According to Challenger, US-based employers reported 84,638 job cuts in February, marking a 3% increase from January's 82,307 cuts and a 9% rise from February 2023's 77,770 cuts. This marks the total for February as the highest since 2009, which recorded 186,350 job cuts in the same month.
Andrew Challenger, the firm's labor expert, highlighted a persistent wave of layoffs driven by cost-cutting measures and technological advancements reshaping staffing needs.
While the tech industry led in cuts with 28,218, down 55% from a year ago, layoff announcements at financial firms rose by 56% compared to the first two months of 2023.
According to their data, VCPost reported several technology firms announcing major layoffs, from IBM's voluntary layoffs to Sony's store closures in London for a restructuring move.
The Media industry also reported 4,685 cuts in 2024, down 52% from last year. Notably, Vice.com was among the significant media outlets that announced job cuts during this period.
Other industries planning significant cuts included industrial goods manufacturing (up 1,754%), energy (up 1,059%), and education (up 944%).
In 2015 alone, renewable energy company SunEdison laid off over 1000 employees, considering their employee size is yet to multiply.
Moreover, employers announced plans to hire 10,317 workers in February, totaling 15,693 for the year-to-date, the lowest figure since 2009 when Challenger began tracking hiring plans.
Interestingly, despite the rise in layoffs, weekly jobless claims remained stable at 217,000, suggesting that workers could find new positions swiftly.
Companies mainly cited restructuring plans as the main reason for workforce reductions, with artificial intelligence cited for only 383 cuts. However, "technological updates" drove over 15,000 reductions, indicating a growing impact on company workforces.
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