Mass layoffs began at all these American companies like Microsoft, Twitter, Facebook, Amazon and Google at the end of 2022. That was when it seemed like the recession was knocking on the door. These layoffs continued until June and now their impact seems to fall on the top executives of the companies as well. In the last 8 months, about 74 CEOs have been shown the way out of the company. The latest case is related to Starbucks.
Starbucks Corp, one of the largest coffee chains in the United States, has parted ways with its CEO Laxman Narasimha. The company has not given any specific reason for this, but the news is that the company’s sales have been continuously falling for the last two quarters and have declined by 20 percent. Therefore, it has been decided that Laxman Narasimha will leave the company.
What is the impact of the recession?
The US is going through a strange situation at the moment. The US economy has not yet fully recovered from the impact of Covid. Inflation and unemployment are at their peak. There is a high chance of a recession and no major relief from the Federal Reserve is expected in the near future. In addition, the US debt burden is continuously increasing, so the situation is becoming more and more alarming and this year, the US will also host presidential elections.
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All of these factors make the US situation rather strange. Companies have seen cuts in workers, human resources and other senior managers in finance and sales roles and now this situation has reached the level of CEOs. The US employment report released last month has only increased fears of a recession.
74 CEOs fired in 8 months
In the past eight months, 74 CEOs have left the United States. But the issue does not stop there. Exchange.com has compiled a comprehensive report on the matter. A different picture emerges from the Russell index. The Exchange.com report states that 191 CEOs of companies included in the Russell 3000 index have left their companies this year. In this year, around 74 were forced out. Exchange.com has been tracking data on this matter since 2017.
According to its report, 26 CEOs were fired from the company in 2017. While 66 CEOs have been ousted in 2018, 64 in 2019, 52 in 2020, 32 in 2021, 62 in 2022, 70 in 2023 and 74 CEOs have been ousted so far in 2024. In such a situation, the big question is whether this time in the United States If a recession occurs, what effect will it have on the world?
