Planned Job Cuts Decline Sharply in May

Chicago, IL, June 4, 2015 -- After reaching a three year high in April, planned job cuts announced by U.S.-based firms declined sharply in May, falling by 33% to 41,034, according the latest report released Thursday by global outplacement consultancy Challenger, Gray & Christmas, Inc.

The latest tally on employer downsizing activity comes on the heels of the 61,582 planned job cuts announced in April. That was the highest monthly total since 61,887 layoffs were recorded in May 2012.

Last month’s total was 23% lower than a year ago, when 52,961 planned job cuts were announced in May.

To date, employers have announced 242,830 in 2015. That is 13% more than the 214,600 job cuts announced in the first five months of 2014.

Job cut announcements related to falling oil prices appear to be ebbing. In May, just over 1,000 planned layoffs were attributed to the drop in oil. In contrast, April saw 20,675 job cuts blamed on oil prices.

In May, the heaviest downsizing occurred in the financial sector, where announced job cuts will impact 5,539 workers.

The government was the second leading job-cut sector in May, having announced 5,539 layoffs during the month.