Serving
Mohave County
May 2024
Volume 24 Issue 3
COMPLIMENTARY

Sep 2023 | General | 0 comments

Layoff Wave of 2023: GM’s Closure and Arizona’s Economic Landscape

General | 0 comments

September 2023

ARIZONA – The year 2023 has been marked by a surge in layoffs across multiple sectors, affecting hundreds of thousands of employees. According to Forbes, “Layoffs continue apace after more than 136,000 employees were cut by major U.S. companies in the first quarter of 2023.” The tech sector has been particularly hard-hit, with companies like T-Mobile announcing the cut of about 5,000 employees.

In a shocking development, General Motors (GM) announced the closure of its Chandler Innovation Hub in Arizona, resulting in the layoff of 936 workers. According to AZ Central, “General Motors said it will close its Chandler innovation hub and lay off 936 people.” The layoffs are significant, affecting salaried positions and leading to the closure of the Arizona IT Innovation Center at the end of October, as reported by Reuters.

Despite the layoffs, Arizona started 2023 in solid economic shape, with strong job growth and low unemployment, according to Eller College of Management. However, the state’s economy is expected to grow a moderate 1.0% in 2023, with softer consumer spending due to high inflation and interest rates, as reported by Comerica.

The closure of GM’s Chandler Innovation Hub is not just a local issue but adds to the growing list of layoffs that have been affecting the U.S. job market in 2023. For Arizonians, this could mean a shift in the job market dynamics. While the state has seen strong job growth, the layoffs from a significant employer like GM could have ripple effects on the local economy.

Despite the layoffs, Arizona’s economic development efforts continue to break records, as reported by the Arizona Commerce Authority. Spring training this year brought in $418.5 million to Arizona’s economy, according to AZ Central. These factors indicate that while layoffs are a concern, the state has other economic drivers that could potentially absorb the impact.

For the employees affected by GM’s sudden announcement, the focus now shifts to job searching, skill development, and possibly considering career changes. On a broader scale, the state will have to navigate these layoffs while capitalizing on its economic strengths to ensure minimal impact on its residents.

The year 2023 has been a turbulent one for the job market, both nationally and in Arizona. The closure of GM’s Chandler Innovation Hub and the resulting layoffs add another layer of complexity to Arizona’s economic landscape. As the state grapples with these challenges, the focus will be on leveraging its economic strengths to mitigate the impact of such large-scale layoffs on its residents.

–Jeremy Webb



Jeremy Webb

Based in Mohave Valley, Arizona, Jeremy Webb is a dedicated website designer and developer with a keen eye for detail. Transitioning from a background in retail sporting goods management, he now crafts digital spaces that resonate with audiences. Beyond the screen, Jeremy is a passionate writer, delving into topics ranging from business innovations and Arizona’s unique landscapes to the latest tech trends and compelling local narratives. Visit his website at JeremyWebb.Dev

AZYP awarded significant grant aimed to assist homeless youth

The Arizona Youth Partnership (AZYP) has secured a significant financial boost in its mission to support homeless youth in Mohave County. The non-profit organization has been awarded a $307,000 grant from The Arizona Housing Coalition, part of the American Rescue Plan Act (ARPA) allocation by the Arizona Department of Housing.

Read More

Arizona residents brace for fallout from University of Arizona’s financial problems

The size of the university’s financial problems has become increasingly alarming in recent months. Initial reports of a multimillion-dollar shortfall have ballooned, with the latest estimates suggesting a deficit potentially exceeding $140 million. It appears this is not simply a one-time budget gap but a deep-seated structural problem with the university spending far more than it brings in each year.

Read More
Loading

Related Articles

Related

MCC pioneers new real-world approach to education

Mohave Community College (MCC) is pioneering a new approach to education, focusing on real-world experiences and cross-disciplinary collaboration to better prepare students for the workforce. The initiative, led by MCC Electrical Technology Instructor Michael McKenzie and Carpentry Instructor Dan Underwood, aims to provide students with hands-on learning opportunities that go beyond traditional classroom instruction.

read more

NPS phases out ‘Trailer Village’ at Cottonwood Cove

The National Park Service (NPS) has set into motion a plan that will see the gradual phasing out of a longstanding trailer park on the shores of Lake Mohave. The Trailer Village at Cottonwood Cove, which has been a fixture in the area since the early 1970s, is set to be completely phased out by 2043. The decision was made as part of a new lease agreement between the NPS and Lake Mead Mohave Adventures— a company that oversees the majority of commercial operations within the Lake Mead National Recreation Area.

read more