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Disney leads companies announcing layoffs; a lot of airline work shortens the camp



An employee cleans the area behind closed doors at Disneyland Park on the first day of the closing of Disneyland and Disney California theme parks in Anaheim, California, on March 14, 2020.

DAVID MCNEW | AFP | Getty Images

A number of job cuts have been announced in the last 24 hours as companies struggle with the continuing impact of the coronavirus pandemic.

On Tuesday, Disney said it would cut 28,000 employees in its parks, consumer product and consumer products divisions amid a prolonged closure of its California-based theme parks, as well as limited attendance. According to a statement, 67% of laid-off workers are part-time.

Materials science Dow said Wednesday that it plans to reduce its global labor costs by approximately 6%, but did not specify the number of jobs that will be eliminated. The company said it would charge $ 500 million to $ 600 million for the current quarter in connection with the restructuring, which will include, among other things, compensation costs and related benefits.

The energy sector is among the worst affected by the pandemic, with almost stagnation in global travel, and the implementation of domestic policies has led to a drop in demand for raw products. As oil prices remain lower for longer, a number of companies have already gone bankrupt. The rest are already implementing comprehensive cost-cutting measures.

Royal Dutch Shell said on Wednesday that it plans to cut between 7,000 and 9,000 jobs by the end of 2022. The company said about 1

,500 people have agreed to take voluntary redundancies this year. Meanwhile, US refinery Marathon Petroleum began a new round of job cuts on Tuesday, according to Reuters.

The aviation industry is also among the hardest hit, and reports of major job cuts could come as early as Thursday. Without additional federal aid, US airlines are on the verge of cutting more than 30,000 jobs.

The $ 25 billion in federal wage support terms, which limit job cuts until Sept. 30, expire Wednesday night, meaning dismissals could begin Thursday. Airlines are pushing for additional help from lawmakers to keep jobs until March 31, a proposal that has won bilateral support in Congress and the Trump administration, but there is still no deal for a national coronavirus relief package that could include aid.

United Airlines and American Airlines account for the lion’s share of the planned 30,000 layoffs. The downsizing could have been deeper, but tens of thousands of workers in the industry have volunteered for buyouts and absences, which has helped cut costs.

In the United States, the employment picture is improving after a record 20.5 million jobs were lost in April amid economic coronavirus-induced economic downturn. In August, departmental wage agencies increased by 1.37 million and unemployment fell to 8.4%. On Wednesday, an ADP survey showed earnings of 749,000 private payroll jobs in September, ahead of the 600,000 expected by the Dow Jones.

However, as jobs began to return, unemployment rates remained higher than historical standards, and these recent reports of job cuts point to the continuing and long-lasting effects of the pandemic.

– Leslie Josephs from CNBC participates in the reports.

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