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Challenger Layoffs increased to 51,692 jobs in May
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, according to the report released Thursday from global outplacement consultancy Challenger, Gray & Christmas, Inc.
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.
“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,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.
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.
Posted: June 1, 2017 Thursday 07:30 AM