Tech Job Cuts: How Companies Are Adapting to an Evolving Economy
America ı By Jackie Allen
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Disrupted Hiring Plans
Hiring plans are definitely on the decline. US employers announced 403,891 planned hires in September 2024, a 32% drop from last year. This is notable since September typically has increased hiring to fill positions before the end of the fiscal year and the holiday season. These trends indicate that companies are trying to boost profitability in a slowing economy by cutting costs, either through job automation or workforce reduction. In September, cost-cutting was cited as the reason for 15,750 layoffs, with store closures contributing to another 14,054 and market conditions accounting for 6,933 cuts.Boosting Profit
After widespread layoffs in 2022 and early 2023, many tech companies have shifted to a more strategic, department-by-department approach to job cuts.
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