270,000 US Workers Laid Off in Q1... Highest in 3 Years

The "Occupy Wall Street" protesters are seen demonstrating in New York City on November 2nd of last year. Opposing the reality of increasing polarization following the economic crisis, under the slogan "Representing the 99% of Americans resisting the top 1% richest," numerous protesters denounced the immorality of neoliberalism and financial capital.

Source: Bloomberg News

The number of employees laid off by U.S. companies exceeded 270,000 in the first quarter alone.

According to a report released on the 6th (local time) by Challenger, Gray & Christmas (CG&C), a human resources consulting firm, the layoff plans announced by U.S. companies from January to March reached 270,416. This is about four times (396%) higher compared to the previous year (55,496). It is the highest figure in three years since the first quarter of 2020, when the COVID-19 pandemic first spread (346,683).

The number of layoffs announced in March alone was 89,703, a 15% increase compared to the previous month (77,770). Compared to the same period last year (21,387), it increased by 319%.

In the first quarter of this year, tech companies announced plans to lay off 102,391 employees, accounting for 38% of the total layoffs. In the January to March period last year, tech companies reduced only 267 employees. The only times tech companies announced larger layoffs than this year were in 2001 (168,395) and 2002 (131,294).

The second highest layoff plans by industry were announced by financial firms. Financial companies announced plans to cut 30,635 jobs in the first quarter.

They were followed by healthcare and manufacturing companies (22,950), retailers (21,426), and media (1,320).

While layoffs surged in the first quarter, hiring plans remained at 70,638, the lowest since the first quarter of 2016 (26,898).

Andrew Challenger, Senior Vice President of CG&C, stated, "As interest rate hikes continue and companies face increasing cost burdens, large-scale layoffs are likely to continue."