An illustration of a cardbox box showcasing layoffs.

Illustration by Alex Cochran, Deseret News

While some fear that a recession may be around the corner, some possible effects are already visible. Unemployment claims jumped from 7,000 to more than 250,000 in July, an eight-month high, Labor Department data showed.

Meanwhile, the personal consumption expenditures price index, which tracks the prices of food, energy and other commodities, rose 9.1% in the past year, according to the Bureau of Labor Statistics.

The possibility of a recession — described as “a period of temporary decline observed throughout the economy” by Christian vom Lehn, associate professor of economics at Brigham Young University — is forcing tech companies to slow down hiring and consider layoffs.

Robinhood lays off big chuck of workforce

Robinhood, an investing platform, was the latest company to announce layoffs, slashing 23% of its workforce after letting go of 9% of its employees in April.

CEO Vlad Tenev pointed to the “deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad crypto market crash” as the reason for layoffs in a blog post on the company website.

Tech companies that laid off employees last month

Here is a list of tech companies that announced layoffs in the month of July:

Oracle: The Information reported the company has laid off an unknown number of employees in the U.S. customer experience unit, with more cuts in Canada, India and parts of Europe to follow suit, putting the ballpark number …read more

Source:: Deseret News – Utah News


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