According to the Challenger, Gray & Christmas Inc. research, 102,943 employees were affected by the layoffs, a more than two-fold increase from December and a more than five-fold increase from a year earlier.
In an effort to weather a demand slowdown as a consumer and corporate spending decreases as a result of high inflation and increasing interest rates, businesses ranging from Microsoft Corp. to Amazon.com Inc. and Goldman Sachs Group Inc. slashed thousands of positions in the past month.
Source: CNBC International
According to labor specialist and Senior Vice President of the employment business Andrew Challenger, We’re finally on the other side of the recruiting frenzy of the epidemic years. Companies are slashing staff and limiting hiring as they get ready for an economic recession. The IT industry, which lost the most employment last month across all sectorsu201441,829u2014has been the focal point of the movement to rein in financial excesses.
After technology, retailers shed 13,000 jobs in January, compared to almost no layoffs a year earlier. In contrast, financial businesses cut 10,603 employees this month, up from 696 positions a year earlier.
In order to combat inflation that is still on the higher side despite many rounds of rate rises, the Federal Reserve is predicted to keep raising rates. As a result, economists predicted that more layoffs may be in store for American businesses. Companies that increased employment during the previous several years will likely reduce their personnel as the economy moves toward a difficult period, according to OANDA analyst Edward Moya.
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