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US tech firms dominated with most December job cuts: Report
- The US-based employers were cutting 43,651 jobs in the final month of 2022, down 43 per cent from the number of cuts announced in November, as per the report.
American technology firms dominated the number of announced job cuts in December, 2022, according to job cuts report from employment firm Challenger, Gray & Christmas Inc, released on 5 January, 2023.
As per the report, US-based employers were cutting 43,651 jobs in the final month of 2022, down 43 per cent from the number of cuts announced in November.
The report added that the planned pace of layoffs in December was well above the 19,052 cuts announced in December 2021, and there were 363,824 planned layoffs, up 13% from 2021, for all of 2022.
The US tech firms -- facing rising challenges and withering stock prices -- bore the brunt of the planned 16,193 job cuts in December. As per the report, the tech companies led announced job cuts for all of 2022, at 97,171 planned layoffs, up 649% from 2021.
The layoffs are taking place in an economy where the unemployment stood at 3.7% in November. Meanwhile, the Federal Reserve expects unemployment to rise in 2023 as it continues to raise short-term rates to lower some of the highest inflation pressures in decades.
“The overall economy is still creating jobs, though employers appear to be actively planning for a downturn. Hiring has slowed as companies take a cautious approach entering 2023,” said Andrew Challenger, senior vice president at the employment firm.
As per details, the government is set to report on December hiring levels on Friday. Earlier on 5 January, citing a slowing economy, Salesforce Inc. said it planned to slash its workforce by 10%.
With Reuters reports.
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First Published:5 Jan 2023, 08:21 PM IST
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