Latest news with #AndrewChallenger
Yahoo
3 days ago
- Business
- Yahoo
Joann, Rite Aid, JCPenney, and other store closings contribute to a 274% surge in retail layoffs in 2025
Layoff announcements from U.S. employers have increased 80%, to 696,309 job cuts, through May of this year. That's in comparison with the 385,859 cuts announced throughout the first five months of 2024, according to the latest layoffs report from Challenger, Gray & Christmas, a Chicago-based executive outplacement firm. Why you're catching the 'ick' so easily, according to science Uber's new senior mode aims to remove barriers for aging riders Why AI Is Making 1:1 Meetings Irrelevant Federal government agencies have been most impacted by planned job cuts in 2025, with 284,827 job reductions year to date, compared with 36,325 U.S. government job cuts announced during the same period last year. Retail is the second-leading industry in job cuts this year, with 75,802 cuts since the start of 2025. That's a 274% increase in retail job reductions compared with the same period last year, when U.S. companies announced 20,276 layoffs. According to the report, DOGE-related efforts remain the leading reason given for job cut announcements this year. This includes reductions in federal employee and contractor roles, and private nonprofit layoffs resulting from federal funding cuts. Market and economic conditions were the second-most cited explanation for announced U.S. layoffs, followed by store closings. In a news release discussing the layoff report, Andrew Challenger, senior vice president of Challenger, Gray & Christmas, said: 'Tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies' workforces. Companies are spending less, slowing hiring, and sending layoff notices.' Store closings being among the top reasons cited for U.S. retail layoffs is unsurprising. Fast Company has written extensively about retail store closings throughout the U.S., from companies like Kohl's, Macy's, and JCPenney. While some retailers have chosen to shutter the doors of some locations, others have filed for bankruptcy protection and announced company-wide store closures. In January 2025, Joann filed for bankruptcy for a second time. The fabric and crafts store previously filed for bankruptcy protection in March 2024. Similarly, Rite Aid publicized its decision to file for Chapter 11 bankruptcy on May 5. The retail pharmacy first filed for bankruptcy in October 2023. As for hiring efforts, U.S. companies have announced 79,741 planned hires through May of this year, an increase of 57% from the same period last year. However, planned hiring announcements remain historically low compared with pre-pandemic and early-pandemic years. This post originally appeared at to get the Fast Company newsletter: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
4 days ago
- Business
- Business Insider
Job growth was better than expected in May despite heightened economic uncertainty
Economists predicted job growth of 126,000 and for unemployment to remain at 4.2%. This is the third straight month of a 4.2% rate and the 13th straight month at or above 4%. April's job growth was revised from 177,000 to 147,000, and March's growth was revised from 185,000 to 120,000. That means that there were 95,000 fewer jobs created over those two months than BLS previously reported. Wage growth continued its consistent year-over-year growth of 3.9% in May. Average hourly earnings increased from $34.89 a year ago to $36.24. Month-over-month wage growth was also slightly better than expected. Labor force participation cooled from 62.6% in April to 62.4% in May. Healthcare and leisure and hospitality had high job growth over the month compared to other industries. Employment fell by 8,000 in manufacturing and by 18,000 in professional and business services. There were more cuts to the federal government; employment fell by 22,000 in May, more than the declines in the past few months. The new data release from the Bureau of Labor Statistics is just one of several recent reports illustrating the much-watched US labor market. The Federal Reserve's Beige Book showed that some businesses are delaying hiring due to economic uncertainty. Separately, the National Federation of Independent Business showed small business optimism has continued to weaken. While insured unemployment claims are still low, they climbed in May. The back and forth on tariffs, including a 90-day pause with China and higher duties on steel and aluminum, is adding pressure to business decisions. Cuts and deferred resignations within federal government agencies could mean job seekers turn to the private sector or leave the labor force. "Tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies' workforces," Andrew Challenger, senior vice president of the outplacement firm Challenger, Gray & Christmas, said in a report before Friday's news release. Companies are spending less, slowing hiring, and sending layoff notices. President Donald Trump has argued tariffs will help the US economy, despite some short-term pain for businesses and consumers. CME FedWatch showed based on market trades an overwhelming chance the Federal Reserve will decide to hold interest rates steady at the next Federal Open Market Committee meeting in mid-June. Like business owners, the Fed is hoping for more clarity on the evolving economy.
Business Insider
4 days ago
- Business
- Business Insider
Job growth was better than expected in May despite heightened economic uncertainty
The US added 139,000 jobs in May, more than expected, and the unemployment rate didn't budge. Economists predicted job growth of 126,000 and for unemployment to remain at 4.2%. This is the third straight month of a 4.2% rate and the 13th straight month at or above 4%. The new data release from the Bureau of Labor Statistics is just one of several recent reports illustrating the much-watched US labor market. The Federal Reserve's Beige Book showed that some businesses are delaying hiring due to economic uncertainty. Separately, the National Federation of Independent Business showed small business optimism has continued to weaken. While insured unemployment claims are still low, they climbed in May. The back and forth on tariffs, including a 90-day pause with China and higher duties on steel and aluminum, is adding pressure to business decisions. Cuts and deferred resignations within federal government agencies could mean job seekers turn to the private sector or leave the labor force. "Tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies' workforces," Andrew Challenger, senior vice president of the outplacement firm Challenger, Gray & Christmas, said in a report before Friday's news release. "Companies are spending less, slowing hiring, and sending layoff notices." President Donald Trump has argued tariffs will help the US economy, despite some short-term pain for businesses and consumers. CME FedWatch showed based on market trades an overwhelming chance the Federal Reserve will decide to hold interest rates steady at the next Federal Open Market Committee meeting in mid-June. Like business owners, the Fed is hoping for more clarity on the evolving economy.
Fast Company
4 days ago
- Business
- Fast Company
Joann, Rite Aid, JCPenney, and other store closings contributed to a 274% surge in retail layoffs in 2025
Layoff announcements from U.S. employers have increased 80% to 696,309 job cuts through May of this year, compared to the 385,859 cuts announced throughout the first five months of 2024, according to the latest layoffs report from Challenger, Gray & Christmas. Federal government agencies have been most impacted by planned job cuts in 2025, with 284,827 job reductions year to date, compared to 36,325 U.S. government job cuts announced during the same period last year. Retail is the second-leading industry in job cuts this year, with 75,802 cuts since the start of 2025. That's a 274% increase in retail job reductions compared to the same period last year, when U.S. companies announced 20,276 layoffs. Why are companies laying off workers? According to the report, DOGE-related efforts remain the leading reason given for job cut announcements this year. This includes reductions in federal employee and contractor roles, and private nonprofit layoffs resulting from federal funding cuts. Market and economic conditions were the second-most cited explanation for announced U.S. layoffs, followed by store closings. In a news release discussing the layoff report, Andrew Challenger, senior vice president of Challenger, Gray & Christmas said, 'Tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies' workforces. Companies are spending less, slowing hiring, and sending layoff notices.' Retail store closures are trending upward Store closings being among the top reasons cited for U.S. retail layoffs is unsurprising. Fast Company has written extensively about retail store closings throughout the U.S., from companies like Kohl's, Macy's, and JCPenney. While some retailers have chosen to shutter the doors of some locations, others have filed for bankruptcy protection and announced company-wide store closures. In January 2025, Joann Fabrics filed for bankruptcy for a second time. The fabric and crafts store previously filed for bankruptcy protection in March 2024. Similarly, Rite Aid publicized its decision to file for Chapter 11 bankruptcy on May 5. The retail pharmacy first filed for bankruptcy in October 2023. Hiring efforts are up slightly, yet remain sluggish
UPI
5 days ago
- Business
- UPI
Procter & Gamble reorganization to cut 7,000 jobs over two years
Procter & Gamble said Thursday it plans to cut 7,000 jobs, about 15% of its workforce, over two years. The company said it's part of a plan to accelerate growth. The Opte, an at-home precision skincare solution, seen during a Proctor and Gamble press conference at the 2020 International CES, in Las Vegas. File Photo by James Atoa/UPI | License Photo June 5 (UPI) -- Procter & Gamble said Thursday it plans to cut 7,000 jobs as part of a plan it said aims to accelerate growth. The company said the cuts will take place over the next two years and represent 15% of its non-manufacturing workforce. "In Fiscal 2026, we'll begin a 2-year effort to accelerate P&G's growth and value creation. These changes across our portfolio, supply chain and organization are designed to unlock significant opportunities for stronger delivery of P&G's integrated growth strategy," the company said in a statement. Procter & Gamble said the workers losing their jobs will be "managed with support and respect, and in line with our principles and values and local laws." The workforce reduction is part of similar actions across U.S. industries amid tariff turmoil, fierce competition and consumer spending changes. Companies are spending less, slowing hiring and sending layoff notices," Andrew Challenger, senior vice president of Challenger, Gray & Christmas, said in an emailed statement to CBS News. According to Challenger, job cuts are 47% higher now than a year ago. According to Procter & Gamble, fiscal year 2024 was the eighth straight year of 2% or better earnings per share growth. "Through the first three quarters of the 2025 fiscal year, P&G delivered +3% Core EPS growth -- at the mid-point of 2-to-4% guidance range for the fiscal year," the company statement said. Procter & Gamble also said over the first three fiscal quarters of 2025 $13 billion was returned to shareholders through dividends and share repurchases. In addition to the layoffs, Procter & Gamble said changes it is implementing are focused on its portfolio, supply chain and organization design. This will include ending some "categories, brands and product forms in individual markets" that could include some brand divestitures. The Procter & Gamble supply chain will also be re-sized and re-located in an effort to " drive efficiencies, faster innovation, cost reduction and even more reliable and resilient supply." There will also be changes in what Procter & Gamble said are "accountable organization design," including making roles broader, making teams smaller while leveraging digitization and automation. As Procter & Gamble reorganizes to deliver higher profits for shareholders, workers will be impacted by the job cuts and changing responsibilities within the company. Procter & Gamble said taken together, these changes are "intended to widen P&G's margin of advantage in superiority leading to growth and value creation."
