Jim Cramer says he expects 'many layoffs' at companies after Christmas

CNBC's Jim Cramer connected Tuesday predicted that much companies volition trim their workforces aft the vacation season.

"I'm definite there'll beryllium galore layoffs aft Christmas. I don't privation to finger-point astatine the retailers who're astir apt to beryllium thrown into bankruptcy erstwhile the holidays are over, but I bash privation radical to recognize that, successful a way, our existent high-inflation system is simply a high-quality problem," helium said.

A increasing fig of companies crossed industries person curtailed their caput counts this twelvemonth successful an effort to power their expenses successful a dipping economy. PepsiCo is 1 of the latest companies to downsize pursuing cuts astatine nutrient and beverage peers Beyond Meat, Impossible Foods and rival Coca-Cola.

The complaint of layoff announcements astatine U.S. employers past period was much than 5 times greater than the twelvemonth prior, according to a Challenger, Gray & Christmas report. Tech companies, whose astronomic maturation successful caller years has been derailed by the Federal Reserve's involvement complaint hikes, led past month's layoffs. 

Yet the full fig of layoffs this twelvemonth is the 2nd lowest since the institution started tracking the metrics successful 1993. Cramer attributed the deficiency of occupation cuts to the information that galore companies person managed to enactment afloat — a information that could alteration adjacent year.

"Even the astir marginal, recently nationalist enterprises conscionable support chugging along. You'd deliberation immoderate of these SPAC names would tally retired of wealth soon," helium said.