Cutting away the extra costs
Layoffs and job cuts have hit close to home this summer, with Meredith Corp. making cuts in early June and The Des Moines Register cutting its staff just a few weeks ago.
So it’s not surprising that CNNMoney.com reported today that the number of summer job cut announcements has reached its highest level since 2002.
In 2002, when the recession of 2001 was still fresh in everyone’s minds, companies said they would cut 378,777 positions during the summer months, according to a report. Six years later, employers announced nearly as many job cuts this summer.
Increased numbers of announced job cuts is unusual for summer, as the number of job cuts usually dips from May through August, as business slows down during those months. However, this year, employers said they would cut 377,325 jobs, according to employment consultancy Challenger, Gray & Christmas Inc.
When breaking down the total over the summer months, August produced 88,736 job cuts, fewer cuts than July’s total of 103,312. Still, the August figure was 12 percent higher than the same time a year ago.
Overall, the volume of job cuts announced during the summer was up nearly 30 percent from the level the first four months of the year.