Wednesday, November 04, 2009
Tweet[IWS] Challenger: JOB CUTS FALL 16% to 55,679 in OCTOBER [4 November 2009]
IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
November 4, 2009
CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT
CONTACTS
James K. Pedderson, Director of Public Relations
Office: 312-422-5078
Mobile: 847-567-1463
jamespedderson@challengergray.com
Colleen Madden, Media Relations Manager
Office: 312-422-5074
colleenmadden@challengergray.com
Press Release 4 November 2009
Job Cuts Continue To Fall In October
OCTOBER JOB CUTS FALL 16% TO 55,679
CHICAGO, November 4, 2009 The number of planned job cuts
announced by U.S. employers declined for the third consecutive month in
October, falling 16 percent to 55,679 from 66,404 in September, according
to the latest job-cut report released Wednesday by global outplacement
consultancy Challenger, Gray & Christmas, Inc.
The October job-cut total was the lowest since March 2008, when
employers announced plans to shed 53,579 workers. It was 51 percent lower
than the 112,884 job-cut announcements made in October 2008.
The pace of downsizing has slowed steadily throughout the year after
reaching a seven-year peak of 241,749 in January. The month-over-month jobcut
total has declined in eight of last 10 months. Four consecutive monthly jobcut
totals, including October, were lower than the year-ago figure.
Despite the downward trend, the 1,192,587 layoffs announced this year
are 36 percent higher than the 875,974 cuts recorded through October 2008.
Only 31,406 more cuts must be announced to exceed the 1,223,993 planned
layoffs recorded in 2008.
One area that could see more downsizing before year's end is the auto
sector, which announced plans to shed another 13,420 workers last month. This
brings its 10-month job-cut tally to 164,440, the highest among all industries.
The second-ranked government and non-profit sector has announced plans
to reduce payrolls by 160,434 workers this year. While job cuts in this sector
have declined in each of the last two months, it is an area that is primed for more
cuts, as states and local governments continue to buckle under the weight of
oppressive budget deficits.
"While there are still some trouble spots, the continued decline in job
cutting activity across most industries is a positive sign that the economy is
slowly improving. Taken with the recently reported rise in GDP, increase in
manufacturing activity and unexpected gain in home sales, it appears that the
light at the end of the tunnel is finally visible. However, it is important to
realize that, as deep and widespread as this recession was, it is going to be a
long and sometimes painful recovery," said John A. Challenger, chief
executive officer of Challenger, Gray & Christmas.
"It will be particularly painful for the 14.5 million unemployed
Americans, who will find that job gains will not come nearly as quickly as
the job losses occurred. Companies will, at first, be very cautious not to
over-hire, in case this recovery is not sustainable. Even when the pace of
job creation accelerates, it simply will take a lot of time to re-absorb all of
these displaced workers," Challenger added.
# # #
TOP FIVE INDUSTRIES
Year To Date
2009 2008
Automotive 164,440 110,610
Government/Non-Profit 160,434 71,479
Industrial Goods 105,027 43,997
Retail 97,065 5 3,765
Transportation 68,768 66,876
MONTH BY MONTH TOTALS
2009 2008
January 241,749 74,986
February 186,350 72,091
March 150,411 53,579
April 132,590 90,015
May 111,182 103,522
June 74,393 81,755
July 97,373 103,312
August 76,456 88,736
September 66,404 95,094
October 55,679 112,884
November 181,671
December 166,348
TOTAL 1,192,587 1,223,993
Some reductions are identified by employers as workers who will take early retirement offers or other
special considerations to leave the company.
LAYOFF LOCATION
Year to Date
New York 148,953
California 131,812
Michigan 100,180
Illinois 75,894
Texas 66,168
Listings are identified by the location of the layoff or corporate headquarters
as stated in announcement.
JOB CUTS BY INDUSTRY
October Year-to-Date
Automotive 13,420 164,440
Electronics 10,882 60,269
Computer 7,089 60,803
Government/Non-Profit 4,832 160,434
Transportation 4,000 68,768
Energy 3,008 31,471
Entertainment/Leisure 1,971 14,320
Retail 1,643 97,065
Health Care/Products 1,465 36,420
Construction 1,427 22,011
Industrial Goods 998 105,027
Services 941 20,625
Aerospace/Defense 859 50,862
Financial 655 49,584
Consumer Products 497 27,642
Utility 465 3,141
Insurance 400 8,547
Food 275 18,584
Apparel 257 6,000
Media 227 21,829
Telecommunications 226 40,041
Pharmaceutical 113 58,696
Chemical 29 54,248
Real Estate 1,394
Commodities 10,366
TOTAL 55,679 1,192,587
JOB CUTS BY REGION, STATE
OCTOBER
East 5,221
Connecticut 2,700
Massachusetts 1,126
New York 695
District of Columbia 400
New Hampshire 300
Midwest 10,453
Illinois 3,863
Ohio 2,610
Missouri 1,730
Iowa 1,300
Minnesota 260
Kansas 250
Indiana 213
Wisconsin 95
Michigan 82
Oklahoma 50
West /Southwest 17,187
Texas 6,390
California 5,718
Washington 1,892
Arizona 1,234
Utah 870
Colorado 825
Oregon 178
New Mexico 80
South 22,818
Tennessee 13,000
Florida 7,567
Georgia 1,210
N. Carolina 981
Virginia 35
Louisiana 25
JOB CUT REASONS
OCTOBER
October Year-To-Date
Restructuring 17,146 100,515
Closing 15,909 102,625
Cost-Cutting 10,242 184,273
Economic Conditions 5,677 429,847
Demand Downturn 3,632 177,082
Merger/Acquisition 3,000 62,863
Relocation 73 2,296
Competition 5,580
Labor Dispute 1,500
Order Cancellation/Reduction 4,712
No Clear Reason 367
Bankruptcy 50,417
Fluctuating Sales 8,198
Government Regulation 350
Legal Trouble 1,095
Outsourcing 3,100
Reorganization/Consolidation 2,669
Technological Update 331
Voluntary Severance 54,767
TOTAL 55,679 1,192,587
Copyright 2009 Challenger, Gray & Christmas, Inc.
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
November 4, 2009
CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT
CONTACTS
James K. Pedderson, Director of Public Relations
Office: 312-422-5078
Mobile: 847-567-1463
jamespedderson@challengergray.com
Colleen Madden, Media Relations Manager
Office: 312-422-5074
colleenmadden@challengergray.com
Press Release 4 November 2009
Job Cuts Continue To Fall In October
OCTOBER JOB CUTS FALL 16% TO 55,679
CHICAGO, November 4, 2009 The number of planned job cuts
announced by U.S. employers declined for the third consecutive month in
October, falling 16 percent to 55,679 from 66,404 in September, according
to the latest job-cut report released Wednesday by global outplacement
consultancy Challenger, Gray & Christmas, Inc.
The October job-cut total was the lowest since March 2008, when
employers announced plans to shed 53,579 workers. It was 51 percent lower
than the 112,884 job-cut announcements made in October 2008.
The pace of downsizing has slowed steadily throughout the year after
reaching a seven-year peak of 241,749 in January. The month-over-month jobcut
total has declined in eight of last 10 months. Four consecutive monthly jobcut
totals, including October, were lower than the year-ago figure.
Despite the downward trend, the 1,192,587 layoffs announced this year
are 36 percent higher than the 875,974 cuts recorded through October 2008.
Only 31,406 more cuts must be announced to exceed the 1,223,993 planned
layoffs recorded in 2008.
One area that could see more downsizing before year's end is the auto
sector, which announced plans to shed another 13,420 workers last month. This
brings its 10-month job-cut tally to 164,440, the highest among all industries.
The second-ranked government and non-profit sector has announced plans
to reduce payrolls by 160,434 workers this year. While job cuts in this sector
have declined in each of the last two months, it is an area that is primed for more
cuts, as states and local governments continue to buckle under the weight of
oppressive budget deficits.
"While there are still some trouble spots, the continued decline in job
cutting activity across most industries is a positive sign that the economy is
slowly improving. Taken with the recently reported rise in GDP, increase in
manufacturing activity and unexpected gain in home sales, it appears that the
light at the end of the tunnel is finally visible. However, it is important to
realize that, as deep and widespread as this recession was, it is going to be a
long and sometimes painful recovery," said John A. Challenger, chief
executive officer of Challenger, Gray & Christmas.
"It will be particularly painful for the 14.5 million unemployed
Americans, who will find that job gains will not come nearly as quickly as
the job losses occurred. Companies will, at first, be very cautious not to
over-hire, in case this recovery is not sustainable. Even when the pace of
job creation accelerates, it simply will take a lot of time to re-absorb all of
these displaced workers," Challenger added.
# # #
TOP FIVE INDUSTRIES
Year To Date
Automotive
Government/Non-Profit
Industrial Goods
Retail
Transportation
MONTH BY MONTH TOTALS
January
February
March
April
May
June
July
August
September
October
November
December
TOTAL
Some reductions are identified by employers as workers who will take early retirement offers or other
special considerations to leave the company.
LAYOFF LOCATION
Year to Date
New York
California
Michigan
Illinois
Texas
Listings are identified by the location of the layoff or corporate headquarters
as stated in announcement.
JOB CUTS BY INDUSTRY
October Year-to-Date
Automotive 13,420 164,440
Electronics 10,882 60,269
Computer 7,089 60,803
Government/Non-Profit 4,832 160,434
Transportation 4,000 68,768
Energy 3,008 31,471
Entertainment/Leisure 1,971 14,320
Retail 1,643 97,065
Health Care/Products 1,465 36,420
Construction 1,427 22,011
Industrial Goods 998 105,027
Services 941 20,625
Aerospace/Defense 859 50,862
Financial 655 49,584
Consumer Products 497 27,642
Utility 465 3,141
Insurance 400 8,547
Food 275 18,584
Apparel 257 6,000
Media 227 21,829
Telecommunications 226 40,041
Pharmaceutical 113 58,696
Chemical 29 54,248
Real Estate 1,394
Commodities 10,366
TOTAL 55,679 1,192,587
JOB CUTS BY REGION, STATE
East 5,221
Connecticut 2,700
Massachusetts 1,126
New York 695
District of Columbia 400
New Hampshire 300
Midwest 10,453
Illinois 3,863
Ohio 2,610
Missouri 1,730
Iowa 1,300
Minnesota 260
Kansas 250
Indiana 213
Wisconsin 95
Michigan 82
Oklahoma 50
West /Southwest 17,187
Texas 6,390
California 5,718
Washington 1,892
Arizona 1,234
Utah 870
Colorado 825
Oregon 178
New Mexico 80
South 22,818
Tennessee 13,000
Florida 7,567
Georgia 1,210
N. Carolina 981
Virginia 35
Louisiana 25
JOB CUT REASONS
OCTOBER
October Year-To-Date
Restructuring 17,146 100,515
Closing 15,909 102,625
Cost-Cutting 10,242 184,273
Economic Conditions 5,677 429,847
Demand Downturn 3,632 177,082
Merger/Acquisition 3,000 62,863
Relocation 73 2,296
Competition 5,580
Labor Dispute 1,500
Order Cancellation/Reduction 4,712
No Clear Reason 367
Bankruptcy 50,417
Fluctuating Sales 8,198
Government Regulation 350
Legal Trouble 1,095
Outsourcing 3,100
Reorganization/Consolidation 2,669
Technological Update 331
Voluntary Severance 54,767
TOTAL 55,679 1,192,587
Copyright 2009 Challenger, Gray & Christmas, Inc.
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
****************************************
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
# posted by SBasefsky : 11:00 AM
