CBS News: Layoffs Jumped in January as Companies Pull Back on Hiring

Layoffs across the U.S. surged in January to their highest level for the month since 2009, when the economy was reeling from the housing crash, new data shows.

Employers announced 108,435 job cuts in the first month of the year, up 118% from the year-ago figures, according to outplacement firm Challenger, Gray and Christmas. Layoffs often rise in January as companies adjust their payrolls to meet financial targets for the forthcoming year.

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Some experts have questioned the extent to which AI is playing a role in layoffs, with economists telling CBS News that companies could be using AI as a pretext for job cuts.

“I don’t think these companies are doing layoffs because they know AI can replace workers, but I think they’re investing in it,” Andrew Stettner, senior director for economic security at the nonprofit National Employment Law Project, told CBS News.

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To be sure, the spike in layoffs isn’t a sign of a broader economic malaise, Stettner emphasized. For example, the construction sector is booming as demand for AI services and the data centers required to power them increases. Still, he called the pockets of layoffs “concerning.”

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Read the full story at cbsnews.com.