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.

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.

related article: Jobless Claims Drift Down in July 26 Week