If the Biden administration is to be believed, he’s done wonders with this country and our economy. Bidenomics is “working.”
And yet, a new survey proves that a whopping 38 percent of all US companies are likely to implement layoffs during the next year.
This would seem to suggest that things are not going nearly as well as Biden would have you think.
According to Forbes, companies like Nike, Roku, Amazon, Spotify, toy maker Hasbro, and more are all looking to lay off workers in the coming year. And this comes after 2023 had no small number of layoffs either.
As worker information website Resume Builder reported, 65 percent of US companies had layoffs last year. Of those, about 25 percent ended up laying off at least 30 percent of their workforce.
For this year, the site says that 38 percent of all companies surveyed said they would most likely be forced to lay off workers for one reason or another. Of those, 22 percent say 30 percent or more of their workforce will likely be cut.
Another 52 percent of US companies say that they won’t be hiring anyone new or expanding, putting a hiring freeze in place for the foreseeable future and year.
Naturally, mid-sized companies seem to be the most affected by the flailing economy and inflation rises. These are companies that employ 101 to 1,000 employees at any given time. Of these, 42 percent of their leaders fully expect layoffs to be necessary within the year.
Small businesses with 100 or fewer workers only expect to have a 28 percent layoff chance. As the report continues, 39 percent of large companies, with over 1,000 employees believe layoffs in 2024 are inevitable.
Now, as Home Grounds founder and CEO Alex Mastin says, there are always a few “tried and true methods in regards to avoiding layoffs,” especially for small businesses. Most involve “thinking outside the box and generating new ideas for revenue, marketing, and reducing overhead costs.”
Mastin also says that it can be beneficial to “expand job roles” in an effort to reduce staffing numbers, as well as salaries. Additionally, companies may find themselves less likely to implement layoffs if workers “make themselves an asset” to the company. Most do this through being willing to be trained on different tasks or multiple functions.
However, no matter how seemingly irreplaceable an employee or even the entire department, thanks to Biden’s failing economy, many companies won’t have much of a choice.
In fact, Bidenomics accounts for the top two reasons most companies are in such a predicament. Almost 70 percent of companies say a layoff is necessary to blame rising costs and, therefore, the need to reduce current expenses. Unfortunately, this usually means cutting employees.
Anticipating a recession was named as the main reason for foreseeable layoffs by 52 percent of companies.
Additionally, 42 percent say layoffs are needed to increase profits, 39 percent say they need to replace human workers with AI, and 10 percent admit to going out of business.
As Talk to Business & Politics reported, almost 3,500 brick-and-mortar retail outlets (the hardest hit by the economy) were forced out of business last year. Now, of course, part of this is due to the rise in online shopping each year.
But thanks to Bidenomics, those numbers have skyrocketed as costs, interest rates, rent, etc., have all gone up.
Hell, even Walmart, a behemoth by retail standards, seems to be struggling. In 2023 alone, they closed a record 22 locations. And news from the company admits they won’t be opening any new locations any time soon.
Instead, resources are being put towards remodeling or enlarging their existing storefronts.
By 2028, UBS equity analyst Michael Lasser predicts a whopping 50,000 retail stores to close for good.
And it’s all due to Biden’s failing economic policies. Salaries have fallen, inflation has risen, the dollar has been slashed, and homelessness is increasing like never before.
None of that speaks of a strong, booming, or even “working” economy as Biden boasts. It’s also one of the main reasons why Biden won’t likely be leading us for very much longer.