Retail job losses in the US climbed 20% year-over-year in January, with 6,419 cuts recorded, nearly double December’s total, according to a report from Challenger, Gray & Christmas.
Across all industries, US based employers announced 49,795 job cuts in January, marking a 28% rise from the previous month but a 40% decline compared to the same time last year.
Despite this increase, January still saw the lowest number of job cuts for the month since 2022, the firm reported.
Employers also announced plans to hire 6,089 workers in January, a 24% drop from December’s hiring figures. However, this still represented a 13% increase year over year.
Closures were responsible for 32% of January’s layoffs across industries, while corporate restructuring accounted for another 25%.
Other factors contributing to workforce reductions included economic conditions, cost-cutting strategies, bankruptcies, and mergers. Natural disasters, particularly the aftermath of California’s wildfires, also played a role in some job losses.
“January was relatively quiet in terms of job cut announcements. However, we’ve already seen major announcements in the early days of February, so it seems this quiet is unlikely to last,” said Andrew Challenger, senior vice president at Challenger, Gray & Christmas.
Despite a strong holiday season, retailers also faced declining in-store traffic on key shopping days like Black Friday.
“The retail job has fundamentally changed, and with automation and online shopping, these positions require different skills than ten years ago,” Challenger added.
Although retail job cuts surged in December, the sector still saw growth in January.
The US Bureau of Labor Statistics reported a 34,000-job increase in retail trade employment, with general merchandise and home furnishings retailers leading the gains. However, electronics and appliance stores lost 7,000 jobs.
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