A report from
employment firm Challenger, Gray & Christmas Inc. showed on Thursday that U.S. businesses announced 57,727 job cuts in November, up 3.8 per cent from
the 55,597 layoffs claimed in October. This marked the first rise in job cuts
in three months. The November 2024 reading was 26.8 per cent above the figure for the corresponding month one year
prior (45,510).
According to
the report, the Automotive industry announced the largest number of job cuts last month (11,506, or 19.9 per cent of all). “The Automotive industry is
currently experiencing significant challenges, including potential tariffs
affecting U.S. automakers with overseas factories, intensifying competition
from Chinese electric vehicle (EV) manufacturers, and shifts in government
subsidies for EVs. Additionally, leadership changes, such as the recent
resignation of Stellantis CEO Carlos Tavares, are contributing to the sector’s
volatility,” the report noted.
Year-to-date, U.S. employers
announced plans to cut 722,566 jobs, up 5.2 per cent from the 686,860 cuts
announced during the corresponding period a year ago. This represented the fourth-highest
November total since 2008.
Commenting on
the latest report, Andrew Challenger, senior vice president of Challenger, Gray
& Christmas Inc., said that November saw downstream cuts to Automotive
suppliers and parts manufacturers, as well as ongoing cuts in Consumer and
Industrial Manufacturing. “Technology also saw a high number of layoff
announcements, as that sector continues to undergo significant changes,” he
added.