Cetoex News – Following a trend in the tech industry, Amazon has fired an additional 9,000 employees today, according to Bloomberg. Moreover, the news comes after Facebook-parent company, Meta, laid off 10,000 employees in a second round of job cuts, after already firing 11,000 months prior.

Amazon has joined a long list of companies in the tech sector that have executed abundant firings. From Twitter to Meta, the online leader in consumer goods sales has followed a trend likely connected to the uncertainty in the country’s economic status.

Amazon Follows Job-Cutting Trend

The year has been a horrendous one for those in the finance sector. Moreover, as 2022 saw the Federal Reserve execute a year of interest rate hikes to combat inflation, and the banking sector on the edge of crisis the last few weeks, the tech industry has continued its relentless job cuts.

Now, Amazon has fired 9,000 employees in the latest development within the industry. The uniform nature of the job cuts points to a systemic problem within the industry, as Fox reported that companies hired rapidly following the COVID-19 pandemic. Thus, with interest rates now affecting the bottom line, firings have become a staple of 2023.

That same Fox report noted Amazon had previously stated its intention to lay off more than 18,000 employees in its most significant job cuts. Moreover, the company reportedly started cutting its workforce on Jan. 18 of this year.

According to the report, the job cuts “mostly impact the company’s Amazon Stores division, ” including its various brick-and-mortar locations. Subsequently, other functions like its human resources departments have seen multiple cuts.

The company’s CEO, Andy Jassy, previously warned employees of impending layoffs in November. Now, we are seeing the fruits of those initial warnings in the active firings. Conversely, Jassy stated they were to occur due to the uncertain economic developments of the country and previous rapid hirings.

NEWS BY – CETOEX NEWS

Cetoex News – Bank of America CEO Brian Moynihan has predicted a “slight,” recession this year, warning interest rates won’t fall until 2024. Specifically, Yahoo reported Moynihan’s prediction that interest rates could cease falling until the second quarter of next year.

Moynihan was speaking at the Financial Review’s Business Summit in Australia, discussing the country’s current economic outlook. Moreover, the CEO noted “the labor market is still very tight,” with businesses having “access to capital, albeit at higher costs.”

Bank of America CEO Talks Recession and Interest Rates

Speaking yesterday, Federal Reserve Chair Jerome Powell gave the country a grim prognosis. Stating his expectation that interest rates could be on an upward trajectory. Despite a year-long hike in interest rates to battle inflation, and a potential recession, for the country in the coming year.

Now, Bank of America CEO Brian Moynihan predicted a “slight” recession this year. Moreover, the executive warned that interest rates are not likely to fall until sometime in 2024. Conversely, interest rates are currently sitting at 4.75%, the highest since 2007. Coinciding with Powell’s statements yesterday, it seems they may get even higher.

“They’re going to have to hold it there for a long time because frankly, the labor market is still very tight,” Moynihan stated. Adding, “Despite what you hear about layoffs, and financial conditions are strong, so companies have access to capital, albeit at higher costs.”

Additionally, Moynihan noted that consumer activity was unaffected by the Federal Reserve interest rate hikes. Noting that they actively “have money in their accounts,” which could force the Fed’s actions even more.

“Our base projection is or a recession to occur in the U.S. economy beginning in the third quarter of 2023, occur through the fourth quarter of 2023, and into the first quarter of 2024,” Moynihan remarked. Ultimately, stating that an economist contraction between 0.5% and 1% every quarter will result in “a very slight recession in the scheme of things.”

Conclusively, Moynihan predicted an economic slowdown so tame “a lot of people aren’t going to see that much of it,” in his opinion. Describing it as a “technical recession as opposed to a ‘deep drop.’”

NEWS BY – CETOEX NEWS