Tech industry layoffs rose 351 percent in 2019. Is a recession looming?

President Donald Trump loves to tweet that the “economy is booming,” to which the surfeit of recently laid-off tech workers might reply “Okay, Boomer.” A new analysis of job data by the outplacement and coaching firm Challenger, Gray & Christmas noted that technology companies announced 64,166 job cuts in 2019. That number is an astonishing…

Tech industry layoffs rose 351 percent in 2019. Is a recession looming?

President Donald Trump loves to tweet that the “economy is booming,” to which the surfeit of recently laid-off tech workers might reply “Okay, Boomer.”
A new analysis of job data by the outplacement and coaching firm Challenger, Gray & Christmas noted that technology companies announced 64,166 job cuts in 2019. That number is an astonishing 351 percent increase from 2018, when there were 14,230 job cuts in the industry.
Analysts say this could be partly related to the U.S-China trade war.
“The sectors with the highest number of cuts this year were all dealing with trade concerns, emerging technologies, and shifts in consumer behavior,” Andrew Challenger, Vice President of Challenger, Gray & Christmas, Inc., said in a press release.  “We tracked a lot of hiring activity in these industries as well as cuts.”
According to the data, job cuts in December 2019 decreased for the second month in a row, to the lowest total since 27, 122 cuts were announced in July 2018. Yet for the decade of the 2010s, 2019 ranks as the fourth-highest year for job cut announcements.
“Confidence was high heading into the last month of the year,” Challenger wrote. “With some resolutions occurring in the trade war and strong consumer spending in the fourth quarter, companies appear to be taking a wait-and-see approach as we head into 2020.”
According to the data, most job cuts across industries were due to restructuring, trad
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