Layoffs Might Get Worse This Year, 98% Surge in US Layoffs Last Year Reports Claim

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New Year: As per a report published by professional outplacement firm Challenger, Gray and Christmas revealed that US companies planned  721,677 job cuts last year, a 98% jump from 363,832 layoffs reported in 2022. Companies like Meta and Amazon, high-profile tech companies, slashed jobs last year.

The report said, around 168,032 employees were laid off in 2023 with 73% increase from the last year. Labour market continues to soften in the face of high-interest rates and stubborn inflation and this problem could worsen in 2024 as experts believe.()

Mr. Challenger stated that the technology sector will undergo significant changes due to the increasing influence of artificial intelligence (AI), frequent mergers and acquisitions, and the need for companies to reorganize their resources and talent.

As per the report, retail companies cut a significant number of jobs last year, eliminating 78,840 positions. One year prior during the same period there was a substantial 274% increase from the layoffs as reports revealed. Despite some companies being cautious and adaptable in their hiring practices, Mr Challenger advised retailers to remain vigilant this year.

The primary reasons cited for job cuts last year were worsening market and economic conditions in the US according to the outlet. Some companies attributed the layoffs to store closures, bankruptcy, and the impact of artificial intelligence.

In 2023, 34% of employers did not provide bonuses, an increase from the 27% that skipped company bonuses in 2022, A different survey by Challenger, Gray & Christmas revealed that . This marks the highest rate since 2019, when 36% of companies opted not to award bonuses to their employees as stated in the report released last month.