Published January 9, 2025
U.S.-based employers announced 38,792 cuts in December, a 33% decrease from the 57,727 cuts announced one month prior. It is up 11% from the 34,817 cuts announced in the last month of 2023, according to a report released Thursday from global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.
In the final quarter of the year, companies announced plans to cut 152,116 jobs, down 13% from the 174,597 cuts announced in the third quarter of this year. It is up 30% from the 117,163 cuts announced in the same quarter of 2023.
In 2024, employers announced 761,358 job cuts, up 5.5% from 721,677 announced in 2023. It is the highest annual total since 2,304,755 cuts were announced in 2020. Except for 2020, it is the highest total since 2009, when employers planned 1,288,030.
Challenger, Gray & Christmas, Inc. ©
“Companies underwent extraordinary change in 2024 due to rapid technological advancement and shifting economic conditions. Most employers are anticipating additional uncertainty with the upcoming administration, which is leading to slower hiring and more layoffs in the short term from various sectors,” said Andrew Challenger, workplace expert and Senior Vice President of Challenger, Gray & Christmas, Inc.
Which Industries are Cutting Workers?
Technology
Last month, Technology announced 11,430 job cuts, the most of any sector. For the year, Technology announced 133,988 cuts, down 20.3% from the 168,032 announced through the same period last year.
Of the top industries, only Government is cutting at a faster pace than last year, primarily due to cuts in the armed services. Tech, Healthcare, Services, and Financial firms are generally cutting fewer workers than last year. However, a number of industries are cutting well above the pace of last year.
Utilities and Energy
Utilities have announced 8,998 cuts so far this year, up 524.4% from the 1,441 cuts announced through the same period last year. Energy, meanwhile, has announced 300.6% more cuts: 11,825 vs. 2,952 in 2023.
Apparel
Clothing manufacturers announced 8,477 job cuts through the year, up 106.6% from the 4,103 layoff announcements recorded last year.
Transportation and Industrial Manufacturing
Companies that transport people and goods have announced 27,216 cuts this year, an increase of 85.1% from the 14,701 cuts announced during the same period last year. Industrial Manufacturers have announced 22,876 job cuts, up 160.3% from the 8,790 announced during the same period last year.
Education and Entertainment/Leisure
Education has announced 28,968 cuts in 2024, a 177.9% increase compared to the 10,423 cuts in 2023. Entertainment/Leisure companies have cut 35,475 jobs through 2024, up 111.6% from the 16,766 cuts announced in the sector last year.
Consumer Products
Consumer Products firms announced 42,931 job cuts this year, reflecting a modest increase of 14.4% from the 37,515 announced last year.
Government
Government sector layoffs have skyrocketed, reaching 38,375 cuts year-to-date, a 1520.6% increase from the 2,368 announced in 2023. This increase is primarily attributed to significant reductions in armed services roles.
Automotive
Automotive companies announced 2,399 job cuts last month, bringing the year-to-date total to 48,219. This marks a 43.2% increase from the 33,661 layoffs announced through the same period last year.
“The automotive sector is facing challenges stemming from supply chain disruptions and shifting market demands,” said Challenger. “While some cuts reflect cost restructuring, others are tied to changes in production priorities as the industry transitions toward electric vehicles and other advanced technologies.”
Source: Challenger, Gray & Christmas, Inc. ©
Media & News
The Media industry, which includes television, film, streaming, and News, announced 15,039 job cuts this year, down 30% from the 21,417 announced in the industry in 2023.
News, which includes digital, broadcast, and print, and is tracked as a subset of Media, announced 365 layoff announcements in December. For the year, News announced 4,902 cuts, up 59% from the 3,087 cuts tracked in 2023. It is the highest total since 16,060 News cuts were recorded in 2020.
Job Cut Locations
East Region
The East region experienced a total of 197,988 job cuts year-to-date in 2024, up 15.8% from the 170,948 announced in 2023. Notable increases were seen in Massachusetts (19,832, up from 14,786) and Rhode Island (12,364, up from 10,233). The District of Columbia reported a dramatic rise in layoffs, jumping to 35,113 from just 4,593 last year, on a large announcement impacting the United States Army.
Midwest Region
The Midwest reported 139,898 job cuts year-to-date in 2024, a 9% increase from the 128,316 recorded in 2023. Ohio saw the most significant rise, with layoffs reaching 30,869, more than doubling the 14,356 reported last year. Meanwhile, Minnesota experienced a steady increase to 17,436 from 15,411, and Iowa recorded a substantial rise to 8,467, up from 2,173.
West Region
Layoffs in the West region totaled 332,369 year-to-date, up 8.2% from the 307,103 reported in 2023. California remains the leader in job cuts, although layoffs decreased to 157,012 from 188,394 last year. Texas, on the other hand, experienced a surge, with layoffs climbing to 71,467 from 41,509 in 2023. Other notable increases occurred in Oregon (11,061, up from 5,039) and Colorado (14,924, up from 6,678).
South Region
The South region saw 91,103 layoffs year-to-date, a decrease of 21% from 115,310 in 2023. Notable reductions were recorded in Tennessee (17,644, down from 33,221) and Florida (14,928, down from 26,389). However, Georgia experienced a significant increase, with layoffs surging to 18,590 from 3,168 last year. North Carolina also reported a decrease, with 12,567 layoffs compared to 20,554 in 2023.
Hiring Trends: Lowest YTD Hiring Since 2015
U.S. employers announced 7,999 hiring plans in December, for a total of 769,953 hiring plans this year. This is down 1.3% from the 780,123 hiring plans recorded in all of 2023. It is the lowest annual total since 2015, when 690,751 hiring plans were announced.
“The slower hiring pace reflects ongoing uncertainty in economic conditions and cautious approaches by employers to expansion,” said Challenger. “While certain sectors are accelerating recruitment, others remain hesitant due to market volatility and the impact of the new administration.”
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Contact Colleen Madden Blumenfeld for more data or to set up an interview with SVP Andy Challenger.
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