The United States technology sector shed 4,044 jobs in May, nearly nine times more than in the first four months of 2022.
Several factors were responsible for the increase in layoffs in the technology sector, including rising inflation and slowing demand. Other factors include the Ukraine crisis and rising interest rates. The results mark the highest monthly total since December 2020, when technology companies shed up to 5,253 jobs.
“Many technology startups that saw tremendous growth in 2020, particularly in the real estate, financial and delivery sectors, are beginning to see a slowdown in users, and coupled with inflation and interest rate concerns, are restructuring their workforces to cut costs,” said Andrew Challenger, senior vice president of challenger, Gray & Christmas.
Fintech companies also announced 268% more job cuts in May than in the first four months of 2022, according to Challenger’s report.
The report was conducted by global placing firm Challenger. Overall, U.S. layoffs fell 14.7% in May from April, while the number of Americans filing new claims for unemployment benefits also declined.
The sources for this piece include an article in Reuters.