Technology companies have announced 110,793 job cuts since November 2022 with highest monthly total since 1993
With technology firms cutting jobs at the second-highest pace on record in January, layoffs in the United States hit a more than two-year high in the month, according to a new report.
Tech giants from Indian American chief executives led Google to Microsoft to Amazon laid off 41,829 people, 41% of all cuts announced in January, according to a report from employment firm Challenger, Gray & Christmas, Inc.
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Job cuts in the technology sector were 158% higher than the 16,193 cuts announced in December 2022, the report noted. Since November 2022, which saw the highest monthly total for the sector since Challenger began tracking in 1993 with 52,771, Technology companies have announced 110,793 job cuts. January’s total is the second-highest for the sector on record.
US-based employers announced 102,943 cuts in January, a 136% increase from the 43,651 cuts announced in December and 440% higher than the 19,064 cuts announced in the same month in 2022.
Last month’s total is the highest January total since 2009, when 241,749 were announced in the first month of the year. It is the highest monthly total since September 2020 when 118,804 job cuts were reported.
“We’re now on the other side of the hiring frenzy of the pandemic years,” said Andrew Challenger, labor expert and Senior Vice President of Challenger, Gray & Christmas, Inc. “Companies are preparing for an economic slowdown, cutting workers and slowing hiring,” he added.
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Retailers announced the second-most cuts in January with 13,000, up 3,225% from the 391 announced in the same month in 2022. Financial firms announced 10,603 cuts last month, up 1,423% from the 696 cuts announced in January 2022.
As housing demand and prices fall, the Real Estate industry cut 2,191 cuts last month, up 1,314% from the 155 cuts announced in December 2022 and up 805% from the 242 announced in the same month a year ago.
The Construction sector announced 1,138 cuts last month, up 92% from the 592 announced one month prior. No cuts were tracked for Construction firms in January 2022.
The Media industry announced 754 cuts in January, the highest monthly total since 1,001 cuts were announced in June 2021.
Read: US layoffs hit two-year high in Jan as tech firms cut thousands of jobs (February 2, 2023)
Of those, 360 were in digital, print, and broadcast News organizations, similar to the 362 News cuts announced in December, but up significantly from zero recorded in January 2022.
In January, employers announced plans to hire 32,764 workers, primarily in Entertainment/Leisure. This is down 58% from the 77,630 announced in January 2022 and down 37% from the 51,693 new jobs employers announced in December of last year, according to the report.
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