Your Economy (No Politics)

[Bullwinkle]

Announced Job Cuts


US planned layoffs up 22 percent in November: survey
Wed Dec 7, 1:10 PM ET


WASHINGTON (AFP) - Announced job cuts by major US corporations increased 22 percent in November to 99,279, according to a monthly tally released by consulting firm Challenger, Gray and Christmas.

Planned layoffs have increased three months in a row, and the biggest cuts in recent months has come from the automotive industry.

Despite the increase, planned layoffs were down five percent from November 2004's total of 104,530.

So far in 2005, corporations have announced 964,232 job cuts, up 3.6 percent from the year-to-date total a year ago. Layoffs are likely to surpass one million for the fifth straight year. In 2004, 1.04 million job reductions were announced.

More than 10 percent of the job cuts this year have come from the struggling automotive sector, which has announced 105,886 cuts this year, including 16,870 in November.

Downsizing in the auto industry is expected to continue well into the new year, as companies try to bring production capacity in line with the reality of the market," said John Challenger, chief executive officer of the firm.

The Challenger tally doesn't include a published report on Wednesday that Ford Motor Co. will increase its planned reductions to 30,000. The new restructuring plan was to be considered by the board of directors on Wednesday and Thursday, the Detroit News reported Wednesday, citing unnamed sources.

Government and nonprofits groups announced 14,195 job reductions in November, Challenger said. Transportation, pharmaceutical, industrial goods and telecommunications also had large numbers of layoffs in November.

The Challenger data cover only a small portion of job losses in the United States each month. Layoffs at small companies are not included, for instance. In the most recent government data, 1.77 million layoffs and discharges were reported in September.

The layoffs can be accomplished immediately or over time. Some jobs are cut through voluntary means, such as quitting or retiring.

"There clearly are areas of the economy that are struggling to find a foothold but, for the most part, the economy is very strong," Challenger said.

In November, US nonfarm payrolls increased by 215,000, the 30th consecutive month of job growth, the Labor Department reported last week.


Copyright © 2005 Agence France Presse