CNBC’s Jim Cramer on Tuesday predicted that many companies will cut their workforces after the holiday season.
“I’m sure there will be a lot of layoffs after Christmas. I don’t want to criticize the retailers that are most likely to go bankrupt when the holiday season ends, but I want people to realize that Theo In a way, our current high-inflation economy is a high-quality problem,” he said.
A growing number of companies across industries have cut staff numbers this year in an effort to control their costs in a slowing economy. PepsiCo one of latest companies to downsize after cuts at peers in the food and beverage industry other than meatImpossible Foods and competitors Coca-Cola.
Rate of layoff notices at US employers last month was five times bigger than the year before, as reported by Challenger, Gray & Christmas. Tech companies, whose rapid growth in recent years have been hit by the Federal Reserve’s rate hikes, led last month’s layoffs.
However, the total number of layoffs this year is the second-lowest since the company began tracking the figures in 1993. Cramer attributes the lack of job cuts to the fact that many companies have managed to stay afloat – a fact that could change next year.
“Even the most marginal, new public enterprises continue to operate,” he said. “You’d think some of these SPAC names would run out of money soon.”