Job Cuts

For Release at 7:30 a.m. ET, July 3, 2014

Job Cuts Drop to Lowest Level of 2014

31,434 June job cuts; 246,034 cuts year-to-date down 5% from 2013

 

CHICAGO, July 3, 2014 – After climbing to a 15-month high in May, planned job cuts announced by U.S.-based employers in June plunged 41 percent to 31,434, the lowest one-month total so far this year.  Through the first half of 2014, the pace of job cutting is down 5.0 percent from a year ago, according to the report released Thursday by global outplacement consultancy Challenger, Gray & Christmas, Inc.

June job cuts were 20 percent lower than the same month a year ago, when employers announced 39,372 job cuts.  Job cuts during the month dropped sharply from May, when planned layoffs reached 52,961, which was the largest monthly total since February 2013, when 55,356 job cuts were announced.

In the quarter ending June 30, a total of 124,693 were announced, which is 3.0 percent more than the 121,341 job cuts announced in the first quarter of 2014.  Second-quarter job cuts were up 9.5 percent from the same period last year, when just 113,891 planned layoffs were announced. 

At the midpoint of 2014, planned job cuts total 246,034, which is 5.0 percent fewer than the 258,932 job cuts announced in the first six months of 2013.  The year-to-date figure is the second-lowest first-half total since the end of the recession behind 2011, when 245,806 job cuts were announced from January through June.

New Jersey-based employers were hit particularly hard by June layoff activity, accounting for three of the top four job-cut announcements during the month.  The closures of two Atlantic City casinos and a Westhampton-based transportation firm resulted in nearly 7,000 job cuts.

The casino closures were the primary reason the entertainment and leisure industry was the top job-cutting sector of the month.  In all, these firms announced layoffs totaling 6,005 in June.  For the year, employers in the sector have announced 13,700 job cuts, which is up 50 percent from 9,145 at the same point in 2013.

Top 5 Job Cutting Industries in June

Entertainment/Leisure

6,005

Transportation

5,297

Health Care/Products

4,075

Education

2,852

Industrial Goods

1,718

 

The heaviest downsizing through the first half of the year occurred in the computer industry, where employers announced plans to cut 30,002 workers from their payrolls.  Retailers have also seen heavy job cuts, having announced 26,863 planned layoffs through June.

“The holidays were not kind to several retailers who answered with heavy layoffs in the first quarter.  We saw large-scale job-cut announcements from Macy’s, Best Buy, J.C. Penney, and Sears to start out the year.  Meanwhile, one of the largest job cuts of the year so far resulted from the bankruptcy of Coldwater Creek, which resulted in 5,500 layoffs,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

“The same arctic weather that sapped momentum out of the entire economy in the first quarter undoubtedly contributed to retailers’ misfortune during the same stretch.  The situation appears to have improved along with the weather, as layoffs by retailers declined by more than half in the second quarter,” said Challenger. 

“It is also important to understand that not all of these job cuts are related to the economy.  Retailers, in particular, are vulnerable to constantly changing trends in fashion, technology, and consumer demand.  Retail, in general, continues to grow.  But it is an increasingly competitive space where we could see more failures than successes.

“The same could be said for the tech sector.  Obviously, this is an area with a huge potential for growth.  After all, we are more and more reliant on computers, software and other technology every day.  However, change in this industry occurs rapidly, and some of the larger, less nimble companies are sometimes forced to alter their course and that can be painful.  This was exemplified by large layoff announcements in the first half of this year by Hewlett-Packard and Intel,” said Challenger.

# # #


 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

TOP FIVE INDUSTRIES

Year To Date

 

2014

2013

Computer

30,002

19,930

Retail

26,863

32,900

Health Care/Products

22,200

22,951

Financial

21,478

36,762

Transportation

20,039

10,891

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

 

37,701

August

 

50,462

September

 

40,289

October

 

45,730

November

 

45,314

December

 

30,623

TOTAL

246,034

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

 

41,561

New York

 

27,737

Illinois

 

17,478

New Jersey

 

15,526

Florida

 

14,001

 

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

 

 

Copyright 2014 Challenger, Gray & Christmas, Inc.

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

JOB CUTS BY INDUSTRY

 

13-Jun

14-May

14-Jun

Jan-Jun 2013

Jan-Jun 2014

Aerospace/Defense

1,514

986

959

17,861

9,081

Apparel

373

 

140

1,680

1,482

Automotive

560

959

862

8,373

5,667

Chemical

600

954

191

1,504

1,514

Commodities

445

548

 

612

1,274

Computer

10,133

18,799

139

19,930

30,002

Construction

495

66

185

1,168

623

Consumer Products

907

1,655

901

6,797

7,306

Education

5,629

2,311

2,852

12,656

11,021

Electronics

751

641

1,362

3,739

5,356

Energy

2,361

829

683

7,601

3,908

Entertainment/Leisure

837

245

6,005

9,145

13,700

Financial

1,671

1,151

897

36,762

21,478

Food

1,109

913

644

8,523

10,378

Government

1,458

3,248

1,118

7,727

9,596

Health Care/Products

2,084

3,919

4,075

22,951

22,200

Industrial Goods

1,620

2,161

1,718

15,546

12,849

Insurance

3,209

375

98

4,498

1,259

Legal

273

116

150

391

557

Media

321

838

364

6,709

3,302

Non-Profit

308

531

343

1,751

1,709

Pharmaceutical

320

505

857

6,709

4,215

Real Estate

 

66

17

378

198

Retail

217

472

1,167

32,900

26,863

Services

1,325

2,728

100

5,793

5,861

Telecommunications

440

957

260

5,214

13,044

Transportation

389

6,884

5,297

10,891

20,039

Utility

23

104

50

1,123

1,552

TOTAL

39,372

52,961

31,434

258,932

246,034

 

 

 

 

Copyright 2014 Challenger, Gray & Christmas, Inc.


 

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

JOB CUTS BY REGION, STATE

 

EAST

JUNE

Y-T-D

New York

1,907

27,737

New Jersey

7,624

15,526

Pennsylvania

1,358

11,900

Massachusetts

691

4,191

Maryland

216

3,131

Dist. of Columbia

 

2,777

Connecticut

154

2,304

Maine

 

1,122

Vermont

41

565

New Hampshire

120

400

Rhode Island

 

342

Delaware

 

248

TOTAL

12,111

70,243

MIDWEST

JUNE

Y-T-D

Illinois

5,759

17,478

Ohio

450

8,069

Minnesota

380

7,258

Michigan

747

6,803

Missouri

1,532

4,917

Wisconsin

344

3,970

Indiana

 

3,328

Kansas

235

2,680

Iowa

 

1,448

Nebraska

520

646

TOTAL

9,967

56,597

 

 

 

Copyright 2014 Challenger, Gray & Christmas, Inc.

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

JOB CUTS BY REGION, STATE

 

WEST

JUNE

Y-T-D

California

1,571

41,561

Texas

1,159

10,436

Washington

357

7,851

Idaho

89

3,832

Oklahoma

 

1,446

Oregon

94

1,420

Colorado

3

976

Nevada

330

914

New Mexico

309

467

Hawaii

 

420

Alaska

50

410

Arizona

23

320

Utah

 

182

South Dakota

 

120

Montana

2

103

Wyoming

 

33

North Dakota

 

15

TOTAL

3,987

70,506

SOUTH

JUNE

Y-T-D

Florida

1,234

14,001

N. Carolina

1,494

7,559

Virginia

454

4,932

Alabama

353

4,007

Tennessee

451

3,960

Kentucky

125

3,624

Arkansas

178

3,288

Mississippi

124

2,373

Louisiana

400

2,264

Georgia

261

1,739

S. Carolina

220

595

West Virginia

75

346

TOTAL

5,369

48,688

 

 

Copyright 2014 Challenger, Gray & Christmas, Inc.

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

JOB CUTS BY REASON

 

JUNE

YTD

Restructuring

7,380

93,317

Closing

10,996

69,109

Cost-Cutting

5,703

33,098

Demand Downturn

1,080

9,458

Voluntary Severance

20

6,417

Economic Conditions

1,047

7,396

Bankruptcy

55

6,010

Merger/Acquisition

3,803

8,862

Loss of Contract

200

3,002

Outsourcing

840

3,524

Sequestration

 

2,200

Health Reform

 

1,036

Relocation

254

977

Legal Trouble

 

636

Competition

 

461

Labor Dispute

 

290

Natural Disaster

 

95

Technological Update

 

79

Fired

15

23

Foreclosure

 

3

Government Regulation

41

41

TOTAL

31,393

246,034

 

 

 

 

 

 

 

 

Copyright 2014 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 

 

 

  246,034

AVG

204,656

157,138

182,785

212,303

 

 

*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 2014 Challenger, Gray & Christmas, Inc.


 

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

ANNOUNCED HIRING PLANS

Monthly Totals

 

 

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

 

9,728

10,350

10,706

August

 

7,662

12,079

15,201

September

 

445,617

425,683

76,551

October

 

87,874

75,065

159,177

November

 

14,177

28,526

63,527

December

 

11,362

16,266

14,074

TOTAL

61,042

765,206

630,477

459,971

 

 

 

 

 

Copyright 2014 Challenger, Gray & Christmas, Inc.


 

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

ANNOUNCED HIRING PLANS

 

INDUSTRY

JUNE

YEAR-TO-DATE

Aerospace/Defense

 

2,520

Apparel

 

0

Automotive

4,600

9,914

Chemical

 

60

Commodities

 

0

Computer

50

7,700

Construction

 

400

Consumer Products

 

547

Education

25

2,308

Electronics

550

1,108

Energy

 

1,000

Entertainment/Leisure

1,200

1,740

Financial

 

1,029

Food

130

1,232

Government

 

434

Health Care/Products

 

2,867

Industrial Goods

185

5,989

Insurance

8000

9,070

Legal

 

60

Media

 

60

Non-Profit

 

70

Pharmaceutical

440

1,346

Real Estate

 

0

Retail

 

3,623

Services

 

1,284

Telecommunications

 

5,254

Transportation

350

1,427

Utility

 

0

TOTAL

15,530

61,042

 

 

Copyright 2014 Challenger, Gray & Christmas, Inc.