Job Cuts Tumble in June 2024, Led by Consumer Manufacturing; Second-Highest Hiring of the Year

Published July 3, 2024

U.S.-based employers announced 48,786 cuts in June, down 23.6% from the 63,816 cuts announced one month prior. It is 19.8% higher than the 40,709 cuts announced in the same month in 2023, according to a report released Wednesday from global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.

June’s total marks the third time this year job cut announcements are higher than the corresponding month one year prior.  So far this year, companies have announced plans to cut 434,645 jobs, down 5.1% from the 458,209 announced in the first half of 2023.

 

In the second quarter, 177,391 cuts were recorded, down 31% from the 257,254 tracked in the first quarter. It is down 5.5% from the 187,793 cuts recorded in Q2 2023.

It is the highest total for June since 2020, when 170,219 cuts were recorded. Outside of 2020, it is the highest June total since 74,393 cuts were recorded for the month in 2009.

“June is typically a low month for job cut announcements, as most companies are midyear or at the end of their fiscal years. The months following fiscal year ends tend to have a spike in cuts, as those plans are implemented,” said Andrew Challenger, Senior Vice President and workplace expert for Challenger, Gray & Christmas, Inc.

“Over the last decade, job cuts have primarily been announced during the first half of the year. Prior to 2013, major announcements would bookend the year,” he added.

 

 

 

Which Industries are Cutting?

Consumer Products Manufacturers led all cuts in June with 5,311. This year, Consumer Products companies have announced 21,039, down 6.5% from the 22,787 cuts announced through June 2023.

Technology announced the second-most cuts in June with 4,647, down 40% from the 7,771 cuts announced in May. Through June, Tech companies have announced 59,854 cuts, down 58% from the 141,516 announced in the first half of 2023.

Construction companies announced 4,613, up 1,674% from the 260 announced in May.

These firms have announced 8,461 cuts, up 207% from the 2,753 cuts through June 2023.

• The Industrial Goods Manufacturing sector announced 14,471 cuts so far this year, up 332.8% from the 3,344 announced last year.
• Education, including school districts, have announced 23,988 job cuts this year, up 369.8% from the 5,108 cuts through the same period last year.
• Transportation companies have announced 22,606 cuts this year, up 254.3% from the 6,380 announced in the first six months of 2023.
• Food manufacturers and producers have announced 17,014 cuts, up 99.7% from the 8,521 cuts in January through June last year.

Media & News Cuts

The Media industry has announced 8,750 cuts so far in 2024, down 53.5% from the 18,836 announced in the first half of last year.

News, which Challenger tracks as a subset of Media and includes broadcast, digital, and print, has announced 2,397 cuts so far this year, up 14.6% from the 2,091 News cuts announced in the first half of last year.

Why are Companies Cutting?

Companies primarily cite “Cost-Cutting” plans for the reason for cuts; 81,921 cuts are due to this reason. Close behind “Cost-Cutting” is “Market/Economic Conditions” which accounts for 81,138 cuts in 2024.

Another 75,863 job cuts are due to store, unit, or plant “Closing,” while 62,263 are due to “Restructuring.”

Hiring Plans in 2024

In June, employers announced plans to hire 19,087 workers, the second-highest monthly total so far this year, for a total of 69,920. This is the lowest year-to-date total for announced hiring plans since 2016 when 76,751 hiring plans were announced through June.

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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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