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Layoffs 2026

edited February 5 in Other Investing
https://www.cnbc.com/2026/02/05/layoff-and-hiring-announcements-hit-their-worst-january-levels-since-2009-challenger-says.html

Layoffs in January were the highest to start a year since 2009, Challenger says


•U.S. employers announced 108,435 layoffs for the month, up 118% from the same period a year ago and 205% from December 2025. The total marked the highest for any January since 2009.

•At the same time, companies announced just 5,306 new hires, also the lowest January since 2009, which is when Challenger, Gray & Christmas began tracking such data.

•Also, job openings fell sharply in December to 6.54 million, to their lowest since September 2020. Available jobs are down by more than 900,000 just since October.

Coupled with the market gyrations, this is not a great start.

"In a separate report Thursday, the Bureau of Labor Statistics reported that job openings fell sharply in December to 6.54 million, a slide of 386,000 on a monthly basis and down more than 900,000 from the October level. Openings are now at their lowest since September 2020."


Comments

  • It will be interesting to see how we as humans evolve through these changes inside and outside the workplace.

    Optimistically:
    Whether AI brings prosperity along with disruption—or only disruption—depends on choices made now by employers and educators preparing people for change and by workers adapting to new tools and new ways of working. Technological innovation is advancing rapidly; the question is whether our institutions can keep pace. If we manage the transition well, AI will not diminish human work; it will elevate it.
    how-workers-will-adapt-in-the-ai-era
  • Would be interesting to know which sectors the layoffs have occurred in. I suspect Tech has seen a disproportionate share of the bloodbath, but that's mostly based on my sense of headline news.
  • Glad that you asked, I was about to search for that!

    https://www.cnn.com/2026/02/05/economy/us-jobs-data-layoffs-hiring#:~:text=Layoff announcements hit an unsavory milestone in January&text=The Spheres at Amazon headquarters in Seattle on January 29, 2026.&text=About 40% of January's layoff,and 30,000 job cuts, respectively.

    "About 40% of January’s layoff announcements can be tied to two firms: Amazon and UPS, which outlined plans for 16,000 and 30,000 job cuts, respectively. UPS’s plans to cut up to 30,000 jobs were tied to its ongoing wind-down of its delivery arrangement with Amazon, executives for the shipping giant said last week during an earnings call.

    The January layoff announcements tracked by Challenger were limited to five industries – transportation, technology, health care and health products, chemical and financial, according to the report."
  • Thank you. This is only February and more layoff maybe fourth coming as hiring slowed considerably. More drumbeat are asking how and where the profit will be generated from AI?

    Elon Musk mentioned that people will not need to work because of AI ? Think he is smoke some good sh** as usual.
  • Or the gubamint is going to have to provide basic income to all the folks who cannot get jobs, to prevent an uprising.

  • Anyone know whatever happened to all those high paying manufacturing jobs that were supposed to be coming to America? While they are waiting for that magic to appear I hear there might be openings in the roofing, construction and farm labor fields. What do the republicans have against a functioning economy?
  • edited February 5
    "Anyone know whatever happened to all those high paying manufacturing jobs that were supposed
    to be coming to America?"


    A few days ago the WSJ reported that fewer Americans now worked in manufacturing than any time
    since the pandemic ended.

    https://www.msn.com/en-us/money/economy/us-manufacturing-is-in-retreat-and-trump-s-tariffs-aren-t-helping/ar-AA1VxbCY
  • If forced to build an expensive new manufacturing facility, facing higher input costs from tariffs, seeing low wage workers being deported, and falling population growth diminishing the remaining (untrained) workforce, I assume a company would be planning on heavy automation.

    Nike recently laid off a big chunk of their U.S. workforce to automate. Damned if you do (expensive to make things here), damned if you don't (high tariffs on imports).

    If these disenfranchised potential workers really want to earn, they should look into a job supporting automation!
  • Automation requires skills and education that is far from the days of automobile assembling lines. Many uneducated people will lag badly as manufacturing jobs require skills, real skills. TSMC is having hard time finding enough skilled engineers to launch their AZ chip plant on schedule. Foxxcon had the same problem in Milwaukee, WI, they abandoned their plan.

    Many high school kids focus on sport instead of STEM. Also there is a big gap in trade school to produce enough skilled workers. For those who think AI will produce stuff without knowledge and skills, they are fooling themselves.
  • @Sven

    Exactly my implied point. Those left behind are not being helped by any of this. If anything, current policy has accelerated the problem for them. Even if we expand training and education, unlike The Field of Dreams, they will not come!
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