Published December 7, 2023
U.S.-based employers announced 45,510 cuts in November, a 24% increase from the 36,836 cuts announced one month prior. It is 41% lower than the 76,835 cuts announced in the same month in 2022, and marks the first time cuts were lower than the corresponding month a year ago since July, according to a report released Thursday from global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.
So far this year, companies have announced plans to cut 686,860 jobs, a 115% increase from the 320,173 cuts announced in the same period last year. It is the highest January-November total since 2020, when 2,227,725 cuts were recorded. Prior to 2020, it is the highest year-to-date total since 1,242,936 cuts were announced through November 2009.
“The job market is loosening, and employers are not as quick to hire. The labor market appears to be stabilizing with a more normal churn, though we expect to continue to see layoffs going into the New Year,” said Andrew Challenger, labor expert and Senior Vice President of Challenger, Gray & Christmas, Inc.
Source: Challenger, Gray & Christmas, Inc.
WHICH INDUSTRIES ARE CUTTING?
The Technology sector leads all industries this year with 163,562 cuts, 5,049 of which occurred in November. It is up 102% from the 80,978 announced in the sector through November 2022.
Source: Challenger, Gray & Christmas, Inc.
Retailers announced 6,548 cuts in November, leading all industries for the month, for a total of 78,730 this year. It is a 283% increase from the 20,564 cuts announced in the sector through the same period last year.
The Health Care/Products industry, which includes hospitals and product manufacturers, has announced 57,758 cuts through November, an increase of 99% from the 29,031 announced in the sector during the same period in 2022.
Financial firms have announced 50,792 cuts through November, up 189% from the 17,571 cuts through November 2022.
Warehousing has announced 48,991 cuts so far this year, a 352% increase from the 10,831 cuts announced in the sector through November of last year.
“Companies are expecting slower growth in the coming months, particularly in industries that support consumers. Meanwhile, Health Care has seen tremendous turmoil since the pandemic, as hospital systems look to cut costs without cutting care,” said Challenger.
MEDIA & NEWS CUTS
The Media industry has announced 20,324 cuts so far in 2023, the highest year-to-date (YTD) since 2020, when 30,211 cuts were announced through November.
News, which Challenger tracks as a subset of Media and includes broadcast, digital, and print, has announced 2,681 cuts so far this year, surpassing the 1,808 announced in all of 2022 and 1,511 announced in all of 2021.
HIRING PLANS LOWEST SINCE 2015
In November, employers announced plans to hire 15,566 workers, for a total of 777,101. This is the lowest year-to-date total for announced hiring plans since 2015, when 679,286 hiring plans were recorded through November.
Through November, seasonal employers have announced 573,300 hires, the lowest total since 518,000 seasonal hiring plans announced in 2013.
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Contact Colleen Madden Blumenfeld for more data or to set up an interview with SVP Andy Challenger.
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