(AmericanProsperity.com) – The highest number of layoffs took place in January as companies announced the most job cuts in a year and it seems that there are a few different reasons to consider for this choice to lay off so many people.
According to a report that was released on Thursday from Challenger, Gray & Christmas, they said that planned layoffs for January sat at 82,307. Although this was down 20% from the same time as last year (January 2023) it was a jump of 136% from just last month, in December.
We’ve seen multiple companies announce layoffs since even before the beginning of the year, many of them coming out of the tech and financial sectors. For example, we’ve seen companies like Microsoft, Alphabet, and PayPal announce that they’d be laying off many people or cutting sections of their workforce.
Andrew Challenger, who is Senior Vice President of the firm, said “Waves of layoff announcements hit US-based companies in January after a quiet fourth quarter.” Also, according to him, subsequent layoffs had been “driven by broader economic trends and a strategic shift towards increased automation and AI adoption in various sectors.” He also said that many companies were cutting jobs for financial reasons, in an attempt to save money.
Financial business layoffs accounted for 23,238 of the total, while tech layoffs comprised 15,806. Lastly, food producers made up 6,656 layoffs.
According to Challenger, there are a few reasons why these companies are going through with so many layoffs, saying, “High costs and advancing automation technology are reshaping the food production industry. Additionally, climate change and immigration policies are influencing labor dynamics and operational challenges in this sector.”
According to ADP, their private payrolls increased 107,000 for the month and their nonfarm payrolls are expected to show growth of 185,000. During the week of January 27, there were 224,000 jobless claims during that time, which was 9,000 more than it was the week previous.
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