The pace of job cuts by American employers accelerated notably in February, marking the highest level of layoffs for the month since 2009.
The report revealed that companies planned a staggering 84,638 job cuts in February, signifying a 3% increase from the previous month and a significant 9% surge compared to the same period last year.
This spike in layoffs underscores the mounting challenges faced by businesses amidst persistent inflationary pressures and elevated interest rates.
Andy Challenger, Senior Vice President of Challenger, Gray & Christmas, emphasized the profound impact of technological advancements on reshaping staffing needs.
“As we navigate the start of 2024, we’re witnessing a persistent wave of layoffs. Businesses are aggressively slashing costs and embracing technological innovations.”
Job losses
The technology sector bore the brunt of these job losses, with 12,412 employees laid off in February alone, contributing to a total loss of 28,218 jobs since the beginning of the year.
Financial firms followed suit with 26,856 layoffs since the start of 2024, marking a striking 54% increase compared to the same period last year.
Industrial goods manufacturing companies and energy firms also experienced a notable surge in layoffs, slashing 7,806 and 1,059% more positions respectively compared to last year.
Meanwhile, the education sector saw a significant increase in layoffs, trimming 6,336 positions in February, a stark rise from the 607 layoffs announced during the same period in 2023.
