Job Cuts Surge 12 Percent Over Last Year

Chicago, IL, Sept. 3, 2008--U.S. job cuts spiked 12 percent last month from a year earlier on rising layoffs at automakers and in government, according to outplacement firm Challenger, Gray & Christmas Inc.

Firing announcements increased to 88,736 last month from 79,459 in August 2007, the firm said.

Companies are cutting staff as the housing recession and weak consumer spending slow the economy.

Job cuts were up almost a third in the last four months from a year earlier, and at the current pace they could exceed 1 million this year for the first time since 2005, Challenger said.

``We have not seen this level of summer job cutting since 2002, when the country was still struggling to recover in the wake of the 2001 recession and September 11,'' John A. Challenger, chief executive officer of the placement company, said in a press release.

``We do not expect downsizing to let up in the last four months of the year.''

On a monthly basis, the number of planned job cuts declined 14 percent from the 103,312 announced in July.

Job cuts at financial firms fell to 2,182, their lowest level in 13 months, Challenger said.

Companies have announced a total of 667,996 cuts so far this year, up 29 percent from the first eight months of 2007, according to today's Challenger report.

Automotive companies led industries in announced reductions in August, with 17,233.

``We could also see more job cuts from the automotive industry,'' said Challenger.

``Retailers are probably looking at the weakest holiday sales season since 2001.''