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Several job cuts have been announced in the last 24 hours as companies are struggling with the ongoing impact of the coronovirus epidemic.
On Tuesday, Disney said it would lay off 28,000 employees of its parks, experiences and consumer products among its limited presence, along with long-term closures at its California-based theme parks. According to a statement, 67% of the scheduled employees were part-time.
Materials science company Dow said on Wednesday that it plans to reduce its global workforce costs by about 6%, but has not indicated the number of jobs that will be eliminated. The company said it would charge a current-quarter fee of $ 500 million to $ 600 million in connection with the restructuring, which would include severance and related benefit costs, among other things.
The energy sector has been seen as the hardest hit by the epidemic as a near impasse in global travel, as well as the implementation of work from home policies have led to a drop in demand for raw products. Many companies have already gone bankrupt as oil prices remain low for a long time. Those left standing are 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 that about 1,500 people have agreed to take voluntary cuts this year. Meanwhile, American Refinery Marathon Petroleum began another round of job cuts on Tuesday, according to Reuters.
The airline industry has also been one of the hardest hit, and big job announcements may come soon on Thursday. American airlines are on the verge of shedding over 30,000 jobs, excluding additional federal aid.
The $ 25 billion terms in federal payroll support that cut jobs through Sept 30 expires Wednesday night, meaning furlough could begin Thursday. Airlines are struggling for additional aid to lawmakers through March 31 to preserve jobs, a resolution that has garnered bipartisan support from Congress and the Trump administration, but has not yet reached a deal on a national coronavirus relief package Which may include assistance.
United Airlines and American Airlines held the lion’s share of the planned 30,000 cuts. The shortage of staff could have been deeper, but thousands of workers from across the industry volunteered to procure and leaves for absenteeism, helping to reduce costs.
In the US, the employment picture has improved since a record 20.5 million jobs loss in April amid a coronovirus-induced shutdown. Nonfarm payrolls increased by 1.37 million in August and the unemployment rate fell to 8.4%. On Wednesday, an ADP poll showed a 749,000 jobs gain for private payroll in September, well ahead of the 600,000 expected by the Dow Jones.
However, when job losses have begun, unemployment levels remain high compared to historical standards, and these latest job cuts announcements point to ongoing and long-lasting consequences of the epidemic.
– Leslie Joseph of CNBC contributed to the reporting.
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