In 2023, the number of layoffs in the US surged to almost 98% as compared to last year.
The New York Post reported citing the research findings published earlier this month in the Challenger, Gray & Christmas report, that companies planned 721,677 job cuts last year, a substantial increase from the 363,832 layoffs reported in 2022.
As the labour market continues to soften in the face of inflation and high-interest rates, these figures are estimated to widen even more.
Andy Challenger, senior vice president of Challenger, Gray & Christmas, said, “Employers are still extremely cautious and in cost-cutting mode heading into 2024, so the hiring process will likely slow for many job seekers, and cuts will continue in the first quarter.”
The technology sector faced the most cuts, with almost 168,032 employees losing their jobs, a 73% increase as compared with the previous year.
There are several reasons for this, such as the integration of artificial intelligence (AI) and the re-alignment of resources and skills.
The retail companies also accounted for a large number of job cuts, slashing 78,840 positions.
Healthcare and product manufacturers, including hospitals, also cut a significant number of jobs. They eliminated 58,560 positions in 2023, a 91% increase from the layoffs announced in 2022.
The top reason cited for job cuts last year was deteriorating market and economic conditions as the country grappled with high inflation, a rise in interest rates, and ongoing geopolitical tensions. Companies also blamed store closings, bankruptcy, and AI for the layoffs.
