Challenger: 46,887 Layoffs in July, Led by Microsoft Cuts

WASHINGTON — There were 46,887 layoff intentions announced in July, up from 31,434 in June and from 37,701 in July 2013 due to large layoffs at Microsoft, job placement firm Challenger, Gray and Christmas, Inc. said in a report released Thursday. The data are not seasonally adjusted.

Layoffs in July were led by the computer sector, which reported 18,359 job cuts in the month, 18,000 of which came from Microsoft. Challenger noted that a key reason for the large July layoff announcement at the large tech firm was its acquisition of Nokia, but added that general streamlining at tech firms has been a common theme in 2014.

"The large job cuts in the computer industry are certainly not a sign of a stalling economy," said John Challenger, chief executive officer of Challenger, Gray & Christmas.

"The fact is, these are companies that are trying to adjust to where the growth is occurring," he added.

Challenger noted that the biggest threat to economic growth in the near future appears to be shortage of of skilled workers.

Through the first seven months of 2014, tech firms accounted for 48,361 jobs cuts, the largest total by far. The retail sector posted the second highest total in 2014, with a relatively smaller 29,046 cuts.

In other data released, hiring intentions rose to 16,544 in July from 15,530 in June and were up sharply from the 9,728 hiring intentions in July 2013. The automotive and health care sectors posted the largest hiring increases in July.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.
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