Tech firms are cutting staff the most
2023.01.05 07:51
Tech firms are cutting staff the most
Budrigannews.com – In December, American technology companies cut the most jobs, as some businesses reduced their workforces in preparation for the possibility of challenging economic times.
Challenger, Gray & Christmas, Inc., an employment firm, released its most recent job cuts report on Thursday. In the final month of 2022, employers in the United States said they would cut 43,651 jobs, down 43% from the number of cuts announced in November.
The report stated that the planned rate of layoffs in December was significantly higher than the 19,052 reductions announced in December 2021. The report stated that there were 363,824 planned layoffs for 2022, an increase of 13% from 2021.
With 16,193 planned job cuts in December, tech companies, which have been struggling with rising challenges and falling stock prices, bore the brunt. According to the report, tech companies announced 97,171 planned layoffs for the entirety of 2022. This is 649 percent more than it was in 2021.
In an economy where overall job growth has remained robust and unemployment is at an all-time low, at 3.7% in November, layoffs are taking place.
Despite this strength, the Federal Reserve anticipates a rise in unemployment in 2023 as it raises short-term rates to alleviate some of the highest inflation pressures in decades. There is widespread concern that the Fed’s current course of action will plunge the economy into recession.
“Employers appear to be actively planning for a downturn, despite the fact that the overall economy is still creating jobs. The employment firm’s senior vice president, Andrew Challenger, stated, “Hiring has slowed as companies take a cautious approach into 2023.”
Friday’s report from the government on December hiring levels is scheduled. The employment market has received conflicting reports as that date draws nearer. NYSE: Salesforce on Wednesday Inc. said it would cut its workforce by 10% due to the economy slowing down. However, a government report released on Wednesday revealed that job openings decreased in November by less than anticipated, something the Fed has been closely monitoring.
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