Technology, government and financial sectors had the most layoffs in the first quarter.
Challenger, Gray & Christmas announced in a press release Thursday (April 4) that across industries, U.S. employers announced 257,254 layoffs during the quarter.
This total was a 120% increase compared to the 117,163 layoffs announced in the previous quarter, but a 5% decrease compared to the 270,416 layoffs announced in the first quarter of 2023, according to the release. .
Andy Challenger, senior vice president of Challenger, Gray & Christmas, said in a release that “attrition steadily increased to close out the first quarter, albeit below last year’s levels.” . “Many companies seem to be returning to a ‘do more with less’ approach.”
The most common reason for layoffs in the first quarter was “cost reduction,” according to the release. Another frequently cited reason is restructuring. Closure of a business, unit or store. market conditions; and bankruptcy.
The technology industry had the highest number of layoffs in the first quarter, according to the release. The industry announced 42,442 job cuts, down 59% from the 102,391 job cuts announced for the same period in 2023.
According to the announcement, the industries with the next highest number of layoffs in the first quarter were government, finance, services and transportation.
Financial institutions cut 28,715 jobs in the first three months of 2024, according to the announcement, a 6% decrease from the 30,635 job cuts announced in the first quarter of 2023.
“While technology continues to lead all industries so far this year, some industries, including energy and industrial manufacturing, have cut more jobs this year than last,” Challenger said in a release. ” he said.
March, the final month of the first quarter, saw the most layoffs since January 2023, according to the release.
The total number of job cuts announced in March was 90,309, up 7% from 84,638 in February and 0.7% from 89,703 in March 2023, according to the announcement.
According to the announcement, March’s total was the highest since January 2023, when 102,943 job cuts were announced.
The news comes a day after ADP reported that private employers added 184,000 jobs in March, the largest increase since July 2023.
ADP said employment growth was strong across industries, particularly in leisure and hospitality and construction. The only exception was the professional services sector, where employment fell.
