In Q1 of 2023, US employers announced over 270,000 layoffs, which is a 396% increase from the previous year, according to a report by Challenger, Gray & Christmas, Inc. In March alone, layoffs totaled 89,703, representing a 15% increase from February and a 319% increase from March 2022. The technology sector accounted for 38% of all job cuts, with technology companies announcing 102,391 cuts so far this year, a substantial increase from the 267 cuts made in Q1 2022. The report also revealed that the top reason for job cuts in 2023 was market and economic conditions, accounting for 167,575 cuts, while cost-cutting and store, unit, or department closings followed. Hiring plans fell to their lowest level since 2015, and US employers have announced plans to hire 70,638 so far this year, the lowest Q1 total since 2016. Large-scale layoffs are likely to continue due to cost-reining and rate hikes, according to Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, Inc.

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Gregory Timmons

Only Headline Contributor

On the date of publication, Gregory Timmons did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer/contributor.