2024 Had Most Job Cuts In 15 Years—With One Exception
Topline
Job cuts from U.S.-based companies were the highest they’ve been in 15 years in 2024—with the exception of 2020 job losses spurred by the COVID pandemic—as cuts jumped 5.5% over 2023, with experts blaming rapid technological advancement and shifting economic conditions.
Intel in August 2024 sent shockwaves through the market by announced a 15% reduction in its global … [+]
Key Facts
Companies cut 761,358 jobs in 2024, according to a new report from career services firm Challenger, Gray & Christmas, with the technology, healthcare and automotive sectors leading the way, though cuts were far more widespread across industries in 2024 compared with 2023.
Nearly 39,000 of those cuts happened in December, up 11% from the same month in 2023, and fourth-quarter cuts totaled 152,116, up 30% from the same quarter the year before.
The total number of jobs cut in 2024 marked the most of any year since 2010 with the lone exception of 2020, when the first year of the COVID pandemic caused the loss of more than 2.3 million jobs. Since 1989, only 10 years had more job cuts than 2024 (2001 to 2009 and 2020).
The year also marked the lowest number of planned hirings since 2015, which Andrew Challenger, senior vice president of Challenger, Gray & Christmas, said reflects ongoing uncertainty in economic conditions and cautious approaches by employers to expansion.
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Crucial Quote
“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,” Challenger said in the report.
Tangent
The technology sector cut more jobs than any other this year with 133,988 positions eliminated, followed by health care (51,588), automotive (48,219), services (44,433) and consumer products (42,931). Despite the higher year-end total across all sectors, the top five all cut fewer positions in 2024 than 2023. Of the top industries, only the government cut jobs at a faster pace in 2024 than the year before, primarily due to cuts in the armed services. More than 38,000 government jobs were cut last year, up 1,520% over the year before.
Key Background
The unemployment rate for December is expected to stay steady at 4.2% when the government releases its monthly jobs report Friday, matching November’s number but up slightly from 4.1% in October and September. Economists predict that the U.S. economy added 153,000 jobs in December, much lower than the 227,000 jobs added in November. The ADP National Employment Report released Wednesday shows that private sector employment increased by 122,000 jobs in December, and annual pay was up 4.6% year-over-year, a slowdown in both hiring and pay gains.
Further Reading
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