Planned Job Cuts in March Up 200% From ’98

The number of planned job cuts by U.S. businesses in March tripled from a year earlier, employment firm Challenger, Gray & Christmas said. Businesses announced plans to cut 68,984 jobs last month, up 200% from March 1998 and 11% higher than February. “Job cuts, averaging 75,000 over the last six months, are now in the realm of the figures we saw during the last recession,” said John Challenger, chief executive of the employment firm. “While voracious consumer spending has helped maintain overall economic strength, companies are still hampered by stiff pricing competition from abroad. The inability to raise prices has cut into corporate profits which, in turn, has most certainly contributed to increased job-cutting,” Challenger said. Among the industries showing the largest increases in planned job cuts and dismissals in March were financial firms and aerospace defense contractors, Challenger said. Although large U.S. companies are trimming payrolls--associated with both cost-cutting and merger activity--hiring by small and medium-size firms is on the rise. The Challenger report collates job-cut announcements; it does not track actual layoffs. Many companies modify their layoff plans after they are announced.