Most of the latest cuts were due to companies restructuring, followed by closings and voluntary severance. (Image: Shutterstock)
The market isn't the only thing headed south these days. Jobs are going right along with it.
According to a report from Challenger, Gray & Christmas, annual job cut announcements are up 28.6 percent year over year, and have hit the highest level since 2015.
Although it was a bit quieter in December than it had been in the previous three months, the report says that in 2018 saw 538,659 job cut announcements. That compared with 2017's 418,770, and the most since 2015, when 598,510 cuts were recorded. It's also the second-highest total since 2011, when 606,082 cuts were announced.
In Q4 of 2018, employers announced 172,601 job cuts. That's a hefty 42.8 percent higher than cut announced in Q3 and a shocking 77.4 percent higher than in Q4 of 2017, when the total only reached 97,292. It's also the highest quarterly total since the first quarter of 2016, when 180,920 cuts were announced.
Still, the total of job cuts for last month is 17.3 percent lower than it was in November, at 53,073—but it was 35.3 percent higher than the 32,423 cuts announced in December of last year.
“We've seen a number of companies responding to changing consumer behavior this year, and with tax savings and a strong economy, making staffing decisions ahead of a potential downturn next year,” Andrew Challenger, vice president of Challenger, Gray & Christmas, Inc., said in a statement.
Challenger added, “While December did see some fallout from suppliers, especially in the midwest after GM's November decision to cut 14,000 workers and close five plants, the big story this year was in retail.”
But retail wasn't the only area to feel the heat, with technology reshaping other fields as they all struggle to keep up with technological demands by consumers and the need to update. According to the report, companies in the computer, electronics and telecommunications industries (the technology sector at Challenger) have dropped 86,341 workers altogether; that's 124 percent higher than the 38,508 announced in this sector in 2017.
“Shifts in technology are ultimately impacting all other industries, as companies pivot to integrate and benefit from these new tools,” Challenger said. “We've seen it in announcements from the retail, automotive and finance sector.”
Most of the cuts, the report points out, were due to companies restructuring. That was followed by closings and voluntary severance, such as buyouts or early retirement offers. Challenger tracked 798 announced job cuts specifically attributed to enacted tariffs, with another 1,565 cuts stemming from government regulations, either federal or local.
And of course natural disasters took their toll as well, with Hurricane Michael claiming 800 job cuts, Alaska's earthquake 40 and wildfires 27.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
