Planned job cuts soar 42% in May
Employers announced 82,283 job cuts in May, compared to 57,861 in April, according to a monthly report issued by Challenger, Gray & Christmas.
May job cuts rose 12 percent from the year-ago period. So far this year, 427,278 job cuts have been announced, 4.6 percent more than the five-month total of 408,392 last year, the report said.
Computer companies -- which reported 17,886 cuts, or about one-fifth of the monthly total -- led the rise in May, while the transportation industry ranked second with 7,339 announced job cuts.
I think companies cutted employees number to make themselves more efficient.
they cutted number of employees in the opportunity cost of employees' pleasant life.
people who were cutted won't have stable and consistent income anymore. but companies are better off at this time.
any point of views?
1 comment:
Remember what we learned in chapter one; people exploit opportunities to make themsleves better off. If they thought that they could become more efficient and cut costs by downsizing, then that is exactly what a company will do to make a certain profit set by their CEO or superior. There could be several reasons for the job loss such as outsourcing jobs to areas that will make the same product for less. On the other hand, maybe the product that the company sold in the past is not currently meeting expectations, so the company has to let people go in order to sustain some profit.
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