ABA Banking Journal
Employers announced plans to shed 105,696 workers from their payrolls in July, according to a report issued by Challenger, Gray & Christmas. July’s announced cuts marked the highest monthly total since 2011.
July’s job cuts were 125 percent higher than the planned layoffs announced in July 2014. In the first 7 months of 2015, employers have announced 393,368 job cuts – 34 percent more than the number of cuts announced in the first 7 months of 2014.
The report indicates that the surge of announced layoffs were largely due to rollbacks in the U.S. Army, which announced plans to eliminate 57,000 troops and civilians from their payrolls over the next two years.
“The transition from the military to the civilian workforce is always challenging, but the economy is in a much better position to absorb this influx of job seekers now, compared to two or three years ago,” says John A. Challenger, CEO of Challenger, Gray & Christmas. “This does not mean it will be easy for these service men and women, most of whom undoubtedly thought the military would offer career-long job security.”
The technology sector announced significant layoffs during July, as both Microsoft’s Nokia division and Qualcomm downsized. Overall, the computer and electronics sectors announced 18,891 cuts in July. However, job cuts for these sectors are down 47 percent on the year.
Read the Challenger Gray & Christmas release.