Challenger, Gray & Christmas reported that planned job cuts rose to 46,887 in the month of July, the second highest monthly total of the year.
Thanks in large part to the unexpectedly large layoffs announced by Microsoft, July's level is 49% higher than June's total layoffs of 31,434 and is 24% above the year-ago level of 39,372.
“A large portion of the Microsoft job cuts were related to its acquisition of Nokia in 2013. However, like Hewlett-Packard, the tech giant is attempting to streamline in order to become more nimble and competitive in an industry that is constantly changing. Both companies were slow to react to the shift from PCs to mobile and simply do not want to get caught flat-footed again. In order to do that, both companies had to flatten the bureaucracy and foster a more entrepreneurial approach to decision making,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.
“The large job cuts in the computer industry are certainly not a sign of a stalling economy. The fact is, these are companies that are trying to adjust to where the growth is occurring. The economy is on an upward trajectory, as evidenced by the fact that 18 of the 28 industries we track have seen job cuts decline this year. Even among those with increased job cuts, the year-to-date totals are relatively low by historical standards,” noted Challenger.
Prior announced job cuts for comparison purposes:
June: 31,434
May: 52,961
April: 40,298
March: 34,399
February: 41,835
January 2014: 45,107
December: 30,623
November: 45,314
October: 45,730
September: 40,289
August: 50,462
July: 37,701
June: 39,372
May: 36,400
April: 38,100
March: 49,260
February: 55,360
January 2013: 40,400
December: 32,600
November: 57,081
October: 47,724
September: 33,816
August: 32,239
July: 36,855
June: 37,600
May: 61,887
April: 40,559
March: 37,880
February: 51,728
January 2012: 53,486
December: 41,785
November: 42, 474
October: 42,759
September: 115,730
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