The former CEO of CKE Restaurants says July’s “positive” job report hides a bigger problem in the Cavuto: Coast to Coast workforce.
Despite a much more robust than expected July jobs report, layoffs are rolling in at a brisk pace in early August, with a number of companies making cuts over the past week.
Tech giant Oracle reportedly led the pack by eliminating workers at its US customer experience division on Monday, with further rounds of layoffs expected at several other departments as the software company grapples with economic woes.
According to reports, Oracle Corp. started to cut jobs in the last few weeks. (Michael Short/Bloomberg via Getty Images/Getty Images)
Earlier reports last month said jobs were being cut at Oracle’s divisions in India, Canada and Europe, with thousands of workers being faced with pink slips.
Hundreds of Oracle employees have already been laid off, according to The Wall Street Journal.
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The week also began with a report that insurer GEICO had closed all 38 of its California offices and laid off hundreds of phone agents in the state. The company didn’t explain the decision, but reiterated that Californians may still be able to obtain GEICO policies in the state by buying them online.
Robinhood then announced on Tuesday that the brokerage firm would cut its workforce by 23% as part of a restructuring after reporting a 44% decline in revenue for the second quarter.
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Retail giant Walmart confirmed on Wednesday that it is also laying off company employees as part of a restructuring process after cutting its second-quarter and full-year earnings outlook as inflation takes its toll.
Walmart plans to lay off hundreds of company employees as part of a restructuring after the retailer cut its earnings outlook for the second quarter and the rest of the year. (Justin Sullivan/Getty Images/Getty Images)
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On the same day, plant-based food company Beyond Meat announced that it would reduce its headcount by around 4% in the face of falling demand for its products in the US
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CNET reported earlier this week that Verizon has also cut staff after rival wireless carrier T-Mobile made cuts.
Verizon Wireless has reportedly followed rival T-Mobile in downsizing in recent weeks. (Photo illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)
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But with many companies remaining silent on the number of job cuts, it’s impossible to know whether reports of layoffs will lead to a trend that could have a tangible impact on the economy at large by the time the August jobs report arrives.
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The latest monthly report from the Labor Department showed that 528,000 jobs were added to the US labor lists in July, dwarfing Refinitiv economists’ forecast of 250,000. However, the momentum of job growth is expected to cool in the coming months as firms cut back to mitigate slowing demand amid rising inflation.
FOX Business’ Bradford Betz, Phillip Nieto, Megan Henney and Portal contributed to this report.