US Employers Announced 396% Increase in First Quarter Job Cuts

The first quarter of 2023 saw a staggering 396% increase in job cuts compared to the same period last year, with 270,416 people handed pink slips, according to a report by Challenger, Gray & Christmas, Inc. The report also revealed that tech companies have announced the most job cuts this year, with 102,391 already announced, up from the 267 cuts announced in the first quarter of 2022.

Market and economic conditions were the top reason for job cuts in the first quarter, with 167,575 cuts attributed to this cause. The report also noted that hiring plans fell to their lowest total in March since 2015, with only 9,044 new hires announced.

The healthcare, products, and manufacturing industries saw a 65% increase in cuts, while financial companies saw a 419% increase in job cuts this year. Retail announced the fourth-most cuts in 2023 with 21,426, a 1,125% increase from the 1,617 cuts announced in the sector through March 2022.

Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, Inc said that companies are approaching 2023 with caution, with large-scale layoffs likely to continue due to rate hikes and cost-cutting. He also noted that the technology sector is leading all industries and that 38% of all cuts are in this sector.

Disclaimer: This story is re-reported from the original article published in TimesNowNews English