May 2017 Job Cuts Jump 41 Percent From April
from Challenger Gray and Christmas
The number of workforce reductions announced by US-based employers rose sharply in May, as planned job cuts totaled 51,692 for the month. Nearly 40 percent of those job cuts were announced by Ford Motor Company.
May job cuts were 41 percent higher than the 36,602 job cuts announced in April, and 71 percent higher than the same month last year, when employers shed 30,157 jobs.
Employers have announced a total of 214,495 job cuts so far this year. That is down 28 percent from the 275,218 job cuts that occurred last year through May 2016. Said John A. Challenger, chief executive officer of global outplacement and executive coaching consultancy Challenger, Gray & Christmas, Inc.:
Ford's announcement of 20,000 global layoffs to streamline and cut costs is a typical strategy of large corporations who need to pivot to stay competitive. As consumers demand electric and self-driving options, traditional auto makers will need to adapt.
The automotive industry led all industries last month with 20,271 job cuts, bringing the year-to-date total to 28,996. Retailers continue to announce the most job cuts this year with 55,910, 5,777 of which occurred in May.
"The retail industry is still shedding jobs. We are now seeing the effect of changing consumer behavior in grocery shopping.
"Grocery stores are no longer immune from online shopping. Meal delivery services and Amazon are competing with traditional grocers, and Amazon announced it is opening its first ever brick-and mortar store in Seattle. Amazon Go, which mixes online technology and the in-store experience, is something to keep an eye on since it may potentially change the grocery store shopping experience considerably," said Challenger.
Major Retail Announcements
|
Stores Closed |
Job Cuts |
Reason |
|
|
Macy's |
68 |
10,000 |
Restructuring |
|
The Limited |
250 |
4,000 |
Bankruptcy |
|
American Apparel* |
110 |
3,457 |
Bankruptcy |
|
Wet Seal Inc. |
171 |
3,000 |
Bankruptcy |
|
Lowe's |
2,400 |
Cost-cutting |
|
|
Sears/Kmart** |
150 |
406 |
Cost-cutting |
|
Abercrombie & Fitch*** |
60 |
150 |
Cost-cutting |
|
HHGregg |
220 |
5,000 |
Bankruptcy |
|
JC Penney |
140 |
5,500 |
Restructuring |
|
Family Christian Stores |
240 |
1,300 |
Closing |
|
L.L. Bean |
900 |
Cost-cutting |
|
|
Payless |
400 |
Bankruptcy |
|
|
Radioshack |
552 |
Bankruptcy |
|
|
Bebe |
190 |
960 |
Restructuring |
|
BCBG Max Azria |
120 |
Bankruptcy |
|
|
Dollar Express |
330 |
2,800 |
Acquisition/Merger |
|
Rue 21 |
400 |
Bankruptcy |
|
|
Central Grocers |
31 |
1,900 |
Bankruptcy |
|
Winn-Dixie |
20 |
Restructuring |
|
|
Marsh Supermarkets |
16 |
1,535 |
Bankruptcy |
|
*Based on California Worker Adjustment and Retraining Notification Act listing |
|||
|
**Only cuts found so far in announcements, news reports |
|||
|
***Corporate cuts |
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|
Source: Challenger, Gray & Christmas, Inc. © |
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Companies in the health care/products industry announced 3,054 job cuts during the month, 55 percent higher than the 1,348 announced in May 2016. To date, 14,323 cuts have been in the in health care/products industry.
Another 12,347 service industry jobs have been shed so far in 2017, with 4,082 announced last month. This is an 83 percent increase from May 2016 when only 673 jobs in service industries were shed.
The telecommunications sector cut 10,815 job cuts so far this year with 546 announced in May, and 10,815 for the entire year. This is 40 percent more than last year when the total was 6,404 layoffs.
CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT
|
TOP FIVE INDUSTRIES |
|||
|
Year To Date |
|||
|
2017 |
2016 |
||
|
Retail |
55,910 |
38,264 |
|
|
Automotive |
28,996 |
7,129 |
|
|
Health Care/Products |
14,323 |
9,642 |
|
|
Services |
12,345 |
4,303 |
|
|
Telecommunications |
10,815 |
6,404 |
|
|
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 |
51,692 |
30,157 |
|
|
June |
|
38,536 |
|
|
July |
|
45,346 |
|
|
August |
|
32,188 |
|
|
September |
|
44,324 |
|
|
October |
|
30,740 |
|
|
November |
|
26,936 |
|
|
December |
|
33,627 |
|
|
TOTAL |
214, 495 |
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 |
|||
|
Michigan |
|
28,985 |
|
|
California |
|
24,351 |
|
|
Texas |
|
20,014 |
|
|
Ohio |
|
18,983 |
|
|
Indiana |
|
16,666 |
|
JOB CUTS BY INDUSTRY
|
16-May |
17-Apr |
17-May |
YTD 2016 |
YTD 2017 |
|
|
Aerospace/Defense |
2,102 |
1,408 |
7,741 |
8,006 |
|
|
Apparel |
159 |
352 |
0 |
||
|
Automotive |
677 |
3,424 |
20,271 |
7,129 |
28,996 |
|
Chemical |
97 |
106 |
7,500 |
400 |
|
|
Commodities |
1,084 |
0 |
|||
|
Computer |
2,836 |
840 |
1,239 |
36,853 |
6,973 |
|
Construction |
720 |
125 |
889 |
790 |
|
|
Consumer Products |
297 |
804 |
1,387 |
4,973 |
2,842 |
|
Education |
3,359 |
950 |
1,646 |
7,146 |
7,277 |
|
Electronics |
518 |
1,364 |
1,100 |
2,484 |
2,604 |
|
Energy |
7,572 |
459 |
296 |
75,232 |
8,635 |
|
Entertainment/Leisure |
847 |
318 |
941 |
9,319 |
5,837 |
|
Financial |
901 |
608 |
254 |
6,750 |
5,401 |
|
Food |
1,276 |
1,689 |
1,537 |
7,489 |
7,648 |
|
Government |
742 |
2,314 |
85 |
4,369 |
5,427 |
|
Health Care/Products |
1,348 |
3,153 |
3,054 |
9,642 |
14,323 |
|
Industrial Goods |
3,650 |
1,159 |
2,236 |
18,406 |
9,343 |
|
Insurance |
204 |
4,212 |
1,772 |
5,030 |
|
|
Legal |
28 |
40 |
56 |
131 |
|
|
Media |
475 |
709 |
262 |
2,498 |
2,210 |
|
Non-Profit |
203 |
326 |
1,347 |
1,130 |
|
|
Pharmaceutical |
1,283 |
717 |
243 |
5,166 |
3,735 |
|
Real Estate |
130 |
197 |
122 |
455 |
|
|
Retail |
1,287 |
11,669 |
5,777 |
38,264 |
55,910 |
|
Services |
673 |
1,586 |
4,082 |
4,303 |
12,345 |
|
Telecommunications |
381 |
487 |
546 |
6,404 |
10,815 |
|
Transportation |
652 |
1,561 |
773 |
7,907 |
6,702 |
|
Utility |
80 |
21 |
1,530 |
||
|
TOTAL |
30,157 |
36,602 |
51,692 |
275,218 |
214,495 |
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