Concerns over a ‘white collar recession’ grow as Goldman Sachs, Morgan Stanley, Amazon and others cut jobs


Concerns about a “white-collar recession” rose on Tuesday after Goldman Sachs began laying off workers as part of a plan to cut 3,200 jobs to cut costs.

Goldman Sachs is the latest company to downsize in recent months. Morgan Stanley said it would cut 2% of its workforce in December, Amazon plans to cut more than 18,000 jobs, and Salesforce last week cut 10% of its workforce and closed several offices. announced it will be closed.

White-collar workers were less affected by the COVID-19 pandemic lockdown than blue-collar workers, but many jobs were simply done remotely rather than cut. Experts are now bearing the brunt of the economic headwinds facing America.

Goldman’s layoffs are among the biggest since the 2008 financial crisis.

U.S. Banks Prepare for Shrinking Profits and Recession

David Solomon, Chief Executive Officer of Goldman Sachs Group Inc., on Bloomberg Television at the Goldman Sachs Financial Services Conference in New York, USA, Tuesday, December 6, 2022. , meters (Photo by Michael Nagle/Bloomberg via Getty Images/Getty Images)

“Today alone another 26,000 job cuts were announced … as well as from Amazon and Salesforce (both have cash to weather this storm but are on drugs) White collar recession is very real, more FB, Uber, MSFT, Google, Apple, all will be announced in Q1,” investor Jason Karakanis tweeted.

“As white-collar layoffs rise, blue-collar resilience will face a test in 2023 via @WSJ,” said Vance Ginn, president of the consulting firm and senior fellow of Young Americans for Liberty. “In my view, the ongoing job losses will increase rapidly, with rising inflation and interest rates deepening the recession and making it even worse in 2023.”

JPMorgan’s Jamie Dimon more optimistic about US consumers

amazon logo

This photo taken on July 4, 2022 shows the logo of Amazon, the online shopping giant, displayed at the Amazon Amagasaki Fulfillment Center in Amagasaki, Hyogo Prefecture. ((Photo by KAZUHIRO NOGI/AFP via Getty Images) / Getty Images)

In October, Goldman Sachs Chief Executive David Soloman said there was “a good chance” of a recession in 2023.

Fears of a recession have been on the rise for months as the US Federal Reserve (Fed) hikes interest rates to combat high inflation, making it harder to borrow. The Federal Reserve’s actions are aimed at slowing the economy to keep prices down.

A sign at the reception of Goldman Sachs in Sydney, Australia, May 18, 2016. REUTERS/David Gray/File Photo (Reuters photo)

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In 2022, the United States briefly entered a technological recession. With the stock market posting record losses and continuing turmoil last year, many analysts predict the worst is yet to come.


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