Planned job cuts in December declined to 35,553, marking a 50% drop from November and an 8% year-over-year decrease, signaling a sustained slowdown in workforce reductions across U.S. employers.
- Planned job cuts totaled 35,553 in December
- 50% decrease from November's 71,106 planned layoffs
- 8% year-over-year reduction compared to December 2024
- Lowest monthly layoff pace since mid-2024
- Significant drop observed in tech and telecom sectors
- Stabilizing labor market signals growing corporate confidence
The rate of planned job cuts in December reached its lowest level since mid-2024, according to data compiled by Challenger, Gray & Christmas. The total of 35,553 planned layoffs represents a significant contraction from the previous month’s figure, which stood at approximately 71,106. This marks a 50% decrease in monthly layoff activity compared to November. The decline also reflects an 8% reduction when compared to the same period in the prior year, indicating that corporate cost-cutting measures are cooling after several months of aggressive workforce reductions. While still elevated relative to pre-pandemic norms, the trend suggests improved labor market stability and growing confidence among businesses in economic conditions. This downward trajectory follows a series of high-profile layoffs in early 2024, particularly within tech and financial services sectors. The recent data point may reflect shifting priorities toward retention and strategic hiring in key areas, even as some companies continue to streamline operations. Industries such as information technology and telecommunications reported notable declines in announced cutbacks, while healthcare and education saw modest increases in hiring intentions. Employers’ cautious approach underscores broader macroeconomic trends: inflation has moderated, interest rates remain elevated, and consumer spending remains resilient. These factors have prompted a reevaluation of workforce needs, with many firms opting to stabilize rather than scale back further.