U.S. employers have handed out 242,830 pink slips so far this year. That's 13% more than the 214,600 layoffs announced in the first five months of 2014.
U.S. company layoffs totaled 41,034 in May, according to a June 4 report from global outplacement consultancy Challenger, Gray & Christmas.
Layoff totals, however, ebbed last month after April's tally hit a three-year high. A whopping 61,582 job cuts were announced in April, the highest monthly total since 61,887 layoffs were reported in May 2012.
May 2015's total was 33% lower month over month and 23% lower year over year. Cited for the steep drop-off was steadying oil prices. Just over 1,000 planned layoffs announced last month were blamed on the drop in oil. In April, that number was 20,675.
"Oil prices are starting to stabilize," John A. Challenger, chief executive officer of Challenger, Gray & Christmas, said in a statement. "Exploration and extraction companies responded quickly to the drop in prices, but they are likely to be careful about cutting too deeply, as they will need workers on hand when demand inevitably increases. Unless there is another severe drop in the price of oil, we probably will not see another surge in oil-related job cuts this year."
The financial sector led downsizing in May, with 5,539 job cuts. JP Morgan Chase & Co. (NYSE: JPM) was responsible for most of the layoffs. The banking giant will shed 5,000 branch tellers over the next 18 months.
The government sector, with 5,539 layoffs, was second for U.S. layoffs in May. Massachusetts felt the bulk of the pain. In an effort to close a $1.8 billion budget gap, the Bay State is slashing its payroll count by 4,500.
Expect more state government layoffs over the next few months.
"A lot of states were undoubtedly hoping that economic recovery would solve their budget woes, most of which can be traced back to overwhelmed pension systems," Challenger explained. "For most states, these dreams have failed to materialize. At least 16 states, including Massachusetts, Maryland, Illinois, Wisconsin, and Washington, are expected to experience budget shortfalls over the next year or two," said Challenger.
Following are a dozen notable U.S. company layoffs announced last month. Here are some of the biggest year-to-date layoff announcements.
U.S. Company Layoffs in May 2015
JPMorgan Chase & Co. (NYSE: JPM) is cutting some 5,000 jobs as it aims to cut costs. On May 28, The Wall Street Journal reported layoffs have begun across JPM's four business units: corporate and investment banking, consumer and community banking, assets management, and commercial banking. JPM has reduced its total headcount in 11 of the past 12 quarters, to 241,145 employees as of March 31. That's down about 20,000, or 7.7%, from the peak in Q1 2012.
Steel Dynamics Inc. (Nasdaq: STLD) announced May 26 it will lay off 200 workers. The steel producer said it's indefinitely idling its Minnesota Mesabi Nugget and Mining Resources plants. It's not just plant workers who will be affected. The nearby community of Chisholm is preparing for the economic impact.
BlackBerry Ltd. (Nasdaq: BBRY) announced May 23 it will lay off an unspecified number of workers around the world. The struggling smartphone manufacturer is attempting to make its device business profitable. Cuts will impact software, hardware, and applications segment workers.
Toyota Motor Corp. (NYSE ADR: TM) is letting go 100 full-time workers at its North Long Beach, Calif., facility (its first in North America) amid a production strategy shift. Toyota's reduction in Long Beach follows an April 2014 announcement the car manufacturer will move its main U.S. sales and marketing offices from Torrance to Plano, Texas, by 2017.
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Hartford Financial Services Group Inc. (NYSE: HIG) announced May 20 it will eliminate 190 positions at its Woodbury, Pa., offices. Affected employees work in Hartford's mutual funds business, which will no longer operate out of Woodbury.
NetApp Inc. (Nasdaq: NTAP) is cutting 15%, or 200 positions, at its Research Triangle Park, N.C., campus, where some 1,600 are employed. The news was reported May 19. Faced with more companies moving to cloud computing rather than buying their own servers, California-based NTAP has cut hundreds of jobs over the last two years.
Walter Energy Inc. (NYSE: WLT) notified 370 workers on May 18 they would be laid off amid poor market conditions within the steel industry. That's about 20% of the 1,700 employees at its Jim Walter Resources Blue Creek Mine in Oklahoma.
Alpha Natural Resources Inc. (NYSE: ANR) cut 71 jobs at four mines in Kentucky and Virginia on May 18 amid a steady decline in the coal market. Abundant shale gas and strict U.S. Environmental Protection Agency regulations have pressured coal production and use.
Unilever Plc. (NYSE ADR: UL) announced May 12 that due to overcapacity in its U.S. spreads network, it is moving its vegetable oil and margarine spread production from Baltimore to Kansas, laying off 137 workers.
Kirby Corp. (NYSE: KEX) reported May 11 it laid off 200 workers amid low demand for diesel engine services. That's about 4% of the Houston, Texas-based shipping company's workforce.
Darden Restaurants Inc. (NYSE: DRI) on May 11 eliminated 30 positions at its Orlando, Fla., headquarters. The layoffs came after Darden dismissed 60 workers in November 2014 and left vacant 25 positions. The casual-dining operator, under new management and a fresh board, is aiming to cut millions in general and administrative expenses.
Corinthian Colleges Inc. (OTCMKTS: COCOQ) filed for chapter 11 bankruptcy on May 4, sending thousands of employees to the unemployment line. It was the final step in a full shutdown of the for-profit and online college that employed more than 100,000 at its peak.
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