These 7 Major Companies Are Laying Off Workers by the Thousands. Should You Worry About the Economy?

Signs of an impending economic slowdown are everywhere, and a growing number of experts are worried that a recession may be around the corner.

That doesn’t mean that a contraction of the economy is a sure bet. It is worth noting that economists and pundits have been predicting a recession for years, and it has not yet come to pass.

However, the odds of a slowdown appear to be growing. Even though the U.S. economy continues to perform relatively well, thousands of workers are receiving pink slips at some of America’s best-known companies.

Following is a roll call of the firms that are now slimming their workforces or planning to do so soon.

Amazon

One of the world’s biggest retailers plans to lay off tens of thousands of workers, according to news reports.

Reuters recently reported that Amazon may cut up to 30,000 corporate jobs. Layoffs are now underway, according to the report.

Sources told Reuters that the layoffs are a result of hiring too many employees during the COVID-19 pandemic, when orders at Amazon surged. The company is attempting to cut costs as it lays off an estimated 10% of its corporate workforce.

UPS

UPS is expected to shed 48,000 jobs as part of an effort to turn its fortunes around.

The package-delivery company already has cut 34,000 operational positions and is expected to lay off another 14,000 people who mostly work in management positions.

In 2023, UPS negotiated a rich package of benefits with the Teamsters union that represents the company’s drivers. Now, UPS increasingly is turning to gig drivers for its deliveries and has offered buyouts to many full-time drivers.

Target

A slump in sales has pushed Target to make its first major layoffs in a decade.

The retail giant is trimming 1,800 corporate jobs. Around 1,000 workers will lose their jobs, and another 800 positions will no longer be filled. Taken together, the cuts will reduce the corporate workforce by about 8%.

CNBC reports that sales at Target have been stagnant for about four years.

GM

General Motors is laying off more than 1,700 workers, mostly at manufacturing sites in Michigan and Ohio. In addition, another large number of workers — 1,550 — have been temporarily laid off in Ohio and Tennessee.

The car manufacturer says a slowdown in sales of electric vehicles is behind the round of job cuts.

Booz Allen Hamilton

Government contractor Booz Allen Hamilton announced earlier this year that it would slash its workforce of 35,000 by 7%. Now, it has announced additional job cuts as revenue declines and the number of its federal contracts falls.

The company has not specified how many jobs will disappear in the latest round of layoffs.

Paramount

Paramount Skydance has laid off about 1,000 employees and plans total cuts of 2,000.

The job losses come a few months after the close of the merger between Paramount and Skydance Media. In a memo to employees, CEO David Ellison said the cuts were part of a restructuring that was necessary to build “a strong, future-focused company,” CNBC reports.

The media and entertainment company’s cuts are intended to target redundancies in the firm and to phase out roles “no longer aligned with our evolving priorities,” according to Ellison.

Starbucks

A $1 billion restructuring program at Starbucks will include the layoffs of about 900 non-retail employees. That comes after the cuts of 1,100 corporate positions earlier this year.

The coffee chain has seen same-store sales fall for six straight quarters as cost-conscious consumers turn to other alternatives, according to CNBC.