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Layoffs surged 136% in January to second-highest level on record

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The pace of job cuts by U.S. employers accelerated at the start of 2024, a sign the labor market is starting to deteriorate in the face of ongoing inflation and high interest rates.

That is according to a new report published by Challenger, Gray & Christmas, which found that companies planned 82,307 job cuts in January, a substantial 136% increase from the previous month. However, that is down about 20% from the same time one year ago. It marked the second-highest layoff total for the month of January in data going back to 2009.

"Waves of layoff announcements hit U.S.-based companies in January after a quiet fourth quarter," said Andy Challenger, senior vice president of Challenger, Gray & Christmas. The cuts were "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.

Financial companies bore the brunt of the job losses in January, with the industry shedding 23,238 employees. That is the highest monthly layoff total for the financial sector since September 2018, when it announced 27,343 job cuts.

The technology sector followed with 15,806 layoffs, the most since May 2023 and a stunning 254% increase from just one month prior.

"The impact of rapidly advancing artificial intelligence adoption is beginning to be felt from a jobs perspective, particularly in media and tech, but truly across sectors," Challenger said. "That said, companies are not outright blaming AI for many layoff decisions."

Food production companies also accounted for a large swath of the job cuts in January, slashing 6,656 positions – the highest monthly total for the sector since November 2012. Challenger said that "high costs and advancing automation" are reshaping how the industry operates.

The sector is battling headwinds like climate change and immigration policies that affect labor dynamics, according to the report.

Another source of layoffs in January was retail stores, which trimmed 5,364 positions in January, a significant increase from the 110 layoffs announced in December.

The top reason cited for job cuts last month was restructuring; companies blamed stores closing and artificial intelligence for the layoffs, as well.


The labor market has remained historically tight over the past year, defying economists' expectations for a slowdown. Although economists say it is beginning to normalize after last year's blistering pace, it is nowhere near breaking.

The findings precede the release of the more closely watched January jobs report from the Labor Department on Friday morning, which is expected to show that employers hired 180,000 workers, following a gain of 216,000 in December.

The unemployment rate is expected to inch higher to 3.8%.

Original article source: Layoffs surged 136% in January to second-highest level on record

 
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Several companies announce January 2024 layoffs: Why are these employees getting laid off?​


Various levels and amounts of company layoffs are starting to commence across the U.S. due to reasons including lower revenues and organizational rearrangements.

Numerous amounts of companies in industries such as technology, finance, shipping and travel are making significant changes to their respective staff.

According to a survey shared by Business Insider, 38% of business leaders believe their own company will deal with layoffs this year — and half of them say their companies will have hiring freezes.

UPS​

The shipping company announced 12,000 layoffs this week, reporting a decrease in shipping volume in both domestic and international markets from the previous year.

Brian Hughes, the UPS director of financial and strategy communications, shared to USA Today that in 2023, dynamic economic conditions resulted in a $9 billion decline in revenue, year after year.

“2023 was a unique, and quite candidly, difficult and disappointing year,” said by CEO Carol Tomé, per CNBC. “We experienced declines in volume, revenue and operating profits and all three of our business segments.”

Hughes also shared to USA Today that the layoffs will occur around the world over the next several months, with 75% of them commencing in the first half of this year — although it wasn’t revealed which positions would be affected.

American Airlines​

The U.S. based transportation company announced this week the layoff of 656 customer support employees.

According to Fox Business, 335 employees in Phoenix and an additional 321 in Dallas-Fort Worth, who are part of the company’s various customer service groups, are to be laid off to reorganize the overall customer service experience and simplify it down to one source.

Prior to this change, customers with multiple issues had to contact multiple groups to handle each issue individually.

“As part of these updates, we are creating a new Customer Success team that will be dedicated to providing more convenient, elevated support to American Airlines customers with some of their most complex travel needs,” according to a statement shared by NBC 5 Dallas Fort-Worth, an NBC affiliate.

PayPal​

On Tuesday, the financial tech company announced a roughly 9% cut of its workforce.

Forbes reported that approximately 2,500 jobs from its near 30,000 employees will be removed to eliminate filled and non-filled positions.

PayPal CEO Alex Chriss stated in a press release, “Specifically, across our organization, we need to drive more focus and efficiency, deploy automation, and consolidate our technology to reduce complexity and duplication.”

According to CNBC, the affected employees will be notified by the end of the week.

In addition, CNBC included news from the previous week of PayPal announcing plans to introduce AI features to its program, as Chriss calls it the “next chapter” for the company.

eBay​

Last week, the e-commerce company stated it would be laying off 9%, or about 1,000 full-time jobs, from its workforce.

CEO Jamie Iannone shared a letter to the company’s corporate blog that the move is to “scale back the number of contracts” because “overall headcount and expenses have outpaced the growth of our business.”


As reported by CNBC, eBay shares went down about 4% last November, with Iannone stating, “Inflationary pressures and rising interest rates continue to weigh on consumer confidence and pressured demand for discretionary goods.”

The news comes shortly after eBay was fined $3 million in court over incidents of harassment to a Massachusetts couple.

https://www.msn.com/en-us/money/com...S&cvid=115bfa79164e47788ceca610495b8ffa&ei=40
 
MitchLL said:
Needed for the Fed's soft landing.
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No Way Wtf GIF by Harlem
 

USPS to Cut $5 Billion in Spending to ‘Avoid Running Out of Cash​


On the heels of a $6.5 billion net loss in 2023, the United States Postal Service (USPS) is taking drastic measures to reverse its fortunes, anticipating to cut $5 billion in operating expenses through the end of 2025.

In a Jan. 10 letter to the Biden administration and Congress, Postmaster General Louis DeJoy said the government agency will need to implement the cost-cutting measures to "avoid running out of cash over the next several years."

The company is already in the fourth year of its 10-year "Delivering for America" turnaround plan unveiled in 2021. But despite the investment, there hasn't been much turning around.

While USPS initially expected to break even by fiscal 2023 under the strategy, losses have still amounted to $18.8 billion in the first three years of the plan.

"The USPS is a perplexing problem to fix and to even say that it can be fixed is a stretch," said Dr. Tom Goldsby, professor and Haslam Chair of Logistics at the University of Tennessee. In particular, he noted the inherent disadvantages it has compared to its private peers like UPS, FedEx and Amazon, all of whom "can say ‘no' to a customer and employ selectivity."

Additionally, USPS "cannot price stamps for cross-town mailing at one price and cross-country mailing from Key West to a remote location in Alaska at a different price," Goldsby said.

Despite the disadvantages, Goldsby told Sourcing Journal the USPS "business model and operations can certainly be improved."

At the very least, USPS appears to be minimizing future damages. DeJoy said the Postal Service reduced initially projected losses through 2030 from more than $160 billion to less than $60 billion.

"While we have already achieved historic reductions, they are simply not enough to make us financially sustainable," DeJoy said in the letter. "The alternative is that we will run out of cash, therefore making our financial condition, again, a problem for the Congress to address. My continued goal is to not let that happen."

DeJoy laid out four near-term goals to cut costs, as well as two other objectives designed to generate a new $5 billion in revenue.

The courier plans to cut $1.5 billion in costs through regionalized transportation-aggregating volume in fewer facilities, cutting underutilized trips and shifting more air volume to ground. To help reduce the underutilized trips, $1 billion will be freed up via route optimization.


DeJoy said USPS would reduce another $1.5 billion in processing and distribution costs, namely by insourcing prior outsourced operations, reorganizing operation plans and adding more sortation equipment.

The final $1 billion in cuts will come from retail and delivery costs, including "right-sizing work hours" and accelerating the implementation of more sorting and delivery centers (S&DCs). These are large facilities that consolidate the operations of letter carriers and mail handlers under one roof. USPS plans to have 100 of them operating by the end of 2024, and over 400 S&DCs in the next three years.

"For the sake of operational efficiency and effectiveness, I like the ideas of consolidating and bringing the distribution network into the 21st century," said Goldsby, who noted that the shift mirrors the "hub-and-spoke" method of peers like UPS, FedEx and Amazon.


But he did give a warning: "Those facilities will come with their own fixed-cost obligations along with the legacy compensation costs that are not going away. So, while service stands to benefit, it's not obvious how the bottom line will be favorably affected."

DeJoy said USPS cut 28 million hours in 2023, saving $1.8 billion. According to Jason Miller, interim chairperson for the department of supply chain management at Michigan State University, this is in line with wider Bureau of Labor Statistics (BLS) data that cites the decline in average weekly hours industrywide.

In the courier and messenger sector, Miller said work hours are "historically low, suggesting payrolls are a bit large relative to current demand levels."

Fullscreen button


USPS to Cut $5 Billion in Spending to ‘Avoid Running Out of Cash'

USPS to Cut $5 Billion in Spending to ‘Avoid Running Out of Cash'© Provided by Sourcing Journal
"Speaking of current demand levels, two ways to measure this are based on aggregate weekly hours worked, which for November 2023 were down 7 percent from November 2021," Miller told Sourcing Journal. "An alternative strategy is to examine inflation-adjusted revenue for this sector, which as of Q3 2023 was down 12 percent from Q3 2021."


On the other side, USPS said it aims to grow package revenue by $3 billion, further amplifying competition with UPS, FedEx and Amazon. DeJoy didn't elaborate on the plan, other than saying the agency would introduce "new reliable and affordable products" aligned with its business model.

The company also said it aimed to recover $2 billion in revenue by raising prices on mail products to counteract what it called 15 years of a "defective pricing model." Last month, USPS raised the price of a first-class stamp from 66 cents to 68 cents. Under DeJoy's tenure, the courier has raised its stamp prices each January and July.

DeJoy noted in his letter that two major forces outside the Postal Service's control led to 2023's loss: $2.6 billion higher-than-expected inflation and $3 billion in additional payments into Civil Service Retirement System (CSRS) benefits, which covers most postal employees hired before 1984.


Goldsby called the firm's overweight burden of wages and benefits "mind-boggling."

"There is no private operation that would come close to having 70 percent of total expense or, even, operating expense tied to compensation and pension obligations," Goldsby said. "That's a massive cinder block on earnings."

The cuts come as the government agency has been encountering problems in the Houston area, where multiple residents raised concerns of delivery delays out of two distribution centers in nearby Texas municipalities, North Houston and Missouri City. In some cases, the delays have been reported to be weeks long.

Congressman Al Green (D-Texas) said in a Tuesday press release that the agency's high output package sorters that were intended to replace the less-efficient automated parcel bundle sorters in the North Houston sorting facility encountered setbacks due to poor planning. Additionally, an over-reliance on ground transportation coupled with staffing shortages post-Christmas contributed to delays, he said.


Green noted in the release that USPS addressed the delays by bringing in 30 additional employees.

https://www.msn.com/en-us/money/com...S&cvid=580d085dfc634d3dae8f307042063403&ei=21
 

Once-unstoppable consumers are finally tapping the brakes—and Adidas, Nike, and Puma are taking a beating from sinking sales​


Tougher times may be on the way if lackluster sales guidance from the world’s biggest shoe and apparel companies are any indication.

On Wednesday, Adidas’ share price retreated as much as 9%, before bouncing back Thursday, after it signaled that sales and profits for 2024 would be weaker than analysts expected. The company predicted “mid-single digit” sales growth for the coming year, a far cry from the 9% growth analysts expected. It’s also looking to offload its leftover Yeezy shoe inventory after terminating its deal with rapper Ye, formerly known as Kanye West.

Adidas joined competitors Nike and Puma in cutting expectations for the coming year, causing concern among some that consumer spending could be pulling back, despite stronger-than-expected numbers in 2023.

Adidas CEO Bjorn Gulden acknowledged in a statement that the company’s financial performance was “not good,” and on its Wednesday earnings call asked for patience as the company continues to make progress.

"Consumer sentiment around the world is, of course, not great. It's not like people are lining up everywhere to buy product," Gulden said.

When reached for comment, an Adidas spokesperson directed Fortune to a company press release. A spokesperson for Puma said the company could not comment because it is in its quiet period and Nike did not immediately respond to a request for comment.

With high-profile layoffs at big tech companies in the news, pay raises cooling, and American workers nervous and staying in their jobs more, it’s possible that consumers will pull back on nonessential spending. The average consumer likely wants to make their money stretch, which could hurt shoe and apparel companies that have struggled to keep people shopping at higher price points, Citi analyst Monique Pollard told Reuters.

"It does suggest that consumers are a bit more focused on getting value for money," she said.

This trend can also be seen in streaming, another industry likely to see some pullback if consumer spending weakens. Last week, industry leader Netflix reported strong revenue and profit results for 2023, but its competitors have not seen similar success.

As the price of streaming services continues to rise, consumers may increasingly decide to rely on one service and cut out all the others. For its part, Netflix thinks “It’s logical to expect further consolidation,” in the industry, it said in an investor letter.

Although a pullback in consumer spending would be a setback for the economy, it might just be a positive for Federal Reserve Chairman Jerome Powell.

Powell, attentive to the so-far slow cooling of inflation, indicated at a Wednesday press conference that the Federal Reserve would not be cutting rates soon, despite misplaced hope from investors.

A slowdown in spending may help change his mind—with consumers less willing to spend, producers and retailers would be incentivized to lower prices, which could finally bring inflation to the Fed 2% target.

This story was originally featured on Fortune.com

https://www.msn.com/en-us/money/com...S&cvid=580d085dfc634d3dae8f307042063403&ei=36
 
Sharky1203 said:

USPS to Cut $5 Billion in Spending to ‘Avoid Running Out of Cash​


On the heels of a $6.5 billion net loss in 2023, the United States Postal Service (USPS) is taking drastic measures to reverse its fortunes, anticipating to cut $5 billion in operating expenses through the end of 2025.

In a Jan. 10 letter to the Biden administration and Congress, Postmaster General Louis DeJoy said the government agency will need to implement the cost-cutting measures to "avoid running out of cash over the next several years."

The company is already in the fourth year of its 10-year "Delivering for America" turnaround plan unveiled in 2021. But despite the investment, there hasn't been much turning around.

While USPS initially expected to break even by fiscal 2023 under the strategy, losses have still amounted to $18.8 billion in the first three years of the plan.

"The USPS is a perplexing problem to fix and to even say that it can be fixed is a stretch," said Dr. Tom Goldsby, professor and Haslam Chair of Logistics at the University of Tennessee. In particular, he noted the inherent disadvantages it has compared to its private peers like UPS, FedEx and Amazon, all of whom "can say ‘no' to a customer and employ selectivity."

Additionally, USPS "cannot price stamps for cross-town mailing at one price and cross-country mailing from Key West to a remote location in Alaska at a different price," Goldsby said.

Despite the disadvantages, Goldsby told Sourcing Journal the USPS "business model and operations can certainly be improved."

At the very least, USPS appears to be minimizing future damages. DeJoy said the Postal Service reduced initially projected losses through 2030 from more than $160 billion to less than $60 billion.

"While we have already achieved historic reductions, they are simply not enough to make us financially sustainable," DeJoy said in the letter. "The alternative is that we will run out of cash, therefore making our financial condition, again, a problem for the Congress to address. My continued goal is to not let that happen."

DeJoy laid out four near-term goals to cut costs, as well as two other objectives designed to generate a new $5 billion in revenue.

The courier plans to cut $1.5 billion in costs through regionalized transportation-aggregating volume in fewer facilities, cutting underutilized trips and shifting more air volume to ground. To help reduce the underutilized trips, $1 billion will be freed up via route optimization.


DeJoy said USPS would reduce another $1.5 billion in processing and distribution costs, namely by insourcing prior outsourced operations, reorganizing operation plans and adding more sortation equipment.

The final $1 billion in cuts will come from retail and delivery costs, including "right-sizing work hours" and accelerating the implementation of more sorting and delivery centers (S&DCs). These are large facilities that consolidate the operations of letter carriers and mail handlers under one roof. USPS plans to have 100 of them operating by the end of 2024, and over 400 S&DCs in the next three years.

"For the sake of operational efficiency and effectiveness, I like the ideas of consolidating and bringing the distribution network into the 21st century," said Goldsby, who noted that the shift mirrors the "hub-and-spoke" method of peers like UPS, FedEx and Amazon.


But he did give a warning: "Those facilities will come with their own fixed-cost obligations along with the legacy compensation costs that are not going away. So, while service stands to benefit, it's not obvious how the bottom line will be favorably affected."

DeJoy said USPS cut 28 million hours in 2023, saving $1.8 billion. According to Jason Miller, interim chairperson for the department of supply chain management at Michigan State University, this is in line with wider Bureau of Labor Statistics (BLS) data that cites the decline in average weekly hours industrywide.

In the courier and messenger sector, Miller said work hours are "historically low, suggesting payrolls are a bit large relative to current demand levels."

Fullscreen button


USPS to Cut $5 Billion in Spending to ‘Avoid Running Out of Cash''

USPS to Cut $5 Billion in Spending to ‘Avoid Running Out of Cash'© Provided by Sourcing Journal
"Speaking of current demand levels, two ways to measure this are based on aggregate weekly hours worked, which for November 2023 were down 7 percent from November 2021," Miller told Sourcing Journal. "An alternative strategy is to examine inflation-adjusted revenue for this sector, which as of Q3 2023 was down 12 percent from Q3 2021."


On the other side, USPS said it aims to grow package revenue by $3 billion, further amplifying competition with UPS, FedEx and Amazon. DeJoy didn't elaborate on the plan, other than saying the agency would introduce "new reliable and affordable products" aligned with its business model.

The company also said it aimed to recover $2 billion in revenue by raising prices on mail products to counteract what it called 15 years of a "defective pricing model." Last month, USPS raised the price of a first-class stamp from 66 cents to 68 cents. Under DeJoy's tenure, the courier has raised its stamp prices each January and July.

DeJoy noted in his letter that two major forces outside the Postal Service's control led to 2023's loss: $2.6 billion higher-than-expected inflation and $3 billion in additional payments into Civil Service Retirement System (CSRS) benefits, which covers most postal employees hired before 1984.


Goldsby called the firm's overweight burden of wages and benefits "mind-boggling."

"There is no private operation that would come close to having 70 percent of total expense or, even, operating expense tied to compensation and pension obligations," Goldsby said. "That's a massive cinder block on earnings."

The cuts come as the government agency has been encountering problems in the Houston area, where multiple residents raised concerns of delivery delays out of two distribution centers in nearby Texas municipalities, North Houston and Missouri City. In some cases, the delays have been reported to be weeks long.

Congressman Al Green (D-Texas) said in a Tuesday press release that the agency's high output package sorters that were intended to replace the less-efficient automated parcel bundle sorters in the North Houston sorting facility encountered setbacks due to poor planning. Additionally, an over-reliance on ground transportation coupled with staffing shortages post-Christmas contributed to delays, he said.


Green noted in the release that USPS addressed the delays by bringing in 30 additional employees.

https://www.msn.com/en-us/money/com...S&cvid=580d085dfc634d3dae8f307042063403&ei=21
Click to expand...
The fact that DeJoy is still running the USPS is disgusting…not sure what Joe has been doing for four years…
 
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Tens of thousands face limbo as 2024 job cuts begin​


(NewsNation) — Tens of thousands of Americans working for some of the United States’ biggest tech, retail and media companies are coping with the loss of their jobs or the threat that their positions could be eliminated in 2024.

Well-known brands, many of which bolstered their workforces during the COVID-19 pandemic, are now scaling back as the focus shifts to leaner, more efficient employee rosters.

While many companies have cut jobs as pure cost-cutting measures, others have done so as they move toward a bigger reliance on artificial intelligence, several outlets — including CBS News, Business Insider and the Wall Street Journal — reported in recent weeks.

After companies like Google, Walmart, CVS and others announced large-scale layoffs in 2023, several corporations made announcements in January, adding to an already long list of employers who have determined to do more with less moving forward.

Report: Remote workers more likely to be laid off

Citigroup: 20,000 jobs​

The bank will save about $2.5 billion following a disappointing fourth quarter. Citigroup finished 2023 with about 200,000 employees, not counting its Mexico operations, which are being spun off. The company announced in January it will slash 20,000 jobs by the end of 2026 as a wider company reorganization effort, the Wall Street Journal reported.

Citigroup’s CEO announced in November that the bank had already begun laying off employees around Thanksgiving. The first wave of cuts would affect hundreds of senior-level employees, while future cuts will extend to thousands of lower-level employees, the memo said.

UPS: 12,000 jobs​

Citing year-after-year revenue declines, the Atlanta-based company announced this week it is eliminating 12,000 positions, which will save an estimated $1 billion. In a statement released by the company’s CEO, UPS called 2023 “a unique and difficult year” in which the company remained focused on controlling what it could control and strengthened its foundation for future growth.

Salesforce: 7,350 jobs​

The San Francisco-based cloud computing company announced the elimination of 10% of its workforce in January as the industry as a whole experiences cost-cutting measures. The company also announced it would close some of its offices to save on real estate costs. In a letter to employees, the company’s CEO said that the industry’s environment remains “challenging” as customers are taking a more measured approach to purchasing decisions.

Microsoft: 1,900 jobs​

The nearly 2,000 eliminated jobs will come from the company’s gaming division, in which about 8% of employees will lose their jobs, the Associated Press reported in January. The announcement came just three months after Microsoft announced a $69 billion purchase of video game maker Activision Blizzard.

The AP, citing an internal memo, said that workers are part of the company’s Activision Blizzard, Xbox and ZeniMax divisions. Microsoft’s CEO wrote that the moves are being made as Microsoft and Activision Blizzard align their strategies to move toward a “sustainable cost structure” that will support Microsoft’s growing business.

eBay: 1,000 jobs​

The online e-commerce company will eliminate around 9% of its workforce as the company announced it will attempt to better align the company’s current pace of growth as the economy continues to slow.

Google: Several hundred jobs​

Google, which is owned by parent company Alphabet, laid off hundreds of workers in January who had been assigned to the tech giant’s engineering, hardware and voice assistance divisions. Alphabet’s CEO is already forecasting more cuts as Google shifts its attention to gaining more traction in the AI universe and “Investing in…(Alphabet’s) big priorities,” a memo sent to employees said, according to CBS News.


Google previously cut 12,000 jobs to tighten its belt financially after a pandemic hiring spree. The jobs eliminated in 2023 represent about 6% of the company’s workforce.

Vince McMahon’s resignation from TKO ‘not enough’: Attorney

Riot Games: 530 jobs​

The developer of the popular “League of Legends” video game announced in January it has eliminated 11% of its workforce to allow the company to build a more sustainable future. In a memo sent to employees, company executives called the cuts “a necessity,” CBS News reported, and “critical to the future of Riot Games.”

REI: 357 jobs​

The outdoor apparel and gear company, citing four quarters of declining revenues, is cutting hundreds of positions at its corporate headquarters and distribution center.

iRobot: 350 jobs​

The company that manufactures robot vacuum cleaners announced that it would cut 31% of its jobs, including its top executive, after Amazon and iRobot announced this week that they had terminated a $1.7 billion agreement that would have merged the two companies.

Amazon: Several hundred jobs​

The e-commerce firm is cutting jobs across its film and studio operations as well as its Twitch streaming platform. Audiobook platform Audible is slashing hundreds of jobs, and the company’s Buy With Prime platform that works with third-party merchants also reported that it will cut around 5% of its workforce, the Wall Street Journal reported.


TikTok: 60 jobs​

The popular social media platform, owned by ByteDance, cut dozens of jobs among its advertising and sales divisions as part of a routine company reorganization, CBS News reported.

Copyright 2022 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

https://www.msn.com/en-us/money/com...S&cvid=580d085dfc634d3dae8f307042063403&ei=68
 
BioHawk said:
I'm shocked that there are layoffs at businesses as soon as Christmas is over. That's never happened before!!!!
Click to expand...
Lol, didn't read the articles did we. I could have posted the retail numbers but figured that it's a every year trend.
 
My company had layoffs in April and again in Nov on 2023. Always the industry leaders!

I quit the day after they made me lay off 3 of my remaining 12 employees. I was forced to lay off 3 n April. Went from 15 to 9 and could no longer provide adequate service to our clients.

F em.
 
Sharky1203 said:
Lol, didn't read the articles did we. I could have posted the retail numbers but figured that it's a every year trend.
Click to expand...
Your article said over a billion dollars in cuts come from the retail industry. Because they cut staff. Of course, since so much shopping is done online these days it of course is going to affect the shipping industries as well.
 
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Layoffs in Jan 2023 were 20% higher than Jan 2024.

And yes the Fed is looking for signs of the red-hot labor market cooling which will ease inflation.
This is a feature, not a bug in the Fed's plan to get inflation down to the target rate.

Let's see what tomorrows job report shows.
4%is considered full employment.
 
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Some of these corporations and their shareholders have gotten fat, complacent and lazy and insist on their earnings staying at record levels from their fictional inflationary pricing strategies. Now the consumers are pushing back and their price levels have to be reevaluated. But they’re taking the easy way out for now and cutting costs instead. We’re going to see how that plays out over the next year or so. I do feel bad for those workers being dismissed as it’s completely out of their control.
 
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Sharky1203 said:
The pace of job cuts by U.S. employers accelerated at the start of 2024, a sign the labor market is starting to deteriorate in the face of ongoing inflation and high interest rates.

That is according to a new report published by Challenger, Gray & Christmas, which found that companies planned 82,307 job cuts in January, a substantial 136% increase from the previous month. However, that is down about 20% from the same time one year ago. It marked the second-highest layoff total for the month of January in data going back to 2009.

"Waves of layoff announcements hit U.S.-based companies in January after a quiet fourth quarter," said Andy Challenger, senior vice president of Challenger, Gray & Christmas. The cuts were "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.

Financial companies bore the brunt of the job losses in January, with the industry shedding 23,238 employees. That is the highest monthly layoff total for the financial sector since September 2018, when it announced 27,343 job cuts.

The technology sector followed with 15,806 layoffs, the most since May 2023 and a stunning 254% increase from just one month prior.

"The impact of rapidly advancing artificial intelligence adoption is beginning to be felt from a jobs perspective, particularly in media and tech, but truly across sectors," Challenger said. "That said, companies are not outright blaming AI for many layoff decisions."

Food production companies also accounted for a large swath of the job cuts in January, slashing 6,656 positions – the highest monthly total for the sector since November 2012. Challenger said that "high costs and advancing automation" are reshaping how the industry operates.

The sector is battling headwinds like climate change and immigration policies that affect labor dynamics, according to the report.

Another source of layoffs in January was retail stores, which trimmed 5,364 positions in January, a significant increase from the 110 layoffs announced in December.

The top reason cited for job cuts last month was restructuring; companies blamed stores closing and artificial intelligence for the layoffs, as well.


The labor market has remained historically tight over the past year, defying economists' expectations for a slowdown. Although economists say it is beginning to normalize after last year's blistering pace, it is nowhere near breaking.

The findings precede the release of the more closely watched January jobs report from the Labor Department on Friday morning, which is expected to show that employers hired 180,000 workers, following a gain of 216,000 in December.

The unemployment rate is expected to inch higher to 3.8%.

Original article source: Layoffs surged 136% in January to second-highest level on record

Click to expand...
Can't be, bidenomics has us roaring into the roaring 20s of the 21st century?!
 
Here_4_a_Day said:
Can't be, bidenomics has us roaring into the roaring 20s of the 21st century?!
Click to expand...

What the **** did you just ****ing say about me, you little bitch? I'll have you know I graduated top of my class in the Navy Seals, and I've been involved in numerous secret raids on Al-Quaeda, and I have over 300 confirmed kills. I am trained in gorilla warfare and I'm the top sniper in the entire US armed forces. You are nothing to me but just another target. I will wipe you the **** out with precision the likes of which has never been seen before on this Earth, mark my ****ing words. You think you can get away with saying that shit to me over the Internet? Think again, ****er. As we speak I am contacting my secret network of spies across the USA and your IP is being traced right now so you better prepare for the storm, maggot. The storm that wipes out the pathetic little thing you call your life. You're ****ing dead, kid. I can be anywhere, anytime, and I can kill you in over seven hundred ways, and that's just with my bare hands. Not only am I extensively trained in unarmed combat, but I have access to the entire arsenal of the United States Marine Corps and I will use it to its full extent to wipe your miserable ass off the face of the continent, you little shit. If only you could have known what unholy retribution your little "clever" comment was about to bring down upon you, maybe you would have held your ****ing tongue. But you couldn't, you didn't, and now you're paying the price, you goddamn idiot. I will shit fury all over you and you will drown in it. You're ****ing dead, kiddo.
 
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Moral said:
What the **** did you just ****ing say about me, you little bitch? I'll have you know I graduated top of my class in the Navy Seals, and I've been involved in numerous secret raids on Al-Quaeda, and I have over 300 confirmed kills. I am trained in gorilla warfare and I'm the top sniper in the entire US armed forces. You are nothing to me but just another target. I will wipe you the **** out with precision the likes of which has never been seen before on this Earth, mark my ****ing words. You think you can get away with saying that shit to me over the Internet? Think again, ****er. As we speak I am contacting my secret network of spies across the USA and your IP is being traced right now so you better prepare for the storm, maggot. The storm that wipes out the pathetic little thing you call your life. You're ****ing dead, kid. I can be anywhere, anytime, and I can kill you in over seven hundred ways, and that's just with my bare hands. Not only am I extensively trained in unarmed combat, but I have access to the entire arsenal of the United States Marine Corps and I will use it to its full extent to wipe your miserable ass off the face of the continent, you little shit. If only you could have known what unholy retribution your little "clever" comment was about to bring down upon you, maybe you would have held your ****ing tongue. But you couldn't, you didn't, and now you're paying the price, you goddamn idiot. I will shit fury all over you and you will drown in it. You're ****ing dead, kiddo.
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Wanna have a beer?
 
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Moral said:
I can't because I have "self control" issues with alcohol.
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Totally understand.....I have self control issues with beating the phuck out of libtard valor thieves like you! One last chance to prove you're not a total fraud: when SEALS trained with Marine Recon, where did they billet in NC?
 
If I had a dollar for every ‘economy about to tank’ post I have seen here for the last 3 years, I’d have enough to put into a nice yield CD. It may happen, but I guess if you just keep saying it everyday, you may be right at some point. Then that will be such a great feeling for you.

I tend to think that the US was actually in a mini recession a year or two ago. But since many of us lived through a bigger one, we sort of didn’t notice or feel this one. So many economists were saying its coming, or it’s happening. Seems like good things are ahead, to me.
 
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Here_4_a_Day said:
Totally understand.....I have self control issues with beating the phuck out of libtard valor thieves like you! One last chance to prove you're not a total fraud: when SEALS trained with Marine Recon, where did they billet in NC?
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Charlotte City
 
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That is quite the sensationalized headline.

“Layoffs surged in January to second highest level on record*”

*in the month of January since 2009
 
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Blowout Jan jobs report...353k.
Almost double estimates.
Revisions for Dec/Nov up 130k.
Unemployment stays at 3.7%.
Wage growth very strong at 4.6%

Powell was right..economy too strong to cut rates in March.
Inflation looming with wage growth.
Megan's blowout qtrly report was fueled by job cuts.
They had cash flow of 43 billion in 3 months.
Stock has tripled in last 10 months...whoa.
 
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BioHawk said:
Your article said over a billion dollars in cuts come from the retail industry. Because they cut staff. Of course, since so much shopping is done online these days it of course is going to affect the shipping industries as well.
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Is that why UPS is cutting thousands?
 
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Reactions: RileyHawk
hawkjt said:
Blowout Jan jobs report...353k.
Almost double estimates.
Revisions for Dec/Nov up 130k.
Unemployment stays at 3.7%.
Wage growth very strong at 4.6%

Powell was right..economy too strong to cut rates in March.
Inflation looming with wage growth.
Megan's blowout qtrly report was fueled by job cuts.
They had cash flow of 43 billion in 3 months.
Stock has tripled in last 10 months...whoa.
Click to expand...
WTF are you putting in your arm? lol Trade those Corp jobs for MickeyD's = bidenomics > https://www.forbes.com/sites/brianb...as-major-firms-increase-cuts/?sh=4a8406b33b3a
 
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