First came the Great Resignation, but now there are signs that businesses are about to begin the Great Sacking, to cope with economic headwinds
For the past 18 months, workers around the world have been signaling they’ve had enough. From burnout to worker fatigue, thousands have handed in their notice and in many cases taken that once in a lifetime trip.
Only two years earlier they would have been deemed mad to quit their high-flying corporate job, to step off the career ladder and venture into the unknown.
On their side was a record-low unemployment rate, and rising wages as businesses tried to lure fewer and fewer available workers.
But now there are signs that the good times for workers are coming to a sudden and dramatic end.
The great sacking
Amidst new forecasts indicating the impending ‘Great Sacking,’ a Brisbane employment lawyer, Jonathan Mamaril of NB Employment Law, urges workers to abandon quiet quitting and brace themselves for uncertain times.
The pandemic-induced rise in wages and the escalating cost of living have pushed employers to reevaluate their payroll structures, seeking ways to cut expenses.
One critical cost factor that has surged is the Wage Price Index (WPI), which gauges labor costs. Over the past three years since March 2020, the WPI has escalated by 1.5 per cent, reaching a peak of 3.7 per cent, the highest since September 2012, after a slight dip during the pandemic’s early stages.
Wage growth has also surged, with the private sector witnessing a 3.8 per cent increase and the public sector a 3 per cent climb between September 2020 and March 2023. The Average Weekly Earnings Report reveals that the average adult earns $1875.20 weekly, subject to the type of work, sector, and any overtime worked.
To cope with these mounting costs, mid-to-large sized businesses are now contemplating restructuring and redundancy strategies to curtail company spending.
Mr. Mamaril predicts that the first major wave of the wages correction cycle will likely strike just before Christmas, extending into early 2024. Overpaid employees may be the first to face lay-offs, especially those earning 30 per cent above industry and job level averages due to businesses’ desperation to secure staff.
Furthermore, positions that can be outsourced, such as administration, human resources, and marketing roles, are also at risk of being eliminated.
The situation calls for vigilance and readiness as the workforce braces for potential workforce reductions and restructuring in the coming months.
Big companies are now trying to keep investors happy, amid higher costs.
Under the leadership of Chief Executive Vicki Brady, Telstra has made a significant move by cutting nearly 500 positions, marking its first major round of job cuts.
The telecommunications company is reducing staff across its enterprise unit, with the majority of the 472 affected roles located within the telco’s enterprise workforce.
These job cuts are part of Telstra’s ambitious goal to reduce fixed costs by $500 million as outlined in its T25 strategic plan. The plan was initially introduced by former CEO Andy Penn and has been continued under Ms. Brady’s leadership.
A Telstra spokesperson confirmed the proposed changes, stating that they aim to reshape the business to maintain competitiveness, efficiency, and effectiveness in their operations.
However, Telstra says there will be no workforce reductions in the Telstra consumer teams responsible for serving customers in stores, over the phone, or at home.
McDonald’s plans massive expansion with 9,000 new burger joints by 2027
Fast-food giant McDonald’s has unveiled an ambitious plan to open nearly 9,000 new burger joints across the globe by 2027.
The move comes as part of the company’s aggressive growth strategy to maintain its dominance in the competitive fast-food industry.
McDonald’s, known for its iconic golden arches, currently operates over 38,000 restaurants in more than 100 countries.
With this expansion, the company aims to tap into emerging markets while also strengthening its presence in existing ones. The plan includes opening new outlets in urban centres, shopping malls, and even smaller towns, catering to a diverse range of customers.
The expansion drive is expected to create thousands of jobs, from front-line crew members to management positions, offering economic opportunities in various communities.
Furthermore, McDonald’s will continue to focus on sustainability, with commitments to reduce its environmental footprint through eco-friendly practices and packaging.
As the fast-food giant prepares to embark on this ambitious journey, the focus keyword for Google SEO is “McDonald’s expansion.”
Citigroup’s enormous billion dollar restructuring cost revealed
Citigroup, one of the world’s largest financial institutions, is undergoing a significant restructuring effort that comes with a hefty price tag of $1 billion.
However, this massive overhaul is now anticipated to extend beyond the current quarter and will likely stretch into the next.
The restructuring plan, which was initially expected to conclude this quarter, involves a comprehensive review of Citigroup’s operations, aiming to streamline its business processes and enhance efficiency. The bank has been facing mounting pressure to adapt to changing market conditions and technological advancements.
The delay in completing the restructuring has raised concerns among investors, as the prolonged uncertainty can impact the bank’s financial performance. Citigroup’s leadership remains committed to the plan, emphasising the importance of getting it right rather than rushing through the process.
Despite the cost and delay, Citigroup remains optimistic about the long-term benefits of the restructuring, which include improved profitability and competitiveness in the financial sector.
British American Tobacco issues warning on future of U.S. brands
British American Tobacco (BAT) has raised concerns about the long-term viability of its US-based cigarette brands, marking a significant shift in its outlook on the American market.
The company is now planning a massive $31.5 billion writedown, reflecting its dim view of the future prospects for these brands.
BAT, one of the world’s leading tobacco companies, has traditionally maintained a strong presence in the US market through brands like Newport and Camel. However, changing consumer preferences, stricter regulations, and the rise of alternative tobacco products like e-cigarettes have put pressure on the traditional cigarette industry.
The company’s decision to write down the value of its US brands highlights the challenges it faces in a market that is evolving rapidly. BAT is expected to focus more on the development and marketing of reduced-risk products and alternative nicotine delivery systems.
This strategic shift may have significant implications for BAT’s future operations and the broader tobacco industry. It remains to be seen how the company will navigate this changing landscape and whether it can adapt to the shifting preferences of consumers.
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