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Layoff announcements rose in April, possibly signaling job weakness ahead in Arizona

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7 months ago

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Layoff announcements rose in April, possibly signaling job weakness ahead in Arizona

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A flurry of April job cuts could mean cracks, though modest, are starting to appear in Arizona’s generally solid employment foundation. 

Seven companies reported layoffs totaling 1,979 jobs last month compared to just three layoff announcements affecting 267 positions in April 2023, according to notices posted on the state azjobconnection.gov website.

Layoffs so far this year through April now are running slightly ahead of the same total in 2023, though both numbers are small compared to Arizona’s overall workforce.

Two big layoff announcements boosted the numbers for April. One was the planned closing of 99 Cents Only stores nationally, including about 39 locations affecting roughly 1,400 workers in Arizona. The discount retail chain, based in the Los Angeles area, said it has been grappling with changing consumer tastes, inflation pressures, inventory shrinkage because of theft and other issues.

Jobs report: Employers added 175,000 jobs in April, unemployment rises to 3.9%

Another large layoff was the announced cut of 227 positions at Kuehne and Nagel, a Swiss company that has been providing logistical help for Honeywell International. Many of those workers still could find jobs at Honeywell, which employs more than 7,100 people in the Phoenix area.

“Honeywell previously contracted with Kuehne and Nagel to provide logistics services at two of its Phoenix-area sites but has decided to insource those roles and is actively hiring to fill these positions,” the company said in a statement to The Arizona Republic.

For the year to date through April, 28 companies announced layoffs totaling 3,374 workers, up from 30 layoff announcements affecting 3,101 job cuts through the first four months of 2023. Both are small compared to overall employment in Arizona, which rose by around 70,000 positions over the 12 months through March 2024 to 3.25 million jobs total, with April figures not yet released.

Arizona’s unemployment rate of 3.8% in March was slightly below the U.S. average of 3.9%.

Prior to the layoff by 99 Cents Only, the previous biggest announcement so far this year was a cut of 335 statewide positions by American Airlines, disclosed in January.

The layoff numbers reported to the state are subject to revision. For example, Lucid Motors, a manufacturer of luxury electric vehicles, had reported 968 job reductions at its plant in Casa Grande in 2023, but the automaker later said it recalled most of those workers and this year celebrated an expansion of the facility.

Businesses with 100 or more full-time workers generally must give employees 60 days notice of facility closings or mass layoffs.

Reach the writer at russ.wiles@arizonarepublic.com.

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