World at Work

2 minute read | February 2, 2023 | 8:15 AM EST | Last Updated a day ago

U.S. layoffs surged in January as tech slashed thousands of jobs - report

By Samrhitha Arunasalam

Feb 2 (Reuters) - Layoffs in the United States hit a more than two-year high in January as technology firms cut jobs at the second-highest pace on record to brace for a possible recession, a report showed on Thursday.

The layoffs impacted 102,943 workers, a more than two-fold jump from December and an over five-times surge from a year earlier, according to the report from employment firm Challenger, Gray & Christmas Inc.



Reuters Graphics

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THE CHALLENGER REPORT

Jan ’23 Recession or Correction? Highest January Since 2009, Highest Monthly Total Since September 2020

PUBLISHED FEBRUARY 2, 2023

U.S.-based employers announced 102,943 cuts in January, a 136% increase from the 43,651 cuts announced in December. It is 440% higher than the 19,064 cuts announced in the same month in 2022, according to a report released Thursday from global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.

Last month’s total is the highest January total since 2009, when 241,749 were announced in the first month of the year. It is the highest monthly total since September 2020 when 118,804 job cuts were reported.

“We’re now on the other side of the hiring frenzy of the pandemic years,” said Andrew Challenger, labor expert and Senior Vice President of Challenger, Gray & Christmas, Inc.

“Companies are preparing for an economic slowdown, cutting workers and slowing hiring,” he added.

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