The job cuts in the tech industry continue to pile up. Google announced plans to lay off 12,000 people from its workforce, while Microsoft said that it’s letting go of 10,000 employees. Amazon also began a fresh round of job cuts that are expected to eliminate more than 18,000 employees and become the largest workforce reduction in the e-retailer’s 28-year history. The layoffs come in a period of slowing growth, higher interest rates to battle inflation, and fears of a possible recession next year.
In this episode of The Higher Standard, Chris and Saied examine this news and as always, attempt to determine how it affects the economy as a whole.
They discuss a report from the Commercial Observer, based on data from Cushman and Wakefield, which shows that the vacancy rate in the fourth quarter for shopping centers was 5.7 percent, the lowest level in 15 years.
Chris and Saied look at an item from CNN stating that the US hit the debt ceiling set by Congress on Thursday, forcing the Treasury Department to start taking extraordinary measures to keep the government paying its bills and escalating pressure on Capitol Hill to avoid a catastrophic default.
They also offer some thoughts on the unexpected drop in unemployment benefits claims that occurred last week, suggesting a tight labor market, despite higher interest rates.
Join Chris and Saied for this fascinating and informative conversation.
What You’ll Learn in this Show:
- The debt ceiling: What it is and why it matters.
- Why home sales have slumped to a 12-year low.
- How much of the return to offices is because of executive level productivity vs. morale.
- The problem with ego and the distorted reality it can create.
- And so much more...
"US hits debt ceiling, prompting Treasury to take extraordinary measures" (article from CNN Politics)
"Google, Microsoft, Amazon and other tech companies have laid off more than 70,000 employees in the last year" (article from CNBC)
"US shopping center vacancy hits 15-year low" (The Real Deal via Instagram)
"The curtain is closing on these Regal theaters in SoCal" (NBCLA via Instagram)
"U.S. home sales slump to 12-year low; glimmers of hope emerging" (article from Reuters)
"U.S. will hit its debt limit Thursday, start taking steps to avoid default, Yellen warns Congress" (article from CNBC)
"Tamer CPI Inflation Rate Should Keep S&P 500 Rallying Until The Fed Meeting" (article from Investor's Business Daily)
"Economists in WSJ Survey Still See Recession This Year Despite Easing Inflation" (article from The Wall Street Journal)
"Inflation isn't coming down without a recession and interest rates will continue to skyrocket, JPMorgan Asset Management investment chief says" (article from Yahoo! Finance)
"Wholesale prices fell 0.5% in December, much more than expected; retail sales fall" (article from CNBC)
"U.S. weekly jobless claims unexpectedly fall" (article from CNBC)
"Google employees scramble for answers after layoffs hit long-tenured and recently promoted employees" (article from CNBC)
"Spotify cuts 6% of its workforce — read the memo CEO Daniel Ek sent to staff" (article from CNBC)