The tech sector reportedly represents 51% of the total layoffs by United State companies over January and February.
The job cut in the first two months of 2023 is over 180,000 which is the highest recorded since 2009, a report showed on Thursday.
Based on the report by employment firm Challenger, Gray & Christmas Inc, layoffs in the US are five times higher than the 15,245 job cuts announced in 2022.
The senior vice president of the firm, Andrew Challenger said, “Right now, the overwhelming bulk of cuts are occurring in Technology. Retail and Financial are also cutting right now, as consumer spending matches economic conditions.”
This publication recalls Tech companies like Microsoft, and Google-parent Alphabet, PayPal Holdings, Tesla, and many others have cut thousands of jobs this year to cut cost and keep the business running in the current economic uncertainties.
The chief investment officer at asset management firm Alliance Bernstein, James Tierney, said, “The layoffs that many of these companies are announcing are welcome to investors, sort of right-sizing the cost structure, rationalizing growth is being rewarded in the marketplace.”
Reuters reported that the shares of Alphabet, Microsoft, Amazon and Meta have risen between 6% and 54% so far in 2023, after falling between 29% and 64% in 2022.
Also, it was reported that the Federal Reserve Chair, Jerome Powellon on Wednesday, reiterated his call for higher and perhaps quicker increases in interest rates, which could compel businesses to eliminate more jobs.
Meanwhile, according to the report, American businesses indicated plans to hire 28,830 people, down 87% from 215,127 a year earlier.