Planned Job Cuts Spike on Falling Oil Prices

Chicago, IL, Feb. 5, 2015 -- Job cut announcements in January surged to their highest level in nearly two years, as falling oil prices prompted cost-cutting efforts in energy and related industries, according to outplacement firm Challenger, Gray & Christmas.

In all, U.S.-based employers announced plans to shed 53,041 jobs from their payrolls to start 2015, with 40 percent of those directly related to oil prices.

The January total was up 63 percent from the 32,640 planned layoffs announced in December.

Last month’s figure was 18 percent higher than the same month a year ago, when employers announced job cuts totaling 45,107.

“We may see oil-related job cuts extend well beyond those industries directly involved with exploration and extraction,"  said CEO John A. Challenger.

“Despite the recent surge in job cuts, the net result of falling oil prices could ultimately prove to be positive for the economy, as a whole. Not only will many industries see cost savings, but consumers will have more money for discretionary spending on things like dining out, travel, and entertainment."