US saw 98% surge in layoffs in 2023, Is the worst yet to come?
The surveys also cautioned that the issue would get worse this year as a result of the labor market's deterioration as a result of high interest rates and skyrocketing prices.
The number of layoffs in the US increased by 98% in 2023 compared to the previous year. Professional outplacement agency Challenger, Gray & Christmas released a new report stating that US corporations projected 721,677 layoffs in 2023—a substantial increase over the 363,832 job cuts that occurred in 2022.
The survey also cautioned that the issue would get worse this year as a result of the labour market’s deterioration as a result of high interest rates and skyrocketing prices.
Highlights of Gray and Christmas Report
Mass layoffs in the US
Technology announced the largest number of layoffs in the US last year, letting go of 168,032 employees—a 73% increase from the year before.
According to reports, Andy Challenger, senior vice president of Challenger, Gray & Christmas, stated that “mergers and acquisitions, realignment of resources and talent, and the onset of AI will continue to impact the tech sector.”
A significant portion of last year’s layoffs came from retail businesses as well. At least 78,840 workers lost their jobs, a 274 percent increase from 2022.
Despite businesses being cautious and accommodating when it comes to recruiting, Challenger claims that shops will still need to “be on their toes” in 2024.
Compared to layoffs reported in 2022, the healthcare industry and product manufacturers eliminated 58,560 people last year, a 91 percent increase.
Tech layoffs in 2023
Large tech businesses like Google, Amazon, Microsoft, Yahoo, Meta, and Zoom led the way in tech layoffs last year.
According to FYI, a website that records layoffs worldwide, TechCrunch reported that there were 259,510 job cutbacks in the tech sector last year.
In addition to Big Tech, well-known companies that laid off workers in 2023 included ShareChat, Spotify, Disney, ByteDance, the parent company of TikTok, LinkedIn, Discord, Lyft, and Netflix, according to TechCrunch.
During the past few years, tech companies globally have eliminated roughly 425,000 jobs.
Reasons for job cuts
The declining market and economic conditions were the primary causes of last year’s downsizing, according to the Challenger, Gray, and Christmas report. According to reports, the US struggled with severe inflation and a spike in interest rates last year as a result of persistent geopolitical unrest.
Businesses also blame bankruptcies, store closures, and artificial intelligence (AI) for the employment losses.
Following the US Labor Department’s announcement that the economy added roughly 2.7 million jobs in 2023—down from 4.8 million in 2022—the report was released.
2024 layoffs
According to an NPR story, TikTok has cut off 60 workers this year, the majority of whom were in its sales and advertising section. Employees abroad as well as in Austin, New York, Los Angeles, and other US cities have been impacted by the layoffs.
The video-sharing website has cut employees, following in the footsteps of Google and Amazon, two of the biggest tech businesses, in recent weeks.
More than 10,000 layoffs have been recorded in the tech industry so far this year, according to the tech employment tracker site layoffs.-fyi.
This month, Google has reduced staff members in several rounds. According to TechCrunch, Google’s YouTube video-sharing business will lay off about 100 workers as part of a reorganization of its partnerships team, which is in charge of operations and creator management.
This follows the internet giant’s announcement earlier this month of over 1,000 employee layoffs across multiple areas. Throughout the year, the organization will experience further layoffs. In a recent memo, Sundar Pichai, the CEO of Google, informed staff members that the internet behemoth has “ambitious goals” in fields like AI. “The truth is that we have to make difficult decisions in order to create the capacity for this investment,” Pichai stated in a Reuters article.
A third, or roughly 500 employees, of Twitch, an Amazon-owned company, were let go. According to a document obtained by TechCrunch, Amazon intends to fire “several hundreds” of workers from MGM Studios and Prime Video.
Frontdesk, a 2017-founded US firm, let go of every one of its 200 employees during “a two-minute Google Meet call” in early January.
According to NPR, while tech layoffs are expected to persist, analysts in Silicon Valley anticipate that the reduction in headcount will be more focused and lower than in 2023.
“The cost of labor is high. Going into 2024, employers are still very cautious and in cost-cutting mode, so many jobseekers’ recruiting processes will probably slow down, and cuts will continue in the first quarter, according to Challenger.
Read more news like this on PropleManager.co.in
Value our content… contribute towards our growth. Even a small contribution per month would be of great help to us. Since our establishment, we have been serving the industry through daily news and updates.
Our content is free for all, and we plan to keep it that way
Support the People Manager. Pay Here (All it takes is a minute)
- Lubrizol and Polyhose Sign MoU to Manufacture Medical Tubing, Expand Capacity in Chennai - November 14, 2024
- After Seen 6.6% Rise of EPFO Contributors Government plans to hike EPF wage ceiling to Rs 21,000 - November 11, 2024
- Termination Of Service After Employee’s Retirement Unknown To Law In Absence Of Pending Departmental Proceedings: Patna High Court - November 5, 2024
