Job Losses Still Piling Up
-- January 6, 2003
U.S. firms planned to cut more than 90,000 jobs in December, according to outplacement firm Challenger, Gray & Christmas. Even though that number is much lower than the job cut announcements in November, it is still higher than historical averages. That tells us companies continue to axe employees in an effort to cut costs in this slumping economy.
Just take a look at AT&T; Corp., which announced its plan to cut 3,500 management personnel in the first half of this year. The company is trying to cut costs after a host of failed business ventures, including its investment in AT&T; Latin America and its acquisition of Northrop Communication's high-speed Internet DSL assets.
Not only are companies continuing to layoff workers, they also aren't creating new jobs. The U.S. lost 40,000 jobs in November, and is expected to have gained only 37,000 jobs in December. That's not close to enough jobs to put 8.5 million unemployed Americans back to work. No wonder consumer confidence and spending continue to slump!
related article: U.S. Job Cut Plans Fell In December