Cutbacks in retail and the auto industry sent job reductions soaring to over 50,000 in May, outplacement consultancy Challenger, Gray & Christmas reported Thursday.
The total of 51,692 in May was 41 percent higher than the 36,602 job cuts announced in April and 71 percent higher than in May 2016, when employers said they would lay off 30,157 workers.
Nearly 40 percent of the May cuts were announced by Ford Motor.
“Ford’s announcement of 20,000 global layoffs to streamline and cut costs is a typical strategy of large corporations who need to pivot to stay competitive,” said John A. Challenger, CEO of Challenger.
“As consumers demand electric and self-driving options, traditional automakers will need to adapt.”
The auto industry led in May with 20,271 job cuts, bringing the sector’s year-to-date total to 28,996. Retailers still had the most job cuts this year — 55,910, including 5,777 in May, according to the report.
The above figures represent job cuts for 2017.
Source: Challenger, Gray & Christmas
Apparel stores are not the only retailers cutting jobs, either.
The retail industry is starting to see more of its cuts stemming from grocery stores for the first time, Andy Challenger told CNBC’s “Squawk Box” Thursday morning. “You’ve seen the Jet.com purchase by Wal-Mart … e-commerce is coming to the grocery stores as well.”
“Grocery stores are no longer immune from online shopping,” Challenger wrote in its report.
“Meal delivery services and Amazon are competing with traditional grocers, and Amazon announced it is opening its first ever brick-and mortar store in Seattle. Amazon Go, which mixes online technology and the in-store experience, is something to keep an eye on since it may potentially change the grocery store shopping experience considerably.”
Source: Challenger, Gray & Christmas
In May, health care and products companies announced 3,054 job cuts, and the service industry announced plans for 4,082 reductions.
Challenger’s data come a day before the closely watched monthly employment report by the Bureau of Labor Statistics.