Sudden layoffs in European and American giants: 13000 in United Airlines and 28000 in Disneyland

category:Finance
 Sudden layoffs in European and American giants: 13000 in United Airlines and 28000 in Disneyland


Goldman Sachs, the investment bank, also announced that it would lay off about 400 people, according to media reports.

In addition, marathon oil, the second largest oil refining company in the United States, announced recently that it would carry out extensive layoffs within the company. Marathon Oil has closed refineries in California and New Mexico since August, and has laid off 800 employees.

Shell said about 1500 employees had agreed to leave voluntarily this year. By the end of 2019, shell has 83000 employees, and the number of layoffs is about 10% of the total number of employees. Various ways to reduce costs are being considered, such as reducing travel expenses and promoting online work. By 2022, the cost reduction measures are expected to save the company $2 billion to $2.5 billion a year. After adjusting its business, it will focus more on renewable energy and electricity markets.

According to the second quarter financial report disclosed by shell, during the financial reporting period, the companys net loss reached 18.131 billion US dollars, compared with the loss of 24 million US dollars in the first quarter, the loss margin expanded by more than 750 times; in the second quarter of last year, shells net profit was 2.998 billion US dollars. In the first half of this year, its net loss reached US $18.155 billion, compared with a profit of US $8.999 billion in the same period last year, with a year-on-year decline of 302%.

In addition, on the same day, Dow, a materials science company, announced that it would reduce its operating costs by 6% globally, but did not disclose the number of layoffs; marathon oil, the second largest US oil refining company, also announced that it would carry out extensive layoffs within the company; Allstate would lay off about 3800 people; and Goldman Sachs would resume layoffs, a spokesman for the group said on Wednesday The company plans to resume layoffs suspended due to the epidemic and carry out a moderate layoff. According to people familiar with the matter, Goldman Sachs is considering cutting about 400 jobs, equivalent to about 1% of its total staff; JPMorgan will lay off more than 100 people in the annual layoffs.

On October 1, according to foreign media reports, Citibanks new head of global equity trading, fat belbachir, has cut at least three senior U.S. trading staff as the company prepares to make broader changes to the business.

People familiar with the matter said the cuts are expected to extend to junior employees and spread to Europe, the Middle East and Africa.

Danielle Romero apsilos, a Citigroup spokesman, said it was part of the banks layoffs. She said the company was in the midst of limited layoffs, which totalled less than 1% of the companys 204000 employees.

Since 2020, due to the spread of the epidemic, Citibank, HSBC, Wells Fargo, Morgan Stanley and other investment banks have promised to suspend the layoff plan. However, the economic downturn and low interest rate environment have affected the income of these big banks, and many foreign banks have put layoffs on the agenda.

In June 2020, HSBC resumed cutting 35000 jobs to cut costs by $4.5 billion and freeze almost all external recruitment. In May this year, Deutsche Bank became the first large foreign bank to resume layoffs and suspend trading due to the epidemic.

According to CNBC, affected by the new crown epidemic, Disney will lay off 28000 people in its parks, experience and consumer goods departments due to the long-term closure of its theme park in California and the restrictions on the number of visitors to the park reopened due to the epidemic, CNBC reported.

In a memo sent to employees on September 29, Disney director Josh DAmaro detailed several tough decisions the company had to make after the new coronavirus pandemic, including plans to lay off thousands of employees.

67% of the layoffs are hourly workers, and some senior executives and all employees are also on the list of layoffs. In addition, about 31000 people have been given unpaid leave after California Governor John Newsom refused to reopen Disneyland. Although Disneyland Florida has reopened, the number of visitors is less than expected.

In fact, the parks, experiences and consumer goods divisions are a vital part of Disneys business. Last year, it accounted for 37% of the companys $69.6 billion in revenue. However, Disney has suffered huge financial losses since the outbreak. In the second quarter of this year, the company lost $1 billion in revenue due to the closure of parks, hotels and cruise lines. In the third quarter, the company reported a huge loss of $3.5 billion.

According to the latest financial report, as of June 27, 2020, Disneys revenue in the third quarter of fiscal year 2020 was $11.779 billion, down 42% year-on-year; the net loss was $4.718 billion (nearly 33 billion yuan), which was the first quarterly loss in nearly 20 years, compared with the net profit of $1.430 billion in the same period last year. Among them, the revenue of theme park, experience and consumer products business was $983 million, down 85% year-on-year, and the operating loss was $1.96 billion, compared with the operating profit of $1.719 billion in the same period of last year.

Tens of thousands of jobs in U.S. aviation industry are under threat

In March this year, the federal government of the United States provided $25 billion in relief funds to airlines. The additional clause was to prohibit major airlines from laying off employees before October 1. However, the ban expired on the evening of September 30 local time, and tens of thousands of jobs will face the risk of being cut. It is estimated that more than 30000 jobs in the aviation industry will be at risk if more aid measures are not introduced in time.

On September 30, United Airlines said it would immediately begin to lay off 13000 employees because of the imminent expiration of the relief package. If Congress approved wage assistance, the company would withdraw the layoff plan.

Previously, United Airlines announced that it would be allowed to close three-quarters of its international flight attendants bases in Hong Kong, Tokyo and Frankfurt, without providing the affected crew with the opportunity to transfer to London. The flight attendants Association learned on Friday that an arbitrator rejected their proposal to provide a transfer base for crew members who did not have the legal right to work in the United States.

At present, a number of airlines have issued a layoff warning, of which, American Airlines plans to lay off 19000 people, possibly starting from October 1 local time at the earliest. Several airlines, including American Airlines, United Airlines and Southwest Airlines, are seeking additional $25 billion in support from Congress to avoid more industry harm.

U.S. Treasury Secretary manuchin previously ruled out the possibility of a separate aid to the aviation industry. Instead, it was launched as part of the overall stimulus plan, and Federal Reserve officials are calling for more fiscal stimulus to come soon.

Under the impact of the epidemic, the employment problem has become a global problem. Recently, multinational enterprises have announced the layoffs. It is worth noting that many reports we have seen point out that, different from the early stage of the epidemic, layoffs in the middle and late stages may hurt more white-collar workers with higher income, and their disposable income and expenditure are often an important driving force for economic growth. It may mean the emergence of more deep-seated problems brought about by the epidemic. As the epidemic continues, the job market is still facing greater uncertainty.

According to Xinhua news agency, the final data released by the U.S. Department of Commerce on September 30 showed that the U.S. gross domestic product (GDP) fell by 31.4% at an annual rate in the second quarter of this year, 0.3 percentage points narrower than the revised data, still the largest quarterly decline since records began. Data show that in the second quarter of this year, personal consumption expenditure, which accounts for about 70% of the total U.S. economy, fell by 33.2%, 0.9 percentage points higher than the revised data. Among them, service expenditure fell by 41.8% due to the impact of the new epidemic. In addition, investment in non residential fixed assets, which reflects the investment status of enterprises, decreased by 27.2%, and private inventory investment dragged down economic growth by 3.5%. Daily economic news integrates Xinhua news agency, CCTV finance and economics, China Foundation news and CNBC. Source: daily economic news editor in charge: Zhang Mei_ NF2100

According to Xinhua news agency, the final data released by the U.S. Department of Commerce on September 30 showed that the U.S. gross domestic product (GDP) fell by 31.4% at an annual rate in the second quarter of this year, 0.3 percentage points narrower than the revised data, still the largest quarterly decline since records began.

Data show that in the second quarter of this year, personal consumption expenditure, which accounts for about 70% of the total U.S. economy, fell by 33.2%, 0.9 percentage points higher than the revised data. Among them, service expenditure fell by 41.8% due to the impact of the new epidemic. In addition, investment in non residential fixed assets, which reflects the investment status of enterprises, decreased by 27.2%, and private inventory investment dragged down economic growth by 3.5%.