We Are Witnessing An Enormous Wave Of Bankruptcies And Layoffs During The Early Stages Of 2023 – Investment Watch

by Michael

Is your job protected?  Without delay, we’re witnessing a lot turmoil is so many various sectors of our economy.  The housing market is crashing, the cryptocurrency industry has imploded, the tech industry is shedding staff at an especially frightening pace, and a few of our most significant retailers are heading out of business.  The data that I’m about to share with you is deeply troubling.  It has change into exceedingly clear that our economy is in huge trouble, and I fully expect that our problems will speed up much more because the yr rolls along.

Let me start by stating what’s currently happening at Microsoft.  It’s considered one of the wealthiest corporations in your complete world, but on account of a shift in “macroeconomic conditions” executives have decided that it has change into essential to put off 10,000 staff

Microsoft announced 1000’s of job cuts this week, becoming the newest tech company to pluck its workforce as the worldwide economy slows.

The software company confirmed Wednesday its reducing workforce by 10,000 people through the tip of the third quarter of the 2023 fiscal yr.

The cuts come “in response to macroeconomic conditions and changing customer priorities,” the corporate’s CEO Satya Nadella released in an announcement to its employees Wednesday.

If even Microsoft is shedding 1000’s of staff, is any job within the private sector truly protected?

Meanwhile, a number of the biggest names within the retail industry are plunging out of business now that the vacation season is over.

On Tuesday, it was Party City’s turn

Party City filed for bankruptcy protection Tuesday, weighed down by competition and years of monetary losses.

The most important party goods and Halloween specialty retail chain in the USA said in a regulatory filing that it reached an agreement with debtholders to chop its $1.7 billion debt load.

Much more alarming is the proven fact that it’s being reported that a bankruptcy filing for Bed Bath & Beyond has change into “likely”

Bed Bath & Beyond has been in discussions with prospective buyers and lenders as it really works to maintain its business afloat during a possible bankruptcy filing, in response to people aware of the matter.

The retailer is within the midst a sale process in hopes of finding a buyer that may keep the doors open for each of its major chains, its namesake banner and Buybuy Baby, said the people, who weren’t authorized to debate the matter publicly.

So many brick and mortar retailers are really struggling at once, and lots of of them are blaming competition from Web retailers equivalent to Amazon.

But when Amazon is doing so well, why did they begin shedding roughly 18,000 staff on Wednesday?

Earlier this month, Amazon CEO Andy Jassy told employees in a blog post that the corporate was shedding about 18,000 people because it seeks to chop costs and would begin contacting impacted employees on Jan. 18.

“Amazon has weathered uncertain and difficult economies previously, and we’ll proceed to achieve this,” Jassy said within the Jan. 4 post. “These changes will help us pursue our long-term opportunities with a stronger cost structure.”

The wave of layoffs that we’ve been witnessing within the tech industry is actually unprecedented.

Prior to this week, greater than 25,000 tech industry staff had already been laid off this yr, and this comes on the heels of the large layoffs that we saw last yr…

In line with the info tracking website, greater than 101 tech corporations world wide have laid off 25,436 employees to this point in 2023. A lot of the layoffs have taken place in the USA, accounting for 22,400 employees fired.

The variety of staff being laid off from tech corporations is a trend that is constant since 2022, when 154,336 staff were fired from over 1,000 tech corporations world wide, in response to the info.

But not less than the tech industry is in much better shape than the cryptocurrency industry is.

Let me share 4 major announcements which have all happened throughout the past 10 days…

#1 It’s being reported that Genesis Global Capital “is laying the groundwork for a bankruptcy filing”

Genesis Global Capital is laying the groundwork for a bankruptcy filing as soon as this week, in response to individuals with knowledge of the situation.

The cryptocurrency lending unit of Digital Currency Group has been in confidential negotiations with various creditor groups amid a liquidity crunch. It has warned that it might have to file for bankruptcy if it fails to lift money, Bloomberg previously reported.

#2 Crypto.com announced that it’ll be shedding “20% of its workforce”

Crypto.com announced plans to put off 20% of its workforce Jan. 13. The corporate had 2,450 employees, in response to PitchBook data, suggesting around 490 employees were laid off.

CEO Kris Marszalek said in a blog post that the crypto exchange grew “ambitiously” but was unable to weather the collapse of Sam Bankman-Fried’s crypto empire FTX without the further cuts.

#3 Coinbase has decided “to chop a couple of fifth of its workforce”

On Jan. 10, Coinbase announced plans to chop a couple of fifth of its workforce because it looks to preserve money throughout the crypto market downturn.

The exchange plans to chop 950 jobs, in response to a blog post. Coinbase, which had roughly 4,700 employees as of the tip of September, had already slashed 18% of its workforce in June saying it needed to administer costs after growing “too quickly” throughout the bull market.

#4 The founding father of cryptocurrency exchange Bitzlato has actually been arrested.  Apparently he was laundering money on a scale of epic proportions…

The founding father of the Hong Kong-based cryptocurrency exchange Bitzlato was arrested early Wednesday in Miami in reference to an unlimited money laundering operation, accused of transmitting greater than $700 million in illicit funds previously 4 years.

Deputy Attorney General Lisa Monaco said Anatoly Legkodymov, 40, a Russian national, oversaw a significant “high-tech financial hub that catered to known crooks,” including cybercriminals and drug dealers looking for to process dirty money.

The cryptocurrency industry won’t ever look the identical again in spite of everything of this turmoil.

On top of all the pieces else, the Saudis seem like poised to make a significant move that might literally change all the pieces.

On the yearly gathering of the World Economic Forum in Davos, the Saudi finance minister decided to drop a bombshell

Saudi Arabia is open to discussions about trade in currencies apart from the US dollar, in response to the dominion’s finance minister.

Pointless to say, this might potentially completely undermine the dominance of the petrodollar.

In fact we cannot afford to have that occur, since the dominance of the dollar is considered one of the one things that’s keeping our system afloat.

At this point nearly all the pieces is moving within the incorrect direction for the U.S. economy, but most individuals still don’t understand the larger picture.

Quite a lot of the “experts” assume that we’ll just suffer through a short lived recession after which things will eventually return to normal.

I wish that was true.

Unfortunately, our entire system is beginning to crack and crumble throughout us, and people which can be currently running things should not going to give you the option to place it back together again.


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