Still layoffs, despite strong jobs report

RALEIGH – Even with stronger-than-expected hiring numbers in the latest US jobs report from July, layoffs are still being announced at companies, both large and small.

This week, WRAL TechWire’s Layoff Watch takes a look at the latest details on the job market, given the mixed, ongoing volatility in job opening trends observed last week in the WRAL TechWire Jobs Report.

Reports continue to trickle out about job cuts across the nation, despite the United States economy adding jobs in July at a pace that far exceeded most analyst’s expectations, signaling that the Federal Reserve may again raise interest rates.

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What’s happening with layoffs

Here’s an update on the latest job cuts since our Layoff Watch began:

Invitae announced it planned to lay off as many as 1,000 workers globally and Arrival, with a North American headquarters in Charlotte, announced it could cut 30% of its staff in the coming months. They’ll be making additional announcements in the coming weeks.
Microsoft, which as recently as last month, told WRAL TechWire that it was hiring for hundreds of positions locally in the Triangle, has now also announced that it will cut hundreds of jobs. The firm is still hiring in North Carolina, according to the latest WRAL TechWire Jobs Report, though it does shows a drop off in the number of openings locally at the firm compared to earlier this year.
Peloton, which had something of its own pandemic boom and bought a North Carolina company previously, announced it would no longer manufacture its own stationary exercise bicycles, and would lay off some 600 workers.
And Biogen, which has a big presence in RTP, announced layoffs in a move to reduce costs last month, as well.
Last month, technology startup Adwerx announced it would lay off 40 workers, citing “macroeconomic uncertainty.”

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More than just layoffs

Not all bad jobs news is about cuts. For example: Advance Auto Parts ended its agreement with the state of North Carolina under which the company could have received economic subsidies if it met previously agreed upon conditions, including adding employees based in its headquarters.

Advance Auto Parts joins Microsoft and Sonic Automotive as companies with facilities based in North Carolina that have requested to terminate an existing deal tied to job creation and investment with the state during this calendar year, and Robinhood appears poised to break its promise to the state after announcing 82 layoffs in early August and the closure of its Charlotte facility, at which it had promised to hire nearly 400 workers less than 18 months ago.

Robinhood slashing jobs in Charlotte – and shutting down the company’s office there

Permanent closings

Further, two manufacturing plants along the I-85 corridor will permanently close, according to the North Carolina Department of Commerce WARN Report.

Medline is closing a Salisbury facility, and will cut nearly 100 jobs.
Hitachi Metals North Carolina will close a manufacturing plant in China Grove that had been producing supplies for the automotive industry, laying off 81 workers.
Robinhood will close its Charlotte area office, laying off 82 workers.

In total, so far this year, through Monday, August 8, about 2,500 workers in North Carolina have been notified of a pending company layoff under the Worker Adjustment and Retraining Notification (WARN) Act.

And while the North Carolina Department of Commerce provides regular updates to the WARN report, from which that 2,456 number was calculated by WRAL TechWire, it is not a report of all layoffs that may have occurred in North Carolina during that time period. For example, the layoffs of 40 Adwerx employees in Durham does not appear in the state’s report.

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Most recent companies making layoffs

Here’s what’s changed since the last WRAL TechWire Layoff Watch:

Aug. 4 – Robinhood will make layoffs of 23% of its workforce, a few months after slashing 9% of workers. This includes laying off 82 workers in Charlotte and closing the company’s office facility there, at which it had promised to hire nearly 400 workers not more than 18 months ago
Aug. 4 – Walmart will cut 200 corporate jobs, according to a CNN report
Aug. 4 – Jobless benefit applications are again on the rise, according to the U.S. Labor Department, which is a sign that more layoffs are occurring
Aug. 2 – Job openings have plummeted since the last monthly survey, according to the data from the Bureau of Labor Statistics, the lowest since September 2021

Multiple reports outline Oracle’s decision to lay off thousands of workers

Other recent reports:

Aug. 1 – Oracle reportedly to lay off thousands of workers
July 29 – Cargo services firm in Charlotte cutting 154 workers
July 27 – The latest survey results from NC TECH show that 1.6% of surveyed companies have laid off, considered making layoffs, or furloughed workers, and another 17.5% have already implemented a hiring freeze.
July 27 – Automaker Rivian will lay off about 6% of its workforce, the founder and CEO sent in an email to employees (TechCrunch report.)
July 26 – Layoffs at Shopify, with approximately 10% of global workforce slashed