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Layoffs jump in September
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October 6, 1998: 11:14 a.m. ET
U.S. companies shed workers as international financial crisis hits home
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NEW YORK (CNNfn) - The number of layoffs surged in September as the global financial crisis took its toll on corporate America, a survey by Challenger, Gray & Christmas showed Tuesday.
U.S. companies cut 73,062 jobs in September, up 97 percent from August's 37,177 and 253 percent from 20,698 a year ago.
Layoffs in the year to date total 431,456, an increase of 53 percent from the comparable 1997 figure of 281,496.
Financial turmoil in Asia and Russia were most often cited for the cutbacks, the firm said.
In fact, 44,297, or 61 percent, of September cuts were attributed to international factors and one-third of U.S. companies specifically cited the Asian crisis.
"For months, it appeared that the U.S. might remain relatively untouched by the financial crises abroad," John Challenger, the firm's executive vice president said. "However it most certainly seems that the impact is starting to ripple through our economy."
September's layoffs are the highest since January 1996, when 97,379 jobs were cut.
Sinking overseas demand for U.S. products has left manufacturers fighting to keep profits up, resulting in layoffs.
"As earnings fall, corporations are quick to slash compensation costs, and that is brining about wholesale job cuts," Challenger said.
Challenger also said U.S. companies are being hit hard by competition from overseas companies that can sell their goods for less money in the United States as their currency deflates.
Finally, falling oil prices have prompted cost-cutting moves from some of the world's largest oil producers, which force suppliers and other oil-related service firms to take similar action, Challenger said. 
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