Private Sector Job Cuts Slowed Further Month-Over-Month and Year-Over-Year in May

According to Challenger, Gray & Christmas, Inc. (CG&C) Job Cuts Report, US-based employers announced 63,816 job cuts in May, a 1.5% decline from the 64,789 job cuts reported in April. This is also a 20.0% decline from the 80,089 job cuts announced in May 2023.

Year-to-date, companies have announced 385,859 jobs cuts, which is a decline of 7.6% from the 417,500 job cuts announced through May of 2023. Nevertheless, May is the third-highest January-to-May total since 822,282 job cuts were recorded through May 2009. The highest January-to-May total occurred in 2020, when 1,414,828 job cuts were recorded.

CG&C believes the leading reason for job cuts in May, which was 15,785 jobs were due to store, unit, or plant “closing,” the highest monthly total for that reason since September 2023 when 19,462 cuts were attributed to this reason. For the year, “closing” has caused 64,902 cuts. “Cost-cutting” is the leading cause for job cuts so far this year with 78,087. “Restructuring” has accounted for 61,667 job cut plans this year.

According to CG&C, job cuts were widespread with the Technology sector experiencing the largest number of cuts in May, followed by Automotive, Energy, Aerospace/Defense, Entertainment/Leisure, Retail, Apparel, Media & News.

US employers announced plans to hire 4,326 workers in May, the lowest total since 3,022 hires were announced in December 2023, and the lowest total for the month on record. For the year, employers have announced plans to hire 50,833 workers, a 50.0% decline from the 101,833 new hires announced through this point last year. It is the lowest total in the first five months of the year since 2014, when 45,512 hiring plans were recorded