Jaw Dropping Round Up of Mass Layoffs as a Direct Result of Trump’s Failure to Control Virus

Airlines Moving Forward With 32,000 Job Cuts

Walt Disney Slashes 28,000 Workers

Nearly 63 Million Americans Filed For Unemployment Since March

As President Trump inexplicably touts an economic recovery that has yet to materialize, his failed coronavirus response is resulting in mass layoffs that are creating economic chaos for millions of Americans. 

Seven months into the pandemic, the coronavirus is still spreading uncontrolled amid President Trump’s attempts to downplay the science, undercut the experts, and refusal to take decisive action. As a result, the US economy is being battered by job losses that are impacting millions of Americans.

New unemployment claims last week remained at exceedingly high levels, with 837,000 people filing for jobless support. Nearly 63 million Americans have filed for unemployment since March; more than 26 million Americans are currently without work; industries are on the verge of imploding; and spending is likely to plummet even further as Donald Trump shirks all responsibility on the pandemic and economic relief.

US Employers Are Announcing Thousands More Job Cuts on Top of Months of Economic Pain

Donald Trump’s Failure to Contain the Pandemic Has Resulted in Economic Devastation for the Entertainment and Tourism Industry

• Walt Disney Is Slashing 28,000 Workers As The Tourism Industry Continues To Struggle. “For six months, Disney has kept tens of thousands of theme park workers on furlough with full health-care benefits in hopes that a light at the end of the pandemic tunnel would appear. On Tuesday, Disney conceded that none was coming. The company’s theme park division said it would eliminate 28,000 jobs in the United States. Theme parks will account for most of the layoffs, although Disney Cruise Line and Disney’s retail stores will also be affected.” [New York Times, 9/29/20]
• Ilitch Holdings, The Company That Owns The Detroit Red Wings And Detroit Tigers, Announced Layoffs. “Ilitch Holdings began processing a series of layoffs and issuing temporary furloughs Wednesday in its business operations, which includes employees of the Detroit Red Wings, Tigers and Fox Theatre. Chris Granger, group president for sports and entertainment of Ilitch Holdings, informed employees of the impending moves and explained the decision in an email obtained by MLive. He said the cost-cutting was necessary because of lost revenue do to the COVID-19 pandemic.” [MLive, 9/30/20]
• MGM Resorts International Announced In Late August That 18,000 Workers — About A Quarter Of The Company’s Pre-Pandemic Workforce, Would Be Cut. “MGM Resorts International on Monday confirmed that 1,100 workers at MGM Detroit are facing layoffs… The layoffs are indicative of a broader problem identified in an analysis issued Monday by the American Hotel & Lodging Association that shows the U.S. hotel industry may be on the brink of financial collapse. The MGM layoffs in Detroit were expected as part of the company’s announcement last week that 18,000 furloughed MGM employees — about a quarter of the company’s pre-pandemic workforce — would be laid off [August 30]. MGM wouldn’t say how many of those workers are in Nevada, nor would it offer a state-by-state breakdown of layoffs.” [Las Vegas Review-Journal, 9/1/20]
• Nearly 40 Percent Of Florida Hotel Workers Have Lost Their Jobs Since The Pandemic Began. “Nearly 40 percent of hotel workers in Florida have lost their jobs because of the coronavirus pandemic, and industry lobbyists warn that could reach 70 percent this winter without further assistance from Congress… Numbers provided by the American Hotel & Lodging Association indicate Florida has lost 76,746 hotel jobs due to the pandemic, and another 64,257 are threatened over the next six months.” [CBS Local Miami, 9/30/20]
• Illinois Has Already Lost More Than 67,000 Hotel-Related Jobs Since March.  “Already battered by the coronavirus pandemic, Illinois’ hotel industry could see double the number of job losses if Congress doesn’t pass another stimulus bill, and the outlook for Chicago is particularly grim, an industry group warns. The state has already lost more than 67,000 hotel-related jobs since March and about half of Illinois hotel owners surveyed say their properties are in danger of foreclosure, according to an American Hotel and Lodging Association survey conducted in mid-September.” [Chicago Tribune, 10/1/20]
  
• West Virginia Has Lost More Than 4,800 Hotel-Related Jobs Since March. “The hotel industry says more than 4,800 jobs in that sector have been lost between March and September in West Virginia because of the coronavirus pandemic. A survey released by the American Hotel & Lodging Association (AHLA) has some shocking numbers as the industry tries to put pressure on Congress to pass another stimulus bill.” [WTRF, 9/29/20]
• Connecticut’s Lodging Industry Lost Nearly 10,000 Jobs Since The Pandemic Began. “Connecticut’s lodging industry lost nearly 10,000 jobs over the last six months and that number could nearly double if federal lawmakers don’t come up with some kind of bailout package for companies in the sector, a leading industry trade group is predicting… The latest data from the American Hotel & Lodging Association found that 9,925 Connecticut hotel industry jobs were lost between March and September. Connecticut’s hospitality industry employed more than 26,000 people when COVID-19 hit the United States and resulted in hotels being closed by public health mandates, as well as dramatic falloff in the amount of business and leisure travel.” [CTInsider, 9/30/20]
• According To A Survey By The American Hotel And Lodging Association, 68 Percent Of Hotels Have Less Than Half Of Their Pre-Pandemic Staff Working Full Time, And 74 Percent Will Be Forced To Lay Off More Employees Without Congressional Assistance. “As devastated industries wait for Congress to pass another round of COVID-19 recovery legislation, a new survey of American Hotel & Lodging Association (AHLA) members shows that the hotel industry remains on the brink of collapse because of the pandemic. Results show 68 percent of hotels have less than half of their typical, pre-crisis staff working full time, and without further governmental assistance, 74 percent of respondents said they would be forced to lay off additional employees.” [American Hotel And Lodging Association, 9/21/20]

As the Virus Spread, Uncontrolled, Travel Plummeted — Bringing Airline Jobs With It

• American Airlines And United Airlines Announced A Cumulative 32,000 Job Cuts After President Trump And Senate Republicans Failed To Provide Economic Relief And Payroll Support. “American Airlines Group Inc. and United Airlines Holdings Inc. will start laying off thousands of employees as scheduled, spurning Treasury Secretary Steven Mnuchin’s appeal for a delay as he negotiates with Congress over an economic relief plan that includes payroll support for U.S. carriers… The furloughs total 19,000 at American and about 13,000 at United.” [Bloomberg, 9/30/20]
• The United States’ Four Largest Airlines Have Now Lost More Than 180,000 Jobs Amid The Pandemic. “The [United and American] layoffs add to job losses that already total 150,000 at the nation’s four largest carriers based on employees who have left voluntarily or taken temporary leave. Airlines have already reduced executive pay, pared schedules and grounded planes as domestic demand languishes at about 30% of year-ago levels. International travel remains well below that.”  [Bloomberg, 9/30/20]
• Southwest Airlines Was Able To Avoid Layoffs Only Because 28 Percent Of Its Workforce Agreed To Leave Permanently Or Temporarily. “Southwest also has said it won’t lay off workers through the end of 2020 after 28% of its workforce agreed to leave permanently or temporarily. [Bloomberg, 9/30/20]
  
• Delta Will Avoid Forced Layoffs Until Next Summer After 17,000 Workers Left Temporarily And 40,000 Took Unpaid Leaves. “Delta will avoid most layoffs until at least next summer after 17,000 workers left voluntarily and 40,000 took unpaid leaves. It remains in talks with its pilots union about ways to reduce or eliminate about 2,000 furloughs.” [Bloomberg, 9/30/20]
  
• Raytheon Announced In Mid-September That It Would Slash 15,000 Jobs Connected To Its Aerospace Business. “Tucson’s largest private employer says it is cutting 15,000 jobs. According to WAFF, Raytheon President & CEO Greg Hayes announced the reductions in a reporting call to shareholders Friday, Sept. 21. It’s unclear what effect the announcement will have on jobs in southern Arizona, but Hayes did say the cuts will be connected to the company’s commercial aerospace businesses, Pratt & Whitney and Collins Aerospace. The company says the layoffs are because there’s been less commercial air travel since the pandemic. Hayes says he doesn’t expect a full return to commercial flight until around 2023.” [KOLD, 9/21/20]

Other American Industries Are Floundering as a Result of Trump’s Failed Leadership

• Marathon Petroleum, The United States’ Largest Oil Refiner, Is Laying Off 2,050 Employees — 12 Percent Of Its Workforce. “Marathon Petroleum Corp MPC.N, the largest U.S. oil refiner, said it would lay off about 2,050 employees, or 12% of its workforce, at its U.S. operations, excluding Speedway, as the COVID-19 pandemic crushed global demand for motor fuels. The workforce reduction plan is a result of indefinite idling of its Martinez, California and Gallup, New Mexico refineries, the company said in the filing here. Refiners and oil producers have been cutting staff, slashing spending and reducing production to cope with the slump in crude prices and a global glut of fuel.” [Reuters, 9/30/20]
• Allstate Corporation, One Of The United States’ Largest Car Insurers, Is Laying Off Nearly 4,000 Employees, About A Quarter Of Which Are Tied To The Pandemic. “Allstate Corp., one of the U.S.’s largest home and car insurers, announced Wednesday that it plans to lay off 3,800 employees in claims, sales and support roles. The layoffs represent about 8% of the insurer’s approximately 46,000 workers. Of the job cuts, about 1,000 are tied to the company’s pandemic-related refunds to policyholders, Allstate Chief Executive Thomas Wilson said in an interview. Those refunds were driven by a sharp decline in driving by car owners amid government-order shutdowns and fear of Covid-19, especially in the early months of the pandemic. Many insurers reduced customers’ bills as claims volume fell. The pandemic resulted in ‘fewer auto accidents, so you need fewer claims people,’ Mr. Wilson said. Of the layoffs, ‘somewhere between 25% and 30% are due to the fact that we have fewer claims,’ he said.” [Wall Street Journal, 9/30/20]
• The Ralph Lauren Corporation Announced That They Were Cutting 15 Percent Of Their Workforce. “Ralph Lauren Corp. said it would cut its workforce by roughly 15%, reflecting a sharp drop in revenue tied to coronavirus-related store closures earlier this year and potential challenges ahead, as economies in different markets try to recover. A spokeswoman for the New York-based company confirmed that about 15% of staff would be let go, declining to specify how many employees would lose jobs. Ralph Lauren employed roughly 24,900 people globally as of late March, including 13,800 in the U.S., according to its most recent annual report. The company said it plans to reduce staff by the end of its current fiscal year.” [Wall Street Journal, 9/30/20]
  
• Brookfield Properties, One Of The United States’ Largest Mall Operators, Is Cutting 20 Percent Of Its Retail Workers — Roughly 400 Workers. “Brookfield Properties, one of the nation’s largest mall operators, is cutting 20% of its workforce in its retail division, as the pandemic has accelerated online shopping and resulted in a string of store closings. The Chicago-based mall, which operates 170 mall properties, has more than 2,000 employees in its retail division, according to the company.” [Associated Press, 9/22/20]
• Kohls Announced A 15 Percent Reduction In Its Workforce. “Kohl’s, whose sales have been hurt by the pandemic, said Tuesday that it will cut 15% of its office workers to save money. The company declined to say how many people will lose their jobs. The layoffs will be at its headquarters in Menomonee Falls, Wisconsin, as well as offices in New York and Milpitas, California.” [WHEC, 9/16/20]
• In June, Macy’s Announced It Would Slash 3,900 Members Of Its Workforce, Just Months After Shedding 2,000 Positions. “Macy’s is eliminating about a quarter of its corporate workforce, slashing 3,900 white-collar jobs in a sweeping effort to cut costs during the coronavirus pandemic. The layoffs announced Thursday come just months after the beleaguered retailer announced it would close 125 stores — about a fifth of its total — and shed 2,000 positions after a disappointing holiday season. The company also is scaling back staffing at its Macy’s and Bloomingdale’s stores, distribution facilities and customer service centers, but says it will ‘adjust as sales recover.’” [Washington Post, 6/25/20]

The Prolonged Unemployment Crisis Will Have Major Consequences for the US Economy

• US Employers Announced More Than 2 Million Job Cuts In The Last Year, As Personal Incomes Fell By 2.7 Percent. “U.S. employers announced another 118,000 job cuts in August according to the outplacement firm Challenger, Gray & Christmas, bringing the yearly total to more than 2 million — the highest ever recorded by the firm. The Commerce Department on Thursday reported that personal incomes fell $543.5 billion, or 2.7 percent, in August and that disposable personal income also fell. Consumer spending, meanwhile, grew just 1 percent in August. Consumer spending is typically seen as the biggest engine in the U.S. economy. Enhanced jobless benefits expired for many Americans at the end of July even though the unemployment rate remains high.”  [Washington Post, 10/1/20]
• The Number Of People Receiving Jobless Aid Has Ticked Up To Over 26 Million. “The total number of people claiming unemployment insurance ticked up slightly, to 26.5 million people for the week ending Sept. 12. There are numerous signs that the labor market is going to become weaker in the fall after several months of gains. Hopes for a swift employment recovery from the pandemic’s initially devastating blow in March and April have faded, especially in certain industries.” [Washington Post, 10/1/20]
• Jobless Benefits Have Shrunk In Recent Weeks As Senate Republicans And President Trump Fail To Extend Aid. “A $600-a-week federal check that Congress provided in last spring’s economic aid package was available to the unemployed in addition to each state’s jobless benefit. But the $600 benefit expired at the end of July. A $300 weekly benefit that President Donald Trump offered through an executive order lasted only through mid-September, although some states are still working to send out checks for that period.” [Associated Press, 10/1/20] 
• Income And Spending Are Declining As Jobless Aid Dwindles. “A result [of expired benefits] is that Americans’ incomes and spending are declining or slowing. Total paid unemployment benefits plunged by more than half in August, according to the Commerce Department. Consumer spending did rise 1% that month, down from 1.5% in July. But that increase relied in part on consumers drawing upon their savings.” [Associated Press, 10/1/20]