Telecoms Tremors Drive Up June Layoffs

July 2, 2002 (PLANSPONSOR.com) -The US telecommunications industry continues to generate huge layoffs - enough to drive up June's planned layoff total by about 10,000, according to outplacement firm Challenger, Gray & Christmas.

According to Challenger’s latest monthly survey, employers announced 94,766 June layoffs, a 12% hike over May’s total. The source of almost a third of the cuts: telecom companies.

The 30,455 telecommunications job cuts, which more than doubled the sector¹s 14,687 cuts in May, led all other industries in the month.  It was the ninth time in 12 months that this struggling sector was the top job cutter. 

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Telecommunications companies have announced 165,840 job cuts in 2002 — 85,809 more than the second-ranked automotive industry, which has announced 80,031 job cuts this year.

Things appeared a bit brighter measured by quarters. Second-quarter job cuts of 292,393 were lower by 34% than the first-quarter figure of 443,134 and down 21% from the second quarter of 2001 when 370,556 job cuts were announced.

Despite the second-quarter decline, job cuts for the year at 735,527 are only 5% lower than the six-month total in 2001 of 777,362.

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