Published December 5, 2024
U.S.-based employers announced 57,727 cuts in November, a 3.8% increase from the 55,597 cuts announced one month prior. It is up 26.8% from the 45,510 cuts announced in the same month in 2023, according to a report released Thursday from global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.
Challenger, Gray & Christmas, Inc. ©
For the year, companies have announced 722,566 job cuts, up 5.2% from 686,860 announced through November of last year. It is the fourth-highest November total since 2008. Excluding the year-to-date total of 2,227,725 in 2020, job cut announcements are the highest since 2009, when 1,242,936 job cuts were announced through November.
“November saw downstream cuts to Automotive suppliers and parts manufacturers, as well as ongoing cuts in Consumer and Industrial Manufacturing. Technology also saw a high number of layoff announcements, as that sector continues to undergo significant changes,” said Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, Inc.
Which Industries Are Cutting Workers?
Automotive
The Automotive sector announced the most job cuts in November with 11,506, the highest monthly total since 14,373 cuts were recorded in April. For the year, Automotive companies have announced 45,820, a 59% increase from the 28,803 cuts recorded through November last year.
“The Automotive industry is currently experiencing significant challenges, including potential tariffs affecting U.S. automakers with overseas factories, intensifying competition from Chinese electric vehicle (EV) manufacturers, and shifts in government subsidies for EVs. Additionally, leadership changes, such as the recent resignation of Stellantis CEO Carlos Tavares, are contributing to the sector’s volatility,” said Challenger.
Challenger, Gray & Christmas, Inc. ©
Technology
Last month, Technology cut 10,231 cuts for a total of 130,701. Cuts in this sector have decreased 20% from the 163,562 cuts recorded through November last year.
Healthcare/Products
The Healthcare and Healthcare Products industry, which excludes Hospitals, has cut the second-most jobs this year with 47,249, down 18% from the 57,758 announced through this period last year.
“Healthcare is experiencing similar challenges to the Automotive industry, in that regulatory and policy changes, as well as leadership changes, has led to increased volatility. Labor disputes and new technologies are also causing workforce realignments,” said Challenger.
Industrial Manufacturing
Companies in the Industrial Manufacturing space have announced 21,974 cuts through November, an increase of 158% from the 8,517 announced in the sector during the same period last year.
Media & News
Challenger, Gray & Christmas, Inc. ©
The Media industry, which includes television, film, streaming, and News, announced 14,549 job cuts so far this year, down 28% from the 20,324 announced in the industry through November 2023.
News, which includes digital, broadcast, and print, and is tracked as a subset of Media, announced 1,017 layoffs in November, the highest monthly total since 1,226 cuts were recorded in February. For the year, News has announced 4,537, up 48% from the 3,057 cuts tracked during the same period last year.
Where Are Cuts Occurring?
Companies headquartered in the East saw a 20.4% rise in layoff announcements compared to 2023, with the District of Columbia experiencing the most dramatic increase, jumping by 1,254% due to a large cut announced at the US Army. Delaware and Rhode Island also reported notable increases, up 365% and 34%, respectively. However, states like New York and New Jersey showed declines, suggesting stabilization or a slowdown in layoffs from some of the largest employers headquartered there.
Companies in the Midwest saw a slight overall increase of 1.6%, with layoffs likely influenced by challenges in the manufacturing sector. Ohio led the region with a 140% jump in announcements, while Iowa’s increase of 306% signals major disruptions in agricultural and industrial manufacturing. However, states like Illinois, Missouri, and Minnesota reported declines.
The South experienced a significant 23.5% decline in job cut announcements, driven by substantial decreases in Florida and Tennessee, which reported drops of nearly 50%. Meanwhile, the West region showed a 9.6% increase, with Texas and Colorado leading gains, likely due to corporate restructuring in sectors like Energy and Technology. California, while still the largest contributor to layoff totals, saw a 16% decline in announcements compared to 2023, reflecting possible stabilization.
Why Are Companies Cutting?
Last month, companies cited “Market/Economic Conditions” for 22,762 job cuts, the highest monthly total for this reason since April, when 26,866 job cuts were attributed to this reason. Another, 16,288 job cuts were due to store, department, or unit “Closing.”
“Cost-Cutting” leads all reasons for job cut plans this year with 147,903, followed by “Market/Economic Conditions” with 132,467.
Hiring Plans Lowest Since 2015
U.S. employers have announced 761,954 hiring plans, down 2% from the 777,101 plans recorded through November last year. The year-to-date total is the lowest since 2015, when employers planned to hire 679,286 new workers though November.
Contact Colleen Madden Blumenfeld for more data or to set up an interview with SVP Andy Challenger.
