Is a Wave of Mass-Layoffs Coming?
Big names in tech like Peloton, Netflix, and Coinbase, who benefitted from a rise in demand during the pandemic, have recently announced major layoffs. Is this a mere blip or should we be expecting a wave of layoffs on the horizon?
Big names in tech like Peloton, Netflix, and Coinbase, who benefitted from a rise in demand during the pandemic, have recently announced major layoffs. Is this a mere blip or should we be expecting a wave of layoffs on the horizon? By using the latest data from the WARN Act, which requires companies to provide notice of at least 60 days to the DOL in case of a large layoff (50 employees or more), we can see what lay-offs are coming soon.
In the grand scheme of things, especially compared to Spring of 2020, things are looking really calm and steady at the moment.
By zooming in on the number of workers laid off in more recent times, and to be laid off in the coming months, we can see that there’s actually still little reason to be concerned.
That said, WARN data pertains to relatively large companies. But we can also track layoffs at smaller companies using Layoffs.fyi. Within these smaller firms we can see an increase in the current quarter, which suggests that small firms and start-ups are driving the current perception around these increasing layoffs.
- The WARN Act mandates advance notices of mass-layoffs, and allows us to see past and expected layoffs two months before they occur.
- Contrary to Elon’s gut, actual data suggests that there is no major wave of mass-layoffs coming, neither in terms of layoff events nor employees let go.
- However, there has been an uptick in smaller layoff events at younger tech companies.