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Layoffs in US: Of over 80,000 job cuts in May, 3900 fired due to Artificial Intelligence in tech sector
US companies announced a record-breaking 80,089 job cuts in May 2023, a 287% increase from the same month last year, according to Challenger, Gray & Christmas. The tech sector saw the highest number of layoffs, with 22,887 jobs cut
US companies have announced startling job cuts in May this year, beating the record of 2022, according to executive coaching firm Challenger, Gray & Christmas Inc.
US-based employers announced 80,089 job cuts in May as compared to 20,712 layoffs in the same month last year--a massive 287% rise. In April this year, the US firms fired 66,995 employees. Of the more than 80,000 US workers who were laid off last month, some 3,900—all in the tech industry—lost their jobs due to AI, according to the report.
So far this year, companies have announced plans to cut 417,000 jobs--a 315% increase from the 100,694 cuts that were announced in the same period last year.
Consumer confidence is down to a six-month low and job openings are flattening. Companies appear to be putting the brakes on hiring in anticipation of a slowdown.
Which sectors recorded the most job cuts?
According to Challenger, Gray & Christmas' report, the technology sector announced the highest number of layoffs in May with 22,887, for a total of 136,831 this year, up 2,939% from the 4,503 cuts announced in the same period last year.
The Tech sector has now announced the most job cuts for the sector since 2001 when 168,395 cuts were announced for the entire year.
Retailers announced the second-most cuts in May with 9,053. Retail has announced 45,168 cuts so far this year, up 942% from the 4,335 announced through May 2022.
The Automotive sector announced 8,308 job cuts last month for a total of 18,017 this year, a 235% increase from the 5,380 cuts announced in the same period last year.
Banking also saw a surge in layoffs this year. Financial firms have announced 36,937 cuts through May, up 320% from the 8,788 cuts through the same period in 2022.
Health Care/Products, which includes health products manufacturers and hospitals, announced 33,085 cuts, up 81% from the 18,301 announced in the sector in the first five months of last year.
The Media industry has announced 17,436 cuts so far in 2023, the highest year-to-date (YTD) on record.
News media, which includes broadcast, digital, and print, has announced 1,972 cuts so far this year, surpassing the 1,808 announced in all of 2022.
MAY HIRING PLANS
In May, employers announced plans to hire 7,884 workers, the lowest monthly total since November 2020, when 6,527 new positions were announced. So far this year, companies have announced plans to add 101,833 positions, down 83% from the 612,686 hires announced through May 2022, the report added.
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Business NewsNewsWorldLayoffs in US: Of over 80,000 job cuts in May, 3900 fired due to Artificial Intelligence in tech sector
First Published:12 Jun 2023, 09:19 AM IST
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