Big companies are making big cuts.
Circuit City is going out of business, putting 34,000 out of work.
If the trend of setting interest caps on payday loans continues, it will likely amount to a lot of layoffs in the payday loan industry. Many companies have already experienced such financial turmoil that they are making massive cuts to the size of their staffs.
Unemployment is the highest it’s been in 26 years, at 7.2 percent. It doesn’t look like that will be changing any time soon, and with huge companies making big job cuts, it looks like it will get worse before it gets better.
Hertz Global Holdings Inc.
Hertz rental car company announced today that it will cut more than 4,000 jobs worldwide. The company has said the move will save $150 million to $170 million in 2009.
Most of the cuts are positions in the car equipment rental business and do not affect people who have direct contact with customers. The companies shares have fallen almost nine percent.
Advanced Micro Devices Inc.
Computer chip manufacturing giant AMD is planning to cut nine percent of its work force. Overall that will amount to about 1,100 jobs. The company’s executive chairman and chief executive are taking salary cuts of 20 percent.
The remaining employees will also get pay cuts. Vice presidents will take a 15 percent paycut. Employees eligible for overtime pay will take a 10 percent cut. Employees not eligible for overtime will receive a five percent pay cut. With their salaries cut, some employees might find themselves needing payday loans to make ends meet.
Circuit City
Electronics retail giant is cutting the most jobs of anyone: all of them. After failed attempts to find a buyer or make a deal with creditors, the company will liquidate its assets and shut its doors. The company employs about 34,000.
Circuit City had filed for bankruptcy in November. The chain had 567 stores nationwide, all of which are slated to close after the company sells off the rest of its merchandise.
More invites to the unemployment party
So far this year about 80,000 layoffs have been announced. Honda motors is cutting 3,100 jobs. Healthcare company WellPoint says it will lose 1,500. Electronics company Motorola will slash 4,000 jobs, and finance company Barclays will cut 2,100. Packaging company MeadWestvaco is cutting 2,000.
Earlier this month, health benefits company Cigna started off the year with 1,100 layoffs. Aluminum company Alcoa cut a whopping 13,500 jobs and computer peripherals company Logitech cut 500 jobs. TDK Corp. announced 8,000 cuts and Boeing announced 4,500.
Trend to continue
In 2008, the United States’ economy lost 2.6 million jobs. The Conference Board projects that two million more will be lost this year. The average work week has already shrunk to 33.3 hours, showing that employers don’t need as much labor. The manufacturing and retail industries have taken big hits and lowered production as consumers hold tight to their funds instead of spending.
The Economic Cycle Research Group predicts that the market will eventually bottom out and layoffs will stop, but it will be a while before employers actually start hiring again.
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Hopefully people can learn to budget.
Everywhere you turn it seems like the word “unemployment” is in the air. While you’re listening to the radio or watching T.V., it’s almost impossible to dodge it. More and more people are out on a job hunt for whatever that’s available. Big time executives who appear well off just because of the number of digits on their paychecks are actually facing a lot more financial struggles than ever before. They are used to having fancy things and pockets filled with cash; a pay cut can be very damaging. Almost everything around us is falling apart. You’re going to have to learn how to save and properly manage money or you’re out.
The warm feeling I get when someone is thoughtful enough to say thank you for having been helped far outweighs the
empty one I get when there’s no feedback at all.