Authored by Michael Snyder via The Economic Collapse blog,
Do you remember what it was like in 2008 when it literally felt like no job was truly safe?
It was a terrible time, and many fear that we could soon be facing a similar scenario. In recent days, big companies all across America have been laying off workers at a frightening pace. As economic activity has slowed down, a lot of firms are feeling compelled to slash their payrolls, and if a deep recession is ahead of us then what we have seen so far could be just the tip of the iceberg. In 2008 and 2009, millions of Americans lost their jobs very rapidly, and it could very easily happen again.
As I have been conducting research over the past few days, I have been struck by the stunning number of layoff announcements that are suddenly popping up in the news. Here are 12 of the most prominent examples…
#1 HP Inc: “U.S. personal computer maker HP Inc said on Thursday it will cut up to 16% of its workforce as part of a restructuring plan aimed at cutting costs. The company will cut about 7,000 to 9,000 jobs through a combination of employee exits and voluntary early retirement, it said in a statement.”
#2 WeWork: “WeWork, the co-working business once valued at $47 billion, is expected to announce significant layoffs this month, Bloomberg reports. This follows reports the company was looking to slash as many as 5,000 roles, or one-third of its workforce.”
#3 Kroger: “Kroger is laying off hundreds of employees across the family of grocery stores it owns, a person familiar with the situation tells CNBC.”
#4 Sports Illustrated: “The revered 65-year-old Sports Illustrated magazine is in a state of bedlam. In meetings Thursday afternoon, managers told staff members that about half the newsroom would be laid off, according to two people present at the meetings.”
#5 Uber: “The 435 employees cut from Uber include members from its product team and engineering team.”
#6 John Deere: “John Deere is set to layoff more than 150 workers at two of its plants in the Quad-Cities.”
#7 Bayou Steel Group: “According to Market Realist, Bayou Steel Group filed for bankruptcy on Tuesday and the company laid off 376 workers. U.S. Steel and ArcelorMittal also curtailed some of their facilities. U.S. Steel idled two of its US blast furnaces earlier this year and the company expects those blast furnaces to be idle until at least the end of the year.”
#8 Elanco: “Elanco Animal Health Inc. which went public a year ago, on Monday said it plans to lay off 250 workers to save $12 million in 2020.”
#9 Lazard Asset Management: “Lazard Ltd. is cutting up to 7% of its employees in its asset-management division and closing some investment funds by year’s end, people familiar with the matter said, amid a tougher climate for money managers.”
#10 Advance Engineering Corporation: “Advance Engineering Corporation, Elgin, permanent closing due to relocation affecting 114 employees. First layoff date is Nov. 4, with layoffs to be completed by Dec. 31.”
#11 Daimler Trucks North America: “The company is laying off 450 workers at its Mount Holly plant and about the same number at its plant in Cleveland.”
#12 Genesis Healthcare: “Genesis Healthcare, in a statement to McKnight’s on Wednesday said it has reorganized its therapy gyms in response to PDPM and other industry changes. The company laid off 585 out of about 10,000 Genesis Rehab employees.”
This isn’t what a “booming economy” looks like.
In fact, this is precisely what we would expect to see as the U.S. economy plunges into a major economic downturn.
Of course a lot of people out there don’t want to believe that this is actually happening. There are many that have absolutely convinced themselves that the good times will keep rolling indefinitely, even though all of the evidence is pointing to the contrary.
On Wall Street, investors are trying to make sense of all the negative data that we have been receiving lately, and many of them are starting to become quite nervous…
Lagging or leading, macro or micro, global or domestic. For investors, all that matters to keep the bull market intact is whether this week’s torrent of data is flashing a recession ahead or just a few local shocks.
In a market so divided on the outlook, every piece of data holds the prospect of vindication or rebuttal — and numbers on Thursday just handed fresh ammo to the bears. A U.S. services gauge dropped to a three-year low in September and jobless claims rose more than expected, shortly after a euro-zone report showing a factory slump has spread to services.
Needless to say, all of the chaos in Washington is certainly not going to help matters. The federal government will be paralyzed while this impeachment inquiry plays out, and Democrats are hoping to have articles of impeachment ready for a vote around Thanksgiving.
And I know that a lot of people don’t want to hear this, but Nancy Pelosi believes that she already has the votes that she needs.
That means that President Trump could be headed for impeachment, and a Senate trial would unleash chaos all over America. We are already a deeply, deeply divided nation, and their entire saga is going to make things much worse.
You see, the truth is that our economic problems are not just happening in a vacuum. There are many different elements to the emerging “perfect storm”, and they are all going to feed into one another.
So buckle your seat belts and get prepared for rougher times, because this drama is only in the very early chapters.
It is my sincere desire to provide readers of this site with the best unbiased information available, and a forum where it can be discussed openly, as our Founders intended. But it is not easy nor inexpensive to do so, especially when those who wish to prevent us from making the truth known, attack us without mercy on all fronts on a daily basis. So each time you visit the site, I would ask that you consider the value that you receive and have received from The Burning Platform and the community of which you are a vital part. I can't do it all alone, and I need your help and support to keep it alive. Please consider contributing an amount commensurate to the value that you receive from this site and community, or even by becoming a sustaining supporter through periodic contributions. [Burning Platform LLC - PO Box 1520 Kulpsville, PA 19443] or Paypal
-----------------------------------------------------
To donate via Stripe, click here.
-----------------------------------------------------
Use promo code ILMF2, and save up to 66% on all MyPillow purchases. (The Burning Platform benefits when you use this promo code.)
Part of it all is a matter of confidence. When Trump was being elected things picked up because they felt a positive vibe about things. Now, with the relentless negative media and most of our government trying their best to trip Trump up. We see the results. Just tell yourself enough times that life sucks, soon it will.
My work is about dead right now. I hope it picks up. The banks and their borrowing is what I think will screw everything up, like 07-08.
Correct me if I am wrong but M. Snyder was the biggest Trump fan until he lost his election. Ever since then I have only heard him complain.
Yup, he is a weird looking dude too.
The Snyder doom porn machine continues to sputter on. He speaks of impeachment like it were an actual event rather than the political grandstanding that it really is. Pelosi’s son Paul is also tied up with some shady Ukranian dealings and ol’ Nan herself made a video that her son used to promote the company he had ties with. Oh, and Romney’s chief advisor, Cofer Black, is also involved in some strange Ukranian deals too, seems he and ol’ Snorter Biden were both in on Burisma’s board.
It’s looking increasingly probable that Burisma, the subject of a series of corruption allegations in the past, has been smartly buying Western complacency by slapping a few famous names on its board. In addition to the son of a vice president and a special adviser to a GOP presidential candidate, the board also boasts the former president of Poland from 1995 to 2005, Aleksander Kwaśniewski.
Also, seems Nancy is pushing the Impeachment machine along and not following proper protocol, perhaps like she pushed Obamacare by stating that ‘we have to pass the bill to see what’s in it.’
Pelosi’s plan is to not have a House vote on initiating the inquiry, but to just go ahead and have one, and stealing the name Impeachment Inquiry for it. Why? Because she thinks that way she can have only Democrats ask questions, issue subpoenas etc., while House Republicans could only sit and watch the spectacle (not what they were elected for).
https://www.zerohedge.com/political/inquirygate-did-pelosi-just-prorogue-us-house
https://thefederalist.com/2019/09/26/top-romney-adviser-worked-with-hunter-biden-on-board-of-ukrainian-energy-company/
I don’t think SanFranNan has any intention of initiating an impeachment vote before the House. She wants her lieutenants to harass the President and his entire staff with subpoenas, testimony, document production and any other measure they can use to gum up any progress by the administration.
If they do not vote, the vulnerable democrats will not have to take a stand and can go campaign on getting rid of The Donald the old fashioned way, at the ballot box.
I was getting a rise while reading this! Making me so happy heart pounding. I cannot wait. Been waiting for this reset for 14 years….I thought obummer and 2008 was it, then realized they had plans for hillary during the reset and trump the speed bump, delayed it. Now they are all in trying to stop his re election. Seems a massive push of calamity will ensue prior to the election to turn people against trump. If he wins it will reverse and be delayed yet again. But surely once the dems regain power they cannot stop themselves and will create massive chaos soon thereafter no matter. So either way we are on track for their 2030 agenda, new world order. It is coming no doubt about it. Prepare now
None of those examples were examples of a recession. Those examples were all examples of either poorly run companies or companies adjusting to digitalization which in turn eliminates positions. Like most ‘unicorns’ Uber is poorly run, doesnt actually have a business model and has peaked out its operational tech…hence it lays off its engineering force. WeWork was a b.s. scam from its inception and since the scam was caught, the IPO could steal money from the masses to fund the endeavor’s debt. Sports Illustrated has been doomed for years…its print media and never made a successful transition to the digital world. Elanco was another IPO that hoped to fund a poor business model by way of fleecing investors. AEC is bailing on IL… well…its IL. It takes a brief look into each of these instances to see that all of these companies have been in trouble for years prior to this round of layoffs. Now, this isnt to say that there isnt slowing ( even the FED studies support a slowing) but business models and adaptation to growing digitalization and innovation is key and this often results in laying off in positions that can be replaced by technology. Almost nothing can be taken at purely face value, especially if it is written to induce a particular set of emotions.