July?s Job Cut Announcements Break Record

August 6, 2001 (PLANSPONSOR.com) The number of job cuts announced in the US surged 65% in July, the largest-monthly job-cut total recorded by Challenger, Gray & Christmas since the group began keeping count in 1993.

Announced job cuts increased to 205,975 over the month with giants like Lucent, HP, JDS Uniphase and CSFB among others trimming their payrolls in order to remain profitable in lean times.

The number represents the seventh time in eight months that announced job cuts have passed the 100,000 mark, and the latest figure reflects and increase of 124,852 on the previous month and is more than three times that recorded in July 2000.

In the first six months of what has been a dismal year for layoffs, US corporations announced the axing of 777,362 jobs, more than triple the number announced during the first six months of 2000.

Telecoms and Technology

The cuts were deepest in the telecom sector, where Lucent announced plans to trim its workforce by between 15,000 and 20,000 jobs, and Ericsson, which will trim payrolls by 22,000 people.

Overall, announced job cuts in the telecom sector reached 44,908, bringing the total number of layoffs announced in the sector to 175,350 for the first seven months this year.

Announced layoff in technology companies remained high in July, with 26,321 jobs slated to be cut, bringing the total to 101,044 for the first half of the year.

Report on June’s 65% Surge in Job Cuts