Workers in the technology industry have been hit particularly hard by the ongoing challenges affecting companies of all sizes, with job cuts striking employees across the world, new research has found.
A report (opens in new tab) by career transition specialist Challenger, Gray & Christmas, Inc found US job cuts were up 13% compared with the previous year, leading to a total of 363,824 roles lost during 2022.
The report indicates several factors contributing to companies’ decisions to lay off large numbers of staff, including the ongoing impact of the coronavirus pandemic, the expiration of related government aid, and other global developments that have raised an air of uncertainty.
2022 job cuts
Among the leading sectors affected by cutbacks in 2022 were technology companies (accounting for over 97,000 job cuts), the automotive sector, and healthcare manufacturing (both measuring in at more than 30,000 cuts each).
In terms of seasonality, the final quarter of 2022 saw almost 155,000 job cuts alone, making it the worst quarter in two years.
Despite the gloomy outlook, the report also highlights some sectors that saw improvement in 2022, with the telecommunications, electronics, and apparel markets all experiencing fewer layoffs compared with 2021.
Overall, the report paints a mixed picture for the job market in 2022, leaving many questions unanswered as we head into 2023. While some sectors experience growth, others face significant challenges as industry boundaries shift.
Despite upsetting news emerging in the first week of 2023 that several thousand jobs are due to be axed by companies including Amazon and Salesforce, one recent ZipRecruiter study found that workers are still managing to find re-employment fairly quickly, with 79% of tech workers being re-recruited within three months.
Looking ahead, company Senior VP Andrew Challenger explained, “The overall economy is still creating jobs, though employers appear to be actively planning for a downturn. Hiring has slowed as companies take a cautious approach entering 2023.”