By Suzanne BlakeShareNewsweek is a Trust Project memberMany companies have already announced that they will be laying off employees during the month of December.
Based on federal law, companies issue WARN notices ahead of time so that employees typically can prepare for the impending job losses.
Why It Matters
A mix of economic factors is leading to December layoffs.
While some sectors like tech have found they overinvested in certain kinds of roles and artificial intelligence is helping slim down their workforce, others are facing pressures from reduced consumer spending, such as the case for restaurant and retail brands.
...What To Know
The following companies have announced WARN notices for layoffs to come in December:
- PacificSource
- Green Diamond Resource Company
- Inventprise
- Phillips Ultrasound
- PeaceHealth
- Meta
- Above The Dirt
- Starbucks
- Double M Orchards
- SimplyIOA
- Insurance Office of America
While tech giant Meta disclosed it would be letting go of between 101 and 250 employees, coffee chain Starbucks could be laying off up to 1,000 workers, according to WARN notices.
HR consultant Bryan Driscoll said companies typically lay off employees during December in an effort to show investors their financial discipline.
“Meta, Starbucks, PeaceHealth, BM Administrative Services, totally different sectors, but they’re all playing the same game. Cut people, boost the optics, and hope no one looks too closely at the long-term damage,” Driscoll told Newsweek.
Driscoll said in tech and healthcare, companies follow the same familiar cycle: hire aggressively when times are good, and then “make workers pay for it when executives get nervous.”
In retail and service industries, layoffs often mean the company wants to lean harder on automation and lighter on human beings, he added.
Past over-hiring can play a role as well.
“Many of these companies overhired during the pandemic, while others retained employees they had originally planned to let go,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. “Industries naturally move through cycles where certain roles become obsolete, forcing companies to either reassign or eliminate positions. This is part of a broader economic adjustment although public perception has turned more negative as layoffs hit multiple sectors.”
What People Are Saying
HR consultant Bryan Driscoll told Newsweek: “This isn’t some sign the whole economy’s falling apart. It’s a sign leadership is more focused on pleasing shareholders than supporting the workers who actually keep the place running.”
Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: “Workers should anticipate continued job reductions as AI adoption accelerates and hiring slows. Re-entry into the job market may also come with pay adjustments, as employers adjust staffing and compensation across industries.”
Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek: “They're not knee jerk cuts. More like calculated trims. Execs slashing 2-5% to hoard cash for whatever storm 2026 brews. Meta's optimizing ad revenue amid AI overhauls; Starbucks is shuttering underperforming spots; PeaceHealth's battling reimbursement squeezes in a post-pandemic reimbursement rut. Bottom line: efficiency over empire-building.”
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “Many of the recent layoffs are getting attention due to AI integration being seen as the primary culprit behind them, but the reality is these job cuts are about far more, and, depending on the employer, AI introduction could actually play a very small role. Simply put, less consumer demand and economic uncertainty are playing a larger part in these companies’ plans, and the result is jobs are getting eliminated.”
What Happens Next
Workers shouldn’t take layoffs personally and should instead focus on getting their resumes updated and understanding their rights around final pay and health coverage.
“Don’t take any of this personally,” Driscoll said. “You can be great at your job and still end up on a spreadsheet someone decides to optimize. Second, don’t wait for the company to communicate clearly, they usually don’t… Companies are planning for their future. Workers should be planning for theirs too."
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