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Layoff Tsunami Hits U.S. Economy
Unemployment is a lagging economic indicator. Is reality catching up?
“UPS announces 12,000 job cuts, say package volume slipped last quarter,” reported Laya Neelakandan for CNBC on January 30, 2024.
It wasn’t the first Americans have heard of widespread layoffs, which have hit the tech and media sectors particularly hard over the past year. But package volume slippage — with so many consumers now buying more goods online — is a troubling new sign.
The UPS slump wasn’t a slight one, either.
“For the last three months of 2023, UPS reported net income of $1.61 billion, or $1.87 per share, compared with $3.45 billion, or $3.96 per share, a year earlier,” summarized Neelakandan for CNBC. “Adjusting for one-time items related to pensions and intangible assets, UPS earned $2.47 per share.”
“Revenue declined 7.8% to $24.9 billion from $27 billion last year,” added Neelakandan. “The company reported a 7.4% drop in average daily volume domestically and an 8.3% decrease internationally.”
January’s bad economic news didn’t end there.
“Roomba maker iRobot announces it’s laying off 31% of employees after Amazon deal falls through,” reported Role Wile for ABC News on January 29, 2024.