Oregon Lottery Director Barry Pack announced Thursday significant measures the agency is taking in response to the sharp revenue decline sparked by the COVID-19 response.
The reductions help Lottery address two major issues: the immediate reduction in cash flow, and a projected long-term contraction of the retail market.
Continue reading “Oregon Lottery announces layoffs, furloughs, pay cuts”
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State-owned Qatar Airways and Virgin Atlantic are the latest airlines to announce plans to cut large numbers of jobs due to the impact of coronavirus pandemic.
In a notice to staff Akbar al-Baker, chief executive of Qatar Airways warned: “The truth is, we simply cannot sustain the current numbers and we need to make a substantial number of jobs redundant – inclusive of cabin crew.”
Uber said Wednesday it will lay off 3,700 employees and that CEO Dara Khosrowshahi will forgo his base salary for the rest of the year.
The layoffs to its customer support and recruiting teams represent about 14% of its 26,900 employees, based on Uber’s most recent headcount.
Khosrowshahi made $1 million in base salary in 2019 but gained the vast majority of his compensation from bonuses and stock awards.
The moves were announced in a filing with the Securities and Exchange Commission.
Uber’s stock fell as much as 4% Wednesday but ended the trading day down 0.9%.
Uber has been hit hard by the coronavirus pandemic, which has crushed the travel industry because of lockdowns to stop the spread of the virus. Uber’s global gross bookings are down 80%, according to a report from The Information last month. Investors will get a greater sense of the impact on Thursday when Uber reports earnings.
Continue reading “Uber to lay off 3,700 employees, about 14% of workforce”
Rolls Royce Holdings Plc is likely to be a much smaller company in the coming years with aerospace facing an uncertain future.
The company is considering a 15% cut to its workforce as the aviation industry contends with an unprecedented crisis because of the coronavirus pandemic, a person familiar said last week. Senior executives at the maker of jet engines have yet to finalize reductions of that magnitude and talks with labor unions are continuing.
The maker of widebody engines is particularly exposed to the fallout of the pandemic. The long-haul flights which use its engines are likely to be the last to recover, meaning the downturn in demand may last for a while. Rolls-Royce had already restructured the business after engine problems but now faces a smaller market with aircraft makers Airbus SE and Boeing Co. both slashing production rates.
“Such action at some point appeared inevitable,” said Sandy Morris, an analyst at Jefferies. “We forecast full year group sales down 12%, but civil aerospace revenue down 18% mainly due to lower engine deliveries. The bad news really all happens in 2020.”
Rolls-Royce confirmed the likelihood of job cuts without quantifying their possible extent, saying in a statement Friday that further action was needed to reduce spending and strengthen the company. It has promised employees more details before the end of the month.
The company’s shares fell as much as 8.3%, and were down 3.4% as of 8:49 a.m. in London. Rolls-Royce has lost about 57% of its market value this year.
Airbnb plans to lay off nearly 1,900 employees, or about 25% of the company, a person familiar with the plans confirmed to CNBC.
The layoffs were first reported by The Information, which reported the news would be broken to employees by CEO Brian Chesky in a call starting around 3pm ET.
“We are collectively living through the most harrowing crisis of our lifetime, and as it began to unfold, global travel came to a standstill,” Chesky told employees according to a copy of his prepared remarks. “Airbnb’s business has been hit hard, with revenue this year forecasted to be less than half of what we earned in 2019.”
Prior to the layoffs, Airbnb had 7,500 employees, Chesky said. Airbnb will halt projects related to hotels, a transportation division and luxury stays, Chesky said.
“Travel in this new world will look different, and we need to evolve Airbnb accordingly,” he said.
U.S. employees laid off will receive 14 weeks of base pay plus an additional week for every year they worked at Airbnb, Chesky said. Airbnb will also provide 12 months of healthcare for laid off U.S. employees, Chesky said. May 11 will be the last work day for impacted Airbnb employees in the U.S. and Canada, Chesky said.
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United Airlines UAL this weekend began the process by which it could eliminate the jobs of more than a third of its 12,250 pilots as soon as Oct. 1.
And the airline’s chief pilot warned that unless travel demand rebounds this summer much stronger than they anticipate, a lot more pilots could be pushed into the unemployment lines, along with corresponding numbers of mechanics, flight attendants, ground workers, administrative staff and managers.
United on Saturday sent its pilots an email announcing a bid for work slots effective June 30 that involves the “displacement” of 4,457 positions. That makes United the first U.S. airline to disclose its staff reduction plans in response to the COVID-19 pandemic and its staggering impact on travel. United, like nearly all U.S. carriers, received large grants and low interest loans from the federal government aimed at keeping their staff employed across the summer and ready for a swift return of travel demand. United’s share of those grants and loans totaled about $5 billion, roughly half of which already has been received with balance to arrive in a few weeks.
Now, a quick rebound in travel appears highly unlikely.
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General Electric will cut about 13,000 jobs from its jet-engine operation, in the latest sign of the devastating impact of the coronavirus outbreak on global air travel.
The reductions, going well beyond cuts announced in March, will include “voluntary and involuntary actions” affecting about 25% of GE Aviation’s workers worldwide, the company said Monday in a statement. The total includes a previously announced move to cut about 2,600 positions in the U.S.
“The deep contraction of commercial aviation is unprecedented, affecting every customer worldwide,” GE Aviation Chief Executive Officer David Joyce said in the statement. “We have responded with difficult cost-cutting actions over the last two months. Unfortunately, more is required.”
The job cuts, coming after GE last week reported deep financial strains in its jet-engine manufacturing division, underscore the severe impact of the pandemic on aviation and the broader economy. Planemakers Boeing and Airbus, along with airlines worldwide, have launched desperate efforts to preserve and raise cash as demand has fallen sharply.
Ticketmaster North America has furloughed a quarter of its workforce, sources confirm to Variety, in one of the most tangible signs yet of the severity of the coronavirus pandemic’s effect on the concert industry.
The hundreds of affected employees were alerted Tuesday in a conference call that was followed by a letter from Ticketmaster president Jared Smith.
“For the very first time in the history of live entertainment, the industry is completely shut down — something that a few short months ago would have seemed incomprehensible,” Smith said in the letter to employees, a copy of which was obtained by Variety.
“Since the beginning of this global crisis,” he continued, “we have operated with the goal of staying true to our company’s core philosophy of ‘taking care of our own.’ This is why we continued to keep our team at full pay through March and April, even as the tens of thousands of events we support and sell ground to a halt.”
Smith praised the staff for its crisis response in the midst of revenue grinding to a halt and said that “this team spirit and camaraderie made the decision to furlough a portion of our workforce all the more difficult. I assure you, however, that this decision was arrived at with great consideration and care. Without a doubt, this is the hardest decision I have faced in my tenure leading this great organization but it is one I feel is necessary to protect the future of our company.”
One of the biggest U.S. steelmakers is signaling how the coronavirus pandemic is set to inflict pain on blue-collar America.
U.S. Steel Corp. expects to lay off about 2,700 employees as the virus forces the company to idle most of its blast furnaces. Even before lockdowns hit the economy, producers were facing slowing demand in the manufacturing sector.
Now, U.S. Steel’s moves further illustrate how the virus is turning President Donald Trump’s much-touted “blue-collar boom” into a bust as he heads into November’s election. Economists see an historic economic contraction in the offing and millions of jobs at risk in coming months.
Pittsburgh-based U.S. Steel said in a filing Thursday that it sent out notices of plans for layoffs to 6,500 employees, but that it expects the actual number affected to be about 2,700. As of Dec. 31, the company had 27,500 people on the rolls.