First-Half Job Cut Announcements Highest Since 2009
U.S.-based employers announced plans to cut 140,577 jobs from their payrolls in the second quarter of this year, down 26% from the 190,410 cuts announced in the first quarter. Despite the drop, Q2 cuts are 34% higher than the 104,800 cuts announced in the same quarter last year, according to the latest report on job cuts released Wednesday from global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.
Last quarter’s total is the highest for the second quarter since 2015, when 147,458 cuts were recorded. So far this year, employers have announced plans to cut 330,987 jobs, a 35% increase from the 245,179 cuts announced through the first half of last year. This year marks the highest first-half total since 2009, when 896,675 job cuts were announced.
“The second quarter is historically the slowest period for job cut plans. Companies typically have not determined staffing decisions by this point, either because they are in the middle of or are only approaching their fiscal year’s end by June,” said Andrew Challenger, Vice President of Challenger, Gray & Christmas, Inc.
Employers announced 41,977 cuts in June, down 28% from the 58,577 cuts announced in May. Despite the monthly drop, June’s cuts are 13% higher than the 37,202 cuts announced in June of last year. This is the eleventh consecutive month job cuts are higher than the corresponding month the year prior.