Despite the broader labor market remaining resilient, media industry layoffs just keep ratcheting up
laying off 7,000 employees across its media divisions last week. But Disney isn’t the only media company in the process of reducing headcount to manage costs during a time of economic turbulence. According to Challenger, Gray & Christmas, media companies announced 10,320 job cuts in the first quarter, compared with just 691 jobs cuts in the same period last year.
While the layoff headlines across media are troubling, it’s nowhere near the carnage across the tech sector. In May, there were 22,887 job cuts announced in tech — 2,939% higher than last year, according to Challenger. So far, the sector is on pace for its worst year on record for layoffs since 2001.
The layoff frenzy within tech comes because companies hired too many during a period of rapid growth over the COVID pandemic. Tech giants Meta, Alphabet, Amazon and others beefed up their rankks thinking the boom they were seeing would last longer than it did. The market correction in mid-2022 was largely unexpected, thus Big Tech had to restructure their businesses to prepare for the uncertain times ahead.
As long as economic conditions remain unfavorable, layoffs will likely continue for the foreseeable future. The good news is top economists are predicting a softer recession on the horizon that is far less damaging than previous recessions. And the broader job market remains largely intact for the time being.
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