Job losses deepen Monday blues

Companies all over the world announced thousands of job losses today as a survey among US private sector companies suggests that the situation will only get worse.

Caterpillar, producer of heavy machinery such as bulldozers, announced that 20,000 of its employees will face the sack is it made more than a third less profit for the last three months of 2008.

Six thousand employees will be fired from electronics producer Philips.

In the UK steel maker Corus announced 2,500 job cuts while France is considering a stimulus plan to help airlines purchase planes that will in turn save Airbus.

All these job cuts are affecting both skilled and unskilled workers. This means that there are more unemployed individuals with tertiary education than before. Writing on the Wall Street Journal, Dawn Jordan, former vice president of operations at Bank of America writes:

I know my education will be key in landing my next job, but it didn’t prevent me from losing my last one. And it doesn’t carry any guarantees about the job after that. Given the growing number of intelligent, experienced workers being laid off everyday, I can’t help but wonder, what besides education and experience is needed to increase job security in today’s workplace?

Meanwhile UK Prime Minister Gordon Brown called for a new world order after the crisis. This is already happening with Kuwaiti firm Noor Financial Investments forming ventures with Russian gas giant Gazprom

Recession hits tech and telecommunication companies

Sony posted a loss for the first time in 14 years

 

 

The tech and telecommunication sectors took a big blow in teh past 24 hours as company announcements showed the vulnerability of such sector.

Sony was the first company to start the round of negative announcements as it posted its first loss in 14 years. 

Nokia then followed. It said that its sales were set to go down by 10% in 2009. This means that the mobile phone market will get smaller and more competitive in 2009.

But, possibly the worst result of the day was Microsoft which announced it is going to axe 5,000 workers for the first time since 1975. This is 5% of Microsoft’s workforce. 

It was Samsung’s turn early this morning when it posted its first quartlerly loss ever. This sent its shares in Seoul down 4%.

However, Google saved the day posting financial results that beat analysts’ expectations.

Obama fails to warm Wall Street stocks

Obama’s inauguration did not manage to prevent Wall Street index S&P 500 from falling 8.7%, reaching its lowest levels in fourteen years.

The worst performers in the United States markets today were banks where doubts were raised on the results Wells Fargo is expected to issue tomorrow. Wells Fargo was one of the better managed banks during the financial crisis.

Banks, or rather, the duration of their bailout, was also a cause of concern in Britain where The Guardian reports that banks in Britain may be nationalised for as much as ten years. 

This shows us that all that long-lasting change needs is a signature on a piece of paper. If it’s for the better, then that’s a different question.

Euro car industry, Latvia are running low on fuel

€40 billion is needed to save the European car industry from collapse, European car maker association president Carlos Ghosn said today. This news came as reports suggest that more than 1,300 employees could face the sack in troubled car make Jaguar-Land Rover.

Car makers in Europe were urged to keep a close eye on the outcomes of the proposed plan by President Obama to bail out US car makes, argued EU Industry Commissioner Geunter.

Latvia is also in need of help. The Finance Ministers of the European Union agreed to give the troubled Baltic EU member state a €3.1 billion loan.

Meanwhile, Fiat announced it acquired a 35% stake in Chrysler. The New York Times reported, Sergio Marchionne,  the chief executive of Fiat saying in a statement:

“This initiative represents a key milestone in the rapidly changing landscape of the automotive sector and confirms Fiat and Chrysler commitment and determination to continue to play a significant role in this global process,”

Jurys Inns, a small British hotel chain, was a rare source of good news as it announced the creation of 300 jobs as it intends to build new hotels in Newcastle-upon-Thyne, Portsmouth and Glasgow.

Jobs and Cars trouble continues as Wall Street waits

Everyone’s waiting for what Obama will say, and do, on the economy even stock traders as CNNMoney reports that stocks on Wall Street are set to go down in value today.

Meanwhile there’s a mix of bad and good news on the other side of the Atlantic Ocean as Times reports that inflation in Britain has stumbled to 3.1% in the last three months of 2008. RBS’ shares, which yesterday announced the biggest loss in British corporate history, are today trading at higher prices. 

This is however overshadowed by news that food firm Vion and clothing firm Burberry are set to axe jobs. 

European car-makers urgently need money, said Renault’s Chief Carlos Ghosn at a summit in France today. More than 10% of France’s workforce is employed in the car industry. France is preparing a plan to inject more cash in the industry.

Toyota’s also in trouble as it fired its President today after the company reduced its sales by 4%.