June Job Cuts in U.S. Up 47% From Year Ago, Challenger Says (Timothy R. Homan)

Created by : Francis Goodwin View profile

July 2 (Bloomberg) -- Job cuts announced by U.S. employers increased last month, led by reductions at financial-service companies stemming from the collapse in mortgage lending, according to a report by a private placement firm.

Firing announcements rose to 81,755 last month, up 47 percent from 55,726 in June 2007, Chicago-based Challenger, Gray & Christmas Inc. said in a statement today.

Companies are trimming staff in order to counter rising raw-material expenses and decreasing demand. The Labor Department may report this week that the U.S. lost jobs for a sixth straight month in June.

``Downsizing in the financial sector has remained heavy, but now we're seeing increased job cuts in other non-housing- related industries, mostly due to the added burden of skyrocketing oil prices,'' John A. Challenger, chief executive officer of the placement company, said in a statement. ``The overall economy could continue to experience net losses for several months to come.''