Summary
In 2024, over 150,000 U.S. workers were laid off each month, and the trend continues in 2025 with companies like Amazon and John Deere making staff cuts. Layoffs can appear to make a company more profitable in financial reports due to current accounting rules, which treat layoffs differently than physical asset transactions. The SEC has not enforced new rules to make layoff impacts clearer for investors.
Key Facts
- Over 150,000 workers in the U.S. were laid off each month in 2024.
- Companies like Amazon plan to cut 10% of their white-collar workers.
- John Deere announced layoffs of 200 factory workers.
- Accounting rules make layoffs look profitable since fewer expenses mean higher profits on paper.
- The SEC has not updated regulations to provide more transparency on how layoffs affect companies.
- Investors have asked for better employee-related information in financial reports.
- The Worker Adjustment and Retraining Notification (WARN) Act requires a 60-day notice for large layoffs.
- Some layoff information must be publicly shared, but it's limited to dates and estimated future costs.
