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By Suzanne Blake
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Two states are expected to experience mass layoffs in March.
Based on data collected by WARNTracker.com, companies in Ohio and California plan to lay off 500 or more employees.
In the U.S., companies are required to send out WARN (Worker Adjustment and Retraining Notification) notices in the event of a mass layoff impacting several employees, regardless of location.
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Why It Matters
While tech company layoffs have been the most prevalent in the news, businesses have been laying off employees industrywide.
Meta recently said it is laying off nearly 4,000 employees to focus on building a larger machine learning team, and 59 other companies have already laid off roughly 11,000 employees this year just in tech alone, according to layoffs.fyi.
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What To Know
In Ohio, Joann's Fabric plans to let between 500 and 1,000 workers go on March 15. The layoffs arrive as Joann's announced this week it would be closing all store locations.
Many stores have faced economic problems since the COVID-19 pandemic, which shifted much of consumer behavior toward online shopping over brick-and-mortar.
Joann filed for Chapter 11 bankruptcy for a second time last month and has struggled to pay its bills on time. At the start of last year, roughly 30 percent of the company's outstanding bills were overdue, with 40.22 percent being one to 30 days late in April.
In California, Kohl's will be laying off the same range of 500 to 1,000 employees, beginning March 28. The company previously slashed 10 percent of its corporate workforce and said it would be closing 27 underperforming stores in 15 states by April.
Sales have been on a downward trend for the retailer, which reported in November that it expected 2024 sales to decline by about 8 percent.
What People Are Saying
Joann's Fabric, in a statement: "We have been proud to serve as a destination for creativity for more than 80 years and thank your dedicated team members, customers and communities across the nation for their decades of support."
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, previously told Newsweek: "California's layoff picture for the first quarter of 2025 is a reflection of the headlines many employees are seeing nationwide. Some are coming from the retail space as less demand puts pressure on their respective workforces, while others are from the much-discussed Big Tech layoffs that have been the source of numerous headlines in recent weeks."
HR consultant Bryan Driscoll previously told Newsweek: "The WARN Tracker paints a grim picture for California, but also for the country as a whole. But let's be clear about these layoffs—they aren't an economic necessity. They're about corporate greed and short-term stockholder appeasement. Tech, entertainment and retail are taking the biggest hits, with companies gutting workforces while raking in billions.
"It's the same tired playbook: Squeeze employees, boost profits and then act surprised when consumer spending tanks. I've said it for years: Corporations cause recessions with these actions."
Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, told Newsweek: "The primary driver behind these layoffs is the rising cost of capital. With interest rates remaining high, corporate margins are shrinking, forcing businesses to cut back. The era of cheap money and unlimited spending is over, and companies are now being forced to operate more efficiently."
What Happens Next
More layoffs are scheduled for companies across the country, but few reached the 500 to 1,000 range. However, with the number of layoffs only rising for the months ahead, there could be a considerable effect on the job market, experts said.
"The immediate impact is clear: More people will be losing their jobs, and hiring will slow," Thompson said. "This will likely result in weaker employment reports over the coming months, particularly as government layoffs add to the strain. With so many people hitting the unemployment line at once, the broader effects on consumer spending, economic growth, and corporate strategy will become more evident as the dust settles."
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