Over 180,000 job layoffs were reported in the U.S. over January and February; the highest level in 2009. The report, released on Thursday by employment firm Challenger, Gray & Christmas Inc., showed that over a third of all job cuts came from the tech sector.
“Right now, the overwhelming bulk of cuts are occurring in Technology. Retail and Financial are also cutting right now, as consumer spending matches economic conditions,” Andrew Challenger, the senior vice president of the firm, observed.
Among those tech firms with the largest layoffs were Google-parent Alphabet Inc, Microsoft Corp, and PayPal Holdings; all of which cut thousands of jobs over the two-month period. Layoffs were pursued largely as a tactic for cutting costs.
Job layoffs are expected to be largely affected by the Federal Reserve’s next moves. On Wednesday, Fed Chair Jerome Powell reemphasized his expectation for higher and potentially faster interest rate hikes ahead, thereby increasing the likelihood of more layoffs.
In addition to layoffs, the report found that U.S. firms are set to hire 28,830 workers in February. This is a sharp 87% decline from the 215,127 workers during the same period a year earlier.