'Tis Not the Time to Dick Around, Mr, Jerome Powell. Cut the Damn Rates Now!

Discussion in 'Economics' started by schizo, Jan 25, 2024.

  1. I'm no economist, so I will not speak with authority on the subject, but, to me, it seems incredible to even consider cutting rates at this point. Let the rates stay right where they are and even consider raising them. Interest rates are disciplinary for the economy and encourages competition and innovation. Low rates do not. They make you (both corporations and private individuals) fat, lazy and channels free money where it shouldn't go, i.e., projects and companies that shouldn't exist.

    Historically, 5 % is not a high rate at all and an economy that needs 0 % interest rates is not a robust economy. Low rates should be reserved for crises (financial crisis, pandemics, etc.) and be a temporary solution, not a permanent one like ZIRP over the last decade. Reducing the rates will only make matters worse and is just another kicking the can down the road.

    We see the same thing here in Norway. The entire construction industry is in deep trouble with massive layoffs and projects on hold with a policy rate of 4.5 %. We also see homeowners struggling to service their housing debt at these levels.

    You f''cking serious?

    In my view, people got fat, lazy and complacent over this last decade of zero rates and adopted a lot of luxury habits that were not a part of daily life in the past and are now bitching and complaining because they struggle to keep up that standard of living.

    Like I said, I'm not an economist, but this is my view on the subject. I may be wrong, but I think I'm not?
     
    #21     Feb 11, 2024
    schizo, NoahA, nitrene and 1 other person like this.
  2. nitrene

    nitrene

    It just comes down to the fact that no one wants to take loses anymore.

    Here in the US they perversely cheer higher real estate prices but all it does is create more unaffordability & homelessness. Its a clown's world here in the US. Its even worse in Canada & Australia.
     
    #22     Feb 11, 2024
    Laissez Faire likes this.
  3. schizo

    schizo

    My point isn't about lowering or not lowering rates. It's more about TIMING.

    If companies lay off workers en masse, which I believe will happen soon, the Fed will have no choice but to cut rates. The thing is, they're always late to the game and resort to draconian measures, like opting for 0.75%. To me that's just stupid, if not amateurish. Why not start cutting sooner, and on a more even keel, with 0.25% instead?
     
    #23     Feb 11, 2024
  4. nitrene

    nitrene

    The reason is the Ghost of Arthur Burns looms over Powell's head. If he starts cutting and inflation comes back he will be excoriated in front of Congress.
     
    #24     Feb 11, 2024
  5. schizo

    schizo


    We'll see about that in 3-6 months.

    Just wanna leave a record for future reference.
     
    #25     Feb 12, 2024
  6. schizo

    schizo

    Companies that announced Major Layoffs and Hiring Freezes
    Feb. 8th, 2024

    [​IMG] intellizence.com

    Intellizence offers the latest Layoffs, Downsizing, Job Cuts, and Hiring Freeze data for market intelligence, customer intelligence, sales intelligence, and risk intelligence activities. We monitor public sources like news and WARN filings for the latest layoff and hiring freeze announcements. We aggregate, de-duplicate, normalize, and deliver the curated layoff data through API and Web dashboard.

    Since January 1st, 2023, 5487+ companies have announced mass layoffs.

    Since January 1st, 2024, 776+ companies have announced mass layoffs.[Last update: Jan 31, 2024].

    Layoff Tracker 2024 – Recent Layoffs of The Week
    • February 8, 2024 – Getaround to Restructure, Lay Off 30% of North American Staff.
    • February 7, 2024 – JPL plans to lay off hundreds of employees due to lack of funding – NBC Los Angeles
    • February 6, 2024 – Snap lays off 10% of its workforce, cutting approximately 500 jobs.
    • February 5, 2024 – Societe Generale SA plans to cut about 900 jobs at its French head office.
    • February 3, 2024 – Zoom lays off 150 employees, and Okta slashes 400 jobs.
    • February 2, 2024 – Riot Games, the company behind the popular MOBA League of Legends, laid off over 500 employees.
    • February 1, 2024 – Deutsche Bank to lay off 3,500 jobs and reward shareholders.
    [​IMG]


    Major Layoffs and Hiring Freezes Since November 2023

    UPS

    No. of Employees to be Laid off: 12,000
    Industry: Logistics & Supply Chain
    February 2024


    UPS will cut 12,000 jobs as part of a bid to save $1 billion in costs. Managers and contractor positions will make up most of the layoffs.

    Deutsche Bank
    No. of Employees to be Laid off: 3500
    Industry: Banking & Financial Services
    February 2024

    Deutsche Bank would cut 3,500 jobs, buy back shares and pay dividends, after posting a 30% drop in fourth-quarter profit. The bank had already announced plans to trim headcount and the jobs affected will be back office roles.

    American Airlines
    No. of Employees to be Laid off: 656
    Industry: Aviation

    February 2024

    American Airlines to lay off 656 workers as it consolidates. Customer support workers in Phoenix and Dallas-Fort Worth will lose their jobs as the airlines aims to streamline response.

    Okta
    No. of Employees to be Laid off: 400
    Industry: Technology
    February 2024

    Okta has eliminated 400 full-time jobs as part of a “restructuring plan,” representing 7 percent of its staff. The new round of layoffs comes a year after Okta disclosed it was cutting 300 employees, which had represented 5 percent of the identity security vendor’s global workforce at the time.

    Microsoft
    No. of Employees to be Laid off: 1900
    Industry: Technology
    January 2024

    Microsoft will lay off around 1,900 employees in its gaming unit, or around 9% of its workforce. Microsoft Gaming CEO Phil Spencer said the layoffs were part of a larger “execution plan” to reduce overlap areas.

    Lloyds Banking Group
    No. of Employees to be Laid off: 1600
    Industry: Banking
    January 2024

    Lloyds Banking Group plans to lay off around 600 employees across its branches to push its online banking services. However, the British lender will also add around 830 jobs to its relationship-growth team to improve customer service through phone and video calls.

    Valeo
    No. of Employees to be Laid off: 1150
    Industry: Automobile
    January 2024

    French automotive supplier Valeo will cut 1,150 jobs worldwide as it merges units manufacturing parts for hybrid and electric vehicles.

    eBay
    No. of Employees to be Laid off: 1000
    Industry: E-Commerce
    January 2024

    EBay plans to lay off 9% of the company’s workforce, which is equal to about 1,000 full-time jobs, as the tech industry continues to downsize to start in 2024.

    Corning Inc.
    No. of Employees to be Laid off: 1000
    Industry: Manufacturing
    January 2024

    Corning Incorporated, a leading materials science company, has laid off around 2% of its global workforce, which affects around 1,000 employees.

    Salesforce
    No. of Employees to be Laid off: 700
    Industry: Technology
    January 2024

    Salesforce is laying off about 700 employees, or roughly 1% of its global workforce. The job cuts follow a wave of U.S. tech layoffs after the industry hired heavily during the pandemic,

    Tata Steel
    No. of Employees to be Laid off: 2800
    Industry: Manufacturing
    January 2024

    Indian firm Tata Steel announced Friday it will close both blast furnaces at its plant in Port Talbot, Wales, eliminating 2,800 jobs, as part of plans to make its unprofitable U.K. operation leaner and greener.

    Macy’s
    No. of Employees to be Laid off: 2000

    Industry: Retail
    January 2024

    Department store chain Macy’s plans to lay off about 13% of its corporate staff and close five stores to trim costs and redirect spending to improve the customer experience. Macy’s has rejected a $5.8 billion offer to take the iconic department store private as it prepares to slash costs amid ongoing struggles.

    Wayfair
    No. of Employees to be Laid off: 1650
    Industry: Retail
    January 2024

    Online home goods retailer Wayfair is laying off approximately 1,650 employees, representing about 13% of its global workforce. The move is expected to save the company more than $280 million annually.

    Bosch
    No. of Employees to be Laid off: 1200

    Industry: Consumer Goods
    January 2024

    Automotive supplier Bosch wants to cut 1,200 jobs in its software development division by the end of 2026. Talks with employee representatives had yet to start, referring to the proposed job cuts as planned but not yet finalized.

    Citi Group
    No. of Employees to be Laid off: 20,000

    Industry: Banking
    January 2024

    Citigroup, the parent company of Citibank, plans to cut 20,000 jobs over the next two years. The layoffs are part of restructuring plans instituted by Chief Executive Officer (CEO) Jane Fraser to simplify the bank’s operations.

    Google
    No. of Employees to be Laid off: 1000

    Industry: Technology
    January 2024

    Google has cut around 1000 jobs in many of its divisions, including its core engineering and hardware divisions. The Verge reports that job cuts are hovering around a thousand within teams focusing on Pixel phones, Nest smart thermostats, Fitbit watches, and Google Assistant.

    Unity Software
    No. of Employees to be Laid off: 1800

    Industry: Technology
    January 2024

    Unity Software would lay off about 1,800 employees, or 25% of its overall workforce. The gaming technology company said in a regulatory filing that the cuts are part of a corporate restructuring plan.

    GDI Integrated Facilities Services
    No. of Employees to be Laid off: 1867

    Industry: Consumer Services
    January 2024

    GDI Integrated Facilities Services, a Montreal janitorial and cleaning services company, is cutting 1,867 employees in the United States, including 438 across Florida, after its contract to work at some Amazon warehouses was canceled.

    Twitch
    No. of Employees to be Laid off: 500

    Industry: Media
    January 2024

    Amazon’s live streaming platform, Twitch, would cut 500 employees or 35% of its workforce. “As you all know, we have worked hard over the last year to run our business as sustainably as possible,” wrote Twitch CEO Dan Clancy in a blog post. “Unfortunately, we still have work to do to rightsize our company, and I regret having to share that we are taking the painful step of reducing our headcount by just over 500 people across Twitch.”

    Telefonica
    No. of Employees to be Laid off: 3421

    Industry: Telecommunication
    January 2024

    Spanish telecoms group Telefonica, in a deal with unions, plans to lay off up to 3,421 employees in Spain. The plan will cost around 1.3 billion euros before taxes as it seeks to reduce costs.

    Enphase Energy
    No. of Employees to be Laid off: 340

    Industry: Energy & Utilities
    January 2024

    Solar company Enphase Energy will lay off 10% of its workforce. Enphase produces inverters that convert the energy the panels collect into usable household power.

    Johnsonville
    No. of Employees to be Laid off: 400

    Industry: Consumer Products
    January 2024

    Johnsonville, LLC will close one of its plants by the end of the year as the result of a local acquisition, impacting nearly 400 workers.

    Xerox
    No. of Employees to be Laid off: 15% of Workforce

    Industry: IT Services & Outsourcing
    January 2024

    Xerox, the IT corporation behind ubiquitous office equipment like scanners and printers, is laying off 15% of its workforce as part of a so-called “reinvention” strategy. The cut would affect some 3,000 positions.

    Bolt.Earth
    No. of Employees to be Laid off: 20% of Workforce

    Industry: Automobile
    December 2023

    Bengaluru-based electric vehicle (EV) charging infrastructure and OS provider Bolt.Earth has laid off around 15-20% of its workforce in a restructuring exercise.

    Google
    No. of Employees to be Laid off: 30,000

    Industry: Technology
    December 2023

    After cutting 12,000 jobs this year, Google reportedly plans to lay off around 30,000 employees. According to a recent report from The Information, Google is considering a substantial workforce reduction as part of a strategic move to integrate AI into various aspects of its business processes. The proposed restructuring will impact Google’s ad sales department.

    Telefonica
    No. of Employees to be Laid off: 3,400

    Industry: Telecommunication
    December 2023

    Spanish telecoms group Telefonica will lay off more than 3,400 people by 2025 to reduce costs and adapt the company’s size to the current market. The layoffs will mostly occur in late February 2024.

    Paytm
    No. of Employees to be Laid off: 1000

    Industry: Technology
    December 2023

    Paytm laid off over 1,000 employees across units, impacting at least 10% of its workforce. The move comes as the publicly listed financial services firm aims to reduce costs and realign its various businesses.

    PT Waskita Karya
    No. of Employees to be Laid off: 500

    Industry: Construction

    December 2023

    Indonesia’s state-owned construction company PT Waskita Karya has announced it is laying off 500 employees to improve its financial efficiency amid a push to resolve its debt burden.

    Agilent Technologies
    No. of Employees to be Laid off: 400

    Industry: Technology

    December 2023

    Agilent Technologies, a maker of laboratory instruments, plans to lay off about 400 employees, or 2% of its global workforce, to reduce costs that include some site closures.

    ShareChat
    No. of Employees to be Laid off: 200

    Industry: Technology

    December 2023

    Bengaluru-based social-media platform ShareChat reportedly terminated 200 employees on Wednesday following an official statement citing “strategic restructuring” and the need to “streamline the company’s cost base.”

    Hasbro
    No. of Employees to be Laid off: 1100

    Industry: Retail

    December 2023

    Hasbro, a leading player in the toy industry, is undergoing reorganization. CEO Chris Cocks has informed employees via email that the company will be implementing a global workforce reduction of 1,100 employees as part of Hasbro’s strategic overhaul.

    State Street Corp.
    No. of Employees to be Laid off: 1500

    Industry: Financial Services

    December 2023

    State Street has laid off 1,500 employees. The move is being made to “position ourselves for long-term success and take difficult but necessary steps to streamline our organization further.”

    General Motors
    No. of Employees to be Laid off: 1300

    Industry: Automobile

    December 2023


    According to WARN notices the company has filed with state regulators, General Motors will lay off about 1,300 workers from two of its Michigan plants, Orion Assembly and Lansing Grand River Assembly. The job cuts that will take place in the new year, come after the automaker said in October that it would be delaying electric pickup truck production into 2025.

    Alitalia
    No. of Employees to be Laid off: 3000

    Industry: Aviation

    December 2023

    Alitalia’s administrator has asked Italy’s government to raise to nearly 7,000 employees under a temporary lay-off scheme, with most of its aircraft standing idle during the coronavirus outbreak. There is a request for 2,900 more workers to join the scheme in a letter sent by the state-appointed administrator to unions and government ministries and seen by Reuters.

    Spotify
    No. of Employees to be Laid off: 1500

    Industry: Media & Entertainment

    December 2023

    Spotify is cutting 17% of its global workforce, amounting to around 1,500 employees, as it tries to reduce costs while focusing on profitability. This follows layoffs of 600 people in January and an additional 200 in June.

    Guangzhou Automobile Group Honda
    No. of Employees to be Laid off: 900

    Industry: Automobile

    December 2023

    Guangzhou Automobile Group (GAC) Honda Automobiles will let go seven percent of its 13,000-strong workforce. That means Honda’s joint venture in China will terminate the contracts of at least 900 workers, as it is now shifting focus towards electric vehicles.

    CBC/ Radio Canada
    No. of Employees to be Laid off: 600

    Industry: Media & Entertainment

    December 2023

    The Canadian Broadcasting Corporation/Radio-Canada plans to cut about 10 percent of its workforce and axe some programming to cope with a potential $125 million budget shortfall. The public broadcaster said it plans to cut 600 union and non-union positions across the organization.

    Capita
    No. of Employees to be Laid off: 900

    Industry: IT Services & Outsourcing

    November 2023

    Capita, which runs services for local councils, the military, and the NHS and manages the BBC TV license fee, plans to cut 900 jobs to save costs. The outsourcing group said the cuts would affect mainly support function employees rather than customer-facing staff.

    Nien Hsing Textile Co.
    No. of Employees to be Laid off: 700

    Industry: Textiles

    November 2023

    Due to falling orders, Nien Hsing Textile Co., one of Taiwan’s leading denim fabric and jeans makers, would close its factory in Miaoli County’s Houlong Township. The closure would impact over 700 workers.

    Surefox North America
    No. of Employees to be Laid off: 386

    Industry: Security

    November 2023

    According to WARN documents, Surefox North America, a security company serving multiple Google offices, will let go of around 386 workers in December. Surefox markets itself as “physical risk management solutions for individuals and businesses.

    Stellantis
    No. of Employees to be Laid off: 6400 (buyout)

    Industry: Automobile

    November 2023

    Chrysler parent Stellantis has offered buyouts to roughly 6,400 of its 12,700 employees. This will help to reduce headcount and cut costs of the automaker’s North American operations.

    HannesBrands
    No. of Employees to be Laid off: 1592

    Industry: Retail

    November 2023

    U.S. apparel company HanesBrands will close one of its plants in El Salvador, laying off around 1592 employees.

    Alstom
    No. of Employees to be Laid off: 1500

    Industry: Manufacturing

    November 2023

    France-based Alstom, which manufactures high-speed trains, plans to lay off 10% of its employees, or about 1,500 workers. The firm also might sell more of its shares to raise money to bolster its balance sheet by 1 billion euros.

    Embracer Group
    No. of Employees to be Laid off: 900

    Industry: Technology

    November 2023

    Embracer Group, the Swedish video game and media holding corporation responsible for a wide range of intellectual properties and game studios, has laid off 900 employees over the past three months.

    Maersk
    No. of Employees to be Laid off: 10,000

    Industry: Shipping & Ports

    November 2023

    Shipping and logistics giant Maersk would cut more than 10,000 jobs as a pandemic-fueled cargo boom ended, leaving the industry with a surplus of ships and sharply lower freight rates. Maersk saw its third-quarter profit plummet to $521 million from $8.88 billion last year.

    Block
    No. of Employees to be Laid off: 1000

    Industry: Technology

    November 2023

    Block, a tech firm specializing in financial services, will eliminate nearly 1,000 jobs in its upcoming layoffs. Twitter’s Jack Dorsey, the company’s founder, indicated this intention in a recent third-quarter shareholder letter, aiming to keep the employee count below 12,000.

    Pico Interactive
    No. of Employees to be Laid off: 2000

    Industry: Technology

    November 2023

    Pico is laying off around 2000 employees as it works to “restructure” its business.

    Viasat
    No. of Employees to be Laid off: 800

    Industry: Telecommunication

    November 2023

    Viasat is laying off 800 employees, about 10% of its workforce, as it is integrating the Inmarsat business post-acquisition. The layoffs will be spread across the business regarding geographies and divisions.

    Charles Schwab
    No. of Employees to be Laid off: 2000

    Industry: Financial Services

    November 2023

    Charles Schwab has laid off about 5% to 6% of its employees, amounting to roughly 2,000 people, as it looks to cut costs. A Schwab spokesperson said these “were hard but necessary steps to ensure Schwab remains highly competitive, with industry-leading levels of efficiency, well into the future.”

    TVA Group
    No. of Employees to be Laid off: 500

    Industry: Media & Entertainment

    November 2023

    TVA Group would eliminate 547 positions, including 300 in-house production positions, 98 operations positions, and 149 positions in other departments, after suffering from “shrinking audiences, declining subscriptions, and falling advertising revenues.

    Splunk
    No. of Employees to be Laid off: 560

    Industry: Technology

    November 2023

    Splunk layoffs will impact around 500 of the company’s employees ahead of its acquisition by Cisco. Most of the cuts will take place in California. CEO Gary Steele said the Splunk layoffs in a U.S. Securities and Exchange Commission (SEC) filing and letter to employees.

    Pfizer
    No. of Employees to be Laid off: 800

    Industry: Biotechnology
     
    #26     Feb 12, 2024
  7. Overnight

    Overnight

    Schizy! Dude! World's longest unnecessary post ever! Gah!
     
    #27     Feb 12, 2024
  8. schizo

    schizo

    Whadda mean? Those lagging indicators at the Fed need to get their heads out of their ass and see what's happening on the ground.
     
    #28     Feb 12, 2024
  9. Darc

    Darc

     
    #29     Feb 12, 2024
  10. Overnight

    Overnight

    Both Schizo and Darc can fuck off tonight. I've had it with Powell and psycho-trading. Bah. Love you guys, but...

    Fuck off. :)
     
    #30     Feb 12, 2024