during the Zirp (0% interest) era now face interest costs 5-7 times higher, with some companies going from $2 million annually interest that needs to be serviced to $12-14 million; To fund these now ballooning interest payments, cash-strapped firms are turning to deep cuts in spending & layoffs to free up cash to service debt; Where interest ate up little of free cash flow before, it now takes a huge bite - if a company had $100 million in free cash at near 0% rates, over 10% of that goes just to interest at 5%; this overnight spike in the cost of servicing debt and persistent inflation that doesn't seem to be going away anytime soon is forcing companies to reduce spending through job cuts to avoid default.

Corporate Layoffs Decline! We can see in the chart from Scott Grannis that announced corporate layoffs have declined significantly from a year ago. Layoffs were virtually nonexistent during December of 2023. The economy seems to continue to do reasonably well. The S&P 500 rallied 11% in the fourth quarter of 2023 and so far is up 0.29% here in 2024. The Goldman Sachs Financial Conditions Index is showing the fastest easing of financial conditions in history. Many of these factors are pointing to a continuation of the stock rally that began in October. According to surveys professional money managers are overweighted to stocks at one of the highest levels ever. So it seems that there is not a lot to worry about now. However the reduction in inflation has stalled out seemingly around the 3.5% to 4% level. You can see this by the reaction of the bond market where rates have gone up a bit this year. This may be giving the Fed a reason to delay any reduction in short term interest rates. And much of the investment gain we have seen are based on the Fed pivot. While I don’t think this will affect stocks now it will pay investors to continue to monitor how inflation is performing. If the decline in inflation continues to stall it could lead to trouble for stocks later this year.

Saw another firm announcing layoffs in the news today. For example, Morgan Stanley announced layoff of hundreds today. One among many. So I thought I would take a look at it. To see where we are in this layoff cycle that the Fed is inducing with its rate hikes. Layoffs started to mitigate in 2021. However, in March of 2022, we started to get a recovery in the number of layoffs from employers. By December of 2022, layoffs started to accelerate into a positive growth phase. As of December of 2023, layoffs had entered a slowing growth phase. However, they are still growing. To give you some idea of where we are at in this current layoff cycle, December's rate of change was higher than 88% of the months during the period of this study since 2002. We are way above the average for this period, but growth in layoffs is slowing. If you notice, the regression trendline is trending downward. So I would expect continued declining growth in layoffs. This picture should improve To have a conversation with me about this, simply IM me via LinkedIn. By Amos B Robinson

From Dreams to Nightmares: The Harsh Realities of Corporate Layoffs Consider the scenario of participating in 7 rounds of interviews, only to be laid off within a span of 7 minutes. Yesterday, IBM conducted a 7-minute Zoom call to announce the layoff of 3900 employees. Individuals have devoted their all to secure positions in multinational corporations, yet the very companies that were once aspirations are now turning into distressing realities. #CorporateReality #JobInsecurity #LayoffBlues #WorkplaceChallenges #EmploymentStruggles #CareerUncertainty #CorporateCulture #DreamsToNightmares #MNCs #JobMarketTrends

All over the world layoffs why because companies want their balance sheet to be maintained so they fire. But they are not able to provide business or expand business why do not they ask their employee why are not you able to deliver That is why companies  need to hire not from referrals but through exams so that all people's  from different  parts of india able to participate and scorer people  given a chance to expands  companies profits and margins. This is called competition. 

With signs of market recovery emerging, I’m curious to see if firms that previously conducted mass layoffs will now find it challenging to attract top talent. What about all those companies that ghosted candidates, posted fake jobs, and did nothing to build engagement with their candidate communities? Interesting to see how this plays out... 💡

Years ago I was working with a candidate who was torn between 2 job offers. Both were similar in title and pay. One was with a large Fortune 500 company. The other was with a lesser known, smaller local company. They went with the F500 because it was considered less risky and more stable. One year after they took that position they were laid off. ----- There is a perceived notion that joining a larger company gives you more stability. While that is true in a lot of cases, large companies can have budget cuts, divestitures and pivot strategies which can all lead to layoffs. We have especially seen this over the last 4+ years. Smaller companies can also be a stable play. You will also have a larger impact as well. 🙂

Last year one of the biggest mergers happened in the world worth $69B dollars! In 2023, Broadcom acquired VMware for a whopping $69B dollars. Although it was a great news for investors and management but not for employees who got laid off due to role redundancy. These layoffs came shocking for so many employees as it impacted their monthly income and career. One good thing was, some of their employees had already bought Upsolv (formerly Jobsurance) income protection plan. This plan helped them protect their monthly income and also supported them in placement. A regular unemployment allowance from Upsolv (formerly Jobsurance) came handy in these difficult times for them as they were preparing for next career move. I talked about their product last year as well and it is so good to see that employees who have been laid off have so far availed benefits worth Rs.50 Lacs. It’s really an amazing feeling when you talk about a product which inturn helps my linkedin family. So if you also want to protect your career and salary, check out their plans at upsolv.in which starts at just 2,499/year You can check the reviews shared by employees who talked about their experience with Upsolv - link in comment.

One of the hardest parts of being in Senior Leadership at a giant publicly traded mega-corporation is we often hear about the scope of layoffs from Stock Market analysts before our own leaders tell us. Once we hear about layoffs, we often get no new information until after the earnings call, which I assume is to avoid insider trading. The best I can do is say we know they are coming and prepare yourself for the worst. https://lnkd.in/eEdRnDSQ