Large U.S. Firms Are Laying Off Thousands Of Workers

 

If the U.S. economy is “booming” and very bright days are ahead, then why are many large U.S. corporations laying off thousands of workers?  Layoffs are starting to come fast and furious now, and this is happening even though the coming recession has not even officially started yet.  Of course many are convinced that we are actually in a recession at this moment.  In fact, according to John Williams of shadowstats.com if the government was actually using honest numbers they would show that we have been in a recession for quite some time.  But the narrative that the mainstream media keeps feeding us is that the U.S. economy is “doing well” and that the outlook for the future is positive.  Well, if that is true then why are big companies laying off so many workers right now?

Let’s start by talking about Ford Motor Company.  On Monday, they announced that they will be laying off approximately 7,000 workers

Ford Motor said Monday that it is laying off about 7,000 managers and other salaried employees, about 10% of its white-collar workforce across the globe, as part of a restructuring plan designed to save the No. 2 automaker $600 million annually.

The cuts, some of which were previously announced by the company, will be completed by August, Ford CEO Jim Hackett said in an email to employees Monday.

If the U.S. economy was about to take off like a rocket, this move doesn’t make any sense at all.

But if we are headed into a recession, this move makes perfect sense.

Another large firm that is laying off thousands of workers is Nestle

Nestle SA’s U.S. unit will dismiss about 4,000 workers as it stops delivering frozen pizza and ice cream directly to stores and transitions to a warehouse model that’s becoming an industry standard for Big Food companies looking to trim costs.

And we also recently learned that 3M is planning to get rid of about 2,000 workers

3M plans to cut 2,000 globally as part of a restructuring due to a slower-than-expected 2019.

The maker of Post-it notes, industrial coatings and ceramics said Thursday that the move is expected to save about $225 million to $250 million a year. The St. Paul Minnesota-based company anticipates a pretax charge of about $150 million, or 20 cents per share, this year.

Did you catch that part about these layoffs being due to “a slower-than-expected 2019”?

Unfortunately, things are slow for a lot of companies out there these days.

Another company that is dumping a large number of workers is MGM Resorts

MGM Resorts International MGM, -2.09% plans to cut about 1,000 positions by the end of the current quarter amid a cost-cutting and operational overhaul that calls for fewer managers across its properties.

That figure includes some 254 positions that the company moved to eliminate last week.

In addition, Dressbarn just announced that all of their stores will be closing

Dressbarn is closing all of its stores.

The women’s retailer announced Monday “plans to commence a wind-down of its retail operations, including the eventual closure of its approximately 650 stores.”

I am not sure how many employees they have per store, but even if it is just a handful we are talking about the loss of thousands of jobs.

The U.S. economy has been slowing down for months, and now the complete breakdown of trade talks with China threatens to plunge us into a prolonged trade war.  As I noted in another article, a couple of different studies have concluded that an extended trade war could literally cost our economy millions of lost jobs.

And once the job losses start rolling, they can really get out of hand very quickly.  We saw this in 2008, and it is just a matter of time until we see it happen again.

On Sunday, a reader sent me an article about a factory closing that was happening in her neck of the woods in Pennsylvania.  One worker that was laid off said that the closure of the facility “was the final kick in the gut”

Robert and Brooks Gronlund, owners of Wood-Mode Inc., wrote a text to workers Friday, saying they “are extremely appreciative” of the employees’ contributions and commitments. The company owners then confirmed all of them were terminated, as were their benefits.

“It was the final kick in the gut,” Michele Sanders, a 22-year employee of the company, said Saturday.

The privately-owned company in Kreamer, which produced custom wood cabinets, shut its doors Monday, leaving nearly 1,000 people without jobs. The abrupt closure of the plant stunned workers and community leaders […]

via Large U.S. Firms Are Laying Off Thousands Of Workers — © blogfactory

5 thoughts on “Large U.S. Firms Are Laying Off Thousands Of Workers

  1. “The privately-owned company in Kreamer, which produced custom wood cabinets, shut its doors Monday, leaving nearly 1,000 people without jobs. The abrupt closure of the plant stunned workers and community leaders […]”

    Well, I am not stunned. I have been saying for quite some time now that we are in the middle of a Depression, not a recession, but a Depression because everywhere I go, it is ‘depressed’, not ‘recessed’. People are having such hard times, it’s the likes of which I have never seen. Grocery stores are not even getting regular deliveries. They cannot even keep the staples, much less anything out of the ordinary. Banks are closing branches, left and right. The bank that I use has many more customers than usual in it and from the grumbling I’ve been listening to, it is because of a branch that was in an exclusive area having to be shut down. The Kroger that I used to shop at was a 24 hour Kroger and now they close from 12am to 6am. The 24 hour Walmart has reduced its hours. And when I cart people to those places for their shopping, everyone who is coming out of Walmart does not have anything in their shopping carts except for grocery items. There are no gigantic TVs or computers or other big ticket items. In fact, the Goodwill store that is located in the same parking lot as the Walmart is doing more business than Walmart. And with gas prices soaring, I don’t see how many people are going to have a nice vacation this year. I am in Hillbilly Hollow, which is usually the last area to see gas prices rise, but gas has risen 60 cents in just a few months. I have taken to screeching and wailing when at the pump. How I can keep my van service going for much longer is a complete and utter mystery to me.

    And that is really telling when ‘custom wood cabinets’ aren’t selling and the company has to close since I thought there were just so many who were doing so well. Because if you listen to Trump, he has increased jobs by leaps and bounds and everyone is working and making a mint from doing so. That fool is obviously more than just delusional. There can be no more sugar coating this shit! This Titanic is sinking like a stone. No one is believing Trump’s outrageous lies! But the news just keeps on getting more dire! Half the country is experiencing floods and that is only going to make the situation worse!

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  2. I suspect the accumulation of individual, corporate, and government debt is catching up with us. I also think that “the economy” from Wall Street’s point of view is different from “the economy” for individuals, whose money goes to buy fast inflating essentials. I’ve long believed the large corporations make must of their profits from stock churning, while they cut corners on product quality and selection, close outlets, and shed staff. The products become secondary to the stocks. The laws requiring companies to put do-nothing shareholders ahead of staff and products should be abolished.

    To Gloria,
    I don’t think war will improve anything and might collapse these economies faster.

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    • Agreed yet, that is always the solution used by the the cowardly Extreme Warmongers , both democrap and repukican on Capital Hill. They are in the pockets of the MIC, the oligarchic killers and war profiteers and bankers. Wall street, the NYT, Cnn, Murdoch, MSNBC, will have it no other way.

      Liked by 1 person

      • Yes, but can they find enough willing victims to fight? Military enlistment is going down, and fewer people are prepared to die for their country’s MIC. It may devolve into drones fighting drones, with civilians as the only casualties.

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