Business

Layoffs grow and hiring stops in the US; fear recession

According to the latest data from the Bureau of Labor Statistics (BLS) announced this Thursday, last week the number of applications for unemployment benefits in the United States fell to 231 thousand, two thousand less than the previous week, with which the unemployment rate Unemployment remains at 3.6 percent.

The cuts and the fear of layoffs are already beginning to be felt in other sectors, such as real estate or banking.

Streaming platform Netflix and real estate firms Redfin and Compass are among the US companies to announce layoffs this month, while tech like Uber, Meta and Microsoft are cutting their hiring as inflation rises and fears of a recession.

After a decade-long boom, most of the tech-related startups that went public in the past two years now see their shares trending red.

It deals with the second round of layoffs at Netflix, which in May laid off another 150 employees after its shares fell after it admitted to investors that its growth had stalled.

For their part, banks traditionally tend to increase hiring in times of boom and resort to layoffs when the market worsens.

“When banks have a revenue problem, they have only one way to respond: by cutting costs,” said David McCormack, head of recruitment firm DMC Partners.

Last month, JPMorgan Chase Chairman Daniel Pinto said bankers face a “very, very challenging environment” and that their rates were headed for a 45 percent decline in the second quarter.

Cryptocurrency trading platform Coinbase announced this month that it will lay off some 1,100 people, 18% of its workforce, to coincide with the cryptocurrency crash and warned of a potential recession that could lead to a “crypto winter.”

For his part, his boss, Chief Executive Officer Jamie Dimon, warned investors this month that an economic “hurricane” was brewing and said the bank was bracing for volatile markets.

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