Mass Layoffs: 52 Companies announced layoffs in California this July

Photo byClaudia WolffonUnsplash

California's employment landscape faced a stark challenge this July as a total of 52 companies across the state filed WARN notices, signaling layoffs that affected thousands of workers. Adding up all the layoffs gives us a total of 5,396 layoffs in July and layoffs this year.

Noteworthy layoffs:

Optum, a subsidiary of UnitedHealth Group, has announced layoffs and closures affecting 524 employees across 15 locations in California as part of a strategic restructuring. The closures, effective September 16th, with layoffs ranging from single digits to over a hundred per location. These actions are part of Optum's national effort to streamline operations and reallocate resources, affecting 18 metropolitan markets across multiple states.

Cepheid, a molecular diagnostics company headquartered in Sunnyvale and part of the Danaher Corporation, plans to eliminate 626 positions by September 27, impacting approximately 13% of its 4,800 employees. The layoffs will affect various roles, from manufacturing associates to senior management. In addition to the cuts at its headquarters, Cepheid will lay off 11 employees at its East Bay Logistic Center in Fremont. Known for its innovative GeneXpert System, Cepheid's workforce reduction is part of a strategic decision impacting its operations.

intuit's decision to lay off 1,800 employees nation wide, including 384 in Mountain View and 215 in San Diego, leading to 599 members of California's workforce being laid off. These layoffs, representing 10% of Intuit's staff, are part of the company's strategy to invest in artificial intelligence technology.

Data in context:

Photo bycustom graph

As of mid-2024, the number of layoffs stands at 61,817, indicating a 30.72% decrease from the peak in 2023. However, this figure still represents a 13.68% increase compared to 2022, suggesting that while the situation has improved, challenges remain.

Here is total number of layoffs each year in California from 2014 to 2024:

• 2014: 42,289 layoffs
• 2015: 66,770 layoffs
• 2016: 62,724 layoffs
• 2017: 55,534 layoffs
• 2018: 68,717 layoffs
• 2019: 61,608 layoffs
• 2020: 643,752 layoffs
• 2021: 66,283 layoffs
• 2022: 54,380 layoffs
• 2023: 89,230 layoffs
• 2024: 61,817 layoffs

With 61,817 layoffs reported so far, 2024 ranks as the seventh highest year for layoffs in the last decade. For California to make it to third place it would only need an additional 6,900 layoffs or to make it to second they would need 27,413 layoffs.

Despite the improvements from the highs of previous years, the fact that California could easily ascend in the rankings with further layoffs suggests that vulnerabilities persist.