It’s been generally assumed that a large majority of layoffs in 2020 were caused by the economic strain brought on by covid-19 outbreak. However, new data suggests otherwise; big businesses experienced a very different 2020 from most of America. Despite larger companies rolling out layoffs at a higher rate than smaller companies, 45 of the 50 biggest companies in America turned a profit in 2020. While small businesses have lost an average of 12% income loss in 2020, the larger corporations included in this study showed that they had a 2% growth in profits last year. Even companies that previously pledged to avoid layoffs more often than not broke their promises. Perhaps most concerning, the 50 biggest companies in America have paid a collective 240 BILLION dollars in payouts in 2020 alone, which accounted for more than 80% of the profits. Read the full Washington Post article below for the full story:
https://www.washingtonpost.com/graphics/2020/business/50-biggest-companies-coronavirus-layoffs/
Everyday economics from the University of Puget Sound