(Reuters) – The number of job losses in the U.S. has halved a month earlier as job cuts in the technology sector eased, according to employment firm Challenger, Gray & Christmas Inc.
Corporate America has decided to lay off large numbers of its workforce as the Federal Reserve’s high interest rate hikes to combat inflation have damaged the US economic outlook.
Although layoffs decreased during the month, the number of layoffs in June was higher than a year ago, the report said.
Technology companies continued to lead the way with 141,516 layoff announcements in the first half of the year, compared with 6,000 in the same period last year.
The sector laid off nearly 5,000 workers last month, according to the report.
“In fact, June is the slowest month on average for announcements in history. Also, the deep job losses predicted by inflation and interest rates may not materialize, especially as the Fed keeps rates on hold,” he said. A vice president in a recruiting firm.
Meta Platforms cut jobs in May as part of a plan announced in March to eliminate 10,000 roles.
Like its peers, Amazon.com said in March it would cut another 9,000 roles as part of a second layoff initiative, as investors persuaded the companies to cut costs.
After several rate hikes, the Fed unanimously decided to keep interest rates on hold at the central bank’s June meeting, potentially allaying fears of layoffs and workers.
“We’ve probably seen the tech sector lay off most of its ‘at-risk’ workers, and as a result I expect further Fed tightening will now have a greater impact on other sectors of the US economy,” said Stuart Cole, managing director of Macroeconomist. By Equity Capital.
(Reporting by Akash Sriram and Jaspreet Singh in Bengaluru; Editing by Maju Samuel)