New Layoffs Still Pouring In
-- July 31, 2003
Better-than-expected GDP growth and falling jobless claims boosted stocks today, but recent corporate announcements suggest this is a false recovery. Just take a look at some of the most recent layoff plans of several major corporations:
But that's not even the worst of it. Stiff competition from low-cost overseas competitors is pummeling the US manufacturing sector so hard that some companies are flat out giving up. Take, for example, North Carolina-based Pillowtex, a maker of sheets, pillows and other home goods. Yesterday, the struggling company shuttered 16 plants and started the liquidation process. It fired a whopping 6,450 workers - and will probably let the other 1,200 go once it sells off its assets.
- Eastman Kodak: 6,000 jobs.
- Boeing: 5,000.
- May Department Stores: 3,700.
- Pep Boys: 700.
- Siebel Systems: 500.
- Flextronics International: 370.
Clearly, corporations are still trying to cut costs to survive, and some are even giving up altogether. And a slight pick-up in economic activity isn't going to be able to erase three years of a slumping economy.
Jobless Claims Drift Down in July 26 Week