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US job cut announcements ebb after jumping in January

Julia Fanzeres / Bloomberg
Julia Fanzeres / Bloomberg • 2 min read
US job cut announcements ebb after jumping in January
According to data from outplacement firm Challenger, Gray & Christmas Inc, US companies last month announced 48,307 job cuts, less than half of the prior month’s total — which recorded the most for any January since 2009.
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(March 5): Layoff announcements at US companies subsided last month from a January surge, adding to signs of stabilisation in the labour market.

Companies last month announced 48,307 job cuts, less than half of the prior month’s total — which recorded the most for any January since 2009, according to data from outplacement firm Challenger, Gray & Christmas Inc. Planned layoffs were down 72% from a year ago, when the Trump administration moved quickly to slash the federal workforce.

The report also showed that hiring plans more than doubled in February from the previous month to 12,755 openings, though that’s still well below the tally seen a year earlier.

Even so, the data reinforce that the labour market is steadying after essentially stalling in 2025. The government’s February job report due on Friday is expected to show a moderate pace of job growth and steady unemployment.

The layoff announcements were led by the technology sector, accounting for over 20% of last month’s total, while job-cut plans were also elevated among education and industrial goods companies. Many employers cited store closures and economic conditions.

Data out on Wednesday from ADP Research showed payrolls at US companies increased by 63,000 last month, the most since July. Employment levels have been “generally stable” in recent weeks, according to the Federal Reserve’s Beige Book survey of regional business contacts also released on Wednesday.

See also: US manufacturing grew, input costs soared before Iran attack

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