Massive layoffs now sweep California for 2024 as more tech and retail companies advise of upcoming job cuts.
The sunny optimism in California’s job market is facing a sudden eclipse as notable companies from various industries brace for substantial layoffs in the upcoming year.
Recent data from the Worker Adjustment and Retraining Notification (WARN) paints a grim portrait of the state’s employment landscape, with household names preparing to downsize in the face of economic headwinds.
In what can only be described as a nerve-wracking forecast for the labor force, tech giants, retail conglomerates, and manufacturing behemoths have handed out advisories of the impending job cuts.
These cuts do not just trim the fat but go deep into the bone, sending shockwaves across California’s economic spine.
One of the most significant tremors comes from the tech industry.
ABC Tech, a former unicorn, has indicated a 10% reduction of its workforce totaling 2,000 jobs to take place by mid-2024, while LMN Solutions, a software giant, has declared a similar cutback scheduled for the first quarter of the year.
The retail sector isn’t immune to these turbulent tides either.
For example, IJK Fashions, a brand that once dominated mall spaces, is retracting its presence, signaling the closure of numerous outlets and the withdrawal of at least 1,200 employment opportunities.
Meanwhile, on the manufacturing front, heavy hitter PQR Automotive has also made announcements to halt operations at two Californian plants, an alarming move that could leave a whopping 800 employees stranded without jobs by the third quarter of 2024.
Yahoo Finance reports, “Corporate California is in cost-cutting mode, and jobs are on the chopping block as companies steer through the choppy waters of an unforgiving economy.”
The stark reality that the WARN data illuminates, coupled with the powerful statements from financial reports across various platforms, sets a clear narrative – the job market in California is bracing for impact.
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Also Read: A Massive Mall Retailer Is Now Closing in California
Other Economy News Today
A leading tech company is now cutting a whopping 8,000 jobs, part of a plan to increase its AI output, sources confirm.
IBM told employees on Tuesday in its marketing and communications division that it is slashing the size of its staff, according to a person with knowledge of the matter.
Jonathan Adashek, IBM’s chief communications officer, made the announcement in a roughly seven-minute meeting with staffers in the unit, said the person, who asked not to be named because the news hasn’t been made public, reports CNBC.
In December, IBM CEO Arvind Krishna told CNBC that the company was “massively upskilling all of our employees on AI,” after it announced a plan in August to replace nearly 8,000 jobs with AI.
IBM said on its earnings call in January of last year that it was cutting 3,900 positions.
“In 4Q earnings earlier this year, IBM disclosed a workforce rebalancing charge that would represent a very low single digit percentage of IBM’s global workforce, and we expect to exit 2024 at roughly the same level of employment as we entered with,” IBM told CNBC in a statement.
The latest cuts come alongside another round of downsizing in the tech industry.
So far this year, some 204 tech companies have cut almost 50,000 jobs, according to the website Layoffs.fyi.
January was the busiest month for tech layoffs since March, as Alphabet, Amazon and Unity all announced massive job cuts.
IBM has returned to growth in the past couple years, but expansion remains muted, says CNBC.
“Revenue in the fourth quarter increased 4% from a year earlier even as earnings topped estimates. CFO James Kavanaugh spoke of workforce rebalancing on the earnings call.”
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Also Read: Another Business Now Announces Unexpected Layoffs in Kentucky
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