Layoff Trends for March 2021

Intellizence publishes monthly trends about major layoffs in companies every month. The following is the analysis of the Intellizence Layoff Data for the month of March 2021. 

According to the U.S. Bureau of Labor Statistics March 2021 report, the unemployment rate edged down to 6.0 percent and total nonfarm payroll employment rose by 916,000. This indicates the start of what could be the economic revival since the pandemic.

Highlights 

Summary of insights based on the analysis of the Intellizence Layoff Dataset for the month of March 2021.

• There were not many mass layoffs announced during the week.
• The top 3 largest layoffs were — Caixabank (7000), Volkswagen (5,000), & Nokia (1500).
• Most layoffs were due to restructuring, pandemic, mergers & acquisitions, or businesses focusing on growth and diversification.
• One year down, pandemic still continues to be one of the main reasons for downsizing.

Top 8 Global Mass Layoffs 

Following is the industry-wise breakdown that had more than 500 job layoffs in the US for the month of March 2021.

1. Nokia
   Nokia, the Finnish telecommunications group will cut between 5,000 and 10,000 jobs, or 11% of its workforce, over the next 24 months. The communications and network equipment provider plans to reduce costs from general areas while investing more in R&D and the 5G wireless network.
2. Caixabank
   Spanish bank Caixabank may cut between 7,000 and 8,000 jobs after merging with smaller rival Bankia. The bank is waiting for the merger to be legally done before they start talking to the unions.
3. Volkswagen
   Automobile company Volkswagen will cut up to 4,000 jobs between now and the end of 2023 as part of cost-cutting to finance its transition to electric vehicles and other new technologies. According to the auto giant, it is making savings to invest in new technologies as EU regulators crack down on emissions.
4. Sainsbury
   The UK’s second-largest supermarket chain, Sainsbury, is planning to remove 500 office roles while 650 other workers are under threat through plans to close an online delivery warehouse in southeast London in June.
5. Amway
   Direct sales company Amway plans to cut 900 positions, 90% of which are based at its world headquarters in Ada. The layoffs are part of a restructuring plan focusing on nutrition science, innovation, and manufacturing.
6. Bosch  
   Bosch is to cut 700 jobs at its Rodez plant in Southern France, citing market over-capacity and increasing transformation in the automotive industry – from diesel to new powertrains.
7. Novartis
   Pharmaceutical giant Novartis AG will lay off approximately 400 employees and close its 692,000-square-foot drug-making facility in Longmont. The Swiss company said it will close the complex by July 9 at the latest. The employees at the site will be offered severance packages, job placement support, and some benefits.
8. ExxonMobil
   Oil giant ExxonMobil will cut about 7 percent of its workforce in Singapore, or around 300 positions, by the end of 2021 due to “unprecedented market conditions” resulting from the COVID-19 pandemic.7.

Layoff Trends By Industry 

Following is the industry-wise breakdown that had more than 500 job layoffs in the US for the month of March 2021.

Source: Intellizence Layoff Dataset

US Monthly Unemployment Trend – March 2021

According to the US Govt. Labor statistics,

Total nonfarm payroll employment rose by 916,000 in March, and the unemployment rate edged down to 6.0 percent, the U.S. Bureau of Labor Statistics report. 

• The unemployment rate came down a little to 6.0 percent, and the number of unemployed persons decreased to 9.7 million.
• The largest gains were in leisure and hospitality, public and private education, construction sector, manufacturing, and retail trade.
• Health care and information changed little in March. 

Monthly number of job losers in the U.S. from March 2020 to March 2021

Disclaimer: 

The data is based on layoff announcements found in the public domain like popular news sources and WARN Filings. WARN filings are considered only for the US states that publish the data.

Source: Intellizence Layoff Dataset