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Reuters Published
May 4, 2025
U.S. retailers replaced technology firms in cutting the most number of jobs in April, as companies show little signs of easing their belt-tightening drive in an uncertain economy.
Higher interest rates to counter the impact of inflation have muddied the outlook for the U.S. economy, forcing Corporate America to undertake stringent measures to protect itself from any fallout from a potential recession.
The sector has cut 36,000 jobs this year, which is still well below the 114,000 jobs cut by technology companies, including Meta Platforms Inc and Amazon.com Inc, according to a report by Challenger, Gray & Christmas Inc.
"Retailers and Consumer Goods Manufacturers are preparing for a tightening in consumer spending, particularly with the Fed's hike to interest rates in an attempt to control inflation," said Andrew Challenger, senior vice president at the firm.
So far this year, major retail and consumer companies including Gap Inc and Walmart have announced job cuts.
The report also said job cuts last month fell 25% to about 67,000 - the lowest so far in the year, taking total layoffs to around 337,000 jobs since the start of the year.