Challenger - planned job cuts surged to a 16-month high in July

The number of planned job cuts surged to a 16-month high in July -- rising 60% in July to 66,414 from June's 41,432, according to outplacement consulting firm Challenger, Gray & Christmas.

The firm characterized it as a "sudden and unexpected burst" in downsizing.
Job killing companies

The data was hardly a surprise though, given a flurry of mass layoffs announced in the last few weeks by Cisco Systems, Merck & Co., Borders, Lockheed Martin and Boston Scientific. Those five companies alone accounted for 38,100 planned cuts in July.

"What may be most worrisome about the July surge is that the heaviest layoffs occurred in industries that, until now, have enjoyed relatively low job-cut levels, including pharmaceuticals, computer and retail," John A. Challenger, chief executive officer of Challenger, Gray & Christmas said in a statement.

Employers have now announced a total of 312,220 planned job cuts this year -- down 8% from 339,353 cuts announced in the first seven months of 2010. More...