Jim Cramer says he expects ‘lots of layoffs’ at companies after Christmas

CNBC’s Jim Cramer predicted on Tuesday that more companies would downsize after the holiday season.

“I’m sure there will be a lot of layoffs after Christmas. I don’t want to point fingers at which retailers are most likely to go bankrupt at the end of the holidays, but I want people to realize that, to In a way, our current high inflation economy is a high quality problem,” he said.

A growing number of companies across all sectors have cut staff this year in an effort to control spending in a shrinking economy. PepsiCo is one of the latest companies to downsize following cuts at food and beverage peers Beyond Meat, Impossible Foods and rival Coca-Cola.

The rate of layoff announcements among U.S. employers last month was more than five times higher than a year earlier, according to a report by Challenger, Gray & Christmas. Tech companies, whose astronomical growth in recent years has been hurt by interest rate hikes from the Federal Reserve, led the layoffs last month.

Still, the total number of layoffs this year is the second lowest since the company began tracking the measures in 1993. Cramer attributed the lack of job cuts to the fact that many companies have managed to stay afloat – a fact that could change next year.

“Even the most fringe new public companies are still going strong. You’d think some of these SPAC names would soon run out of money,” he said.