US Companies Announce Most January Job Cuts Since 2009

Summary

Michael McKee reports that US companies announced 108,435 job cuts in January, the highest January total since 2009 and a 205% increase from December. Hiring plans also fell to the lowest January level since 2009. Transportation led the cuts, driven by UPS and Amazon, while healthcare was an unusual large contributor. McKee cautions that Challenger tracks announcements, not actual job cuts, and says investors will need to watch jobless claims and payrolls for confirmation.

• January Challenger job cuts totaled 108,435, up 205% from December and the highest January since 2009.
• Hiring plans were announced by 5,306 employers, the lowest January total since 2009.
• Transportation led job-cut announcements, largely from UPS's 30,000 cuts and Amazon's 16,000.
• Healthcare was also a large and unusual contributor to the January job-cut tally.
• Challenger data reflect announcements, not completed layoffs, so actual impact may be smaller.
• Markets have sometimes moved on Challenger pessimism about the economy.
• McKee says confirmation will come from upcoming jobless claims and payroll numbers next Wednesday.