Planned Job Cuts Expand 15 Percent in May

Chicago, IL, June 4, 2008--Announced job cuts by U.S. employers increased 15 percent in May to the highest level in more than two years, according to consulting firm Challenger, Gray & Christmas.

Firing announcements rose to 103,522 last month, the most since December 2005, from 71,115 in May 2007.

Companies are cutting staff in the wake of higher materials prices and weaker demand.

``There is no end in sight for the crisis in the financial sector,'' John A. Challenger, chief executive officer of the placement company, said in a press release.

``Every time it looks as though banks will turn the corner back toward prosperity, we hear about another major loss, which is often followed by a job-cut announcement.''

So far this year, companies have announced 394,193 cuts, up 17 percent from the first five months of 2007.

The number of planned job cuts rose from 90,015 in April, the report said.