Layoffs May Increase Bankruptcy in Memphis
Rising discussions of layoffs across major US industries could increase bankruptcy in Memphis and elsewhere. Even if you aren’t in one of these industries, you may be at risk.
Here’s what you need to know from our Memphis bankruptcy attorneys.
The Potential Burst of the Tech Bubble
Major tech companies have already begun massive layoffs. Amazon, Twitter, and Meta (the company behind Facebook) have all made huge cuts. Salesforce and Vimeo followed suit. Google expects to make more cuts soon. And other tech companies will likely follow.
These layoffs could impact everyone from low-income warehouse workers to the executive suites.
They follow a decade of truly decadent tech spending. Some of the tech companies listed above offered their headquarters staff free unlimited buffets from gourmet chefs. They bought up smaller companies for billions. And they assumed tech use would grow infinitely, even if that’s actually impossible.
(It’s worth noting that for some of the social media companies, including Facebook and Instagram, pending lawsuits may also be a problem. Some of these companies have behaved so irresponsibly that young people actually died. In fact, our firm is currently pursuing a social media lawsuit on behalf of children injured by the apps.)
Other Industry Layoffs Likely: What Are the Warning Signs?
In addition to social media and other big tech companies, Goldman Sachs is currently planning to cut 8% of their staff. As the second largest investment bank in the world, this could have a significant impact on the economy.
So if even these huge companies are struggling, is your job safe?
Generally, you’ll want to brace for possible layoffs if you notice:
- Hiring freezing
- Extreme budget cuts (for example, Goldman Sachs has cut free coffee)
- Talk of restructuring
- Evidence higher-ups are leaving or planning to leave
- Staff being questioned at length about their jobs and/or performance
If you’re noticing this sort of evidence, you should make preparations for a potential job search. Ideally, you won’t have a problem, but you’ll be ready just in case.
How Layoffs Could Mean a Possible Recession
During a recent round of Amazon layoffs, executives cited “the uncertain economy” as their main reason. Is the economy really that uncertain? And what can we expect from 2023?
Some people assume inflation means a recession is coming. This may be true, but in general, unemployment signals a recession even more.
High unemployment means far less spending power across the country and world. As a result, companies struggle and hire even less. They may layoff even more workers. People then can’t find jobs to replace their old ones.
In addition, high unemployment can lead to a decline in overall wealth. As people cut into their savings and investments stay stagnant or lose value, it makes a recession even more likely.
Bankruptcy in Memphis With Our Firm: How We’ve Helped After Job Loss
As a Memphis bankruptcy firm, we’ve helped thousands of people recover from job loss. For decades, we’ve been there for Memphis families in their worst financial moments, and we’ve helped them recover and get their lives back.
When you file for bankruptcy, an automatic stay goes into effect that stops creditors from trying to collect on your debts. This offers some relief from creditor harassment and allows you to focus on finding a new job without the added stress of dealing with debts you can’t pay.
It can also stop some of the instability around job loss. For example, Chapter 13 bankruptcy stops foreclosure and repossession, so you have some time to rebuild without losing everything.
Lastly, if you work with our attorneys, we’ll help set you up well for life after bankruptcy. We firmly believe a layoff or job loss shouldn’t destroy your life. And it doesn’t have to. Our life after bankruptcy resources and dedicated team will help you get back on track.
If you need help with bankruptcy in Memphis after a job loss, don’t wait to get started. Contact us today at 901-327-2100 or fill out the form below. The conversation is completely free, no strings attached.