In a sign of how deeply companies are feeling the squeeze of the global recession, announcements of some 30,000 layoffs has hit the market in the last day, building on the recent surge of job cuts as economic woes mount.
November announcements in the U.S. alone surged to a nearly seven-year high of 181,671, according to outplacement consultancy Challenger, Gray & Christmas, more than double a year earlier.
Meanwhile, global markets are bracing for particularly weak U.S. jobs figures to be released Friday. A few analysts say job losses for just last month may approach 500,000, on top of the 1.2 million recorded in the first 10 months of 2008.
The telecommunications industry has been slammed since Wednesday morning, with giant AT&T saying Thursday it will cut about 12,000 jobs, or 4% of its workforce, by the end of next year, amid economic pressure. Telecom Italia said Wednesday it will add 4,000 job cuts to the 5,000 it had already announced in June.
Financials continue to be a focal point as well, with Zurich-based Credit Suisse Group saying Thursday it would cut more than 10% of its work force, or about 5,300 people, as it moves to scale back its investment-banking arm. Fellow money manager State Street announced a 6% cut late Wednesday, or about 1,600 to 1,800 employees.
And Japan’s Nomura Holdings said Thursday it will lay off up to 1,000 of the 4,500 staff members at its operations in London. The company is cutting costs follwoing its acquisition of Lehman Brothers Holdings Inc.’s equities and investment-banking operations in Europe. – Kerry E. Grace
