Thursday, January 08, 2015

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[IWS] Challenger: 2014 JOB CUTS LOWEST SINCE 1997 [8 January 2015]

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

________________________________________________________________________

This service is supported, in part, by donations. Please consider making a donation by following the instructions at http://www.ilr.cornell.edu/iws/news-bureau/support.html

 

Challenger, Gray & Christmas, Inc.

 

Press Release 8 January 2015

Job Cuts Dip in December

Employers shed 32,640 during month; 2014 total lowest since 1997
http://www.challengergray.com/press/press-releases/2014-december-job-cut-report-32640-cuts-top-lowest-job-cutting-year-1997

or

http://www.challengergray.com/download/file/fid/199

 

 

CHICAGO, January 8, 2015 – Job cuts declined for a second consecutive month in December, as U.S.-based employers announced plans to reduce payrolls by 32,640.  It was the third lowest monthly total of 2014; a year that saw the fewest planned job cuts since 1997, according to the report Thursday from global outplacement consultancy Challenger, Gray & Christmas, Inc.

December job cuts were down 9.2 percent from 35,940 planned layoffs in November.  Despite the decline, last month’s total was still 7 percent higher than the same month a year ago, when employers announced 30,623 job cuts, which happened to be the lowest monthly tally in 2013.

Overall, employers announced job cuts totaling 483,171 in 2014.  That is 5.0 percent fewer than the 509,051 cuts tracked in 2013.  It was the lowest annual total since 434,350 job cuts were recorded in 1997.

“Layoffs aren’t simply at pre-recession levels; they are at pre-2001-recession levels.  This bodes well for job seekers, who will not only find more employment opportunities in 2015, but will enjoy increased job security once they are in those new positions,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

“Of course, no job is ever 100 percent secure.  After all, we did record an average of 40,000 planned job cuts per month in a period of economic and employment growth.  Even in the best economy, companies fail.  Meanwhile, successful companies still may shift product focus, cut costs or implement other strategies that result in workforce adjustments,” Challenger added.

In 2014, the top three job-cutting industries of the year are all examples of sectors that are, for all intents and purposes, enjoying the fruits of expansion.  However, various companies for various reasons made significant cuts to their payrolls. 

Despite the overall strength of the tech sector, employers in the computer industry saw the heaviest downsizing of the year, announcing a total of 59,528 planned layoffs.  That is 69 percent more than a year ago, when these firms cut 35,136 jobs.  A large portion of the pink slips came from tech giants Hewlett Packard and Microsoft, where both are attempting to become more nimble in a very competitive market.

Job cuts in the retail sector declined by 11 percent in 2014, but the industry still ranked second with 43,783 layoffs announced during the year, including 2,195 in December.  The third-ranked health care sector also saw fewer layoffs last year, going from 52,637 job cuts in 2013 to a 2014 total of 38,359.

Overall, 16 of the 28 industries tracked by Challenger saw fewer layoffs in 2014, with an average decline of 34 percent.  The insurance industry experienced the biggest decline, with job cuts falling 65 percent from 6,519 in 2013 to 2,259 last year.

The largest increases in job cuts occurred among employers in the entertainment industry and electronics, where job cuts more than doubled in both.  In the entertainment and leisure industry, job cuts jumped 125 percent from 14,342 in 2013 to 32,235.  Job cuts in the electronics industry went from 8,830 to 19,408; a 120 percent surge.

“While 43 percent of industries saw job cuts increase in 2014, it was pretty clear that these gains were not indicative of impending trouble down the road.  We expect downsizing to remain subdued in 2015, as a growing number of employers turn their attention toward job creation,” said Challenger.

“The biggest threat to the job market’s momentum could be falling oil prices, which may lead to increased job cuts in one of the high-flying sectors of 2014: energy.  Lower prices mean less money for research, exploration and new drilling operations,” said Challenger.

“In fact, just this week, U.S. Steel announced plans to shutter a plant that manufactures the specialized pipes used in oil and gas exploration and extraction.  The resulting 768 layoffs will be counted in January layoff figures and may be precursor of what is to come if prices remain as low as they are now or continue to fall.

“However, the slowdown in oil-related industries may be more than offset by the extra dollars in consumers’ pockets as they shell out less money for gas and heating oil.  The money not spent at the pump can be used for consumer goods, travel, home improvement, and dining out.  Furthermore, continued low gas prices could spur an increase in SUV sales.  All of these are going to have an immediate and positive impact on the job market and hiring,” said Challenger.

Continued improvements in the housing market, the Affordable Care Act, and new technology advancements are expected to drive the economy and employment gains in 2015. 

“More homeowners are coming out from being underwater and are eager to put their homes on the market.  One just needs to drive around the nation’s cities and suburbs to see that home building activity has picked up significantly in the last six months.  There are also a lot more ‘for sale’ signs up in front yards.  This activity alone will boost the economy.

“There also some promising long-term trends that will help drive job creation now and in the future.  One of those trends is the consumerization of the drone industry.  It may sound silly, but the expanded use of unmanned aircraft beyond military applications is expected to add 100,000 jobs to the economy over the next decade, according to one recent report,” said Challenger.

 

# # #


 

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

TOP FIVE INDUSTRIES

Year To Date

 

2014

2013

Computer

59,528

35,136

Retail

43,783

49,299

Health Care/Products

38,359

52,637

Entertainment/Leisure

32,235

14,342

Industrial Goods

28,273

51,864

MONTH BY MONTH TOTALS

 

2014

2013

January

45,107

40,430

February

41,835

55,356

March

34,399

49,255

April

40,298

38,121

May

52,961

36,398

June

31,434

39,372

July

46,887

37,701

August

40,010

50,462

September

30,477

40,289

October

51,183

45,730

November

35,940

45,314

December

32,640

30,623

TOTAL

483,171

509,051

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

California

 

83,433

New York

 

37,312

Washington

 

34,878

Illinois

 

32,048

New Jersey

 

31,002

 

Listings are identified by the location of the layoff or corporate headquarters as stated in announcement.

 

 

Copyright 2015 Challenger, Gray & Christmas, Inc.

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

JOB CUTS BY INDUSTRY

 

13-Dec

14-Nov

14-Dec

Jan-Dec 2013

Jan-Dec 2014

Aerospace/Defense

1,091

1,041

747

34,941

22,799

Apparel

 

 

 

3,091

1,575

Automotive

1,259

858

3,189

13,497

11,032

Chemical

1,015

1,800

1,113

3,530

4,427

Commodities

 

 

 

3,372

1,401

Computer

5,578

2,696

1,321

35,136

59,528

Construction

125

27

103

1,772

954

Consumer Products

1,913

5,158

81

13,451

14,277

Education

165

809

669

18,808

16,279

Electronics

629

494

761

8,830

19,408

Energy

689

1,077

2,783

17,750

14,262

Entertainment/Leisure

1,079

2,300

1,649

14,342

32,235

Financial

1,773

657

490

60,962

27,443

Food

1,508

1,503

4,920

18,235

25,327

Government

1,263

929

384

13,027

22,513

Health Care/Products

2,145

5,124

2,897

52,637

38,359

Industrial Goods

2,470

4,127

2,389

51,864

28,273

Insurance

55

 

 

6,519

2,259

Legal

 

 

13

776

570

Media

274

119

841

13,773

9,387

Non-Profit

200

15

 

3,621

4,091

Pharmaceutical

927

823

1,438

22,161

17,636

Real Estate

 

99

 

709

599

Retail

2,269

2,640

2,195

49,299

43,783

Services

1,289

728

1,319

10,987

14,875

Telecommunications

1,540

793

990

12,952

21,821

Transportation

1,202

1,673

1,571

20,515

25,163

Utility

165

450

777

2,494

2,895

TOTAL

30,623

35,940

32,640

509,051

483,171

 

 

 

Copyright 2015 Challenger, Gray & Christmas, Inc.

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

JOB CUTS BY REGION, STATE

EAST

DECEMBER

Y-T-D

New York

3,198

37,312

New Jersey

1,281

31,002

Pennsylvania

367

19,760

Maryland

374

9,360

Massachusetts

382

8,593

Dist. of Columbia

180

5,276

Connecticut

72

2,984

Vermont

106

2,171

Maine

21

2,084

New Hampshire

41

871

Delaware

175

625

Rhode Island

 

446

TOTAL

6,197

120,484

MIDWEST

DECEMBER

Y-T-D

Illinois

911

32,048

Ohio

1,123

16,645

Michigan

3,521

13,342

Missouri

2,472

10,684

Kansas

12

10,560

Minnesota

 

9,100

Indiana

919

6,144

Wisconsin

193

5,811

Iowa

4

3,313

Nebraska

 

1,184

TOTAL

9,155

108,831

 

 

 

 

 

Copyright 2015 Challenger, Gray & Christmas, Inc.

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

JOB CUTS BY REGION, STATE

WEST

DECEMBER

Y-T-D

California

4,423

83,433

Washington

608

34,878

Texas

4,004

21,766

Colorado

460

4,582

Idaho

 

4,570

Arizona

531

2,539

Oklahoma

185

2,225

Nevada

 

2,175

Oregon

11

2,028

Hawaii

 

1,344

Alaska

200

1,004

New Mexico

42

958

Utah

180

543

Montana

5

212

South Dakota

 

120

North Dakota

 

66

Wyoming

 

33

TOTAL

10,649

162,476

SOUTH

DECEMBER

Y-T-D

Florida

1,457

21,039

Virginia

371

15,433

N. Carolina

336

13,384

Georgia

3,175

7,579

Alabama

201

6,789

Tennessee

536

6,399

Kentucky

150

5,920

Arkansas

38

4,724

Louisiana

107

3,345

Mississippi

 

3,048

West Virginia

115

2,231

S. Carolina

153

1,489

TOTAL

6,639

91,380

 

 

Copyright 2015 Challenger, Gray & Christmas, Inc.

 

 

 

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

JOB CUTS BY REASON

 

December

YTD

Restructuring

11,526

203,079

Closing

10,249

129,266

Cost-Cutting

4,636

56,762

Demand Downturn

3,132

15,691

Sequestration

 

15,581

Merger/Acquisition

2,122

14,833

Economic Conditions

 

8,566

Bankruptcy

320

8,293

Voluntary Severance

 

7,367

Loss of Contract

145

6,246

Natural Disaster

 

4,068

Relocation

506

3,519

Outsourcing

 

3,006

Cyber Attack

 

2,500

Legal Trouble

4

1,703

Health Reform

 

1,433

Competition

 

506

Fired

 

380

Labor Dispute

 

290

Technological Update

 

79

Foreclosure

 

3

TOTAL

32,640

483,171

 

 

 

 

 

Copyright 2015 Challenger, Gray & Christmas, Inc.


 

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

QUARTER BY QUARTER

 

Q1

Q2

Q3

Q4

TOTAL

1989

9,850

10,100

24,085

67,250

111,285

1990

107,052

87,686

49,104

72,205

316,047

1991

110,056

76,622

147,507

221,107

555,292

1992*

110,815

85,486

151,849

151,850

500,000

1993

170,615

84,263

194,486

165,822

615,186

1994

192,572

107,421

117,706

98,370

516,069

1995

97,716

114,583

89,718

137,865

439,882

1996

168,695

101,818

91,784

114,850

477,147

1997

134,257

51,309

95,930

152,854

434,350

1998

139,140

131,303

161,013

246,339

677,795

1999

210,521

173,027

173,181

118,403

675,132

2000

141,853

81,568

168,875

221,664

613,960

2001

406,806

370,556

594,326

585,188

1,956,876

2002

478,905

292,393

269,090

426,435

1,466,823

2003

355,795

274,737

241,548

364,346

1,236,426

2004

262,840

209,895

251,585

315,415

1,039,735

2005

287,134

251,140

245,378

288,402

1,072,054

2006

255,878

180,580

202,771

200,593

839,822

2007

195,986

197,513

194,095

180,670

768,264

2008

200,656

275,292

287,142

460,903

1,223,993

2009

562,510

318,165

240,233

 151,122

1,272,030

2010

181,183

116,494

113,595

118,701

529,973

2011

130,749

115,057

233,258

127,018

606,082

2012

143,094

139,997

102,910

137,361

523,362

2013

145,041

113,891

128,452

121,667

509,051

2014

121,341

124,693

117,374

119,763

483,171

AVG

204,656

157,138

180,269

208,602

 

 

*Estimate based on half-year total. Challenger began tracking job-cut data in 1993.  Before that, it was tabulated by an independent newsletter no longer published.

 

 

Copyright 2015 Challenger, Gray & Christmas, Inc.


 

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

ANNOUNCED HIRING PLANS

By Month

 

 

2014

2013

2012

2011

January

6,312

60,585

7,568

29,492

February

11,054

92,372

10,720

72,581

March

6,860

8,115

12,390

10,869

April

11,145

9,322

11,794

59,648

May

10,141

9,618

7,722

10,248

June

15,530

8,774

12,314

15,498

July

16,544

9,728

10,350

10,706

August

9,657

7,662

12,079

15,201

September

567,705

445,617

425,683

76,551

October

147,935

87,874

75,065

159,177

November

11,291

14,177

28,526

63,527

December

7,332

11,362

16,266

14,074

TOTAL

821,506

765,206

630,477

459,971

 

 

 

 

 

 

 

Copyright 2015 Challenger, Gray & Christmas, Inc.


 

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

ANNOUNCED HIRING PLANS

 

INDUSTRY

DECEMBER

YEAR-TO-DATE

Aerospace/Defense

1,015

4,255

Apparel

 

0

Automotive

1,480

19,933

Chemical

 

96

Commodities

100

100

Computer

922

13,194

Construction

 

785

Consumer Products

 

1,695

Education

 

2,308

Electronics

300

2,533

Energy

 

2,186

Entertainment/Leisure

 

2,070

Financial

283

7,632

Food

25

2,295

Government

 

9,473

Health Care/Products

500

6,609

Industrial Goods

1,227

12,277

Insurance

 

9,770

Legal

 

60

Media

130

717

Non-Profit

 

70

Pharmaceutical

200

1,686

Real Estate

 

0

Retail

 

559,935

Services

 

3,304

Telecommunications

625

9,229

Transportation

250

149,019

Utility

275

275

TOTAL

7,332

821,506

 

 

Copyright 2015 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.

 

 

 

 

 

 

 

 

 




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