Planned layoffs dip in June but soar from a year ago

NEW YORK (Reuters) - Planned layoffs at U.S. companies fell 21 percent in June from May's 29-month high, but were 47 percent above June 2007, while second-quarter cuts were the highest since late 2005, a report showed on Wednesday.

Planned job cuts at U.S. companies totaled 81,755, compared with 103,522 in May and 55,726 in June 2007, employment consulting firm Challenger, Gray & Christmas Inc reported.

Job cuts in the second quarter totaled 275,292, the highest quarterly total since the fourth quarter of 2005.

The financial sector had the most planned cuts for the third month this year as the credit crisis continued to take a toll.

Jobs shed in financial industries in June were at 19,227, nearly 24 percent of all planned cuts, leading by far the government/non-profit and telecommunications sectors, both with less than 11,000 layoffs in the month.

"Downsizing in the financial sector has remained heavy but now we are seeing increased job cuts in other non-housing-related industries, mostly due to the added burden of skyrocketing oil prices," said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

He said second-quarter job cuts in the automotive industry tripled from the first quarter, layoffs in telecommunications jumped 191 percent, and cuts in the computer and transportation industries are up close to 115 percent from the first quarter.

"Remarkably, job cuts have not spread as widely as we might expect in this weakening economy. Job cuts in the retail, industrial goods and consumer product manufacturing sectors have remained fairly level since the economy began its decline last August," Challenger said.

(Reporting by Rodrigo Campos; Editing by James Dalgleish)