The surge in layoffs across the United States is attributed to economic uncertainty, as indicated by the 'Challenger, Gray and Christmas' report.
In addition to this broad factor, store closures, business bankruptcies, and the influence of artificial intelligence (AI) are identified as contributing to job cuts. Notably, in 2023, 34 percent of employers opted not to provide bonuses to their workforce.
The gravity of the situation is underscored by a substantial increase in layoffs in 2023, with a prominent report revealing that US companies announced the termination of approximately 721,677 employees. This represents a staggering 98 percent surge compared to the 363,832 layoffs documented in 2022.
Within the tech sector, including major players like Meta and Amazon, around 168,032 individuals faced job losses, marking a 73 percent annual increase. The 'Challenger, Gray and Christmas' report warns that this trend is poised to intensify in the current year.
As companies entered 2024 with a focus on cost containment, the report anticipates the continuation of layoffs throughout the year. Moreover, the prospect of diminished new appointments is predicted.
The backdrop of advancements in artificial intelligence (AI), coupled with acquisitions, mergers, and resource streamlining, further suggests the likelihood of additional job cuts in the tech sector.