Today’s jobs report was missing a key number in U.S. employment: the staggering total of 2015 layoffs that have been announced.
Instead, the U.S. Labor Department report hyped that employers added 257,000 jobs last month, capping the best three months of gains since 1997.
But the real U.S. jobs story right now is that companies have delivered thousands of pink slips in 2015. A new report this week from Challenger, Gray & Christmas said the number of planned layoffs by U.S. companies hit a nearly two-year high of 53,041 in January. That’s up 63% from the previous month.
About 40% of the cuts stem from falling oil prices. More than 19,800 of January’s job cuts came from Texas, with more to come.
Houston-based ConocoPhillips (NYSE: COP) said Jan. 29 that employees were told to expect layoffs this year. And BP Plc. (NYSE ADR: BP) said Jan. 28 that slumping oil led to layoffs at its Houston office. The company didn't say how many jobs have been cut, but did confirm that notifications went out late last month.
It’s not just the energy sector that’s affected. Here are 12 of the biggest 2015 layoff announcements so far…
2015 Layoffs: 12 New Cuts Show U.S. Job Weakness
International Business Machines Corp. (NYSE: IBM) has been dismissing rumors that it will slash some 100,000 jobs - or 26% of its workforce. That would be the largest mass layoff at any U.S. corporation in at least 20 years. The tech giant doesn't traditionally talk about job cuts, but the layoffs have begun. And Alliance@IBM, the IBM employees' union, says it has so far collected reports of 5,000 jobs eliminated. This year could see as many 10,000, according to the latest rumors.
EBay Inc. (Nasdaq: EBAY) announced on Jan. 22 it's slashing headcount by 2,400 in Q1 2015. That's 7% of the company's 34,600-person workforce. The e-commerce company cited "weak holiday sales, revenues lower than expected, and restructuring ahead of its PayPal spin-off." Shares spiked 7% that day to $57.23 on the news.
American Express Co. (NYSE: AXP) reported Jan. 22 it's slashing 4,000 jobs. That's about 6% of its 63,000-person workforce. The news came after the elite credit card company missed long-term revenue growth targets of 8%. Blamed for the shortfall were a stronger dollar, soft retail sales, and tumbling gas prices. Shares slipped 4% that day on the news.
Baker Hughes Inc. (NYSE: BHI) and Halliburton Co. (NYSE: HAL) agreed in November to merge in a $34.6 billion deal. Early this year, Halliburton said it's cutting 1,000 jobs. Baker Hughes, meanwhile, is laying off 7,000. That's 11% of its workforce. Plunging oil prices are to blame. Zero Hedge shared this startling stat: When it comes to pay, each Baker Hughes job is equivalent to about 10 waiter and bartender jobs. Those service jobs have been the basis of America's job "recovery."
Is your company on this list? Keep reading for seven more companies that have announced layoffs in 2015...
Apache Corp. (NYSE: APA) began laying off workers worldwide in mid-January. e oil company didn't say precisely how many workers will be let go. They did, however, peg the number at around 5,000. That's about 5% of its workforce. A slowdown in activity and a budget reduction amid falling oil prices were cited.
Schlumberger Ltd. (NYSE: SLB) reported Jan. 15 it would cut 9,000 jobs. That's 7.3% of its 120,000-person workforce. The cuts were announced "to better align with anticipated activity levels for 2015." Slow drilling activity due to oil's steep price drop was cited.
JC Penney Co. Inc. (NYSE: JCP) plans to lay off 2,250 workers by April. The company will also shutter 40 underperforming stores. The moves are part of the struggling retailer's turnaround efforts. Shares climbed 0.8% on the announcement.
Macy's Inc. (NYSE: M) is cutting 1,660 to 2,500 workers. Fourteen stores will also be closed. The Cincinnati retailer said in early January store closings and reorganizations will generate $140 million in annual savings beginning in 2015. Savings will be reinvested into technology. Shares slipped 3% on the news.
DreamWorks Animation SKG Inc. (Nasdaq: DWA) said Jan. 23 it would trim headcount by 500 amid a series of box-office disappointments. The company will also reduce the number of films it releases annually from three to two. This is to ensure delivery of consistent, profitable, high-quality films. Shares jumped 3% that day on the news.
Deere & Co. (NYSE: DE) said Jan. 23 that 910 workers will be placed on indefinite layoff from its Iowa and Illinois facilities. Another 500 employees at its Moline facility will be idled until late summer. The "workforce adjustments" come as the company continues to align its workforce to meet "market demand for products." Shares slumped 1.32% that day on the news.
Citrix Systems Inc. (Nasdaq: CTXS) announced on Jan. 29 it will let 900 workers go. The cloud computing company said it will cut 700 full-time and 200 contractor jobs as part of a restructuring. The cuts came as the company of 9,166 posted a sharp drop in Q4 net profit. Shares spiked nearly 5% that day on the news.
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