Big profits (along with) big layoffs: eBay, AmEx to cut jobs

[ND-Dem]

Big layoffs are coming for some big companies. eBay (EBAY) announced that it will layoff 2,400 people, about 7% of its workforce before April. This, after reporting a 10% increase in profits last quarter. American Express (AXP) also says it will cut 4,000 jobs, or 6% of its work force, despite an 11% rise in fourth quarter profits.

Yahoo Finance Senior Columnist Mike Santoli says the layoffs are a result of shareholder pressure to maintain growth and revenue. “American Express and eBay are in a situation where they're basically not fast growth businesses but rather ones that investors are demanding keep the profit margin up.”

Even with unemployment dropping and new jobs being created, wages remain stagnant, struggling to keep pace with inflation. Thousands of layoffs may also put downward pressure on wage growth.

Santoli doesn't see a sudden spike in wages coming anytime soon. “This vigil for wage inflation to really catch fire is probably going to go on. It’s not really going to happen. The whole corporate psychology is built to keep it this way.”

http://finance.yahoo.com/news/big-profits--big-layoffs--amex--ebay-to-cut-jobs-154221346.html

[Armstead]

1. Things like this make me root for a comet to hit the earth

Our economy and centers of power have become so disconnected from the actual needs of society that it is mind boggling. And we're collectively so docile and/or inept as a population that we continue to let it go on -- or actively participate.

I'm beginning to think we're about done as a viable species.

[ND-Dem]

2. Me too.

[bluesbassman]

3. Trickle down exemplified.

Except it's yellow not green.

Think about this too: These are not minimum wage jobs. Factor that into the rosey employment numbers.