from Challenger Gray and Christmas
Job cuts announced by Pharmaceutical companies in the U.S. soared in May, surpassing the industry total for the entire year of 2020.
In 2020, a record year for job cut announcements with 2,304,755 positions cut, 289% higher than the 592,556 announced in all industries in 2019, Pharmaceutical companies announced just 2,131 cuts, the lowest total for the industry since Challenger began tracking Pharmaceutical cuts in 1999.
Last month, these companies announced 2,134 job cut plans, for a total of 2,322, as Pharmaceutical companies closed plants and cut positions in the U.S. The previous lowest total for the sector occurred in 2000, with 2,453 cuts.
“Pharmaceutical companies were tasked with producing vaccines as well as testing media and therapeutics related to the pandemic. As we enter the recovery phase, Pharmaceutical companies may scale back on this work and move forward with restructuring plans that took a back seat due to COVID,” said Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, Inc.
Meanwhile, the Pharmaceutical sector has announced 1,347 hiring plans through May, compared to 660 hiring announcements through May 2020.
“The churn in this sector – the increased hiring announcements coupled with the higher number of job cuts – is good news for job seekers looking for work in Pharmaceuticals. It indicates there are continued opportunities even as the industry is in flux,” said Challenger.
Three other industries tracked by Challenger saw fewer job cuts in 2020 than the previous year. The Chemical sector, an industry that also aided in the pandemic fight, announced 332 cuts last year, a 73% reduction from the 1,209 cuts announced the previous year. Financial firms announced 13,677 cuts in 2020, down 46% from the 25,148 announced in 2019. Utility companies announced 1,866 cuts last year, down 22% from the 2,367 announced in the prior year.
