Thousands of unexpected layoffs now hit California as more companies file WARN notices, advising of upcoming job cuts in the state.
It’s important to note that under the Worker Adjustment and Retraining Notification Act, an employer with more than 100 full-time workers must provide a 60-day notice before laying off 50 or more people at a single site.
This federal law is intended to give workers time to seek alternative employment or retraining opportunities.
Over the past week, a number of WARN notices have been filed with the California Employment Development Department.
One of the latest companies warning of upcoming layoffs in California is Cisco, who has advised that a whopping 5,500 employees will lose their jobs this year.
Despite profiting billions, the company is laying off a total of 53 staff at one of its locations in San Jose, California this October.
“Cisco is laser focused on growth, consistent execution, and resetting our cost structure as we invest in AI, cloud, and cybersecurity,” a company spokesperson said.
However, Cisco isn’t the only company laying off in the Golden State.
Below is a list of other businesses who recently announced layoffs in California:
- On October 8, Genentech will let go of 93 staff in San Francisco.
- Mama’s Ladera Ranch is permanently closing, and all staff will lose their jobs in October.
- Menzies Aviation is letting go 91 staff in Los Angeles on October 31.
- AT&T is terminating 20 employees in San Ramon.
- Fermented Sciences will cut 50 staff in Ventura.
- Bright Innovations Lab is closing a facility in Santa Clarita in October, leading to mass layoffs.
- Hybrid Apparel is closing a location in Huntington Beach, resulting in layoffs on October 4.
- Paramount Global is laying off 288 employees in Los Angeles on October 12. Paramount, the parent company of CBS, Nickelodeon and MTV, is beginning a series of job cuts that would cut staff by roughly 15 percent in the United States.
- ITC Federal also announced layoffs. They will be cutting 31 staff in Laguna Niguel on October 18.
- Fastly is laying off 52 staff in San Francisco.
- Adventist Health is cutting staff in Simi Valley.
- Pitney Bowes is laying off 348 staff across two facilities in Stockton and Bloomington.
- Texas Scenic Company is laying off 23 staff in the City of Industry.
- Vytalogy Wellness is laying off 33 staff in Santa Ana.
- Vir Biotechnology is laying off 141 staff in San Francisco.
- Ajinomoto Bio-Pharma Services is laying off 127 staff in San Diego on September 30.
- Illumina is laying off 49 staff in San Diego on October 1.
- Fibro Gen is laying off 127 staff in San Francisco.
- Velo 3D is laying off 42 staff in Fremont.
- Mosaic Culver is laying off staff in Culver City.
You can search for layoffs in your state here, or follow our layoff news for updates.
Also Read: Cisco Now Profits Billions And Makes Thousands of Unexpected Layoffs
Layoff and Unemployment Report
Applications for unemployment benefits now surge to new highs, a sign that the white-hot labor market is starting to cool off.
First-time applications for unemployment benefits rose last week to 231,000, the highest level since August, per CNN.
Thursday’s data also showed that the number of continuing claims, or applications from people who have filed for unemployment for at least one week, was 1.78 million.
That’s an increase of 17,000 from the prior week, according to the Bureau of Labor Statistics.
The latest numbers come less than a week after the monthly jobs report showed the US economy added just 175,000 positions in April, less than economists expected and a steep drop-off from prior months.
US employers have now added an average of 245,500 jobs per month, versus 2023’s 251,000-per-month average.
Still, hiring remains strong.
Although the unemployment rate ticked up to 3.9%, it as seen the 27th consecutive month that the jobless rate has held under 4%, matching a streak last seen in the late 1960s.
Weekly jobless claims data tends to be volatile but, while one week’s worth of data “does not a trend make,” said Chris Rupkey, chief economist at Fwdbonds.
“We can no longer be sure that calm seas lie ahead for the US economy if today’s weekly jobless claims are any indication.”
“Company layoffs are picking up, hinting at caution on the part of companies as they weigh the outlook for the second half of the year,” he wrote in a note Thursday.
The Federal Reserve has been battling inflation by raising its key lending rate in the hopes of slowing the economy.
While the labor market has so far resisted those efforts, remaining white hot for the past 18 months despite 11 rate hikes from the central bank, Fed Chair Jerome Powell said last week that demand has “cooled from its extremely high level of a couple of years ago.”
Ian Shepherdson at Pantheon Economics said in a note earlier this quarter: “We’d need to see at least a month of elevated readings to convince us that the trend really has turned.”
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Also Read: Retirees Will Now Receive More Money For Social Security
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