Layoffs Soar, Up More Than 300% from Last Year

Layoff announcements soared in March and the first quarter of the year as employers dealt with higher borrowing costs and moved to reduce expenses according to outplacement and executive and business coaching firm Challenger, Gray & Christmas.

The firm’s survey found employers cut 89,703 jobs last month, a 15% increase from February and a rise of 319% compared to last March. So far every month this year, the number of layoff notices were more than the year before. In the quarter, the announcements skyrocketed 396% from the first three months of 2022 to 270,416. That was the highest first quarter total since 2020, when the COVID-19 pandemic was beginning.

Technology workers have been the hardest hit, with the tech sector accounting for 38% of all layoffs this year. So far in 2023, tech firms have said they would eliminate 102,391 positions, a whopping 38,487% jump from last year. 

More Layoffs Ahead

Companies are "approaching 2023 with caution," even though the economy is still creating jobs, noted Challenger, Gray & Christmas Senior Vice President Andrew Challenger. He warned that with interest rate hikes continuing and companies reigning in costs, "the large-scale layoffs we are seeing will likely continue."