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TREND EXPECTED TO CONTINUE THREE INDUSTRIES ACCOUNT FOR 44 PERCENT OF 1993 CUTBACKS

 NEW YORK, Jan. 17 /PRNewswire/ -- The aerospace, computer and retail industries accounted for nearly half of all job cutbacks in 1993, according to Challenger, Gray & Christmas, Inc., an international outplacement consulting firm.
 The annual Challenger Employment Report released Monday showed cutbacks of 275,618 jobs in 1993 from these three areas alone, representing 44 percent of the 615,186 reductions announced last year. The aerospace industry was the hardest hit of the three. Defense industry budget cuts presumably brought on cutbacks of 98,273 or 16 percent of 1993's reductions.
 The highly competitive computer industry reported the second highest number of cutbacks for the year. Computer workers suffered through 94,831 staff reductions or 15 percent of all cutbacks for the year. IBM accounted for nearly two-thirds of the computer-related reductions for the year.
 Retailers ranked third for the year with 82,514 or 13 percent of total cutbacks.
 Other industries hardest hit during 1993 included: communications (50,021 reductions or 8 percent of cutbacks), transportation (33,529 or 5 percent), health care (26,453 or 4 percent), food (13,470 or 2 percent) and utilities (12,384 or 2 percent).
 Reductions were announced in all regions of the country but three states accounted for 45 percent of the year's total. Companies headquartered in New York reported the most reductions of any state in 1993 with 139,208. Staff reductions of 75,968 were announced by Illinois-based companies and 63,728 cutbacks were reported by companies headquartered in California.
 Although consumer confidence reached its highest point since the Persian Gulf War and the economy grew steadily over the course of 1993, many companies continued announcing major restructuring efforts that involved eliminating thousands of jobs.
 The aerospace industry was hit especially hard during 1993 and government reports suggest that nearly two-thirds of the defense-related cutbacks are still to come.
 The retail industry also fell on rough times in 1993, due in large part to low levels of consumer confidence throughout the year. Although consumer confidence has increased in recent months, the downsizing trend for retail companies continues. Retail cutbacks have already surfaced in 1994, with five of the first 15 reduction announcements in January coming from retail companies.
 A new development in 1993 involved companies who announced preemptive layoffs to ensure future profitability. The common misperception is that only companies dealing with adverse economic conditions make cutbacks. The past year saw more employers restructuring their staffs now to meet the demands of the marketplace in years to come.
 "Companies also became increasingly committed over the past year to increasing profits by bolstering productivity with fewer workers. The theme of doing more with less shows no sign of letting up," according to James E. Challenger, president of the outplacement firm (312-332-5790).
 "However, job seekers should not become discouraged and decide that if major companies are continuing to cutback, that they will be unable to find work. Companies that are downsizing in one area may still be hiring in other departments," he said.
 Recently General Motors reported the company will be hiring 2,000 engineers even though it will reduce employee payroll.
 Challenger said that some companies who announced major downsizing plans during 1993 may find that they reduced staffs too drastically and need to hire new employees to fill in the gaps.
 "It should be encouraging for job seekers to learn that many companies are finding that reducing the employee payroll is often not the long-term answer to increasing productivity and profits. As more employers discover this, the result could be a downturn in total cutbacks," concluded Challenger.
 CHALLENGER EMPLOYMENT REPORT
 BY INDUSTRY
 (January-December 1993)
 Aerospace 98,273
 Computer 94,831
 Retail 82,514
 Communications 50,021
 Transportation 33,529
 Health Care 26,453
 Food 13,470
 Utility 12,384
 Number of Employers Totals
 JANUARY 28 103,217
 FEBRUARY 52 36,970
 MARCH 70 30,428
 APRIL 53 31,508
 MAY 50 14,086
 JUNE 58 38,669
 JULY 68 98,736
 AUGUST 68 46,964
 SEPTEMBER 67 48,786
 OCTOBER 79 66,801
 NOVEMBER 52 67,632
 DECEMBER 32 31,389
 TOTAL 677 615,186
 Some reductions are identified by employers as workers who will take early retirement offers or other special considerations to leave the company.
 CORPORATE HEADQUARTERS
 1. New York 139,208
 2. Illinois 75,968
 3. California 63,728
 4. Ohio 49,165
 5. Washington 33,287
 Listings are identified by the location of the corporate headquarters of the employer.
 Source: Challenger, Gray & Christmas, Inc., 312-332-5790
 -0- 1/17/94
 /CONTACT: Herbert H. Rozoff or Michael J. Marker of Ruder-Finn, 312-644-8600/


CO: Challenger, Gray & Christmas, Inc. ST: IN: ECO SU:

TM-CK -- NY002 -- 2432 01/17/94 10:01 EST
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Date:Jan 17, 1994
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