A report by Challenger, Gray & Christmas, a firm that provides outplacement services to executives, shows that in the past two months, many companies in the United States have cut jobs due to concerns of a global recession, which has As a result more than 180,000 workers are losing their jobs. American companies cut 1,02,943 jobs in January, while 77,770 employees were cut in February. Among them, technology companies cut 21,387 jobs in February, accounting for 28% of all cuts.
The report also shows that the tech industry has cut a total of 63,216 jobs, which is 33,705% higher than the 187 cuts announced in the same period last year. Challenger, Gray & Christmas, Inc. Many companies have been preparing for the economic downturn for several months by reducing spending in other areas, according to Andrew Challenger, senior vice president of . If conditions worsen, job cuts are usually the last resort in a company’s cost-cutting plan.
The health care/products sector, which includes hospitals and manufacturers of health care products, announced the second largest number of job cuts in February with 9,749, bringing the total for the year to 16,482. This represents an 85% increase from the 8,928 layoffs announced during the same period last year. In 2023, retailers have already announced 17,456 job cuts, an increase of 2,194% compared to 761 job cuts announced over the same period in 2022. Similarly, financial companies have cut 17,235 jobs, an increase of 1,401% compared to 1,148 cuts announced in January and February last year.
In addition, fintech has announced 4,675 cuts in the first two months of the year, which is 45% of the 10,476 cuts expected by the industry in 2022. Last year, 3,774 cuts were announced in the sector.
According to Challenger, jobs are being cut in the US as companies closely monitor the Federal Reserve’s decision to raise interest rates. Challenger noted that most of the job cuts are currently occurring in the technology sector, while the retail and financial industries are also implementing staff reductions in line with current economic conditions.
frequently Asked question:
Q1: Which industries have seen the most job cuts in the US?
The technology industry has seen the most job cuts, accounting for 28% of all cuts, with 21,387 job cuts in February alone. The retail and financial industries are also implementing staff reductions.
Q2: What is the reason for the cut in jobs in America?
Companies are monitoring the Federal Reserve’s decisions to raise interest rates and prepare for an economic downturn by reducing spending in other areas. If conditions worsen, job cuts are usually the last resort in a company’s cost-cutting plan.