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CNBC’s Mad Money host Jim Cramer predicted that many companies would reduce their existing workforce after the Christmas holidays to maintain economic stability. The leading big tech companies like Twitter, Meta and Apple recently fired hundreds of workers in the last few weeks. At the end of November, US-based firms announced a 76,835 job cuts.
Jim Cramer said, “I am sure there will be many layoffs after Christmas. I don’t want to finger-point at the retailers who are most likely to be thrown into bankruptcy when the holidays are over, but I do want people to realize that, in a way, our current high-inflation economy is a high-quality problem.”
The big tech giants removed half of the workforce to reduce the company’s revenue loss while some firms froze hiring. “Even the most marginal, newly public enterprises just keep chugging along. You would think some of these SPAC names would run out of money soon,” Cramer added.
Tech Giants That Announced Layoffs Recently
The CEO of Metaverse, Mark Zukerberg announced that 11% (11,000) was laid off in an emotional message on November 9. As per The Coin Republic, Facebook and Instagram had more than 87,000 employees. Explaining the layoffs, Zukerberg said that the company had faced huge losses.
Twitter CEO Elon Musk laid off 50% of employees explaining that Twitter was facing a loss of $4 million per day.
Crypto firms have also announced layoffs to overcome losses. Mercado Bitcoin is laying off 15% of its employees, or nearly 100 members. Other crypto-related companies in Latin America that have announced layoffs include crypto exchange Bitso, Mercando Bitcoin’s main competitor in Brazil, and Argentina-based exchange Buenbit.
Fed and Inflation control
The Federal Reserve Chair Jerome Powell’s recent comments on interest rate hikes jerked markets. The United States central bank has raised interest rates by 75 basis points four times in a bid to tame record-high inflation. Analysts predict a future interest rate rise by 50 basis points or 0.50 percent. Jim Cramer said Jerome Powell saved more than 120,000 jobs in the recent mass layoffs.
Following Powell’s comment, the US Dollar dipped marginally. Meanwhile, the Dow 30 index was back into the bull market, nearly 20% up compared to September.
Jerome Powell stated, “despite some promising developments, we have a long way to go in restoring price stability. Wage growth remains well above levels that would be consistent with 2% inflation over time.”
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
