Restructuring and layoffs are abundant throughout most industries, could they be precursors for a wider economic recession, only time will tell.
Bell Canada will cut up to 5,000 workers in Canada with possible closure in its local facilities as it sells and restructures to focus more on profitable operations. The cut represents the most substantial reduction in employees at Bell in almost 30 years.
This is the second significant round of layoffs at the media and telecommunications conglomerate since 2023. The first round of layoffs led to the reduction of nearly six per cent of Bell Media positions while this mass layoff will be just under ten percent of its total workforce.
The restructuring and layoffs is not the only industry or major companies to shift strategies, slim down on costs, and position itself for potential economic instability.
The healthcare industry in the United States is currently laying off tens of thousands of workers to increase profitability. The move threatens to stretch a severely understaffed healthcare system past its breaking point.
Overall, over seven hundred thousand jobs were cut in 2023 in the US. This is nearly double the number of workers that were terminated in 2022. This is deliberate mass unemployment in certain industries that can be dangerous to the overall health of economic conditions.
One example of layoffs is Pennsylvania-based baby tech Astarte Medical, which will totally shutdown. Reporting that it will lay off its remaining employees and sell off its operations. Astarte Medical specializes in medical care for premature babies, reporting that it will lay off its remaining employees and sell off its operations.
High inflation monetary policies and the use of major advances in automation and artificial intelligence are the two principal threats to job market.
The layoffs come amid the backdrop of a trade war between the U.S., China and Europe that likely will lead to higher prices for imports. Exports from the U.S. and other western nations face challenges from tariffs to enter foreign borders, but is not directly linked to layoffs.
Another sector reporting layoffs is the Tech startups. US companies reporting layoffs were pretty evenly split between the West Coast and East Coast tech hubs.
Reporting the highest number of employee layoffs is San Francisco-based DocuSign, which announced a restructuring plan earlier this week that includes a major staff reduction.
Recessionary activity for the startup’s include sales and marketing divisions, where the company estimates a cut of six percent of its total workforce which is over four hundred employees.
Another Big Tech company making layoff announcements are Seattle-based Amazon stating that it is laying off staff in both its Amazon Pharmacy and One Medical divisions. This is part of the company’s continuing effort to cut costs and remain highly profitable.
No Industry seems to be untouched by shrinkage. Even the artificial intelligence which you would assume is always growing, is experiencing some decline with Grammarly’s statements that it will cut over two hundred workers in a global layoff. These layoffs include employees based in Ukraine. The company says its plans are to continue investing in Artificial Intelligence technology.
Early February 2024 also saw total shutdowns from Drizly, which reports it will close down completely at the end of March, 2024. The Boston-based alcohol delivery service saw a sales surges in sales during the pandemic, prompting its acquisition by Uber.
However, with the easing of restrictions and the resulting fall in annual revenues, Uber has made the decision to close operations and focus its efforts solely on its food and beverage delivery division Uber Eats.
