Portent of recession ... Walmart lays off corporate employees after slashing forecast

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The signs are appearing that the recession has started. Walmart has reported that customers are spending less.

Walmart is the biggest employer in the USA.

https://www.cnbc.com/2022/08/03/walmart-lays-off-corporate-employees-after-slashing-forecast.html

Walmart lays off corporate employees after slashing forecast
PUBLISHED WED, AUG 3 20224:58 PM EDTUPDATED WED, AUG 3 20226:39 PM EDT

Melissa Repko

Walmart confirmed on Wednesday that it has begun to lay off corporate employees.
The news comes about a week after the company slashed its profit outlook and warned that consumers had pulled back on discretionary spending due to inflation.

Walmart has begun to lay off corporate employees, the company confirmed Wednesday, about a week after it slashed its profit outlook and warned that consumers had pulled back on discretionary spending due to inflation.

In a statement to CNBC, the retail giant described the layoffs as a way to “better position the company for a strong future.”

Anne Hatfield, a Walmart spokesperson, declined to say how many workers will be affected and what divisions have experienced cuts. She said Walmart is still hiring in parts of its business that are growing, including supply chain, e-commerce, health and wellness, and advertising sales.

“Shoppers are changing. Customers are changing,” she said. “We are doing some restructuring to make sure we’re aligned.”

The corporate layoffs were first reported by The Wall Street Journal.

Walmart is the largest employer in the country, with nearly 1.6 million workers in the U.S. The company, seen as a bellwether for the nation’s economy, spooked investors July 25 when it cut its outlook for quarterly and full-year profit guidance. That warning had a chilling effect on the retail sector, dragging down the stocks of companies including Macy’s and Amazon and sending up a flare about the health of the American consumer. ...
 

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UK inflation 13%, GBP 300 per month average family energy bills.

Brexit derailed the UK.

Boris Johnson is a fraud. Brexit has made the UK a third-world country.

https://www.bbc.com/news/business-62405037

Bank of England warns the UK will fall into recession this year
By Dearbail Jordan & Michael Race
Business reporters, BBC News 20220805

In a 'blunt message" the Bank of England governor warns interest rates may have to rise even higher

The Bank of England has warned the UK will fall into recession as it raised interest rates by the most in 27 years.

The economy is forecast to shrink in the last three months of this year and keep shrinking until the end of 2023.

Interest rates rose to 1.75% as the Bank battles to stem soaring prices, with inflation now set to hit over 13%.

Governor Andrew Bailey said he knew the cost of living squeeze was difficult but if it didn't raise interest rates it would get "even worse".

The main reason for high inflation and low growth is soaring energy bills. driven by Russia's invasion of Ukraine.

A typical household will be paying almost £300 a month for their energy by October, the Bank warned.
 
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