Texas Faces Mass Layoffs As Nearly 100 Companies Plan Cuts

Luke Holdings has announced significant layoffs affecting over 650 employees across border-town facilities in South and West Texas, including Laredo, El Paso, and Del Rio. The layoffs, which were due to federal government mandates for staff reductions, left many employees with only a one-day notice before termination. This move follows broader federal spending cuts impacting contractors who provide staffing for military medical facilities and immigration processing centers. The situation reflects a larger trend of layoffs across Texas, with at least 14 companies planning to reduce their workforce this month, spurred by economic pressures such as inflation and shifts in consumer demand. Major corporations, including Neiman Marcus and Macy's, are also part of this trend, indicating a restructuring across various sectors as businesses aim to boost profits amidst challenging economic conditions. Experts warn that these layoffs could lead to an increase in unemployment rates as the U.S. economy continues to evolve.