Texas Sees 16,000 Job Cuts This Year, but State’s Job Growth Remains Strong

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Despite facing 16,000 job cuts this year, the state of Texas continues to experience strong job growth. According to notices filed with the Texas Workforce Commission, employers in Texas have been cutting jobs due to bankruptcies or cost-cutting decisions. However, the total number of job cuts this year only amounts to about half of Texas’ typical monthly job gain. In fact, the state has seen job growth for 29 consecutive months, including the addition of over 26,000 new positions in July.

Several companies in North Texas have recently announced layoffs, including Freedom Graphic Systems and Holiday Inn Club Vacations. Freedom Graphic Systems will be closing its Grand Prairie location later this year, resulting in the displacement of 59 workers starting in November. Similarly, Holiday Inn Club Vacations will be shutting down a call center in Pantego, Tarrant County in October, affecting 56 employees.

The largest layoffs this year, each involving approximately 1,000 workers, came from retail giant Walmart and consulting firm Genpact. Walmart announced in March that it would be eliminating 1,047 jobs at an e-commerce fulfillment center in Fort Worth as part of its nationwide cutbacks and consolidations. Meanwhile, Genpact cut 964 jobs at its Richardson office in January when a client contract ended. Genpact, headquartered in New York, provides data, artificial intelligence, and technology services to around 800 clients.

Other notable layoffs occurred following bankruptcy filings by Yellow Corp. and David’s Bridal. Yellow Corp., a trucking company, sought bankruptcy protection in early August and announced plans to wind down its business. This resulted in more than 700 job displacements across Texas. Similarly, David’s Bridal, one of the largest wedding gown retailers in the nation, filed for bankruptcy protection in April, leading to store closures and job reductions.

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It is important to note that the Worker Adjustment and Retraining Act (WARN) notices only capture a portion of the job cuts happening nationwide. Companies such as AT&T and Charles Schwab, which have a nationwide presence, have announced workforce reductions without disclosing specific details.

On a broader scale, job cuts have been increasing across various industries in the United States. According to Chicago outplacement firm Challenger, Gray & Christmas Inc., U.S. employers announced a total of 75,151 job cuts in August alone. This represents a significant increase compared to the previous month and the same period in 2020. Industries such as technology, retail, healthcare, and financial firms have been particularly affected by job cuts.

Despite these trends, Texas remains optimistic about its job market. Economist Ray Perryman forecasts that the state will gain 1.3 million new jobs by 2027, pushing total employment above 15 million. Perryman highlights the broad-based expansion across various industries and geographic areas in Texas. Industries such as professional and business services, healthcare, social services, accommodation and food services, retail, transportation, and manufacturing are expected to contribute to significant job gains in the state.

Overall, while Texas has experienced job cuts this year, its strong job growth and positive economic outlook signal a resilient labor market. The state remains well-positioned to generate opportunities across multiple industries and adapt to national and global challenges.

Frequently Asked Questions (FAQs) Related to the Above News

How has the state of Texas been affected by job cuts this year?

Texas has faced around 16,000 job cuts this year, primarily due to bankruptcies or cost-cutting decisions by various employers.

Despite job cuts, has Texas maintained job growth?

Yes, despite the job cuts, Texas has experienced job growth for 29 consecutive months. The number of job cuts this year accounts for only about half of Texas' typical monthly job gain.

Which companies in North Texas have recently announced layoffs?

Freedom Graphic Systems and Holiday Inn Club Vacations are among the companies in North Texas that have recently announced layoffs. Freedom Graphic Systems will be closing its Grand Prairie location, affecting 59 workers, while Holiday Inn Club Vacations will be shutting down a call center in Pantego, Tarrant County, affecting 56 employees.

Which companies have contributed to the largest layoffs in Texas this year?

Walmart and Genpact have been responsible for the largest layoffs in Texas this year. Walmart announced the elimination of 1,047 jobs at an e-commerce fulfillment center in Fort Worth, while Genpact cut 964 jobs at its Richardson office.

Have any industries been particularly affected by job cuts in the United States?

Yes, industries such as technology, retail, healthcare, and financial firms have been particularly affected by job cuts in the United States.

What is the outlook for Texas' job market?

Despite the job cuts, Texas remains optimistic about its job market. Economist Ray Perryman predicts that the state will gain 1.3 million new jobs by 2027, with industries such as professional and business services, healthcare, social services, accommodation and food services, retail, transportation, and manufacturing contributing to significant job gains in the state.

Are the Worker Adjustment and Retraining Act (WARN) notices comprehensive in capturing all job cuts nationwide?

No, the Worker Adjustment and Retraining Act (WARN) notices only capture a portion of the job cuts happening nationwide. Some companies, such as AT&T and Charles Schwab, have announced workforce reductions without disclosing specific details.

How do the job cuts in Texas compare to the national trend?

While job cuts have been increasing across various industries in the United States, Texas has been experiencing strong job growth. The total number of job cuts in Texas this year is significantly lower than the national trend of increased job cuts.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

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