Hit hard by the coronavirus crisis and with new government stimulus funding in limbo, Disney, American Airlines and United Airlines announced 60,000 layoffs in just 24 hours — leading a barrage of job losses a month before US elections.
Insurance firm Allstate warned Wednesday that it would have to cut 3,800 jobs, and Marathon Petroleum is slashing more than 2,000 jobs — 12 percent of its workforce.
No sector is expected to be spared in the wave of layoffs and furloughs.
Financial giant Goldman Sachs is cutting what it called a “modest” total of about 400 people, ending a moratorium on job reductions that it imposed as the pandemic took hold.
New jobless claims data from the Labor Department did not brighten the picture, with 837,000 new filings last week — down 36,000 from the week prior but still well above the single worst week of the 2008-2010 global financial crisis.
“The levels remain extraordinarily high,” said Rubeela Farooqi of High Frequency Economics.
“It is especially concerning that the pace of layoffs has not slowed more materially even though the economy has reopened more fully, and more and more businesses have come back online.”
Did not have to be this way
When the Covid-19 crisis struck the United States earlier this year, the tourism and hospitality industry — hotels, restaurants, and leisure activities — were the first forced to make huge job cuts to stay afloat.
Some major companies, like the airlines, got government aid to save tens of thousands of jobs.
But much of that aid expired on Wednesday, and partisan bickering has stalled a new package on Capitol Hill.
A loan package announced Tuesday for seven US airlines — totaling