|
Announced layoffs reached 82,307 in January, a 136% surge from
December’s 34,817, according to data released by outplacement
firm Challenger, Gray & Christmas, which helps companies with
the offboarding process for employees. It was the highest
monthly total since March 2023.
On a yearly basis, announced job cuts overall fell 20% from
January 2023.
Employers in the financial industry announced 23,238 job cuts,
more than double the number from a year earlier.
"It is also an election year, and companies begin to plan for
potential policy changes that may impact their industries.
However, these layoffs are also driven by broader economic
trends and a strategic shift towards increased automation and AI
adoption in various sectors, though in most cases, companies
point to cost-cutting as the main driver for layoffs," said
Andrew Challenger, senior vice president of Challenger, Gray &
Christmas, Inc.
The financial and technology sectors announced the most job cuts
in January, the firm said, with employers most frequently
"restructuring" and the closure of plants, units or stores as
reasons for layoffs.
The earnings reporting season that got underway in January saw a
number of companies announce jobs cuts, including United Parcel
Service unveiling plans to shed 12,000 jobs.
Tech sector job reductions were also announced by Amazon,
Alphabet and Microsoft.
In a memo published Jan. 30, digital payment heavyweight PayPal
Holdings Inc. announced a 9% cut of its workforce, with
President and Chief Executive Officer Alex Chriss citing a
priority to “right-size” the company.
(Reporting by Amina Niasse; Editing by Aurora Ellis)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
