(NewsGlobal.com)- After calling an early “lid” on Election Day, President Joe Biden emerged on Wednesday to take a victory lap over the lack of a Republican Red Wave.
But as Biden was spiking the football about “democracy” being saved and boasting about how Americans approve of the job he is doing, American corporations, bracing for an impending economic downturn, were trying to rein in rising costs by cutting jobs.
On Wednesday, Facebook’s Parent Company Meta announced that it would be laying off 13 percent of its staff.
In a message to Meta employees, CEO Mark Zuckerberg said that the company would be letting go over 11,000 employees. In addition to the job cuts, Zuckerberg said the company would also be cutting discretionary spending while extending its current hiring freeze through the first quarter of 2023.
Last month, Meta issued a weak fourth-quarter earnings forecast, spooking investors and causing its shares to drop nearly 20 points.
Meanwhile, the previous Friday, Twitter laid off half of its 8,000 employees. Intel announced it will be cutting as much as 20 percent of its workforce while Microsoft last week laid off about one thousand workers.
The ride-hailing company Lyft announced it would be laying off 13 percent of its workforce. Digital payments firm Stripe will be cutting its workforce by about 14 percent. And in the coming weeks, Morgan Stanley plans another round of layoffs as well.
Other US companies have either begun trimming their workforce or have plans to do so in the coming weeks while others have imposed hiring freezes.
In October, job cuts announced by US-based employers increased 13 percent to 33,843, the highest since the start of the COVID pandemic layoffs.
The Biden administration has been arguing for months that job gains debunked the claims that the US was already in a recession. But with this latest round of layoffs, that excuse no longer holds water.