Job cuts in the U.S. surged by 38% in April compared to March, reflecting a continuing trend of layoffs, particularly in the technology sector, as reported by global outplacement firm Challenger, Gray & Christmas.
In total, U.S. employers announced 83,387 job cuts last month, a significant increase from the 60,620 reported in March, although it is still lower than the 105,441 job cuts disclosed in April of the previous year. The tech industry was notably responsible for a staggering 33,361 layoff announcements, with the rapid advancement of artificial intelligence (AI) cited as the primary driver for these decisions for the second consecutive month.
Andy Challenger, the firm’s workplace expert and chief revenue officer, outlined the trend: “Technology companies continue to announce large-scale cuts and are leading all industries in layoff announcements. They are often linking these cuts to investments in AI. Even if specific roles are not being replaced by AI, funds for those positions are being reallocated.”
So far in 2023, the tech sector has reported 85,411 job cuts, marking the highest total for this period since records began. Prominent employers, including Amazon, Oracle, Snap, Coinbase, and Meta, have all made announcements regarding layoffs, underscoring how significant investments in AI are prompting companies to reassess their workforce needs amid fears that AI could either replace employees or dampen hiring plans.
Interestingly, recent data from federal sources indicated that the layoff rate edged up in March yet remained low at 1.2%, reflecting ongoing labour market resilience despite rising cut announcements.
For ongoing updates related to the economy and labour market, Emma Ockerman, a reporter for Yahoo Finance, can be reached at emma.ockerman@yahooinc.com.
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