Just in Time for the Election (or a Bailout)
American and United Airlines will bring back workers if they get more aid. Otherwise, Say Goodbye to 32,000 Jobs.
“We implore our elected leaders to reach a compromise, get a deal done now, and save jobs,” United said Wednesday night. The airline said over 13,400 employees will be out of a job starting Thursday.
American, which has planned deeper cuts than any other carrier, also told Treasury Secretary Steven Mnuchin that it will bring its 19,000 workers back if lawmakers can approve more aid in the next few days, Chief Executive Doug Parker told employees in a letter.
Mr. Mnuchin and House Speaker Nancy Pelosi (D., Calif.) renewed their stalled negotiations this week, though they failed to reach an agreement Wednesday afternoon. Still, Democrats and the White House continued to seek common ground. The House of Representatives opted to delay a vote on a $2.2 trillion coronavirus-aid package, which Democratic aides said would allow the two sides to keep talking. As it stands now, the legislation has no chance of passing in the Senate.
3,800 Layoffs at Allstate
With people driving fewer miles and traffic accidents down, Allstate to Lay Off 3,800 Employees. That’s about 8% of the insurer’s approximately 46,000 workers.
Shell to Cut Up to 9,000 Jobs
It’s another tough quarter as the pandemic continues to sap demand for oil.
If people aren’t driving or flying what’s an energy company to do?
Here’s the obvious answer: Shell to Cut Up to 9,000 Jobs.
The update from Shell gives a first glimpse at how the world’s biggest oil companies have continued to struggle in the most recent quarter. The pandemic has sapped demand for oil, sending prices tumbling and hitting profits hard. That has already prompted Shell to write down the value of some of its assets and cut its dividend for the first time since World War II.
Shell said it was restructuring to focus more on the highest value oil it produces, grow in liquefied-natural gas and invest in low carbon energy businesses, while shrinking its refining operations.
The planned job cuts follow similar moves at peers including BP PLC and Chevron Corp. to rein in costs amid the pandemic.
The announced cuts of 7,000 to 9,000 are about 10% Shell’s 80,000 workforce.
If traffic won’t return, what’s the point of paying people to do nothing?
Mish
Meanwhile, the owners of the stocks on the Dow (about ten people, right?) believe that although the mass layoffs are a concern, its not THAT big of a concern. (Dow down 8 points).
“The airlines, insurance, and energy industries are laying off tens of thousands of workers.”
MILLIONS were put out of work by partially shutting down the economy.
Disneyland is still closed, some 6 months later. YELP said some 60% of businesses shut down are closed permanently.
The headline is really rather meaningless, in light of what state governments unprecidentedly done to trash their economies.
Hell, here in CA, many libraries are still fully closed, almost 7 months later because the workers are afraid of “getting the Covid”!
Demand destruction at work. Hard to comprehend in a world where y.o.y. growth has been a given for as long as anybody can remember.
If your business model requires regular government subsidies to remain viable, then perhaps you don’t deserve to be in business.
Trump is the boss,get the republicons on the same page and come out with the mother of all stimulus….Go big,Dems want 2.2,go 4 or even 5 tril,that’s right,Trump announce a 5 trillion $$ stimulus package and this election is over,he’ll sweep every state,Joebama goes back to the nursing home!….Check n mate!
Many conservative Americans work their lives away and never leave their home towns. Many have never even flown. It’s a rip off to them if government debases their currency in order to bail out a service which only lives at current levels if there is ever expanding debt and currency debasement (which end up being one in the same). Very sorry if people lose jobs but stealing from others by debasing the currency is amoral. Why does this never seem to get discussed? The government has no money of its own. It only has what it can steal from the people under credible threat of physical force and or death.
Heh. Morals and slippery slopes are not valid concerns in today’s world.
All he has to do is add $500/monthly to every SS check and he will get the votes of almost all the people collecting SS.
Only “conservative” Americans?
Good to know. Didn’t know I was “conservative.”
You can broaden your argument to say that government’s practice of currency debasement which pays the salaries of the entire huge bureaucratic administrative state is unfair to the actual small sliver of the productive class.