{"id":2026144,"date":"2023-09-08T17:05:02","date_gmt":"2023-09-08T21:05:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-us-firms-start-cutting-pay-laying-off-staff-as-labor-market-cools\/"},"modified":"2023-09-08T17:09:44","modified_gmt":"2023-09-08T21:09:44","slug":"analysis-us-firms-start-cutting-pay-laying-off-staff-as-labor-market-cools","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-us-firms-start-cutting-pay-laying-off-staff-as-labor-market-cools\/","title":{"rendered":"US companies are reducing wages and letting go of employees as the labor market cools."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fanalysis-us-firms-start-cutting-pay-laying-off-staff-as-labor-market-cools%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2026144&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<p>In recent months,\u2063 the red-hot U.S. labor market has shown signs of cooling\u200b down \u2064as rising interest\u2062 rates and easing economic conditions weigh on the jobs arena.<\/p>\n<p>While this is a positive \u200bdevelopment \u2064for the Federal Reserve and its <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/zoom-tells-investors-to-accept-that-half-their-money-is-gone\/\" title=\"Zoom Tells Investors to Accept That Half Their Money Is Gone\">inflation-fighting campaign<\/a>, it is not a suitable development for workers facing an elevated \u200bcost of living, from ballooning prices to \u200csoaring costs of borrowing.<\/p>\n<p>Businesses are\u200d responding to this labor market rebalancing by starting to cut pay for new hires and laying off staff.<\/p>\n<blockquote>\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\" id=\"in_article_related_stories\">\n<div class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related\u200d Stories<\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n            <a href=\"http:\/\/www.theepochtimes.com\/article\/conflicting-jobs-data-begin-to-clear-up-over-labor-day-5488483\">Conflicting Jobs Data Begin to Clear Up Over Labor Day<\/a>\n          <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">9\/8\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\">\n          <a href=\"http:\/\/www.theepochtimes.com\/article\/conflicting-jobs-data-begin-to-clear-up-over-labor-day-5488483\"><\/a>\n        <\/div>\n<\/p><\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n            <a href=\"http:\/\/www.theepochtimes.com\/bright\/job-hunting-when-recruiters-use-ai-5488175\">Job Hunting When Recruiters Use AI<\/a>\n          <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">9\/8\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\">\n          <a href=\"http:\/\/www.theepochtimes.com\/bright\/job-hunting-when-recruiters-use-ai-5488175\"><\/a>\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/blockquote>\n<div class=\"my-5\">\n    <strong>Goldman Sachs<\/strong> has \u200cengaged in a &#8220;strategic resource assessment&#8221; initiative that involves\u200c laying off underperforming employees. According to the Financial Times, the financial institution <a href=\"https:\/\/www.ft.com\/content\/b451d88d-9e3f-4af0-9bb5-27acac9b7d30\" target=\"_blank\" rel=\"noopener\">plans<\/a> to terminate between 1 percent and 5 percent of workers,\u2064 with \u2063a focus on\u2062 its core investment banking\u2064 and trading arms. The process could begin\u2062 as early as next \u200bmonth.\n  <\/div>\n<p>The Wall Street giant\u200d initiated its layoffs earlier \u200cthis year,\u200b when it eliminated 3,200 \u2064positions, or 6.5 percent of \u200bits \u200cpersonnel, to cut costs \u200cand limit its losses.<\/p>\n<p>Last year, compensation rates\u200c were sharply lower as the bank slashed\u2064 pay by 30 percent from \u2064the previous year. Even Goldman Sachs CEO\u200c David Solomon&#8217;s income \u2063was lowered by 29 percent to $25 million.<\/p>\n<div class=\"my-5\">\n<p>    \u200c  The latest \u2063news comes as Goldman&#8217;s net\u2064 profit declined 35 percent in the \u200cfirst months of 2023.<br \/>\n   \u200d<\/p>\n<h2>Walmart Cuts Starting Pay<\/h2>\n<p>    Walmart has reduced starting pay\u200d for \u2064new store employees who pick and pack online orders and stock shelves, the retail juggernaut confirmed.<br \/>\n \u2063\n  <\/p><\/div>\n<p>New Walmart employees will earn a dollar less per hour going forward.\u200d Current workers in the digital or stocking teams will see their pay impacted. The purpose was to ensure starting pay was consistent across the company. But the corporate titan also adjusted pay bands for experienced workers, resulting in \u2064a wage \u2064hike for about\u2063 50,000 employees.<\/p>\n<div class=\"my-5\">\n<p>    In March 2021, Walmart <a href=\"https:\/\/corporate.walmart.com\/news\/2021\/02\/18\/walmart-u-s-ceo-john-furner-to-associates-a-memorable-year-and-an-investment-in-you\" target=\"_blank\" rel=\"noopener\">raised wages<\/a> for approximately 425,000 employees. This made starting earnings range from $13 to $19 an hour, which depends on the store&#8217;s location in the United States.\n  <\/div>\n<div class=\"my-5\">\n<p>    Last month,\u2064 Reuters <a href=\"https:\/\/www.reuters.com\/business\/healthcare-pharmaceuticals\/walmart-cuts-pharmacist-pay-hours-while-workload-piles-up-2023-08-29\/\" target=\"_blank\" rel=\"noopener\">reported<\/a> that about 16,000 pharmacists were asked by Walmart to\u2064 take voluntary pay cuts by \u2063trimming their \u200chours as part of a broader effort to reduce costs. The company cited a decrease in demand for pharmaceuticals and requests from pharmacists\u200b for\u200d an <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/uaw-union-workers-authorize-auto-strike-amid-contract-negotiations\/\" title=\"UAW union workers approve auto strike during contract talks.\">improved work-life balance<\/a>.\n  <\/div>\n<div class=\"my-5\">\n<p>    Earlier this year, Walmart cut the operating hours of its pharmacies by two hours at 4,500 stores.<\/p>\n<h2>Companies Prepare\u2062 for Slowdown<\/h2>\n<p>    \u2063   \u200cU.S. \u200bfirms are \u200costensibly bracing for an economic slowdown or a recession \u2062as they employ a blend \u200dof cost-cutting measures \u2062that\u200d include \u2063layoffs and \u2062pay cuts.\n  <\/p><\/div>\n<div class=\"my-5\">\n<p>    Roku became the latest\u2063 technology company to conduct \u200banother round of layoffs. \u2062The streaming entity plans to terminate 10 percent of\u2062 its workforce, affecting 360 employees, according to a Securities and Exchange Commission (SEC) regulatory <a href=\"https:\/\/www.sec.gov\/ix?doc=\/Archives\/edgar\/data\/0001428439\/000119312523228986\/d468150d8k.htm\" target=\"_blank\" rel=\"noopener\">filing<\/a>. It has fired 800 employees since \u200bNovember 2022.\n  <\/div>\n<p>&#8220;In light of Roku, Inc.\u2019s continuing evaluation of \u2063its \u200boperations, on \u200cSeptember 5, \u200c2023, the Company determined to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/imf-argentina-reach-staff-deal-on-loan-reviews-to-unlock-7-5-billion\/\" title=\"IMF and Argentina agree on loan reviews, unlocking .5 billion.\">implement additional\u2062 measures<\/a> to continue to bring down its\u2062 year-over-year operating expense growth rate\u2063 by consolidating its office\u200b space\u2064 utilization, performing a strategic review of its content portfolio, \u2062reducing outside services\u200c expenses, and slowing its year-over-year headcount expense growth rate through a workforce reduction and limiting new hires, among other measures,&#8221;\u2062 the\u200b filing stated.<\/p>\n<div class=\"my-5\">\n<p>    \u200b  In August, wireless carrier \u2064T-Mobile <a href=\"http:\/\/Because of this, we do not envision making additional largescale reductions across the company again in the foreseeable future\" target=\"_blank\" rel=\"noopener\">announced<\/a> plans to eliminate 5,000 jobs, \u200drepresenting about\u200c 7 percent \u200cof its workforce. The layoffs would \u2063mostly impact corporate, back-office, and technology roles.<br \/>\n \u200b\n  <\/div>\n<p>\u201cThis is a large change, and an unusual\u2063 one for our company,\u201d wrote CEO Michael Sievert. \u201cBecause of this, we\u200d do not <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-us-firms-start-cutting-pay-laying-off-staff-as-labor-market-cools\/\" title=\"US companies are reducing wages and letting go of employees as the labor market cools.\">envision\u200b making additional large-scale \u200dreductions<\/a> across the company again in the foreseeable future.\u201d<\/p>\n<div class=\"my-5\">\n<p>    \u2062  McDonald&#8217;s fired hundreds of workers, shut down all\u2063 of its 10 field offices, and cut pay \u2064and benefits for employees this past spring. The moves were\u2063 part of the fast-food behemoth&#8217;s <a href=\"https:\/\/www.wsj.com\/articles\/mcdonalds-cuts-pay-packages-closes-offices-alongside-layoffs-across-chain-1039c20b?mod=newsviewer_click&#038;adobe_mc=MCMID%3D56610414115512215582730707197968694736%7CMCORGID%3DCB68E4BA55144CAA0A4C98A5%2540AdobeOrg%7CTS%3D1680888794\" target=\"_blank\" rel=\"noopener\">restructuring<\/a>.\n  <\/div>\n<div class=\"my-5\">\n<p>    \u2062 According \u200bto the latest Challenger Gray and Christmas <a href=\"https:\/\/www.challengergray.com\/blog\/job-cut-announcements-jump-in-august-2023-ytd-up-210\/\" target=\"_blank\" rel=\"noopener\">report<\/a>, U.S.-based \u2064employers announced more than 75,000 job cuts in August, up 217 percent month-over-month and 267 percent year-over-year.\u2063 In \u2062the first eight months of 2023,\u200c businesses have confirmed plans to slash 557,057 positions.\n  <\/div>\n<p>\u201cJob openings are falling, and American workers are more reluctant to \u200cleave their positions right\u2062 now. The job market is\u2064 resetting after\u2063 the pandemic and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-economy-adds-187000-new-jobs-unemployment-rate-climbs\/\" title=\"US economy gains 187k jobs, but unemployment rate rises.\">post-pandemic hiring frenzy<\/a>,\u201d said \u200cAndrew Challenger, labor\u2064 expert and Senior Vice President of Challenger, Gray &#038; Christmas, Inc., in a statement.\u2064 &#8220;The increase in job cuts is not surprising \u200das technological disruption\u200d and companies taking a cost-savings approach on the economy claim positions.&#8221;<\/p>\n<div class=\"my-5\">\n<p>    A recent\u200d <a href=\"https:\/\/www.nber.org\/system\/files\/working_papers\/w31528\/w31528.pdf\" target=\"_blank\" rel=\"noopener\">study<\/a> conducted by the National Bureau of Economic Research (NBER) learned that 60 percent of workers recently given the pink slip would have agreed to a wage decrease of 5 percent. If\u200c steeper \u200bcuts were needed, close to a third\u2064 of survey participants would have accepted a pay cut of as much \u200bas 25 percent.\n  <\/div>\n<p>\u201cEmployer reluctance to offer wage \u2064cuts becomes more puzzling in the face of widespread\u2063 worker willingness to accept them,\u201d the study \u2063authors wrote. \u201cTo our knowledge, we are the first to document the disjunction between worker-side openness to\u200b wage cuts \u2063and a widespread unwillingness of employers to even broach the subject.\u201d<\/p>\n<div>\n<figure style=\"width:600px\" class=\"alignnone\"><figcaption>A hiring sign is displayed at a restaurant in Prospect\u2062 Heights, Ill., on April \u20644, 2023. (Nam Y. Huh\/Reuters)<\/figcaption><\/figure>\n<\/p><\/div>\n<div class=\"my-5\">\n<h2>The Federal \u2063Reserve Is Winning<\/h2>\n<p>    Since igniting its quantitative tightening program in March 2022, the\u200c Federal Open Market Committee (FOMC) has attempted to soften \u2063labor \u200bconditions.\n  <\/p><\/div>\n<p>In his speech at the Jackson\u2064 Hole economic symposium last month, Fed Chair Jerome Powell\u2064 noted\u2064 that the <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In recent months, the strong U.S. labor market has started to cool due to higher interest rates and a softer economy. While this benefits the Federal Reserve&#8217;s fight against inflation, it poses challenges for workers dealing with increased living costs.<\/p>\n","protected":false},"author":278,"featured_media":2026145,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2026144","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2026144","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/278"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2026144"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2026144\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2026145"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2026144"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2026144"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2026144"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}