Tech Sector Drives Record Layoffs in 2023

Last year was marked with major shifts in the U.S. job market, with companies planning 721,677 job cuts, a 98% increase from 2022, according to a study published by Challenger, Gray & Christmas, Inc.  

In 2023, many companies, especially those operating within the tech sector, were entering a cost-cutting phase. According to a report published by Yahoo Finance, this surge, which was the highest since 2020, was led by high-profile tech layoffs from giants like Meta and Amazon.   

More specifically, the tech sector is reported to have experienced a 73% increase in job cuts — closely mirroring the record highs of 2001. According to Yahoo Finance, retail, healthcare, and financial sectors are not far behind. 

The rise in layoffs, coupled with a tightening of the labor market and reduced bonus distributions, suggests a need for employee adaptability and continuous skill development this year. In 2024, workers must now be more agile, embracing the evolving demands of the job market, particularly in sectors heavily impacted by technological advancements and economic trends. 

However, the labor market is not all bleak. The leveling off of layoffs and steady hiring, as the year ended, suggests that while the job market is cooling, opportunities still exist. Sectors like healthcare, despite their volatility, continue to hire — albeit with more turnover. 

As the workforce enters 2024, employers, remaining cautious and cost-conscious, are likely to maintain a slow hiring process until other economic uncertainties become clearer. For job seekers, this means navigating a more competitive landscape, where upskilling and adaptability are key.