That's because consumer spending is starting to go down and families are starting to cut back. So they have to either increase prices, which they're already doing and that's not working, so they have to cut costs, and the number one way for companies to do that is to cut employees.
Yes, the record profits are because they keep cutting the cost of labor by cutting off employees.
Sorry if my original comment didn't make sense. I'll try to explain it differently. Companies right now are raising prices. Every time a company raises prices, no matter the industry, people will stop buying it or buy less of it. But they need to keep making more profits, that's the American growth system.
So, they are continuously cutting more from the workforce, whether that is firing employees, laying them off, or replacing them with cheaper workers while letting go of all the better-paid ones. That way, the profits are steadily going up on a chart, but they are still laying off more and more people while raising prices.
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u/aFreshFix 5h ago
But they're already laying everyone off in a lot of industries despite inflation and record profits.