2 Timothy 3:1-5 – “This know also, that in the last days perilous times shall come”
2022: A Big Mass Layoff To Come
The year 2022 has been far from great but rather challenging. A big mass layoff is to come this year and many are unprepared.
Millions are about to lose their job.
The Fed (federal reserve) realized that it is simply impossible to contain supply-driven inflation.
Three mass layoffs were just announced! Here are some of the companies to follow suit.
Credit Suisse, a financial service provider, will begin laying off 5,000 employees.
Amazon, an ecommerce company, will layoff 353 employees. The downsizing by the internet retailer is a result of slowing sales after the surge in online spending during the height of the pandemic.
Tencent, a technology company will be laying off 5,500 employees.
The tech company announced layoffs for the first time in 10 years.
Wayfair, the online home goods retailer, is laying off close to 900 employees to reprioritize investment needs and meet the company’s current needs.
Peloton, the exercise equipment company, is laying off nearly 800 people across its customer service and distribution departments.
Conclusion
Until inflation comes down a lot, the Fed is really a single mandate central bank.
Rate hikes have dire tradeoffs in other sectors of the economy. In other words, if the Fed’s intention is to spark a recession, it will spark a recession.
The US is facing a labor crisis of epic proportions with millions and millions of mass layoffs.
Food and energy aren’t the only things people buy that are subject to supply-side volatility.
The unemployment rate is not high enough. More people must lose their job.
The unemployment rate needed to hit the Fed’s target in this scenario is 6.4%. It is 4.1% currently.
By the end of the Biden admin in 2024, the unemployment will have to soar to 6.5% for inflation to plunge to the Fed’s historical target of 2.0%.
They need less people working to keep demand down. Does that make sense?
If you don’t have a job, you cannot buy anything which will allow more supply to be available for those who are still working.
To normalize inflation back to 2% it means nearly doubling the number of unemployed Americans.
At some point the Fed will concede it has no control over supply.
It will take a few months to grasp what is coming.
DISCLAIMER: I am not a financial adviser. This site is for educational purposes only. It is imperative that you do your own research. I am sharing my opinion from personal research and experience with no guarantee of gains or losses on investments, finance etc.
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