'Layoffs beget layoffs': Why 2024 could be the year of cut costs

Less than two months into 2024, major corporations have already cut thousands of jobs nationwide in an effort to drive down costs, according to a Feb. 18 report from CNBC.

In recent weeks, major conglomerates, including Mattel, PayPal, Cisco, Nike, Estee Lauder, Levi Strauss and Macy's have seen major cuts. Additionally, five of the largest U.S. banks, including Wells Fargo and Goldman Sachs, have eliminated 20,000 jobs in the last year. 

In January, 82,307 jobs were cut in the U.S., including 4,182 healthcare jobs. Layoffs come as operating costs rise for companies such as airlines, automakers, media companies and  UPS, which all agreed to labor contracts that raised wages in the last year. 

Company earnings nationwide for the first quarter of the year indicate that many are prioritizing driving higher profits and increasing sales growth, potentially leading them to cut more jobs in an effort to save money. 

The orthopedic and medtech industries have seen major hits, with companies including NuVasive, Medtronic and Johnson and Johnson announcing their own waves of cuts.  

And as cuts continue to come, companies could be setting a precedent for the rest of the year. 

"Layoffs beget layoffs," David Silverman, a retail analyst at Fitch Ratings, told CNBC. "As companies have started to announce them, it has become normalized. There's less of a stigma."

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