Corporate America is experiencing one of its largest waves of mass layoffs since the Great Recession. United for Respect documented that the retail industry alone eliminated 80,000 jobs in 2023 due to bankruptcies and corporate restructuring, representing a 274% increase from 2022. While comprehensive data across all sectors remains fragmented, individual company filings and labor statistics paint a picture of widespread employment disruption affecting hundreds of thousands of American workers.
The Numbers Tell a Grim Story: Bankruptcy Filings Surge to 13-Year High
Reports from Fortune indicate that bankruptcy filings surged to a 13-year high with 642 corporate failures. This figure eclipsed even 2020’s pandemic panic by 72%. Rising interest rates and persistent inflation crushed over-leveraged companies nationwide. Economic analysts warn that this represents just the beginning of a prolonged downturn for debt-heavy businesses.
1. Yellow Corp: The Trucking Giant That Put 30,000 Drivers Out of Work
NPR confirmed that the nation’s third-largest trucking company shuttered operations in August 2023, eliminating 30,000 union jobs in one devastating blow. Yellow Corp’s collapse marked the largest trucking bankruptcy in U.S. history, with drivers receiving termination notices via text message. Fortune reports the company had borrowed $700 million in federal pandemic relief just three years earlier, making the failure particularly stinging for taxpayers.
2. Party City: America’s Party Supply King Falls, Taking 16,330 Jobs Down
According to United for Respect data, the party supply giant filed for bankruptcy in January 2023, operating 823 stores and employing over 16,330 workers. Rising helium costs, pandemic-cancelled celebrations, and crushing debt loads forced the retailer’s hand. CNN reports the company’s bankruptcy eliminated thousands of seasonal and part-time retail positions across America, leaving party planners searching for alternatives.
3. Bed Bath & Beyond: Home Goods Empire Crumbles, 12,000+ Workers Lose Everything
The home goods retailer’s complete liquidation eliminated over 12,000 corporate and retail positions after operating for five decades, retail industry sources confirm. Store closing sales began in April 2023 as the company shuttered all 1,000+ locations nationwide. CNN discovered that workers learned their severance pay would never arrive, adding financial insult to unemployment injury.
4. David’s Bridal: Wedding Dreams Shattered Along with 9,236 Jobs
NPR documented that America’s largest bridal retailer laid off over 9,000 workers during its second bankruptcy filing in five years. The company’s April 2023 collapse left brides scrambling for wedding dresses while employees faced immediate termination. Industry analysts say David’s Bridal’s failure reflected broader challenges in formal wear retail and changing wedding industry dynamics.
5. WeWork: The $47 Billion Unicorn Crashes, 8,000+ Jobs in Limbo
According to multiple reports, the once-$47 billion coworking giant filed for bankruptcy in November 2023, affecting thousands of employees globally. WeWork’s spectacular fall from startup darling to bankruptcy case study eliminated jobs across real estate, technology, and facility management. ABC News characterized the company’s collapse as symbolizing the end of pandemic-era workspace disruption dreams.
6. Red Lobster: Endless Shrimp Deal Leads to 6,500+ Job Losses
Labor advocacy groups report that the seafood chain’s May 2024 bankruptcy filing eliminated over 6,500 positions after closing 99 locations without worker notice. Employees discovered their job terminations through scheduling apps on Mother’s Day weekend. Restaurant industry insiders reveal that the company’s infamous $20 endless shrimp promotion contributed $11 million in losses to its financial downfall.
7. Tuesday Morning: 49-Year Retail Run Ends, 6,300 Workers Left Behind
According to Talk Business reporting, the discount home goods retailer closed all 487 stores after its second bankruptcy in three years, affecting approximately 6,300 employees. Corporate headquarters in Dallas laid off 2,000 office workers while 4,300 retail employees faced store closures. Retail Dive noted the 49-year-old company thanked customers for their loyalty in its final social media post.
8. Revlon: Beauty Giant’s Downfall Affects 5,700 Cosmetics Workers
Beauty giant Revlon’s June 2022 bankruptcy filing affected 5,700 cosmetics industry workers across manufacturing plants and corporate offices. The 90-year-old makeup company struggled with debt exceeding $3 billion while facing intense competition from newer beauty brands. CNN reported that the company’s inability to secure raw materials due to supply chain issues and cash flow problems accelerated its decline.
9. Rite Aid: Pharmacy Chain’s Opioid Crisis Legacy Claims 3,500+ Jobs
New Jersey business publications confirmed that the pharmacy chain’s October 2023 bankruptcy filing triggered layoffs affecting over 3,500 corporate and retail workers. Massive opioid lawsuit settlements and the company’s inability to compete with CVS and Walgreens forced the company’s hand. WHYY reports that store closures are concentrated in Pennsylvania, where the company maintained its headquarters operations for decades.
10. SmileDirectClub: 3,000+ Workers Get Termination Notice Via Video Call
Class-action attorneys documented that the direct-to-consumer orthodontics company eliminated over 3,000 positions when it ceased operations in December 2023. Workers received termination notices via video call without severance pay or warning. Legal filings allege the company violated federal WARN Act requirements for mass layoff notifications, leaving employees with little recourse.
11. Vice Media: Digital Media Darling Shuts Down News Site, 2,500+ Jobs Gone
The Los Angeles Times reported that the digital media company laid off “several hundred” staff members while shuttering its flagship Vice.com news operation in February 2024. Vice’s bankruptcy represented the broader collapse of venture-capital-funded digital media companies that failed to achieve sustainable profitability. Variety characterized the company’s edgy brand as unable to save it from financial reality.
12. Instant Brands: Instant Pot Maker’s Success Couldn’t Save 2,400 Jobs
The maker of Instant Pot, Pyrex, and Corelle filed for bankruptcy in June 2023, affecting its global workforce of 2,400 employees, CNN reported. Rising interest rates made the company’s $500+ million debt load unsustainable despite strong product demand. CBC noted that the Ottawa-founded company successfully navigated pandemic disruptions but couldn’t survive the economic aftermath.
13. Serta Simmons: Mattress Giant Restructures, 2,000+ Workers Feel the Squeeze
According to company statements, the mattress manufacturer filed for bankruptcy in January 2023, affecting over 2,000 manufacturing and corporate workers. By June 2023, the company successfully emerged from Chapter 11 proceedings after eliminating $1.6 billion in debt. Retail TouchPoints confirmed that restructuring required significant workforce reductions and facility consolidations to achieve viability.
14. Lordstown Motors: Electric Vehicle Dreams Die with 1,500+ Ohio Jobs
CNN verified that the electric vehicle startup filed for bankruptcy in June 2023, eliminating over 1,500 manufacturing jobs in Ohio. The company’s failure represented broader struggles in the EV startup sector as funding dried up. Automotive Dive reports that Lordstown’s bankruptcy left the Mahoning Valley community without a major automotive employer and dashed hopes for an electric vehicle manufacturing resurgence.
15. Boston Market: Rotisserie Chain’s Slow Death Claims 1,200+ Positions
Industry observers noted that the rotisserie chicken chain’s gradual collapse affected over 1,200 workers, as locations closed due to unpaid bills and wages. Courts dismissed owner Jay Pandya’s repeated bankruptcy attempts for failing to meet filing requirements. Nation’s Restaurant News found that workers often discovered store closures when sheriffs arrived to lock doors, learning of terminations through local news reports.
16. FTX Crypto Exchange Collapse Eliminates 1,000+ Tech
The cryptocurrency exchange’s November 2022 bankruptcy eliminated over 1,000 positions in what prosecutors called “one of the biggest financial frauds in American history,” court documents show. CEO Sam Bankman-Fried’s 25-year prison sentence highlighted the human cost of financial misconduct. Workers lost not only their jobs but also retirement savings invested in company stock, creating a double financial blow for employees.
What This Means for American Workers: More Pain Ahead
Economists warn that the 2023-2024 bankruptcy wave signals fundamental shifts in American commerce and employment patterns. Traditional retail, over-leveraged startups, and debt-heavy industries face continued pressure from elevated interest rates. Credit Risk Monitor predicts additional major failures in 2025 as more companies confront debt maturities amid challenging economic conditions, meaning job security remains elusive for millions of workers.
The Human Cost of Corporate Failure: Lives Forever Changed
Labor economists observe that these large layoffs from these 18 bankruptcies demonstrate the human cost of financial engineering and private equity excess. Workers bore the ultimate price for executive decisions made in boardrooms far from factory floors and retail counters. As interest rates remain elevated, American families remain vulnerable to corporate financial decisions beyond their control, turning stable careers into economic casualties overnight.