Many companies are announcing big layoffs. Even with a recovery of the Coronavirus, things will take a long time to go back to normal.Travel has been restricted along with dining out in our favorite restaurants and going to our favorite gym. Most of our of activities have been reduced to buying everything online due to store closures. Amazon and Walmart are making a killing during this pandemic. Why wait in line at the grocery store when you can order online, and have it delivered in two to three hours from Amazon?
Walmart now competes with Amazon with fast deliveries and its own version of a Prime membership for less than what Amazon charges. It’s been extremely hard for smaller retailers to compete with Amazon
Bed Bath & Beyond just an announced it is going to lay off 5% of its workforce. That means $55,000 will get the cut. The 2,800 jobs that will be eliminated will be affected immediately. Bed Bath & Beyond is also closing 200 stores permanently at the end of this year.
Travel has been restricted because countries have closed their borders to American citizens due to the Coronavirus. Anyone traveling to many of these countries that have closed the borders must be in quarantine for 15 days – not the way to take an affordable vacation. Travel is down and many airlines are suffering.
American Airlines just announced it will suspend service to 15 Markets when the Cares Act service commitment expires in October. Suspensions will remain until November 3rd. The airline will also cut 19,000 as it expects the fourth quarter to be cut in half of last year’s level. American Airlines is asking for an extension of 25 billion federal payroll aid, so it does not have to lay off more workers. The Coronavirus has decimated travel demand. If American Airlines receives 25 billion dollars in federal aid it will cover labor cost for just six more months. Hopefully by then travel demand will be back to normal once the Coronavirus settles down.
Delta Airlines will furlough 1900 pilots coming this October. Like American Airlines, Delta it’s looking to the union to agree on cost-cutting agreements.
The New York City public transit system has announced a $1 increase for rides as well as layoffs planned if it does not receive 12-billion-dollar emergency aid. The MTA states that cost-cutting just doesn’t cut it. The MTA would also plan a 40% reduction in transit service as well as thousands of employees being laid off.
Banking giant Wells Fargo also precedes with layoffs due to a significant rise in Opera expensive since it’s controversy in 2016. The bank is looking to cut its annual expenses by 10 billion. This would include the closures of branches and tens of thousands of workers that would be affected.
Dell Technologies which owns an 80% stake in VMware has also announced layoffs. There will be salary freezes among top management job cuts. VMware employs 31,000 across the world. Computer maker Dell employs approximately 165,000 around the globe. Dell Technologies and VMware are Global Channel leaders. Shawn Toldo, VP of VMware’s Worldwide Partner Organization, was let go as part of VMware’s round of layoffs.
Salesforce announced it will be laying off up to 2,000 this week within their sales organization. This is a measure to help the company run much leaner for this year and beyond.Shares of Salesforce rose more than 26% after announcing big earnings increase after the bell on Tuesday.Salesforce.com also replace Exxon in the Dow.
And to top it off, CNN reports that “More than 5 million people won’t get the $300 unemployment boost right now.” Most states have gotten approval to offer workers at least $300 a week in extra unemployment benefits-But more than a dozen haven’t — and that leaves millions of workers without additional aid.” Source CNN.com