A White-Collar Recession? Why Layoffs Are Hitting Professional Workers | WSJ 

The economy needs a serious recalibration. The ratio between the cost of everything vs. how much people are getting paid and expected to do at work is the worst it's been in a long time.

I work in civil engineering and a bunch of my coworkers worked for developers in 2008. They talk about the early part of the great recession like an apocalypse where prospects for employment went from plentiful and high paying to non-existent in like a month and didn't come back for years. It's a good reminder that nothing is as secure as it looks. 🙃

We are faced with fresh issues every day. It now serves as the norm. We initially mistook it for a crisis, but now we recognize it as a new normal to which we must adjust. What actions may we take to increase income during the quantitative adjustment since 2023 will be a year of tremendous economic suffering for the whole country? I can't allow my $800k in savings to disappear after all my hard work.

Inflation is far more harmful to individuals than a collapsing stock or property market because it directly affects people's cost of living, which they immediately feel. It is not surprising that the current market sentiment is extremely pessimistic. In today's economy, assistance is critical if we are to survive.

Funny how the WSJ never speculates the reasons for layoffs. It’s simply assumed that companies over-hired during COVID. While that’s plausible, it doesn’t make much sense. Companies across many industries are generating near record profits. Much of their capital is being spent through shareholder buybacks. Maybe…just maybe the layoffs are simply a strategic tool to appease institutional investors, and it has nothing to do w/ actual headcount. As someone who worked in F500 finance mgt consultant, I can tell you mass layoffs at large firms are rarely due to dead weight.

Its not a labor shortage. Its employers not offering enough to get anyone to work for them, and irritating electronic paperwork, and unreasonable employee screening practices.

I graduated in mid 2020 at the height of covid, joining Exxon for my first job. Soon after there was a massive layoff due to the oil price collapse. I left willingly because I didn't see a future in the industry. Now I work at Amazon, and there is yet another round of layoffs. I guess the silver lining is that I wasn't personally affected by either, but it really drove the point home that job security is never something to be expected. I keep my CV updated every other month and I chat with recruiters often even when I don't plan to make a switch.

As a new graduate, I've found it really hard to find a job because the companies I applied to replaced the entry-level openings with senior-level ones, so that they can recruit a worker laid off by another company. So the layoffs do affect the workerforce pretty significantly, maybe just not the workerforce you're paying attention to

I've been working in Banking and IT for roughly 30 years and never been impacted by layoffs. I wish I could tell you the big secret behind that but I'm afraid it's mostly "dumb luck".

A lot of managers with made up titles are sweating

Honestly, is there a safe place anywhere? As a 30 yo woman, I spent my entire 20s trying to climb out of every sinking ship possible. Went through the layoffs, trying to pivot into different roles, accumulated debt, and settled for low-wage jobs which scammed me out of money. I have a healthcare admin degree, started a job in that field but was made redudant right before the pandemic due to no fault of my own. It's like every time I get started in a new role, the layoffs start in the field. I started in tech/business, laid off. Went to health care, laid off. It seems the layoffs happen right before I gain any solid experience. And we all know that jobs these days will not hire you without a lifetime's worth of experience. What is a 'safe' career anymore? How do people like me gain experience when the boat is constantly sinking? I did not have an exuberant financial support system like some of my peers. I had to pay for my college, strict parents prevented me from forming outside relationships, no time for a spouse due to the aforementioned). I know it sounds like I'm making excuses, but this is my reality atm. It sucks feeling like my fate will be POOR when I am just trying to fit into this society. I was very ambitious at one point but now it's a struggle to stay motivated with all of the uncertainty. Why is this legal or fair to play with peoples' livelihoods? Can we at least get a feeling of stability somewhere? And most importantly, where is the outrage outside of the internet? Starting to feel like I'm the only person going through this.

A lot of these jobs are just people sending emails, creating spreadsheets, and sitting on conference calls. They are not really productive

My perspective living in Silicon Valley is that “skilled” workers are a dime a dozen but it’s nearly impossible to find “unskilled” workers (laborers). Too many engineers, not enough everyone else.

Remember people it’s a WAGE issue NOT a LABOR issue. Fight for higher pay!

I mean those days are gone when people used to work 30 years for the same company. Keep your resume updated.

At 32, I’ve pivoted into trade work. Seems much more secure. I’m still allowed overtime while simultaneously our office crew is being mandated to take 5 days off in Q1 of 2023 due to the lack of work. Not saying they won’t eventually cut overtime, or that trade jobs are exempt from being cut, but it certainly feels much more secure, and something I can take with me in any state if I did get cut, or decided to move. Denver, CO

We all know there was a huge spike in hiring from a lot of tech companies in 2020 due to the pandemic and people staying and shopping online and doing video meetings and blah blah. So many of these companies layoffs still see an increase over the number of employees they had in early 2020.

If a company can fire thousands of employees? You've got to ask yourself. What were they all doing in the first place? They are let go and it doesn't effect anything but the bottom line. Makes a person wonder? Sounds like alot of dead weight.

This really is mostly a tech sector thing so far. Ford and Pepsi are not enough to prove a trend in other sectors.

I've always wondered why large companies have so many middle managers. It makes sense but at the same time, it's extremely inefficient. I've been lucky that over 20 years in tech sales has prepared me to pay off debt quick and save money despite making over six figures. With the skills many of these workers have, they will be hired again soon.

Define white collar. Nobody can still find enough accountants and that job still has to get done, recession or no.

Americans as a condition of receiving their severance working proudly together training their Indian H1b replacements to improve corporate profits by exporting jobs to India.

This was happening before but not at this rate companies are not eliminating jobs they are just shipping the jobs overseas !

Because HR and sales departments that don't sell are further away from the profits than the people who make the physical product being sold. They should always be the first layoffs never the 2nd wave or last.

My husband is a Master Trademen, we know that nothing is ever promised, but we have seen that through 2 recessions, and a pandemic he has stayed gainfully employed.

great report, thank you

Thank you for sharing.

Improvements in management software systems are reducing labor hours required for various administrative functions as well.

One change I noticed in my household that might be permanent is cooking at home. Never have we gone a whole week without dining out maybe 2 or 3X a week. Now we can go 2 weeks without eating out. I never realized how much I enjoyed cooking at home. 😁

I work in the healthcare industry so it’s not as black and white when it comes to layoffs but in the end of the day I’m not surprised by this news especially in the tech industry.

In 2008, I was part of a layoff, not because I was not needed but because I did not relate across the country to run a business. I was let go and was called in to pick up my severance check. Upon walking out and starting my car, I was getting a call. It was HR asking me to come back... it was stupid at the time but I get it now. I came back and have been moving up at lightning speed. I accredit that to always learning, having the skills that are in demand and most importantly my work ethic. Whether in the office or remote, I am one of those that higher ups know will get the job done. I have also learned that most of those around my circle that get laid off is due to them not trying to learn the skills that are in demand as well as the future and instead just happy with being where they are at. For me, I will continue to learn cause AI is coming and it is best to know it. Don't need to be an expert as long as I understand what it is and what it does as well as what can I make it do for me...😁

What i hope is happening is this: companies are finally realizing they overhired useless, worthless middle management instead of hiring productive workers and increasing their wages.

White collar workers are called professionals, while blue collar are called front line. The societal view of blue collar is a major contributor to people avoiding the jobs.

It's cyclical. In a year or two when signs point to climbing out out of recession hopefully, the fed starts decreasing interest rates and make it cheaper to borrow money, watch the reverse happen again. Companies will borrow like crazy to fund new projects and start hiring people to get the work done. If you're unlucky you might lose your job every few years or so when this cycle happens

We’re retiring in a couple of years from the white collar field and front line field and very glad to go. The front line hasn’t been kind.

The difference now is that there is a STILL a shortage of law wage...retail, light industrial assembly etc...workers

Every video put out by these Corporate media companies feels like they are lying.

Proud blue collar worker here. Hoping I'll be okay through the recession 🤞🏼👩‍🏭

I work for a German Contact and connector company that is celebrating its 100 year anniversary. In their entirety, they never had a layoff.

My family and friends had some discouraging things to say to me when I went the "blue collar" route b/c I have to go to college part-time.... I think I made a decent decision💯

Workers do not want to go back to low paid jobs.

Why every comment is Amazons AM sth. RU-vid is really need fight these bots.

0:50 white Patagonia vested workers. Nailed it…. Sry finance frat bros 😂

Pest control Industry is still booming here in Southern California, especially commercial sales. Still clearing $100k🙏🏼

I haven't been in corporate America long but it's impossible not to notice how top heavy it is. None of the small to medium businesses I worked for had "regional managers." That is definently a layer of fat that can be cut. Maybe they can be reassigned to doing something helpful but I don't think that would be in thier nature

I see White collar jobs that were performed in the US are off-shored or replaced by A.I. both. I also see processes and quality checks of the deliverable has suffered. This is the new normal.

as someone with a degree that now works in post office and started during pandemic. the grass is still dull here, job security with low pay, cant even afford rent and live with family. they started a two tier pay scale since 2013 that is grossly underpaying new employees compared to pre 2013

I'm surprised they didn't mention the outsourcing of tech and accounting jobs to India. That's been the bulk of the white color layoffs pre-pandemic.

If you can work over Zoom and Slack from Billings, MT, your employer can hire 3 people in Manila for the same price. These white collar layoffs are the beginning of a wave of knowledge-economy offshoring

I wonder what role, if any, unionization plays in determining who gets laid off during recessions

Most white collar workers are considered an expense (an overhead) unlike salespeople and factory workers who actually improve company’s profits.

Working in tech has been fascinating since Covid. I’ve been through an acquisition and a layoff and 3 companies since the pandy… gotta stomach the inherent volatility to such a competitive high paying industry.

Alternate theory: Raising interest rates make capital more expensive. To compete for capital, companies are cutting staff down to skeleton crews to increase the returns on equity and cover increased debt cost.

AI is going to exacerbate this trend, we're realizing that office work, creative work and design can be easily automated while jobs that interface with the real world (Trades, Truck Driver, Taxi Driver, Healthcare) are harder to automate than we initially thought.

Tiny amounts of layoffs like 1-5% in top 500. But 18k is still a ton of people.

i'm seeing job listings on linkedin with 1,000 applicants, 2,000 applicants, and came across one yesterday for the company Calm with over 3,000 applicants. it's bad, it's really bad.

1. They held on to staff that would have been laid off before due to the pandemic. 2. Technology has matured to a point where many things are plug and play. Workforce and many other work management software have decreased the need for staff. 4. Remote work is actually BAD. It now allows for white collar jobs to be outsourced regionally or internationally.

This is essentially a massive systematic wage-cut.

I was laid off from my escrow Officer job at a huge home builder. They laid off 30% of the company. I’m back to the trades.

It is gone, we lived through the zenith of our time.The corrupt government will take down this country like what happened to Rome. My condolence for anyone approaching retirement you may have concerns over whether your pension pot will stretch to cover the rising costs of living. Bad energy policy, bad foreign policy, bad regulatory policy, and insane fiscal policy.

They just laid off some white collar people yesterday at my company. Very unexpected.

No job is secure I think that’s what the pandemic taught everyone so everyone is learning how to make own decisions when it comes to jobs and careers

So glad I’m no longer on that rat wheel. Haven’t had a job since 30 October 2015. Retirement is a blast.

"The state of MA has temporarily banned the use of reusable bags", my question is why?

Who exactly is being laid off in the tech industry? The growth of tech over the last decade has attracted a lot of hangers on who have no qualifications or skills in the core engineering aspects of whatever company they latched onto, and in many cases actually get in the way of the people doing the real work in the coarse of trying to justify their salary. I suspect in a lot of cases it is these people who are now being pushed out.

I watch a lot of economic RU-vid videos and there have been so many predictions of a recession and of unemployment spiking the last 2years or so that like I begin to question what am I gaining from these videos.

Truth is most big companies suffer from overmanagement...

This is just the beginning. Automation is finally hitting HR, Finance, and Marketing.

All those quiet quitting people are having their dreams become a reality

Because they are the biggest non functional liabilities in pay check distribution. The actual work is done by people at the bottom with meagre wages. The distribution is all off balance.

Papa Powell needs to look at the jobs available and realize the employers don't want to pay a living wage. Those jobs will stay unfilled for a long time.

With white collar workers being the majority of layoffs, there will likely be a delay before these job cuts are factored into unemployment data. White collar layoffs tend to include large severance packages which can sustain someone for several months. Their layoffs won’t be counted until the severance runs out and they file for unemployment.

They already got the rest of us in the 90's. Welcome to the party.🥳

Boomers should really do something about this. They need to pull themselves up by their bootstraps and contribute.

WSJ apparently had to layoff their video editor because they couldn't sound correct the interview with the rest with the narrator.

So many people had to go back to school to learn a new trade or get degrees in a career that they hope keeps them working. I'm in the oil industry, so let's see how long that last.

Took me 3 months to get another career. Perfect timing

This is going to be the everything crash, and sadly lots of people will lose there jobs. Especially in Europa when I am from. I hope it will recover though

It's almost like paper pushing HR managers and diversity cafeteria authenticity inspectors don't actually do anything worth paying for

4:06 that guy has the right mentality. If I was an employer looking for someone I would immediately invite him to talk about the position.

I know what's happened. Trump's wall finally succeeded in keeping immigrants out. Now all of the conservatives who wanted the wall realize we don't have enough workers.

I wonder if they'll contract out alot of these positions or just get rid of all the high salaried employees across the board, and hire at half the pay to future graduating college students etc...not to knock the high skill set but there just no forecast it seems like we've hit a plateu, so why paysomeone 100k+ when you can get college kid or Raji or me at half the cost

Good times cant last forever. Too many recent grads with 200k+ offers.

I wonder if companies realised that if your job can be done away from the office, can it be done overseas? You cannot really ask a forklift driver to work via zoom from a cheaper labour market, but a marketing executive or HR manager you can.

Job security is a myth

Let’s all just remember that WE control the enconomy…it’s not this ominous thing that operates itself. The decisions we make matter

You should always be ready to jump ship nothing is secure ….

It is about time that these companies cut at the top. Because the ones at the BOTTOM make the company money!

My greatest concern is how to recover from all these economic and global troubles and stay afloat especially with the political power tussle going on in US.

The accounting profession is a white collar profession facing a shortage. Public accounting and financial accounting/reporting/analysis have had shortages especially for CPAs. Hours can be brutal but it pays the bills and can’t be replaced with AI anytime soon.

What happened is someone finally woke up, a good example is NY MTA they figured out that someone sitting in a cubical pulling $250K reading email has nothing to do with keeping the subway running so why would we fire the workers keeping the system running when we have non productive ppl sitting around draining the budget!

“Oh how the turntables have…” -Michael Gary Scott

And they called me crazy when I said too many people were getting collage degrees. Supply and demand people. Time to learn how to weld, not everyone can be a software engineer or pharmacist

I'd like to see the data of those who got laid off. Was it because of the shrinking market in China or is it because of a merger that is removing dual jobs from the consolation of two factories or whatever Making better videos on a topic with detailed background is going to get better response/respect imo

Big layoffs are not an economic problem but rather a stock price problem. As an employer, the biggest liability on your balance sheet are their employees. By way of layoffs, a corporate improves their cash flow immensely therefore are able to meet revenue expectations and earnings per share.

Im just not understanding why corporate is being tied to “professional” …

When you invest, you're buying a day you don't have to work

We just have to make all of those highly paid white collar and tech worker employees into low paying service sector jobs. That would take care of the labor imbalance. Of course we don't need to pay those service sector employees a little more. That would be capitalistic.

American companies treat workers like numbers and statistics. Can't do that in France or Germany

Many entered the work force with confidence that doing a job well and working hard would guarantee a career until a safe retirement and maybe a pension. Many relied on financial institutions to stay solvent and good companies to flourish...what a cruel hoax.