Fact Check: "Job cuts can occur during corporate restructuring or bankruptcy."
What We Know
The claim that job cuts can occur during corporate restructuring or bankruptcy is supported by recent data and reports. According to Challenger, Gray & Christmas, companies in the U.S. announced over 744,000 job cuts in the first half of 2025, the highest number since the onset of the COVID-19 pandemic in 2020. This surge in layoffs is attributed to various factors, including corporate restructuring efforts and bankruptcies. Notably, companies like Del Monte, At Home, and 23andMe have filed for bankruptcy this year, leading to significant job reductions as part of their restructuring processes (Challenger, Gray & Christmas).
Additionally, a report from CNBC highlights that many companies are integrating layoffs into broader cost-cutting strategies, which often accompany restructuring initiatives. The report notes that companies such as Procter & Gamble and Microsoft have announced substantial job cuts as part of their restructuring efforts, further reinforcing the link between job cuts and corporate restructuring.
Analysis
The evidence supporting the claim is robust. The data from Challenger, Gray & Christmas indicates a clear correlation between corporate restructuring, bankruptcy, and job cuts. The significant number of layoffs reported in 2025, particularly in sectors heavily impacted by economic factors, underscores the reality that companies often resort to workforce reductions during times of financial instability or organizational change (Challenger, Gray & Christmas).
Moreover, the CNBC report provides additional context by discussing how companies are under pressure to reduce costs amid economic uncertainty, which frequently leads to layoffs being included in restructuring plans. The mention of specific companies and their restructuring efforts lends credibility to the claim, as it illustrates real-world applications of the phenomenon (CNBC).
However, it is essential to consider the reliability of the sources. Challenger, Gray & Christmas is a well-regarded outplacement firm known for its labor market analysis, while CNBC is a reputable news organization that covers economic issues extensively. Both sources provide factual data and insights that are relevant to the claim, making them credible references.
Conclusion
The claim that "job cuts can occur during corporate restructuring or bankruptcy" is True. The evidence presented from credible sources demonstrates a clear connection between corporate restructuring efforts, bankruptcy filings, and the resulting job cuts. The significant number of layoffs reported in 2025, along with the specific examples of companies restructuring, supports this assertion.
