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Top Layoffs of All Time – Will Federal Layoffs Make the List?

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Do federal layoffs have a good chance of making this list by the end of the year? Hopefully those in the federal government are prepared for other jobs. Mass layoffs occur for many reasons such as economic crises, corporate failures and industry shifts. Is there anyone who thinks the federal government doesn’t need to be more efficient and effective? Automation and AI are expected to continue disrupting jobs in the future. Will AI become a large part of the federal government? Federal layoffs are here and it seems there is nothing anyone can do about it. How are you preparing for your next chapter of your career? Many people have gone through layoffs so don’t feel your alone. Look at the list below and they have all gone through it. There are plenty of resources out there. We included some inspirations links below. As well as some videos to help people get past tough times.

Further Details:

1. COVID-19 Pandemic Layoffs (2020)

  • Industry: Multiple (Retail, Hospitality, Airlines, Tech)
  • Job Losses: Tens of millions worldwide
  • Details:
    • The COVID-19 pandemic caused a global economic crisis, forcing businesses to shut down due to lockdowns and reduced demand.
    • Major industries affected included airlines (Delta, United, American Airlines), hospitality (Marriott, Hilton), and retail (Macy’s, J.C. Penney).
    • Companies moved towards automation, remote work, and downsizing physical offices, reshaping the workforce long-term.
  • Impact:
    • Unemployment skyrocketed, reaching 14.7% in the U.S. (April 2020).
    • Governments responded with stimulus packages, but many jobs never returned.
    • Accelerated the shift to e-commerce and remote work.

2. U.S. Great Depression (1929-1939)

  • Industry: Multiple
  • Job Losses: Over 15 million in the U.S.
  • Details:
    • The stock market crash of 1929 led to widespread business failures, bank collapses, and economic contraction.
    • Unemployment peaked at 25% in 1933.
    • Industries such as manufacturing, agriculture, and construction were devastated.
  • Impact:
    • Creation of New Deal programs like Social Security and public works projects.
    • Strengthened labor unions and led to long-term financial regulations (e.g., Glass-Steagall Act).

3. Lehman Brothers Collapse & 2008 Financial Crisis

  • Industry: Banking, Finance, Automotive
  • Job Losses: Millions worldwide
  • Details:
    • The housing market collapse triggered a global banking crisis, leading to Lehman Brothers’ bankruptcy (26,000 jobs lost overnight).
    • Banks like Citigroup, AIG, and Merrill Lynch also had major layoffs.
    • Auto giants General Motors, Chrysler, and Ford faced deep losses, leading to industry-wide cuts.
  • Impact:
    • The U.S. government launched the Troubled Asset Relief Program (TARP) to bail out key industries.
    • Unemployment peaked at 10% in 2009.
    • Led to Dodd-Frank financial regulations to prevent future crises.

4. IBM Layoffs (1993)

  • Industry: Technology
  • Job Losses: 60,000+
  • Details:
    • IBM, once the leader in computing, struggled as PCs replaced mainframes and competitors like Microsoft and Intel took over.
    • The company faced $8 billion in losses, leading to CEO Louis Gerstner’s restructuring plan.
  • Impact:
    • Marked IBM’s transition from hardware to software and services.
    • Set a precedent for layoffs in the tech industry as a tool for restructuring.

5. General Motors (2009 Auto Bailout Layoffs)

  • Industry: Automotive
  • Job Losses: 75,000+
  • Details:
    • GM was on the brink of bankruptcy during the 2008 financial crisis.
    • The U.S. government provided $50 billion in aid, but GM had to shut down plants and lay off thousands.
    • Similar cuts happened at Chrysler and Ford.
  • Impact:
    • GM emerged from bankruptcy as a leaner company.
    • The U.S. auto industry rebounded but shifted toward electric vehicles and automation.

6. Boeing Layoffs (1970-1971)

  • Industry: Aerospace
  • Job Losses: 60,000+
  • Details:
    • Boeing lost major government contracts after the cancellation of the SST (Supersonic Transport) program.
    • A decline in commercial aircraft orders worsened the crisis.
    • Entire towns like Seattle were impacted, with the infamous billboard:”Will the last person leaving SEATTLE – Turn out the lights.”
  • Impact:
    • Boeing diversified its business and eventually rebounded with the 747 and space projects.

7. AT&T Layoffs (1996)

  • Industry: Telecommunications
  • Job Losses: 40,000+
  • Details:
    • AT&T, once a monopoly, struggled in the new age of mobile and internet competition.
    • The layoffs were controversial because AT&T was still profitable, yet they cut jobs to “streamline operations.”
  • Impact:
    • Marked the beginning of mass layoffs in the telecom sector.
    • AT&T later merged and restructured multiple times, struggling to regain dominance.

8. Microsoft Layoffs (2023)

  • Industry: Technology
  • Job Losses: 10,000+
  • Details:
    • Microsoft joined other tech giants like Google, Meta, Amazon, and Twitter in cutting jobs due to over-hiring during COVID-19.
    • The layoffs were part of a shift toward AI investments and cost-cutting.
  • Impact:
    • Signaled a slowdown in tech industry growth post-pandemic.
    • More focus on AI and cloud computing.

9. Twitter (X) Layoffs (2022-2023, Elon Musk)

  • Industry: Social Media / Tech
  • Job Losses: 6,500+ (Over 75% of staff)
  • Details:
    • After buying Twitter for $44 billion, Musk immediately fired top executives and reduced staff from 7,500 to around 1,500.
    • The layoffs aimed to cut costs and push for profitability.
    • Many employees left voluntarily after Musk introduced “hardcore” work culture demands.
  • Impact:
    • Twitter’s ad revenue declined, but Musk focused on subscriptions and AI integration.
    • Showed how a tech giant could operate with a much smaller workforce.

10. Enron Collapse (2001-2002)

  • Industry: Energy
  • Job Losses: 20,000+
  • Details:
    • Enron, once an energy giant, was exposed for massive accounting fraud.
    • The company collapsed overnight, leaving employees with worthless stocks and lost pensions.
  • Impact:
    • Led to Sarbanes-Oxley Act, which imposed stricter financial regulations.
    • Became one of the most infamous corporate scandals in history.

Quotes on Federal Layoffs

  • “Make no mistake — Trump is looking to fire probationary employees because it is easy, not because it is good for veterans or cost-effective. In fact, it is a massive waste of taxpayer dollars to fire employees the department just invested months into recruiting, vetting and training.” ~Senator Richard Blumenthal, a Democrat from Connecticut
  • “I think the American people spoke on November 5th, that they believe that government was too big.” ~Brooke Rollins, Agriculture Secretary
  • “ELON IS DOING A GREAT JOB, BUT I WOULD LIKE TO SEE HIM GET MORE AGGRESSIVE. REMEMBER, WE HAVE A COUNTRY TO SAVE, BUT ULTIMATELY, TO MAKE GREATER THAN EVER BEFORE. MAGA!” ~Donald Trump
  • “Consistent with President @realDonaldTrump’s instructions, all federal employees will shortly receive an email requesting to understand what they got done last week. Failure to respond will be taken as a resignation.” ~Elon Musk on X
  • “DOGE is an unprecedented and highly controversial approach to federal spending reform. From a financial planning perspective, there are critical concerns about its methodology and long-term implications…” ~Michael Ryan, Finance Expert

Dealing with Hard Times, Inspiration, Job Resources.

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