January may be worst month for job cuts, warn experts: Why and other details


Technology companies as big as Facebook, Amazon, Snapchat, Intel, Netflix and others have cut jobs in 2022, with some citing the effects of the COVID-19 pandemic and others pointing to overhiring during periods of rapid growth. After a holiday lull, more layoffs are around the corner and several companies across the spectrum, led by tech firms, are set to layoff thousands of employees, starting January. Here’s why some experts believe that January may be the worst months for job cuts
Bureau of Labor Statistics US data
According to data from the Bureau of Labor Statistics in the US, January is the highest month for layoff and discharges.
Why January: What experts say
“Business leaders want to set up finances for success in 2023. It’s a good bet that tech companies that haven’t yet laid off employees are carefully considering whether or not to do so,” according to JP Gownder, vice president and principal analyst for advisory firm Forrester Research. “It wouldn’t be surprising to see more layoffs in the next few weeks,” he told Wall Street Journal. December marks the end of the fiscal year for many companies, making January an ideal month for “organisational realignment and adjustment”.

Goldman Sach‘s has warned of job cuts
Goldman Sachs CEO David Solomon has warned employees that job cuts are coming in the New Year and headcount reduction will take place in the first half of January. The investment bank’s CEO reportedly warned in his annual year-end memo to staff that mass layoffs will begin in the next few weeks. “We are conducting a careful review and while discussions are still ongoing, we anticipate our headcount reduction will take place in the first half of January,” Solomon said.
Google job cuts may begin in January
Google is expected to announce thousands of job cuts this month. The company is said to be evaluating employees with its performance rating system called Google Reviews and Development (GRAD). Under the new system, it is expected to announce job cuts. According to The Information, “under the new system, managers have been asked to categorise 6 percent of employees, or roughly 10,000 people, as low performers in terms of their impact for the business.”
Amazon job cuts to spill over to 2023
Layoffs and buyouts will continue at Amazon into 2023, the company’s CEO, Andy Jassy has already warned in November 2022. Jassy said that the job reductions were a part of the company’s annual operating planning review. This year’s review was complicated by the “challenging spot” the economy is in, coupled with the fact that Amazon rapidly hired employees in recent years, Jassy said.
91,000 job cuts in the US tech sector in 2022
According to Crunchbase tally, more than 91,000 workers lost their jobs in the US tech sector during the year 2022.
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