Jan-Feb US job cuts hit highest since 2009: report
LAYOFFS by US companies over January and February touched the highest since 2009, with the technology sector accounting for more than a third of the over 180,000 job cuts announced, a report on Thursday (Mar 9) showed.
In February alone, layoffs in the US stood at 77,770, more than five times higher than the 15,245 job cuts announced a year earlier, said the report from employment firm Challenger, Gray & Christmas.
“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,” said Andrew Challenger, senior vice-president of the firm.
Tech companies from Microsoft and Google-parent Alphabet to PayPal have cut thousands of jobs this year in an effort to curb spending and protect margins amid an uncertain economic outlook.
“The layoffs that many of these companies are announcing are welcome to investors, sort of right-sizing the cost structure, rationalising growth is being rewarded in the marketplace,” said James Tierney, chief investment officer at asset management firm Alliance Bernstein.
Shares of Alphabet, Microsoft, Amazon.com and Meta Platforms have gained between 6 per cent and 54 per cent so far this year, after falling between 29 per cent and 64 per cent in 2022.
Federal Reserve chair Jerome Powell on Wednesday reaffirmed his message of higher and potentially faster interest rate hikes, which could force companies to slash more jobs.
US firms announced plans to hire 28,830 workers in February, down 87 per cent from 215,127 a year earlier, the report added. REUTERS
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