June 2023 Challenger Report
Published July 6, 2023
U.S.-based employers announced 40,709 cuts in June, down 49% from the 80,089 cuts announced in May. It is up 25% from the 32,517 announced in the same month one year prior, according to a report released Thursday from global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.
Despite the drop, June’s total marks the sixth time this year when cuts were higher than the corresponding month a year earlier.
Employers have announced 458,209 cuts so far this year, a 244% increase from the 133,211 cuts announced through June 2022. It is the highest first-half total since 2020, when 1,585,047 cuts were recorded. With the exception of 2020, it is the highest January to June total since 2009, when 896,675 job cuts were announced.
“The drop in cuts is not unusual for the summer months. In fact, June is historically the slowest month on average for announcements. It is also possible that the deep job losses predicted due to inflation and interest rates will not come to pass, particularly as the Fed holds rates,” said Andrew Challenger, labor expert and Senior Vice President of Challenger, Gray & Christmas, Inc.
Companies announced 187,793 cuts in the second quarter, up 142% from the 77,715 cuts announced in the second quarter of 2022. It is down 31% from the 270,416 cuts announced in the previous quarter.
Industries Cutting The Most Jobs
Technology is leading in job cut announcements this year with 141,516, up 2,353% from the 5,769 cuts announced in the same period last year. is now the second-highest total for the sector ever, with only 2001 leading. That year, 168,395 cuts were announced in Technology.
Retail companies announced the second-most job cuts this year with 48,212, a 718% increase from the 5,896 cuts announced in the sector during the same time last year.
Financial firms announced the third-most cuts so far in 2023 with 39,768, up 268% from the 10,800 cuts announced in the sector in the first half of 2022. Health Care/Products companies and manufacturers, including hospitals, announced 38,279, up 97% from the 19,390 cuts in the first half of last year.
Services firms announced 31,820 cuts in the first half of the year, 163% higher than the 12,081 cuts announced in that sector during the same time in 2022.
“The cuts at Services firms may be reflecting the cost-cutting many companies are undergoing to prepare for an economic slowdown,” said Challenger.
The Media industry shed 18,836 cuts this year. Of those, 2,091 were in digital, broadcast, and print News.
Why Are Companies Cutting?
The top reason for job cuts so far this year is Market/Economic Conditions with 216,693. Another 55,088 were attributed to Cost-Cutting, while 54,864 were due to store, unit, or department Closings. Voluntary Severance was attributed to 9,917. A cyberattack a few years ago was cited for the closing of a hospital last month. Meanwhile in June, a Media company laid off writers as the owner pivoted to a project in Artificial Intelligence.
US-employers announced plans to add 115,462 positions so far in 2023, the lowest first-half total since 2016, when 76,751 new hires were recorded. The most announcements occurred in Entertainment/Leisure with 20,012, down 82% from the 111,475 announced during the same time in 2022. Technology follows with 14,423 down 61% from the 37,093 announced hires in the same period last year.
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Contact Colleen Madden Blumenfeld for more data or to set up an interview with SVP Andy Challenger.
US Job Market Shows Fresh Strength With ADP and Layoff Data
Published on july 6, 2023
The US labor market showed fresh signs of resilience on Thursday, as private hiring surged, layoffs slowed and filings for unemployment benefits stayed relatively low.
US companies added almost half a million jobs last month, the most in over a year, according to data from ADP Research Institute in collaboration with Stanford Digital Economy Lab. A separate report from Challenger, Gray & Christmas Inc. showed announced job cuts by US employers fell in June to an eight-month low.
Employers have announced 458,209 job cuts so far in 2023, according to Challenger, Gray and Christmas, a 244% increase from the 133,211 cuts announced through June 2022.
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