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Thursday, September 1, 2016

Job Cuts Down Sharply in August

Employers announced plans to cut 32,188 jobs in August, according to a report issued by Challenger Gray & Christmas. August’s cuts were 29% lower than in July. Employers have announced 391,288 job cuts through the first eight months of 2016, down 10% from a year ago.

Cuts in the computer sector were heaviest during the month, as Cisco Systems announced plans to lay off 5,500 workers.

“Since January of last years, there has been a string of large scale job cuts from major players in the technology sector,” said John A. Challenger, CEO of Challenger, Gray & Christmas. “The surge in cuts does not necessarily signal weakness in the sector, but it certainly signals a shift. In most cases, we are seeing these firms move from making hardware to providing services.”

Job cuts in energy were also significant in August, as the sector announced layoffs for 2,430 workers. The majority of these cuts came from solar firms, where intense competition is keeping prices low.

Read the Challenger, Gray & Christmas release.
Visit Banks and the Economy.

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