January healthcare job cuts down year over year

Healthcare/products companies and manufacturers, including hospitals, announced an increase in job cuts in January compared to December, according to one new analysis. However, the total in January is below the total for the same month year over year.

The findings come from a Feb. 1 report from Challenger, Gray & Christmas, an executive coaching firm that examines job cuts by U.S.-based employers.

Healthcare/products companies and manufacturers, including hospitals, announced 4,182 job cuts in January, a 421% increase from the 802 cuts announced the previous month. There were 6,733 job cuts announced in January 2023.

Across all 30 industries and sectors measured, companies announced plans for 82,307 job cuts in January, up 136% from the 34,817 cuts announced in December. This is down 20% from the 102,943 cuts announced in January 2023.

"Waves of layoff announcements hit U.S.-based companies in January after a quiet fourth quarter," Andrew Challenger, senior vice president of Challenger, Gray & Christmas, said in the report. "As we step into 2024, the landscape is shaped by stabilizing prices and the anticipation of falling interest rates. It is also an election year, and companies begin to plan for potential policy changes that may impact their industries. However, these layoffs are also driven by broader economic trends and a strategic shift towards increased automation and AI adoption in various sectors, though in most cases, companies point to cost-cutting as the main driver for layoffs." 

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