Stalled Business: Avalanche of Layoffs in America and Europe

After the US banking sector, which left thousands of people out of a job in 2023, it’s a dramatic moment for the IT sector, where employees could also lose their jobs. In 2023, US multinational company Dell, which continues to lose momentum amid China’s technological advance, was forced to lay off 13,000 employees. That’s nearly double the number of layoffs previously planned by the company, which is one of the world’s largest computer makers. As the US media recalled, “in early 2023, the firm announced that it would reduce its workforce by about 6650 employees due to declining sales.”

Across the Atlantic, in Europe, in Italy, the Stellantis automotive group has negotiated with a pool of unions FIM, UILM, FISMIC, and UGL for “voluntary resignation upon receipt of appropriate incentives” (simply put, layoff in exchange for financial compensation) of 1520 workers in Turin and vicinity. Among those who agreed were 733 employees and 300 workers at the Mirafiori plant south of Turin, where the company has already put 2260 workers on paid leave until March 30.

According to Italian online newspaper Il Post, this “complements reports in recent months that indicate Stellantis’s reluctance to invest in Italy, particularly Turin. This city is a symbol for FIAT, from which Stellantis grew.” In recent years, the number of cars produced at the FIAT Mirafiori plant “has been significantly reduced, no employees are being hired to replace those who retire, and layoffs are being encouraged with generous compensation.” Some production has been moved overseas. Other countries, such as France, have opened new businesses and hired workers.