Online Reporter
US companies announced the most job cuts for any October in more than two decades as artificial intelligence reshapes industries and cost-cutting accelerates, according to data from outplacement firm Challenger, Gray & Christmas.
Companies last month announced 153 074 job cuts, nearly triple the number during the same month last year and driven by the technology and warehousing sectors.
“It’s the most for any October since 2003, when the advent of cellphones was similarly disruptive”, said Andy Challenger, the company’s chief revenue officer.
“Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes,” Challenger said in the report.
The numbers are weak no matter how they’re spliced. Year-to-date job cuts have exceeded 1 million, the most since the pandemic. In the same period, US-based employers have announced the fewest hiring plans since 2011. Seasonal hiring plans through October are the lowest since Challenger started tracking them in 2012.
“It’s possible with rate cuts and a strong showing in November, companies may make a late-season push for employees, but at this point, we do not expect a strong seasonal hiring environment in 2025,” said Challenger.
Mounting job-cut announcements risk fuelling concerns about the health of the labour market just as newly unemployed Americans are facing a diminished hiring environment. The figures could also be viewed as at odds with Federal Reserve Chair Jerome Powell’s recent characterization that there’s only a “very gradual cooling” in the job market.
The report puts a number on the anecdotal evidence of layoffs rippling through the economy. Amazon.com Inc, Meta Platforms Inc, Target Corp and Paramount Skydance Corp were among last month’s job-cut headlines, and hiring has been tepid in many sectors. — Bloomberg
