Challenger Reports Planned Layoffs Surge In July Thanks To Microsoft

Challenger, Gray & Christmas reported that planned job cuts rose to 46,887 in the month of July, the second highest monthly total of the year. Thanks in large part to the unexpectedly large layoffs announced by Microsoft, July's level is 49% higher than June's total layoffs of 31,434 and is 24% above the year-ago level of 39,372. “A large portion of the Microsoft job cuts were related to its acquisition of Nokia in 2013. However, like Hewlett-Packard, the tech giant is attempting to streamline in order to become more nimble and competitive in an industry that is constantly changing. Both companies were slow to react to the shift from PCs to mobile and simply do not want to get caught flat-footed again. In order to do that, both companies had to flatten the bureaucracy and foster a more entrepreneurial approach to decision making,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas. “The large job cuts in the computer industry are certainly not a sign of a stalling economy. The fact is, these are companies that are trying to adjust to where the growth is occurring. The economy is on an upward trajectory, as evidenced by the fact that 18 of the 28 industries we track have seen job cuts decline this year. Even among those with increased job cuts, the year-to-date totals are relatively low by historical standards,” noted Challenger. Prior announced job cuts for comparison purposes: June: 31,434 May: 52,961 April: 40,298 March: 34,399 February: 41,835 January 2014: 45,107 December: 30,623 November: 45,314 October: 45,730 September: 40,289 August: 50,462 July: 37,701 June: 39,372 May: 36,400 April: 38,100 March: 49,260 February: 55,360 January 2013: 40,400 December: 32,600 November: 57,081 October: 47,724 September: 33,816 August: 32,239 July: 36,855 June: 37,600 May: 61,887 April: 40,559 March: 37,880 February: 51,728 January 2012: 53,486 December: 41,785 November: 42, 474 October: 42,759 September: 115,730