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posted on 02 November 2017

October 2017 Job Cuts Lowest Since 1997

from Challenger Gray and Christmas

U.S.-based employers announced 29,831 job cuts in October, down 3 percent from the same month last year, when 30,740 job cuts were announced. Employers have announced 25 percent fewer job cuts than they did in the same period last year.

So far this year, 351,309 job cuts have been announced, 24.6 percent fewer than the 466,352 cuts announced through October 2016. This is the lowest ten-month total since 1997, when 328,816 cuts were announced through October.

Said John Challenger, Chief Executive Officer of Challenger, Gray & Christmas, Inc.:

Companies are currently holding on to their workforces, but this may be the calm before the storm.

Another downturn could be on the horizon for early to mid-2018 and with it, the large-scale layoff announcements that typically follow. Adding to this is the possibility that global factors, including Brexit, could usher in a recession.

October's job cut announcements were led by the Health Care sector, which announced 6,373 cuts last month, an increase of 219 percent from September, when 1,997 positions were cut. Through October, the Health Care sector cut 31,134 jobs, a 98.7 percent increase from the 15,661 cuts announced in the same period last year.

The Services sector announced the second highest number of cuts in October, with 3,938, bringing the year-to-date total for the industry to 28,916. This year's total for Services companies is 201 percent higher than the 9,584 cuts recorded through October 2016.

Pharmaceutical companies announced 3,076 cuts in October, bringing the year-to-date total to 12,821, a 55.6 percent increase from the same period last year, when 8,237 cuts were announced.

Retail has consistently remained the leader in job cuts, with a total of 72,600 cuts announced through October, a 36.7 percent increase from the 53,119 cuts announced through the same month last year.

Announced Store Closures

January 2017-October 2017

Stores Closed

Job Cuts Due to Closures

Reason

Macy's

68

10,000

Restructuring

The Limited

250

4,000

Bankruptcy

American Apparel

110

3,457

Bankruptcy

Wet Seal

171

3,000

Bankruptcy

Lowe's

2,400

Cost-cutting

Sears/Kmart

358

3,415

Cost-cutting

Abercrombie & Fitch

60

150

Cost-cutting

hhgregg

220

5,000

Bankruptcy

JCPenney

138

5,500

Restructuring

Family Christian Stores

240

1,300

Closing

L.L.Bean

900

Cost-cutting

Payless

800

Bankruptcy

RadioShack

1,000

Bankruptcy

Bebe

190

960

Restructuring

BCBG Max Azria

120

492

Bankruptcy

Dollar Express

330

2,800

Acquisition/Merger

rue21

400

Bankruptcy

Central Grocers

31

1,900

Bankruptcy

Winn-Dixie

20

Restructuring

Marsh Supermarkets

18

1,535

Bankruptcy

Michael Kors Holdings

125

Cost-cutting

Ascena Retail Group

650

Cost-cutting

GameStop

100

Cost-cutting

The Children's Place

300

Cost-cutting

Gymboree

350

Bankruptcy

True Religion

27

Bankruptcy

Alfred Angelo

60

Bankruptcy

Teavana

379

Closing

Gap Inc.

200

Restructuring

Benny's

31

715

Closing

Neiman Marcus Last Call

10

Restructuring

Perfumania

64

Bankruptcy

Walgreens

600

Acquisition/Merger

TOTAL

7,420

47,524

Source: Challenger, Gray & Christmas, Inc. ©

Meanwhile, holiday hiring announcements were lower through October this year than through the same period last year. So far this year, companies have announced 548,950 seasonal hires, according to Challenger tracking. That is 9.2 percent lower than the 604,800 seasonal hires announced through October last year. Concludes Challenger:

While announced seasonal hiring is lower than in previous years, with consumer confidence at a record high last month, we may see an uptick in seasonal hiring in Transportation, Logistics, and Retail, with those jobs potentially becoming permanent.

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

TOP FIVE INDUSTRIES

Year To Date

2017

2016

Retail

72,600

53,119

Health Care/Products

31,134

15,661

Services

28,916

9,584

Food

17,768

13,134

Industrial

17,363

29,377

MONTH-BY-MONTH TOTALS

2017

2016

January

45,934

75,114

February

36,957

61,599

March

43,310

44,207

April

36,602

64,141

May

33,092

30,157

June

31,105

38,536

July

28,307

45,346

August

33,825

32,188

September

32,346

44,324

October

29,831

30,740

November

26,936

December

33,627

TOTAL

351,309

526,915

Some reductions are identified by employers as workers who will take early retirement offers or other special considerations to leave the company.

LAYOFF LOCATION

Year To Date

California

50,325

Texas

31,737

Ohio

24,219

New York

23,350

Indiana

22,811

Copyright 2017 Challenger, Gray & Christmas, Inc.

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

JOB CUTS BY INDUSTRY

16-Oct

17-Sep

17-Oct

YTD 2016

YTD 2017

Aerospace/Defense

1,252

1,595

391

11,139

13,762

Apparel

785

0

Automotive

1,104

1,026

60

12,036

16,291

Chemical

210

79

202

10,988

837

Commodities

150

287

2,817

532

Computer

4,792

2,373

639

64,511

15,974

Construction

3,183

1,298

8,452

Consumer Products

1,343

1,950

1,517

9,505

12,932

Education

842

310

79

19,232

11,436

Electronics

812

680

444

8,076

4,768

Energy

4,414

393

1,846

103,147

14,843

Entertainment/Leisure

1,688

636

1,938

16,590

10,678

Financial

468

794

1,683

19,387

13,276

Food

319

3,009

580

13,134

17,768

Government

560

482

14,314

8,014

Health Care/Products

1,317

1,997

6,373

15,661

31,134

Industrial Goods

2,037

1,252

1,768

29,377

17,363

Insurance

182

29

1,566

2,897

7,383

Legal

50

190

57

106

395

Media

623

53

181

5,161

3,416

Non-Profit

28

87

56

2,011

1,514

Pharmaceutical

927

4,251

3,076

8,237

12,821

Real Estate

27

722

532

Retail

1,180

3,461

1,543

53,119

72,600

Services

1,066

3,916

3,939

9,584

28,916

Telecommunications

4,135

535

116

17,516

13,091

Transportation

1,391

395

888

13,988

10,878

Utility

2

93

1,014

1,703

TOTAL

30,740

32,346

29,831

466,352

351,309

z%20challenger_jobcuts.png


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