Companies announced almost 90,000 layoffs in March, which is a 15 percent increase from February. Over the past year, job cuts have totaled over 270,000, which is up 396 percent from the prior year. The tech sector has been the leader in the cuts over the past year. They have announced over 100,000 cuts in 2023 so far, which is responsible for 38 percent of all reductions. It is on pace to surpass the 2001 dot com bust. According to Andrew Challenger, the senior vice president of Challenger, Gray & Christmas, "With rate hikes continuing and companies' reigning in costs, the large-scale layoffs we are seeing will likely continue."
Financial companies were the second-highest sector in job cuts with over 30,000 layoffs this year, up 419 percent from last year's first quarter. The main reason cited for the recent job cuts has been economic and market conditions, with cost-cutting being the next most often mentioned.
https://www.cnbc.com/2023/04/06/layoffs-are-up-nearly-fivefold-so-far-this-year-with-tech-companies-leading-the-way.html
4 comments:
I find it interesting how the job market remains so strong this year when the number of layoffs is increasing so much. It makes me curious as to how many available jobs are well-paying as it seems a lot of the well-paying jobs/companies are the ones laying people off. Financial companies do have histories of laying people off to get new employees in the company who will be cheaper to have on. I wonder if that is part of the increase in layoffs.
Super interesting that the tech industry is the leader in cuts. I feel like that is an industry that could continuously create jobs and prosper. Great article and post!
It is very concerning to see high layoffs over the past couple of months. I think a driving factor is overhiring during the pandemic, especially for the tech industry. We have seen significant changes in the finance industry and I think we may see even more layoffs in the future.
The recent surge in job cuts is definitely concerning, particularly for those in the tech industry. Based on recent comments from leaders in the tech space like Mark Zuckerberg I don't expect these layoffs to slow down anytime soon.
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