U.S. companies cut thousands of workers while continuing to reward shareholders during pandemic
Source: Washington Post
Business
U.S. companies cut thousands of workers while continuing to reward shareholders during pandemic
Five companies paid a combined $700 million to shareholders while cutting jobs, closing plants.
By Peter Whoriskey
May 5, 2020 at 10:51 a.m. EDT
Since the coronavirus pandemic was declared, Caterpillar has suspended operations at two plants and a foundry, Levi Strauss has closed stores and toolmaker Stanley Black & Decker is planning layoffs and furloughs. ... Steelcase, the office furniture manufacturer, and World Wrestling Entertainment have also both shed employees.
While thousands of their workers are filing for unemployment benefits, these companies rewarded their shareholders with more than $700 million in cash dividends. They are not alone. As the pandemic squeezes big companies, executives are making decisions about who will bear the brunt of the sacrifices, and in at least some cases, workers have been the first to lose, even as shareholders continue to collect.
Executives say the layoffs support the long-term health of their companies, and often the executives are giving up a piece of their salaries. Furloughed workers can apply for unemployment benefits. But distributing millions of dollars to shareholders while leaving many workers without a paycheck is unfair, critics argue, and belies the repeated statements from executives about their concern for employees welfare during the coronavirus crisis.
Caterpillar, for example, announced a $500 million distribution to shareholders April 8, about two weeks after indicating operations at some plants would stop. The company declined to say how many workers are affected. ... We are taking a variety of actions globally, but we arent going to discuss the number of impacted people, Caterpillar spokesperson Kate Kenny said in an email.
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Peter Whoriskey
Peter Whoriskey is a staff writer for The Washington Post whose investigative work focuses on American business and the economy. Previously, he worked at the Miami Herald, where he contributed to the paper's coverage of Hurricane Andrew, which was awarded a Pulitzer Prize for public service. Follow https://twitter.com/PeterWhoriskey
Read more: https://www.washingtonpost.com/business/2020/05/05/dividends-layoffs-coronavirus/
David Fahrenthold Retweeted
https://twitter.com/Fahrenthold
New from
@PeterWhoriskey
: Caterpillar, Levi Strauss, Black & Decker, World Wrestling Entertainment announced thousands of job cuts since the pandemic began.
They've also rewarded shareholders more than $750 million in dividends in recent weeks.
Link to tweet
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Full disclosure: I own shares of CAT.
riversedge
(70,414 posts)Traildogbob
(8,868 posts)That cash flew out of treasury faster than shit from Donnies anus lips. I am 67, paid all my taxes my entire life, never got deductions except mortgage interest. Today, 5/5/02 I and no one I know have gotten a Penny of a stimulus check. Why so long for the money that WE have put into treasury, yet Mitches ass pimples that do not pay taxes have gotten every penny of their free, untraceable bailout? OUR money would at least have helped local business. How much of the half trillion helped any one except Mitch ass pimples? That did NOTHING for the economy. The wrong people are toting weapons and should be outraged.
turbinetree
(24,745 posts)and hope it becomes permanent...........but hand out those dividends............
Just finish reading an article in Harper's about Goldman's Sach's again...........and what they did in the Malaysia.........I kept thinking of Greece............
https://harpers.org/archive/2020/05/the-malaysian-job-wolf-of-wall-street-1malaysia-development-berhad/
Bengus81
(6,936 posts)Most of these massive Corporations made enough off the Trump 14% tax cut give away to keep employee's on for a year during the CV pandemic. But it's all pissed away with huge raises for the those at the top, new jets, stock options, worthless stock buybacks and dividends.
Those who REALLY make money for the Corporation are the first to be tossed out the door.
greenjar_01
(6,477 posts)...capitalism.
bucolic_frolic
(43,443 posts)In my view consumers will rein in their spending to makeup for the losses of this period of time, and more than a third of those alterations in behavior will become habits and relatively permanent.
The CEO of one of the airlines was on with Stephanie Ruhle this morning. After twice giving a rah-rah pump to travel, growth, communication, and the permanence and necessity of airline travel, he admitted that post-pandemic the airline industry would be smaller.
Whoops! Smaller? As in contraction? Not as large? Capitalist growth forever?
Evolve Dammit
(16,803 posts)and the stock market (that only half of Americans have any) magically goes up. That's why the market is not a true reflection of anything, except corporate wealth.
mahatmakanejeeves
(57,718 posts)I'd be willing to bet that among those shareholders are quite a few pension funds.
Evolve Dammit
(16,803 posts)businesses at the lower end who were not able to apply, get info, etc. got zippo. This is fascism coming our way...fast
cstanleytech
(26,347 posts)crisis then.
MissMillie
(38,598 posts)Uhhhhh
.
NO!!!!!!!!!