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Job cuts top 117,000 in January — Challenger

Planned job cuts in January were 26 percent higher than in December due to increases in offshore outsourcing and to mergers and acquisitions that have made some positions redundant, global outplacement firm Challenger, Gray & Christmas, Inc., reported on Tuesday.
/ Source: Reuters

Planned job cuts in January were 26 percent higher than in December due to increases in offshore outsourcing and to mergers and acquisitions that have made some positions redundant, global outplacement firm Challenger, Gray & Christmas, Inc., reported on Tuesday.

Post-holiday job cuts reached 117,556 in January, surpassing the 100,000 threshold for the first time since last October.

Consumer product companies led with 22,775 job cuts, the largest number of reported job cuts in that sector in a single month since 1993, according to Challenger.

The firm said one of the main factors behind the cuts was an increase of employers eliminating jobs in the United States and shifting to service providers in India, China and the Philippines.

Another factor was an increase in mergers so far this year. The survey’s head, John Challenger, noted in a statement that one of those mergers will result in “as many as 10,000 job cuts to take place as redundant positions are eliminated.”