Survey finds planned U.S. job cuts at two-year low

By Brendan Murray
Bloomberg News Service

WASHINGTON — The number of job cuts announced by U.S. employers in September fell to the lowest level in almost two years, a private survey found.

Businesses last month announced plans to eliminate 70,057 positions, the lowest since 44,152 in November 2000, according to the placement firm Challenger, Gray & Christmas Inc.

The job cuts announced in September were about a third of the record 248,332 in September 2001, and down from 118,067 in August.

Transportation companies last month announced plans to cut 17,646 jobs, more than any other industry, the survey said.

Telecommunication companies, with 6,956 announced cuts last month, ranked second, and computer makers third, at 6,514 announced job cuts.

"One report suggests the economy is headed toward recovery, while the next seems to hint that we are stuck in recession," said John Challenger, the firm's chief executive officer, in a statement.

In the first nine months of the year, U.S. companies publicly stated plans to eliminate 1 million jobs, down 27 percent from 1.37 million announcements through September last year, according to the survey.

Last month, Delta Air Lines Inc. said it would cut 1,500 flight attendant jobs, SBC Communications Inc. said it planned to end employment for 11,000 workers, and Ciena Corp. said it would drop 450 positions.

Job-cut announcements aren't the same as firings, because many of the reductions will be carried out through attrition or early retirement. Some employees find work elsewhere in their companies, and many announced staff reductions are abandoned when business improves.