Global career transition firm Challenger, Gray & Christmas, Inc. published a report in which it revealed that so far this year - through November - "companies announced plans to eliminate 686,860 jobs, an increase of 115% compared to the 320,173 cuts announced in the same period last year." The figure is the highest recorded since 2020:
This is the highest January-November total since 2020, when 2,227,725 cuts were recorded. Before 2020, it is the highest total to date since 1,242,936 cuts were announced through November 2009.
The firm's senior vice president, Andrew Challenger, indicated that it is expected to "continue to see layoffs heading into the New Year." One of the reasons, according to the expert, is that "the labor market is relaxing and employers are not as quick when it comes to hiring." He assured that "the labor market seems to be stabilizing with a more normal rotation."
Challenger Report November 23 by Veronica Silveri on Scribd
Added to this situation, companies and employers announced - in 2023 - hiring plans for 775,501 workers. The study revealed that this is "the lowest total so far this year for announced hiring plans since 2015, when 679,286 hiring plans were registered through November."
Industries laying off the most employees
The technology sector leads all industries this year in having the highest number of cuts carried out (163,562 cuts). The figure represents an increase of 102% over the 80,978 registered through last year (until November).
The health care and products industry (includes hospitals and manufacturers) announced a total of 57,758 layoffs through November. According to the report, the data represents "an increase of 99% compared to the 29,031 announced in the sector during the same period in 2022."
Financial companies have reported almost 51,000 cuts through November. The number reflects an increase of 189% compared to the 17,571 registered through November 2022.
The media industry has announced a total of 20,324 layoffs in 2023. The cut figure is the largest since 2020, when 30,211 cuts were announced through November.
The report detailed that in the "news media subcategory, 2,681 jobs have been eliminated, including broadcast, digital and print. That total exceeded the 1,808 cuts announced during 2022 and the 1,511 announced the previous year." According to Challenger:
Companies expect slower growth in the coming months, particularly in industries that support consumers. Meanwhile, health care has seen tremendous upheaval since the pandemic, as hospital systems seek to reduce costs without cutting care.
