Layoff plans rise 16% in November, Challenger says
By Rex Nutting, MarketWatch
Last update: 7:58 a.m. EST Dec. 5, 2007
WASHINGTON (MarketWatch) -- Layoffs in the auto industry accelerated in November, driving announced job reductions to the highest level since August, according to an unscientific tally compiled by outplacement firm Challenger Gray & Christmas released Wednesday.
Total announced job cuts rose 15.9% from October to 73,140, Challenger said, led by 19,144 jobs eliminated in the auto industry and 10,018 in energy industries.
November's cuts were down 4.7% from the previous November. Through the first 11 months of 2007, announced layoffs are down 7.8% compared with the first 11 months in 2006.
Reductions in the financial services, which have totaled 147,395 so this year, slowed to just 6,953 in November, the fewest in the sector since just before the credit crunch hit in August.
"Of course, we probably have not seen the last of financial job cuts tied to the housing slump and subsequent collapse in the credit markets," said John Challenger, CEO of the outplacement firm. "In fact, many analysts are waiting for a major announcement from Citigroup in the coming weeks that some say could impact as many as 45,000 jobs."
The Challenger report covers only a tiny fraction of those who lose their jobs each month.
In September for instance, a total of 1.9 million workers were discharged from their jobs involuntarily, representing about 1.3% of total employment, according to the latest available data from the Labor Department. By comparison, 2.7 million people quit their jobs voluntarily in September.
The layoff announcements as tracked by Challenger could take place immediately or over time. The reductions could be accomplished by voluntary means such as retirements, buyouts or workers leaving for other jobs, and they could be offset by hiring in other divisions of a company. End of Story
Rex Nutting is Washington bureau chief of MarketWatch.
Visit DiversityJobs.com for information on Diversity in the workplace
Last update: 7:58 a.m. EST Dec. 5, 2007
WASHINGTON (MarketWatch) -- Layoffs in the auto industry accelerated in November, driving announced job reductions to the highest level since August, according to an unscientific tally compiled by outplacement firm Challenger Gray & Christmas released Wednesday.
Total announced job cuts rose 15.9% from October to 73,140, Challenger said, led by 19,144 jobs eliminated in the auto industry and 10,018 in energy industries.
November's cuts were down 4.7% from the previous November. Through the first 11 months of 2007, announced layoffs are down 7.8% compared with the first 11 months in 2006.
Reductions in the financial services, which have totaled 147,395 so this year, slowed to just 6,953 in November, the fewest in the sector since just before the credit crunch hit in August.
"Of course, we probably have not seen the last of financial job cuts tied to the housing slump and subsequent collapse in the credit markets," said John Challenger, CEO of the outplacement firm. "In fact, many analysts are waiting for a major announcement from Citigroup in the coming weeks that some say could impact as many as 45,000 jobs."
The Challenger report covers only a tiny fraction of those who lose their jobs each month.
In September for instance, a total of 1.9 million workers were discharged from their jobs involuntarily, representing about 1.3% of total employment, according to the latest available data from the Labor Department. By comparison, 2.7 million people quit their jobs voluntarily in September.
The layoff announcements as tracked by Challenger could take place immediately or over time. The reductions could be accomplished by voluntary means such as retirements, buyouts or workers leaving for other jobs, and they could be offset by hiring in other divisions of a company. End of Story
Rex Nutting is Washington bureau chief of MarketWatch.
Visit DiversityJobs.com for information on Diversity in the workplace
Labels: Challenger Job-Cut Report
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