Job cuts soared in August, outplacement firm says

Job cuts soared in August, offering the latest evidence of a slowdown in the labor market as some economists warn of a possible recession, according to data released on Thursday by outplacement firm Challenger, Gray and Christmas (CGC). U.S. companies announced nearly 86,000 jobs cuts in August, which amounted to a 39% increase from the previous month, CGC said. The figure indicated the largest number of job cuts in the month of August since 2020, which coincided with the onset of the COVID-19 pandemic. August marks the sixth time this year that total job cuts surpassed those of the corresponding month one year prior, CGC said. “After the impact of DOGE on the Federal Government, employers are citing economic and market factors as the driver of layoffs,” said Andrew Challenger, senior vice