While the U.S. economy suffers, cuts and hiring freezes ravage various sectors.
In the last week in just last week, the U.S. economy retracted for the second time in succession, triggering fears of recession. Following the economic downturn, media, retail, and tech companies have announced plans to revamp their businesses and let employees go to reduce expenses.
The total number of terminations in June, including layoffs, quits and discharges, was 5.9 million at the rate of 3.9 per cent, according to figures from the Bureau of Labor Statistics.
Here’s a complete list of significant layoffs in the retail sector.
In the middle of July, Allbirds laid off 23 individuals.
“We have thoughtfully evaluated roles and processes in each department and in each market to ensure our operating structure is set up for the next phase of growth,” an Allbirds spokesperson stated in an announcement. “In this exercise, we sought solutions to streamline workflows, decrease the amount of work that is duplicated, and implement past lessons and operational knowledge into action.
Rocky Brands Inc.
Rocky Brands Inc. in June announced a series of layoffs that stemmed from the acquisition in 2021 of five brand names for boots by Honeywell International Inc.
The Nelsonville, Ohio-based company acquired Honeywell’s lifestyle and performance footwear segment with a purchase price of $230 million. It was a cash and debt transaction concluded by March 2021. The portfolio consisted of The Original Muck Boot Company and The Xtratuf, Servus, Neos and Ranger brands.
After conducting a cost-savings analysis of the entire group, Rocky Brands said it discovered several
“operational synergies and cost-saving opportunities,” which included shutting down the Boston offices it acquired through the acquisition and reducing the headcount of non-manufacturing for the brands acquired by around 13 per cent.
Shopify, in July, was able to lay the company off 10% of its employees.
In a letter addressed to employees, Co-founder and CEO Tobi Lutke stated that most of the affected roles included support, recruiting and sales. The functions that were over-specialized and duplicated along with categories that are “convenient to have but too far removed from building products” were also affected.
The layoffs occurred amid a pandemic-era shopping growth that has slowed. Lutke claimed he was mistaken in his projections of continued online shopping.
The month of June saw StockX able to lay off 8 per cent of its employees. The CEO of the resale platform Scott Cutler announced the layoffs to employees via an email, in which he stated that the company took measures to reduce costs through prioritizing investments already in place, cutting down on discretionary expenditures, putting limits on the number of new employees and enhancing the efficiency of the trade process.
In a letter sent to FN, StockX said that it had to adapt and pivot its business to keep pace with “macroeconomic challenges” that are present in the current economic climate and its operations.
At the beginning of August, Walmart said it was cutting jobs as it changed its structure and developed some functions “to provide clarity and better position the company for a strong future,” a spokesperson said.
The retailer is cutting hundreds of corporate jobs, According to The Wall Street Journal, which reported the news first.
The news came just one week after the large-box retailer reduced its forecast for the second quarter as consumer spending fell, especially in categories that aren’t considered discretionary like clothing.