The current economic downturn has forced a record number of furloughs that could become permanent.

Corporations have been forced to lay off workers as the economic fallout from the pandemic continues, according to the Wall Street Journal.

Last week, General Electric Co., Uber Technologies Inc., and Airbnb Inc. announced plans to lay off additional workers, adding to the massive number of unemployed workers. Raytheon Technology Corp., Glassdoor, and United Airlines Holdings Inc. also announced plans to lay off workers. “Our airline—and our entire workforce—will have to be smaller than it is today,” Kate Gebo, United’s executive vice president of human resources said.

The April jobs report revealed that payrolls decreased by a record 20.5 million, erasing all of the new jobs created since the Great Recession. Raytheon is planning to cut $2 billion in expenses. “We’re furloughing folks both at the corporate office and across the commercial businesses. Also, we furloughed people [at] the factories, and I expect there will be further reductions,” Raytheon Chief Executive Greg Hayes said.

As economies start to reopen, the timeline for workers to return to the office isn't clear. Fear of a second surge has companies skeptical about being one of the first companies to reopen if allowed. Uber Chief Finance Officer Nelson Chai stated that the 3,700 workers the company furloughed might not be returning. “I don’t think you’ll see us adding back at that same level,” Mr. Chai said. “As you know, the company’s been very much focused on efficiency.”

Boeing Co., Lyft Inc., Mattel Inc., Mohawk Industries Inc., Sysco Corp., and Tripadvisor Inc. were some of the other companies to announce layoffs.

View the Full Story Here.


Economics, Finance and Investing