November Layoffs Hit Highest Level in 7 Years

November layoffs at U.S. firms surged to their highest monthly level in nearly seven years during November, led by the financial and auto sectors, according to separate reports released Wednesday.

AP

Job cuts announced in November totaled 181,671, up 61 percent from October and 148 percent higher than November 2007, when job cuts totaled 73,140, outplacement firm Challenger Gray & Christmas said in a report released on Wednesday.

A separate report by ADP Employer Services put the November job cuts at 250,000 jobs.

The November planned layoffs was the largest monthly toll since January 2002, when employers announced a record 248,475 planned layoffs.

The most dramatic job cuts cited for November was Citigroup's plan to reduce its payroll by 52,000 employees.

Overall, financial sector layoffs announced totaled 91,356 in November, the report said.

John Challenger, chief executive officer of Challenger, Gray & Christmas, said that while the financial sector struggled and the automotive sector continued to see heavy job cuts, slower spending by consumers and businesses was causing layoffs in other sectors of the economy to climb as well.

Historically, the holiday spirit said to prevail in December has not kept the hand off the job chopping block, Challenger noted.

"Many employers make last-minute staffing adjustments to meet year-end earnings goals," he said.

(Watch the accompanying video for more on the employment numbers.)

ADP also said it revised the number of jobs cut in October to 179,000 from the originally reported loss of 157,000.

Economists had expected the ADP report to show 200,000 private-sector jobs were lost in November, according to the median of forecasts in a Reuters poll. The 24 forecasts ranged from a drop of 350,000 to a decline of 175,000.

The ADP Employer Services report was jointly developed with Macroeconomic Advisers.

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