Job Layoffs Hit New High in Early 2024 While Job Market Remains Overall Healthy
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Layoffs doubled in January 2024 to over 82,000, the highest level for January since 2009. Major companies in tech, finance, and media cut jobs.
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The job market overall remains healthy - unemployment is still near 50-year lows and wages are rising. But hiring has cooled from the red-hot 2021-2022 recovery.
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Most layoffs are in the financial and tech sectors. Citigroup, Google, Microsoft, and Salesforce made big cuts.
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Companies are cutting jobs to trim costs amid rising rates. Some are shifting investment into AI, prompting cuts in non-AI units.
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More layoffs are likely in 2024 as companies focus on cutting costs. But the Fed hopes joblessness won't spike significantly.