Weekly Report – January 4, 2023

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Highlight of the Week

Salesforce to Lay Off 10% of Workforce, Reduce Offices

  • Salesforce announced on Wednesday that it is laying off 10% of its workforce and reducing office space in certain markets
  • Co-CEO Marc Benioff cited a “cautious approach to spending” on the part of Salesforce’s customers as the main driver of the cuts
  • Benioff stated that Salesforce hired too many people during the revenue surge of 2020

Rate Curves

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Rapid Report:

Abelian Brand Mark

Stay for Pay? Companies Offer Big Raises to Retain Workers

  • Workers who are staying at their current job are receiving the biggest raises in decades which in turn is putting pressure on inflation
  • Employees who switched jobs saw greater growth in wages at 7.7% compared to 5.5% for workers who stayed
  • The threat of employees leaving for bigger paychecks is the main reason for the large wage increases seen this year
  • Overall wages are rising because the job market remains tight with more job openings than job seekers

Big Banks Predict Recession, Fed Pivot in 2023

  • More than two-thirds of the economists at 23 large financial institutions predict that the U.S. will have a recession in 2023
  • The Fed aims to continue raising rates in 2023 to a benchmark of 5%-5.5% which is leading economists to predict a downturn
  • However, most economists predict that it will be a “shallow” or “mild” recession
  • Additionally, most economists predict that unemployment will rise to above 5% in 2023
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Weekly Report – December 14, 2022
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Weekly Report – January 11, 2023

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