Planned job cuts in the third quarter rose 25% from a year ago. With September jobs cuts up 19% from last year, it represented the fourth month in a row in which job cuts were higher than the same month last year. Despite the current trend, employers are on pace to cut roughly the same number of jobs that were cut last year. According to data compiled by Challenger, Gray & Christmas, 10 companies alone have announced close to 75,000 job cuts this year, combined. This represents nearly 20% of all the announced cuts in 2013.
Challenger Gray & Christmas provided 24/7 Wall St. with all job cut announcements affecting at least 500 positions this year. 24/7 Wall St. combined all planned cuts by company to identify the companies that are cutting the most jobs this year. 24/7 Wall St. only considered publicly traded, American companies, or divisions of publicly traded companies. Job cuts did not need to be entirely within the U.S., however. Some cuts announced in 2013 may not be completed this year. Full-time employee totals were from Yahoo! Finance. These are the 10 companies cutting the most jobs:U.S. Air Force/Wikipedia
10. United Technologies
Job cuts: 3,000
Number of employees: 218,000
Last year, United Technologies (UTX) purchased aircraft component maker Goodrich for $16.4 billion and sold several smaller units. The company also took a major restructuring charge that hurt earnings. In its annual report the company disclosed it would cut an additionally 3,000 jobs in 2013. This was on top of the 4,000 cut the year before as part of its restructuring program. Matters could have been worse for many employees, since the company, a major government contractor, had plans to furlough up to 4,000 jobs during the government shutdown. However, employees were able to continue working after the Pentagon removed its own furlough on civilian employees.Rept0n1x/Wikipedia
9. Blockbuster (Dish Network Corp.)
Job cuts: 3,000
Number of employees: 35,000
In 2010, Blockbuster, then the largest movie-rental company in the world, filed for bankruptcy. At the time it planned to restructure its business to better compete with faster-growing rivals. Dish (DISH) bought Blockbuster’s assets in 2011 and has been closing failing stores since. At the beginning of this year, the company announced it would be closing 300 U.S. stores, which resulted in 3,000 lost jobs. According to news reports, Dish still sees value in the Blockbuster brand and will continue its attempt to make it profitable. At left, a Blockbuster store in Birkenhead, England.alq666/Wikipedia
8. MetLife Inc.
Job cuts: 3,150
Number of employees: 64,000
MetLife (MET) announced in March that it would cut 650 jobs from its Bloomfield, Conn. offices. The cuts are part of its plans to consolidate its operations and open new offices in North Carolina, where it will shift 2,600 jobs. The company additionally cut a third of its advisers, or 2,500 jobs, at the end of May. In regards to these layoffs, CEO Eric Steigerwalt noted in a presentation to investors that “we’re not financing advisers who frankly were never going to make it in this business.” This was part of the company’s plans to improve its results by cutting off financing to unsuccessful advisers while capping its sales for variable annuities. At left, the MetLife building in New York.Reuters
7. Cisco Systems
Job cuts: 4,500
Number of employees: 75,049
Cisco (CSCO) laid off 500 workers in March as part of a minor restructuring in its data center businesses. However, the company did not stop there. And after reporting a disappointing quarter, Cisco cut 4,000 jobs, bringing the company’s total layoffs to 12,300 jobs in the past two years. The company has been aggressively cutting costs in recent years as its networking products have become increasingly commoditized, according to Bloomberg. Additionally, the markets for Cisco’s core networking offerings—modems, switches, Wi-Fi routers, etc.—may have plateaued, while new advancements in cloud computing have undercut the company’s profitability. At left, John Chambers, chairman and CEO of Cisco, speaks in front of Chelsea Clinton at the Clinton Global Initiative in New York Sept. 25.Reuters
6. Wells Fargo & Co.
Job cuts: 5,236
Number of employees: 274,300
Wells Fargo (WFC) announced in August it was laying off 2,300 employees from its mortgage production unit. The major reason for the cuts was the lower demand for mortgage refinancing. This was popular with home buyers when interest rates were lower, but became far less common once rates began rising. Wells Fargo continued to cut jobs at the end of the summer as mortgage refinancing remained slow. Last year, Wells Fargo processed nearly 400,000 mortgage applications, more than four times the amount of any other U.S. bank.American Express
5. American Express Co.
Job cuts: 5,400
Number of employees: 63,500
American Express (AXP) announced at the start of the year that it would cut its workforce by 5,400 employees. Many of these cuts took place in the company’s travel division. Among the major factors driving the company’s restructuring has been the increased reliance of travelers on online travel booking. The company also recently has arranged to sell its publishing division, which includes both general and cardholder-exclusive magazines, to Time Inc.Reuters
4. Boeing Co.
Job cuts: 5,800
Number of employees: 174,400
Boeing (BA) announced in March that it would be cutting more than 2,300 machinist positions from its workforce. It followed up that announcement in May, noting it would gradually reduce its Washington-based IT workforce by about 1,500 over three years. These cuts weren't all in the form of layoffs. Some jobs are expected to be lost to attrition and others simply transferred to other states. The company has had problems in recent years with the development of its newest major commercial plane, the 787 Dreamliner, (on the ground, at left) most notably a faulty battery system. Recently, the company has eliminated another roughly 3,000 jobs related to the production of its C-17 transportation jet, following the cuts to the U.S. military’s budget.Argonne National Laboratories
3. International Business Machines Corp.
Job cuts: 9,400
Number of employees: 434,246
In the first quarter of the year IBM (IBM) reported a drop in its sales, which was followed by an announcement the company would cut between 6,000 and 8,000 workers world-wide. While cuts took place largely outside the U.S., many American IBM workers were still targets for layoffs. As of August, the company had trimmed more than 3,300 jobs in the U.S. and Canada and furloughed much of its hardware staff. Before its recent struggles, the company received criticism for outsourcing jobs to India. Recently, the New York Post reported that IBM now employs more workers in India than in the U.S.Reuters
2. J.C. Penney Company, Inc.
Job cuts: 15,020
Number of employees: 116,000
J.C. Penney (JCP) had been coy about the total number of layoffs at the company, which began under former CEO Ron Johnson. The onetime leader admitted in March the company had trimmed as many as 19,000 jobs since his arrival, the majority of which in early 2013 according to Challenger. Barely a few days later, the company confirmed it was eliminating an additional 2,200 jobs. JC Penney has since ousted Johnson; and his largest supporter, hedge fund manager Bill Ackman, has quit the company’s board. In recent years, the retailer has been struggling as sales and earnings have declined, and it has continued burning through cash. Recently, Penney had to issue new shares to raise cash, hurting the value of stock owned by existing shareholders.Reuters
1. J.P. Morgan Chase & Co.
Job cuts: 19,000
Number of employees: 254,063
J.P. Morgan Chase (JPM) is one of the nation’s largest banks. More than half of U.S. households are customers of the bank, according to the company. However, as customers increasingly use self-service technologies, the firm announced plans to trim back its consumer banking staff by 4,000. The company also announced its intentions to lay off 15,000 mortgage workers, many of whom were brought in to process defaulted mortgages during the housing crisis. J.P. Morgan continues to be one of the most profitable companies in the U.S. Read more about the 10 American companies cutting the most jobs at 24/7 Wall St.
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