Private Sector Job Cuts Increase Month-Over-Month in January

According to the Challenger, Gray & Christmas, Inc. (CG&C) Job Cut Announcement Report released on Thursday, US-based employers announced 49,795 job cuts in January, a 28.0% increase from the 38,792 cuts announced in December. However, year-over-year, cuts were down 40.0% from 82,307.

CG&C noted that this is the lowest January job cut total since 2022, when 19,064 cuts were recorded. That month was the lowest total Challenger ever recorded for January.

The regional breakdown is as follows:

• The West saw the largest number of layoffs, with 19,899 cuts announced, a 19.2% decrease from 24,613 in January 2024.
• In the Midwest, layoffs totaled 13,908, reflecting an 8.6% decrease from 15,213 a year earlier.
• The East experienced the largest decline among all regions, with layoffs dropping 81.3% year-over-year, from 36,771 in January 2024 to 6,889.
• The South was the only region to see an increase in layoffs, rising to 9,099—a 59.4% jump from 5,710 in January 2024.

Job cuts in December were widespread, with the technology sector leading the way, followed by retail, services, automotive, and media/news.

In January, US employers announced plans to hire 6,089 workers, marking a 24% decrease from the 7,999 hiring plans announced in December. However, this is a 13% increase compared to the 5,376 plans announced in January 2024, which was the lowest January total on record. The highest hiring announcements were made in technology and automotive, two sectors that also saw significant job cuts.