Record Job Cuts in May: Tech Sector Hit the Hardest
Record Job Cuts in May: Tech Sector Hit the Hardest
US Companies Announce Record Job Cuts in May, Tech Sector Hit the Hardest
In a startling development, US companies have unleashed a wave of job cuts in May, shattering previous records and sending shockwaves through the economy. The tech sector, in particular, has been hit hard, with a staggering number of layoffs announced last month.
According to a report by Challenger, Gray & Christmas Inc., US-based employers disclosed a total of 80,089 job cuts in May, a jaw-dropping 287% surge from the same period last year. This unprecedented spike in layoffs comes on the heels of the 66,995 job cuts announced in April, painting a grim picture of the job market.
The tech sector bore the brunt of the layoffs, with 22,887 job cuts reported in May alone. This brings the year-to-date total to a whopping 136,831, a massive 2,939% increase from the previous year. This surge in tech layoffs is the highest since 2001, underscoring the severity of the current situation.
Retailers and the automotive sector also suffered significant job cuts, with 9,053 and 8,308 layoffs announced in May, respectively. The finance industry and the health care/products sector were not spared either, as they witnessed sharp increases in layoffs compared to the previous year.
In a surprising twist, the media industry recorded a record number of job cuts in 2023, surpassing any previous year-to-date totals. The news media sector, encompassing broadcast, digital, and print, saw 1,972 cuts in 2023, surpassing the total for the entire year of 2022.
Despite the bleak outlook, some companies announced plans to hire new employees in May. However, this marked the lowest monthly total since November 2020, indicating a slowdown in hiring activity. Overall, companies have revealed intentions to add 101,833 positions so far this year, a stark 83% decrease from the hires announced in the same period last year.
The job market landscape is undeniably turbulent, with the tech sector taking the hardest hit and other industries feeling the ripple effects. As companies navigate through uncertain economic conditions, the impact on workers and the broader economy remains uncertain. Stay tuned as this story continues to unfold.
