Job cuts have risen in the US this year, with a 6% increase for the first 11 months of 2022 compared to last year, even as the economy shows no signs of a downturn. The tech sector is driving the increase, with companies like Meta, Twitter and Amazon announcing mass layoffs in recent weeks.
Catalent, a pharmaceutical manufacturing contractor, is cutting about 600 jobs in Indiana, Texas and Maryland over the next several weeks due to a drop in demand for Covid-19 vaccines. A laid-off worker in Bloomington, Indiana, said: 'Holidays are depressing enough... I wish they would have waited till the first of the year. Who wants to find a job or hire right before Christmas?'
Stanford Professor Jeffrey Pfeffer criticised the trend, stating: 'Layoffs often do not cut costs... Layoffs are basically a bad decision.' A UK study found a layoff to be the 7th most stressful life experience, linked to increased risk of health conditions, suicide, depression and substance abuse.
Stellantis announced on 9 December the closure of an Illinois plant, laying off over 1,200 workers by the end of February 2023, citing rising costs of electric vehicle production. Worker Deanna Viel said: 'It came without the slightest bit of warning... It’s basically ruined the holidays for us.'
Before Thanksgiving, about 2,700 workers at United Furniture were laid off via email. Stephanie Watkins described the notification as 'heartless'. The company has facilities in Mississippi, California and North Carolina.
