Bankruptcy-Related Job Losses Increasing at Rates Not Seen Since 2009 - ABI

In the first seven months of the year, U.S.-based companies announced 42,937 job cuts due to bankruptcy, up 40 percent on the same period last year and nearly 20 percent higher than all bankruptcy-related job losses last year, a report released Tuesday concluded, reported. Despite record-low unemployment, bankruptcy filings have not claimed this many jobs since the Great Recession. “It is the highest seven-month total since 2009 when 50,258 cuts due to bankruptcy were announced,” according to the report by outplacement and business coaching firm Challenger, Gray & Christmas. “In fact, it is higher than the annual totals for bankruptcy cuts every year since 2009, when 50,911 were announced for the entire year.” Companies cited bankruptcy as the reason for 11.6 percent of all job cuts announced from January to July. That’s compared to 11.3 percent of all cuts for the same period in 2018. Since 2007, bankruptcy has accounted for approximately 6 percent of all job cuts every year. The Challenger report tracks planned job cuts publicly announced by U.S.-based employers

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