February layoffs highest since 2009 as tech, finance industries struggle

by admin Friday, March 8, 2024 09:16 am

HOMENEWSBUSINESS & ECONOMY

February layoffs highest since 2009 as tech, finance industries struggle

By Vaughn Cockayne
The Washington Times
Thursday, March 7, 2024

Layoff announcements in February reached their highest level in more than a decade, according to a new Challenger, Gray & Christmas study.

Total announced layoffs for the month reached 84,638, a 3% bump from January and a 9% increase from the same month last year. According to the study, that makes it the worst February since 2009, when the U.S. economy was still in the 2008 recession, which lasted until June 2009.

Still, companies laid off more workers year-to-date last year, with 166,946 planned cuts in 2024 compared with last year’s 180,713.

The biggest cutters in February came from the financial and tech industries, which both adopted new technologies to slash costs. However, as the report points out, both numbers are down from February 2023.

“Businesses are aggressively slashing costs and embracing technological innovations, actions that are significantly reshaping staffing needs,” Senior Vice President Andrew Challenger of the outplacement firm said in the report.

Workers in several other industries are suffering from axings. The transportation, energy, education and industrial manufacturing sectors are seeing more layoffs this year than last.

Most companies cited “restructuring” as the reason for the layoffs, while others pointed to store closures or “cost cutting.” While companies often didn’t list artificial intelligence and automation as the main reasons for layoffs, the report suggests they’re significant drivers in this year’s cuts.

“In light of the backlash some companies have faced for directly attributing job cuts to artificial intelligence, they appear to be framing this shift as a ‘technological update’ rather than an outright substitution of human roles with AI,” the report reads. “In truth, companies are also implementing robotics and automation in addition to AI. It’s worth noting that last year alone, AI was directly cited in 4,247 job reductions, suggesting a growing impact on companies’ workforces.”

• Vaughn Cockayne can be reached at vcockayne@washingtontimes.com.

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