U.S. tech sector sees record headcount cuts in May as inflation rises

US employers in the tech sector cut jobs in May by about nine times over the first four months of the year, as rising inflation and slowing demand forced companies to hunt down.

Global layoffs in the country, reported Thursday by global reemployment support firm Challenger, Gray & Christmas, fell 14.7% from April to May, thanks to strong labor market demand, while the tech sector fell in January. Reduced employment from 459 to 4,044 in April.

This is the highest monthly total since December 2020, when tech companies cut 5,253 jobs.

“Many tech start-ups that have seen tremendous growth in 2020, especially in the real estate, financial and delivery sectors, are beginning to see a slowdown in users, reducing costs, coupled with inflation and interest rate concerns. We are reorganizing our employees to help, “said Andrew Challenger, Senior Vice President of Challengers at Gray & Christmas.

US Technology Layoffs and Sector Performance https://fingfx.thomsonreuters.com/gfx/mkt/gdpzyeeebvw/Pasted%20image%201654184823489.png

The effects of the Ukrainian crisis, 40 years of high inflation and rising interest rates have led to predictive cuts by companies such as Snap Inc and Microsoft, but other companies such as MetaPlatforms Inc have delayed hiring to keep costs down. rice field.

Fintech companies also announced 268% more headcount reductions in May than in the first four months of 2022, reports from Challenger, Gray & Christmas.

But last week, the number of new Americans claiming unemployment benefits fell unexpectedly. According to the Ministry of Labor, the initial bill for the state’s unemployment allowance has dropped by 11,000 from the seasonally adjusted 200,000 for the week ending May 28.

(Only the headings and images in this report may have been recreated by Business Standard staff. The rest of the content is automatically generated from the syndicated feed.)

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