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CHICAGO – According to Challenger, Gray & Christmas, Inc., U.S. employers announced 49,795 job cuts in January, a 28% increase from December. However, this is a 40% decline from the 82,307 cuts announced in January 2024, making it the lowest January job cut total since 2022. Retail saw 6,419 job cuts, a 96% increase from the 3,283 cuts announced one month prior. It is up 20% from the 5,364 cuts announced in January 2024.
“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,” said Andrew Challenger, Senior Vice President.
“Retailers are coming off a successful holiday season, though in-store traffic fell on major shopping days like Black Friday. Automation and online shopping are reshaping retail jobs,” he added.
The West experienced the highest number of retail layoffs, with California leading the way. The South was the only region to see an annual increase, growing by 59.4%, mainly with Tennessee, Florida, and North Carolina being the most affected. The East faced a significant decline, as cuts in New York dropped by 81.3% year-over-year.
Store closures accounted for most retail job cuts last month, followed by restructuring and economic conditions. Cost-cutting, reduced demand, and corporate mergers also contributed. Other industries, including technology and automotive, also experienced significant workforce reductions, with technology leading all sectors in January layoffs.
Despite job losses, some employers continue hiring, though overall hiring plans fell 24% from December. Employers announced plans to add 6,089 jobs in January, an increase from the previous year but still lower than December's numbers. As retail evolves with automation and shifting consumer habits, job trends remain uncertain.
