The year 2023 will be the year of mass layoffs in the U.S. labor market, writes Newsweek. The publication notes that this is especially critical for technology companies, many of which have already announced mass layoffs. Additional factor for the tension may become a recession, probability of which is recognized by experts as high.
The last few years have been very turbulent for the labor market in the U.S., writes Newsweek. But in 2023, U.S. workers need to hold onto their jobs particularly tight in light of an impending recession that could reshape the country’s economy. According to a survey conducted by Redfield & Wilton Strategies, 64% of Americans do not intend to change their jobs this year: the growing economic uncertainty has played its role in the reluctance to change jobs.
In 2023 the US is expecting another wave of mass redundancies, especially in the technology sector, says the publication. The company Microsoft has already announced its intention to reduce the staff by 10 thousand employees. Other major companies also announced large-scale reductions: Amazon plans to fire 18 thousand people, Meta * – 11 thousand people. Twitter, recently bought by Elon Musk, has already cut half of its staff.
According to expert John Blevins, the massive layoffs are related to the effects of the pandemic.
“We’re still feeling the effects of the economy suspending in 2020 and restarting in 2021,” Blevins was quoted as saying.
The expert noted that jobs in the technology sector increased dramatically at the beginning of the pandemic and many new employees were hired, but now so many people are no longer needed.