January Job Cuts Overview

In January, the United States witnessed a significant increase in job cuts, with a total of 49,795 positions eliminated, as reported by Challenger, Gray & Christmas Inc. This marks a notable rise from December's 38,792 cuts, yet it represents a 39.5% decrease compared to January 2024.

Sector-Specific Impact

The technology sector experienced the most dramatic surge, with job cuts escalating by 128% month-on-month to 7,488, largely due to advancements in artificial intelligence. Following closely, the retail sector saw 6,419 cuts, with the services sector not far behind at 4,930.

Hiring Trends

Despite the uptick in layoffs, U.S. employers announced intentions to hire 6,089 workers in January, a 24% decrease from December's figures.

Future Outlook

"January was relatively quiet in terms of job cut announcements. However, we’ve already seen major announcements in the early days of February, so it seems this quiet is unlikely to last," stated Andrew Challenger, Senior Vice President at Challenger, Gray & Christmas.