US job market in trouble? Starbucks, Google, Frito-Lay and more hit with brutal layoffs in July

Economic Times

01-07-2025

Why are the layoffs being announced?
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Kroger plans to close 60 US stores
Retail market experiencing 'distressed behaviour'
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The layoff season will continue will July with thousands of employees across various sectors will be fired this month in the United States. Roughly 95 employers plan to lay off workers in July, according to WARNTracker.com, reports NewsWeek. But companies are needed to send out a Worker Adjustment and Retraining Notification Act (WARN) notice before implementing mass layoffs.Various industries, including retail, pharmaceuticals, food and beverage, health care, package delivery and more will announce layoffs in July. Though the number of employees to be laid off varies from company to company, it can be drastic at some firms such as Microsoft where between 1,000 and 2,500 workers are expected to lose their jobs in July.The United States economy is responding to governmental actions, including the imposition of widespread tariffs on countries worldwide and a decline in consumer sentiment. Layoffs may not directly correlate to the current economic climate, as some companies strive to maximize profits at the behest of the broader workforce. Others attempt to better fulfill demand, the report says.First StudentUnited States Cellular CorporationLaCroixHSNChevronBerry GlobalPrimo BrandsUPSGalion Pointe Nursing & RehabABM IndustriesAtco Rubber ProductsMortech Manufacturing CompanyMedStar Mobile HealthcareBarrette Outdoor LivingINOAC Exterior SystemsUnitek Learning Education GroupS&S ActivewearAtria Wealth SolutionsStarbucksC&S Wholesale GrocersCortevaSSB Manufacturing CompanyGoogleFedExLamps PlusSurfair MobilityAmerican Institutes of ResearchAmazonFoot Locker10x GenomicsVigor AlaskaKratonL.A. TurbineAir Distribution TechnologiesAnthony InternationalCVSCollege Success FoundationColosseum AthleticsDufry by AvoltaMuseum of Ice CreamGroundGame HealthReyes Coca-Cola BottlingLakeshore Learning MaterialsFrito-LayGenentechIsland Peer Review OrgEagle HealthcareTechnology PartnerWells FargoMulligan SecurityTransAxleTruvant North AmericaCollins AerospacePMAB-5Revlon Consumer ProductsNavitorWIOSS AtlantaLewis Tree ServiceF&S Produce WestSix Flags Entertainment CorporationPivot BioTend Exchange Subsidiary/Delaware Tender StaffingEikon TherapeuticsCoronado Stone ProductsSilgan Containers Manufacturing CorporationAllergan AestheticsPaneraMain Street ManorWaste Harmonics KeterGlobe MotorsCrothall HealthcareMorrison HealthcareNFI IndustriesTom Thumb StoreAdvanced Pressure TechnologyVirginia Mason Franciscan Health Virtual ServicesEnd of Sandwich Tavern RestaurantRemote WorkersPowinAll-Rite LeasingRTXSummit BHC New JerseyGEODISMenzies AviationJai'sGTM Discount General StoreBridgestone TiresSaddle Creek CorporationLiberty Residential ServicesThe Fresh MarketSpreckels Sugar CompanyAmerican Contract SystemsCornerstone Chemical CompanyU-Line CorporationKroger plans to close around 60 US grocery stores over the next 18 months to improve efficiency. The Cincinnati, Ohio-based company announced the plan during a corporate earnings call last Friday but has not stated which stores it plans to close. Kroger is the nation's largest supermarket chain, with 2,731 stores in 35 states and the District of Columbia. It operates stores under multiple brand names, including Smith's, Ralphs, King Soopers and Fred Meyer.Kroger said the closures will happen around the country, adding employees at impacted stores will be offered jobs at other locations. 'We see this as an opportunity to move these closed store sales to other stores, and we think that should improve profitability,' Kroger's interim Chairman and CEO Ronald Sargent said during the call.Sargent also said Kroger plans to open at least 30 stores this year and will accelerate its store openings in 'high-growth geographies' next year.In an October 2024 earnings announcement, Walgreens CEO Tim Wentworth announced the intended closure of 1,200 stores, with the first 500 closures scheduled for the first fiscal year as part of a new footprint optimization strategy."We will continue to execute our previously announced turnaround plan aimed at stabilizing the retail pharmacy, including our footprint optimization program," the company told Newsweek. "Increased regulatory and reimbursement pressures are weighing on our ability to cover the costs associated with rent, staffing, and supply needs."It is never an easy decision to close a store, and we know how important they are to the communities we serve and therefore do everything possible to improve their performance. When closures are necessary, we will work in partnership with community stakeholders to minimize customer disruptions."While retail sales figures remain relatively stable, signs of consumer caution are beginning to surface, especially among higher-income households, according to industry experts. Mark Mathews, executive director of research at the National Retail Federation (NRF), told Newsweek that some consumers are still willing to spend, but the retail market beyond top-line growth is experiencing some "distressed behavior."'We're seeing an uptick in higher-income consumers shopping at discount and off-price retailers,' Mathews said. 'This kind of trading down is a signal of distress beneath the surface. Shoppers are clearly becoming more cautious—they're seeking out sales, promotions, and better value.'Mathews emphasized that although top-line sales figures have yet to decline, consumer sentiment is beginning to impact spending patterns. 'The shift isn't dramatic yet, but it reflects growing economic anxiety.'Ben Johnston, Chief Operating Officer at small business lender Kapitus, echoed similar sentiment, noting that the wave of optimism seen at the start of the year has faded.'Our clients are staying financially responsible,' Johnston explained. 'They're still borrowing for everyday business operations, but they're avoiding risky growth investments. Most are taking a wait-and-see approach, especially with uncertainties around tariffs and the broader economic outlook heading into the fall.'Together, the insights point to a retail market that, while stable on the surface, may be entering a more cautious phase as both consumers and business owners brace for potential economic shifts.