Retail layoffs now reach a new record high this year since October 2020 according to a new report published on Monday.
Amid the early holiday shopping season, retailers have cut 72,182 jobs through October, a 258% increase from the 20,191 jobs eliminated in 2022, according to a new report from Challenger, Gray & Christmas.
This marks the most significant number of job cuts since retailers cut 179,520 jobs in October 2020.
Among the industries reducing their workforce this year, retail ranks second behind technology (158,513) and ahead of healthcare/products (54,429), warehousing (47,750) and financial services (47,094).
However, it’s important to note that Amazon is planning to hire 250,000 seasonal workers this year, followed by Target (100,000), UPS (100,000), Macy’s (38,000) and Bath & Body Works (32,500), per the report.
“So far this year, employers have announced plans to cut 641,350 jobs, a 164% increase from the 243,338 cuts announced in the first ten months of 2022.
This is the highest January-October total since 2020, when 2,162,928 cuts were announced.
It is the second-highest total since 2009, when companies announced 1,192,187 job cuts,” states the report.
“Job cut plans have slowed significantly since the first half of the year, and consumers have continued to spend, even in the face of high inflation.
Pandemic savings and higher wages have gotten many workers through economic uncertainty,” said Andy Challenger, labor expert and Senior Vice President of Challenger, Gray & Christmas, Inc.
So far this year, most job cuts were attributed to Economic or Market Conditions with 225,562, 35% of all cuts recorded in 2023.
Another 101,880 were due to a store, unit, or department Closing.
Through October, companies have announced plans to hire 759,935 workers, down 46% from the 1,400,468 new positions employers announced in the same period last year.
Other Economy News Today
A massive bank now closes several branches in Florida as the online banking trend continues to grow, also fueling layoffs in the sector.
This week, Wells Fargo will close the following four branches in Florida.
- 3131 West Hallandale Beach Blvd, Hallandale
- 10191 Cleary Blvd, Plantation
- 113 South Tennessee Ave, Lakeland
- 4901 Tamiami Trail, South Naples
The bank is also closing an additional four branches in California soon.
“In July, Wells Fargo laid off over 100 employees in the consumer and small business banking division in Orlando,” reports Ash Jurberg.
“Banks continue to close across the United States. Between 2017 and 2021, nine percent of all branches — almost 7,000 locations— shut their doors.”
This trend has grown nationwide as traditional banks pivot towards an ever growing digital world.
“Data from S&P Global Market Intelligence shows a total of 1,144 national and regional banks were closed between January 1 and July 31 across 49 states – and firms are pulling out of some areas faster than others,” reports the DailyMail.
“We need to concentrate Wells Fargo real estate investments in fewer locations or reduce space in existing real estate,” Wells Fargo said.
“Branches continue to play an important role in the way we serve our customers, and customers continue to value the experiences they have in our branches,” Saul Van Beurden, the bank’s CEO of consumer, small and business banking, said in a statement.
Wells Fargo has cut its workforce by roughly 40,000 since the third quarter of 2020, and more cuts ae expected, the bank’s chief financial officer, Mike Santomassimo, said last month.
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