Business
Big Tech Layoffs Tied to Record Inflation in 2022
Layoffs at Big Tech behemoths such as Twitter, Amazon.com, and Meta Platforms (Facebook) are the first on a large scale since early 2020.
After years of falling unemployment in the United States, it may appear that Silicon Valley is heralding the start of a dystopian future for workers. However, there is a good chance that what happens in Silicon Valley will not affect the rest of the economy.
A few years ago, big tech firms were quick to hire. After the pandemic struck in 2020, it took four months for employment in the “other information” sector to return to pre-pandemic levels. In comparison, total employment did not recover for another 29 months.
Regarding firing, Big tech in Silicon Valley is also ahead of the curve. Rising interest rates make capital more expensive, forcing businesses to cut spending on future projects.
This is especially difficult for tech companies that rely heavily on innovation to drive growth. Elon Musk cut Twitter’s headcount in half in November to cut costs. Employment has since fallen further as dissatisfied employees resign.
Companies are still hiring elsewhere. In September, there were roughly two job openings for every available worker.
According to Indeed, job postings for restaurant workers were up 38% from pre-pandemic levels as of Nov. 10. Listings for hospitality and tourism are 15% higher than they were previously.
Big Tech layoffs and slower hiring
Could Silicon Valley’s aches and pains spread? That depends on the Federal Reserve, which is mandated to reduce inflation from 6.3% to 2%, excluding food and energy prices.
In September, officials warned that the fight would almost certainly result in layoffs and slower hiring. According to the Fed’s projections, unemployment will reach 4.4% in 2024, implying that 1.2 million more people will be out of work.
Nonetheless, inflation appears to have peaked in June. On Wednesday, Fed Governor Christopher Waller suggested that such a trade-off might be avoidable.
This raises the prospect of a tech-specific adjustment rather than a white-collar recession. That’s not much consolation for employees returning their door badges. However, it suggests that Silicon Valley’s modest purge may be the worst it gets.
Amazon.com, Twitter, Meta Platforms, and other technology companies have recently laid off tens of thousands of workers as executives look to cut costs and prepare for slower growth.
According to the Federal Reserve, rising interest rates could lead to higher unemployment. Fed Chair Jerome Powell has repeatedly emphasized high job openings as a sign of an imbalanced labour market.
Inflation killing jobs
Inflation data released on November 10 showed that prices rose 7.7% yearly through October. This is a decrease from the previous month’s rate of 8.2%.
According to a KPMG study, at least 91 percent of top job creators are bracing for a Biden Recession, with more than half considering layoffs in the next six months.
“America’s CEOs are becoming an increasingly pessimistic group as inflation rages, and the Federal Reserve keeps hiking interest rates,” according to Fox Business.
Another recent survey found that more than a third of chief financial officers (CFOs) believe the United States is either in a recession or will be by the end of the year.
Layoffs at Big tech companies in the United States and Europe have recently increased due to record inflation, higher energy costs, and central banks aggressively raising interest rates, which has fueled recession fears.
During the coronavirus pandemic, technology companies increased hiring to meet increased consumer demand, but the tables have turned in 2022.
Global inflation has reached its highest level in nearly 40 years, forcing central banks to raise interest rates in late 2021, significantly reducing the amount of capital and liquidity available in markets for investment.
Major technology companies have been laying off employees or putting new hires on hold at an unprecedented rate to cut costs.
According to the data tracker website Layoffs.FYI, 788 tech companies have laid off 120,699 employees worldwide since the beginning of 2022.
According to a report by business information provider Crunchbase, over 67,000 workers in the US technology industry have been laid off this year.
Source: Reuters
Business
Sonic the Hedgehog Dominates Christmas Wish Lists
Sonic the Hedgehog is dominating Christmas wish lists this year. The lovable blue hedgehog is back in the spotlight, from sonic the hedgehog toys and games to sonic the hedgehog coloring pages and movie hype.
Sonic-themed holiday merchandise is on fire, from quirky sweaters to action figures flying off shelves. Sonic the Hedgehog Christmas outfits for kids are selling out fast, making them a go-to gift option for festive fun.
Retailers have been quick to recognize Sonic’s holiday appeal. Special promotions and exclusive items, like the Sonic holiday t-shirts, are everywhere.
Everyone’s stocking up on Sonic merchandise, from big-box stores to boutique retailers.
Online shopping platforms are seeing a surge in searches for Sonic items. Whether it’s Sonic Christmas-themed tops or Sonic the Hedgehog coloring pages, Sonic the Hedgehog toys or Sonic and the Hedgehog 3, the demand is skyrocketing.
Retailers who tap into this trend are sure to see strong holiday sales.
Sonic has been around since the early 90s, but his popularity never wanes. With the release of Sonic 3, fans are more excited than ever.
Sonic the Hedgehog 4
Meanwhile, Paramount Pictures is preparing “Sonic the Hedgehog 4,” with the newest addition in the family-friendly genre set for a spring 2027 release.
The announcement comes as “Sonic 3” opens in theatres on Friday, estimated to gross $55 million to $60 million from 3,800 North American locations.
The sequel is shaping up to be a good holiday season blockbuster for Paramount, which explains the desire in future “Sonic” adventures. On the international front, the film will be released on Christmas Day in 52 markets.
On Rotten Tomatoes, critics gave “Sonic 3” an outstanding 87% fresh score.
The first two films grossed a total of $725.2 million at the global box office and generated over $180 million in global consumer expenditure through home entertainment rentals and digital purchases.
They also inspired a spinoff Paramount+ series, “Knuckles,” which premiered earlier this year.
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Business
Amazon Strike Called By Teamsters Union 10,000 Walkout
An Amazon strike has hit facilities in the United States in an effort by the Teamsters union to pressure the corporation for a labour agreement during a peak shopping season.
The Teamsters union told the Associated Press that Amazon delivery drivers at seven facilities in the United States walked off the job on Thursday after the firm failed to discuss a labour contract.
According to the union, Amazon employees in Teamsters union jackets were protesting at “hundreds” of additional Amazon facilities, which the union billed as the “largest strike” in US history involving the company.
The corporation, which employs over 800,000 people in its US delivery network, stated that its services will be unaffected.
It was unclear how many people, including members of Germany’s United Services Union, participated in Thursday’s demonstration. The Teamsters union reported that thousands of Amazon employees were implicated in the United States.
Amazon Strike at 10 Locations
Overall, the group claims to represent “nearly 10,000” Amazon strikers, having signed up thousands of people at roughly ten locations across the country, many of whom have joined in recent months.
The organization has claimed recognition from Amazon going on strike, claiming the firm illegally neglected its obligation to bargain collectively over salary and working conditions.
The Teamsters is a long-standing US union with nearly one million members. It is well-known for securing lucrative contracts for its members at companies like delivery behemoth UPS.
Most of the Teamsters’ Amazon campaigns have concerned drivers working for third-party delivery companies that partner with the tech behemoth.
Amazon denies that it is liable as an employer in those circumstances, which is a point of legal contention. In at least one case, labour officials have taken a preliminary stance in favour of the union.
Stalled Contract Negotiations
Amazon employees at a major warehouse on Staten Island in New York have also chosen to join the Teamsters. Their warehouse is the only Amazon facility in the United States where labour officials have formally recognized a union win.
However, the Amazon strike is because contract negotiations have not progressed since the 2022 vote. It was not one of the areas scheduled to go on strike on Thursday.
Amazon, one of the largest employers in the United States, has long received criticism for its working conditions and has been the target of activists seeking to gain traction among its employees.
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Business
Amazon Encounters Numerous Strikes As Unions Aim At The Holiday Shopping Surge.
(VOR News) – Thousands of Amazon employees at various sites across the country were scheduled to go on strike on Thursday in an effort by the Teamsters union to pressure the retail behemoth to acknowledge its unionised workers in the United States.
The walkout is expected to concentrate on seven Amazon locations across the country during the holiday purchasing surge and may be the most significant union action against Amazon in the nation’s history.
The business announced on Thursday morning that there had been no effect on operations. It also stated that it is “continuing to concentrate on fulfilling customers’ holiday orders.”
The International Brotherhood of Teamsters maintains that it represents more than 10,000 Amazon employees and contractors in aviation centres, warehouses, and delivery centres.
Amazon has refused to acknowledge the union for many years.
The retail giant, which employs approximately 1.5 million individuals, excludes contractors and part-timers. A strike has been initiated by delivery couriers and warehouse employees at seven distinct locations in order to exert pressure on the company to negotiate a collective bargaining agreement that would encompass modifications to compensation, amenities, and working conditions.
Picketing was intended for New York, Atlanta, Los Angeles, San Francisco, and Skokie, Illinois.
Also, the Teamsters assert that they are establishing picket lines at “hundreds” of additional warehouses and delivery centres by encouraging non-unionized workers to picket under U.S. labour law, which protects workers’ ability to take collective action to further their interests.
“Amazon workers are exercising their power,” Randy Korgan stated to NPR.
“They now realise there is a pathway to take on a corporate giant like this – and that they hold the power.” Amazon responds by accusing the Teamsters of fabricating information regarding the strikes, asserting that the participants are “entirely” outsiders rather than employees or subcontractors of the corporation.
Amazon spokesperson Kelly Nantel stated that “the reality is that they were unable to secure sufficient support from our employees and partners and have invited external parties to harass and intimidate our team.” For more than a year, the Teamsters have been intentionally misleading the public by claiming to represent “thousands of employees and drivers.” They do not.
The Teamsters did not provide a specific duration for the strike; however, they informed NPR that it would extend beyond one day. Workers would receive $1,000 per week in strike money, as per the union.
Teamsters President Sean O’Brien issued a statement in which he stated, “If your package is delayed during the holidays, you can attribute it to Amazon’s insatiable greed.” We established a firm deadline for Amazon to attend the meeting and treat our members equitably. They disregarded it.
The Teamsters granted until December 15 to convene with its unionised employees and develop a collective bargaining agreement.
Amazon has opposed all unionisation efforts in court, asserting that unions were not advantageous to its employees and emphasising the compensation and benefits that the organisation currently provides.
Amazon has been accused of discriminatory labour practices on numerous occasions, including the termination of labour organisers. Furthermore, it has disputed its official status as a contract employer.
Teamsters organize Amazon delivery couriers and other employees.
In June, Amazon established its first unionised warehouse in Staten Island, New York, two years after making history by voting to join the fledgling Amazon Labour Union, which is also affiliated with the Teamsters.
The union is one of the most influential in the United States and Canada, with 1.3 million members. On Thursday, the German United Services Union declared that Amazon employees in Germany would participate in a strike in conjunction with their American counterparts.
In the past, Amazon has experienced demonstrations in Germany and Spain that were related to the holiday season in order to advocate for improved wages and working conditions.
“The holiday season has arrived.” Delivery is anticipated. Patricia Campos-Medina, the executive director of Cornell University’s Worker Institute, asserts that “this is the moment in which workers have control over the supply chain.”
The Teamsters have reported that Amazon’s profits have increased both during and after the pandemic. The corporation is currently valued at over $2.3 trillion, with net income of $15 billion in the most recent quarter alone. It is the second-largest private employer in the United States, following Walmart.
SOURCE: NPR
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