🇺🇸 WAVE OF LAYOFFS AND BUSINESS BANKRUPTCIES IN THE U.S.

🔸 The number of small business bankruptcies in the U.S. is rising rapidly. A federal bankruptcy program for small businesses called Subchapter V is setting a record with more than 2,200 bankruptcy filings this year.

🔸 Subchapter V is a quick, low-cost bankruptcy option for small businesses. Subchapter V is similar to Chapter 11 (restructuring repayment plan) but is a more streamlined, faster, and cheaper version for small businesses.

🔸 Main causes
➤ Borrowing interest rates are too high, causing operating costs to spike
➤ Consumers are tightening spending, leading to declining revenues
➤ Trade wars during President Trump’s administration have put pressure on small businesses
➤ Business owners are increasingly pessimistic, with optimism dropping to its lowest level in 6 months

🔸 Subchapter V is growing even faster than Chapter 11 bankruptcies. Subchapter V filings are up more than 8 percent over last year, while Chapter 11 filings are only up about 1 percent.

🔸 Even though the debt limit to qualify for Subchapter V filings has dropped from $7.5 million to $3 million, the number of filings continues to rise, indicating that difficulties are spreading among small businesses.

Meanwhile, many companies and the government have also announced layoffs recently:

1. U.S. Government: 307,000 employees
2. UPS: 48,000 employees
3. Amazon: Up to 30,000 employees
4. Intel: 24,000 employees
5. Nestle: 16,000 employees
6. Verizon: 15,000 employees
7. Accenture: 11,000 employees
8. Ford: 11,000 employees
9. Novo Nordisk: 9,000 employees
10. Microsoft: 7,000 employees
11. PwC: 5,600 employees
12. Salesforce: 4,000 employees
13. IBM: 2,700 employees
14. American Airlines: 2,700 employees
15. Paramount: 2,000 employees
16. Target: 1,800 employees
17. General Motors: 1,500 employees
18. Applied Materials: 1,444 employees
19. Kroger: 1,000 employees
20. Meta: 600 employees
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