FOLLOW US

America August 3, 2020 4 mins read

Layoffs on the rise as PPP funds are used up

America ı By Jacob Wolinsky

0 Comments

layoffs

American Airlines, Nike, several casinos along the Las Vegas Strip, LinkedIn, numerous retailers, Bridgewater and Schlumberger all have one thing in common. All have announced upcoming layoffs, and they're not the only ones cutting jobs. The list of businesses that are laying workers off is growing rapidly as the pandemic continues to take its toll.

The Paycheck Protection Program stemmed the tide of layoffs, but only temporarily. The sweeping wave of job cuts is about to come roaring back now that most businesses have used up the funds. Here are some of the major companies that have announced layoffs over the last month or so.

Casinos

Several Las Vegas casinos are the newest additions to the list of companies that have announced layoffs. MGM notified a "large majority" of employees in its entertainment and sports divisions that they will lose their jobs effective Aug. 31. The company hopes to rehire the workers, who had been furloughed already.

Wynn Resorts, Circus Circus and Penn National Gaming have also announced job cuts and furloughs.

Travel

The travel industry has been especially hit hard by the coronavirus pandemic. As part of their bailout package, airlines have been required to keep employees on the payroll until Oct. 1. However, several airlines have announced layoffs that will start when the protected period under the bailout package ends.

American Airlines has said it will have to lay off as many as 25,000 workers or nearly 20% of its workforce after Oct. 1. United Airlines is following suit with up to 36,000 job cuts due to the coronavirus pandemic. Southwest Airlines is going a different route by offering extended leave and exit packages to its employees. Nearly 30% of its workforce had taken the deals as of July 20.

Contractors that do business on their airplanes have already been laying off workers. In fact, many companies laid off employees and then took bailout funds from the Paycheck Protection Program, prompting questions about what they're doing with all those funds, which are based on last year's payroll, after they have already let workers go.

In addition to airlines and their contractors, ride-sharing giants Uber and Lyft and hotel chains Hilton and Marriott have announced furloughs.

Retailers

Numerous retailers have also been hit hard by the coronavirus pandemic with many being forced to close their stores temporarily. However, many of those temporary closures are becoming permanent.

For example, J.C. Penney filed for bankruptcy in May and announced it will permanently close 152 stores and cut 1,000 positions in corporate and field management. Tailored Brands, which owns Jos. A. Bank and Men's Wearhouse, plans to cut 20% of its workforce and close 500 stores.

Tommy Hilfiger and Calvin Klein owner PVH Corp is eliminating 450 jobs and closing 162 stores. Blue jeans brand Levi's is cutting 700 jobs or about 15% of its global workforce. Macy's is also cutting jobs, eliminating about 3,900 corporate employees after furloughing most of its workforce earlier this year.

Nike also announced job cuts, although it isn't saying how many jobs it will eliminate. The company said it's actually not a cost-cutting move, however. Instead, the sportswear brand claims the move is aimed at investing resources in stronger parts of its business.

Drug store chain Walgreens is slashing 4,000 jobs in response to the loss it posted in its third fiscal quarter.

Other layoffs

HSBC is slashing 15% of its global workforce or about 35,000 jobs. Additionally, Reuters announced that Goldman Sachs has revamped its employee review process, opening the door to even more job cuts. Bloomberg Law also reported that Wells Fargo is getting ready to eliminate thousands of jobs.

Defense contractor and airplane manufacturer Boeing is laying off almost 7,000 workers. Social network LinkedIn plans to cut 6% of its workforce of 960 jobs, all in hiring and sales.

Tumbling oil prices have also resulted in job cuts. Schlumberger announced plans to eliminate about 21,000 jobs, while Chevron plans to cut between 10% and 15% of its workforce, which employs 45,000 people globally.

These aren't the only layoffs that have been announced in recent months, and the list is growing by the day. More and more companies are likely to cut jobs unless more funds from the Paycheck Protection Program are forthcoming. Congress is expected to add additional funding for the program in the next stimulus package.

Previous Article

ExxonMobil reports record-breaking losses, cites COVID-19

Read More
7 Posts

Jacob Wolinsky

Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America November 06, 2026 Jay Rockefeller, Former West Virginia Governor, dies at 89 By – Rachel Moore
America November 6, 2026
Trump’s Crypto Fortune, Election-Week Financial Moves…

By Samuel A. Lopez – USA Herald | November 6,…

By – Samuel Lopez
America November 6, 2026
Meghan Markle’s Father , Thomas Markle,…

Thomas Markle, the estranged father of Meghan, Duchess of Sussex,…

By – Rachel Moore
America November 6, 2026
2 People found shot in the…

A deadly shooting inside a Manhattan senior housing facility has…

By – Rachel Moore
America November 6, 2026
Tesla to end Cybertruck production as…

Tesla’s futuristic Cybertruck, a stainless-steel electric pickup that once promised…

By – Rachel Moore
America November 6, 2026
Federal Court Rejects LendingTree Arbitration Clause…

Key Legal Findings That Could Affect Millions of Online Contracts…

By – Samuel Lopez
America November 6, 2026
DOJ Launches Super Intelligence Task Force…

Inside Washington’s New Super Intelligence Crackdown The Justice Department is…

By – Samuel Lopez
America November 6, 2026
Hackers Target French Blood Banks In…

By Samuel Lopez – USA Herald A cyberattack targeting blood-storage…

By – Samuel Lopez
America November 6, 2026
“You’ll Know Soon Enough”: Trump Says…

Trump says he may "have to" destroy the rest of…

By – Derek Johnson
America November 6, 2026
Newsom Commutes All 548 California Death…

Gov. Gavin Newsom will commute all 548 California death sentences…

By – Derek Johnson
America November 5, 2026
Stock Market Reverses Post-Election Rally as…

NEW YORK — The Stock Market suffered a dramatic reversal…

By – Jackie Allen
America November 5, 2026
AI Stock Selloff Erases $2.5 Trillion…

NEW YORK — Wall Street suffered a massive AI stock…

By – Michallie K Harrison
America November 5, 2026
‘Golden Age’ Playbook Fails Its Own…

AUBURN – Tommy Tuberville wants Alabama to believe that smaller…

By – Michallie K Harrison
America November 5, 2026
Artemis II Left a 3,100-Mile Atmospheric…

NASA’s Artemis II mission produced upper-atmosphere disturbances extending more than…

By – Michallie K Harrison
America November 5, 2026
Hegseth Impeachment: Massie Demands Resignation or…

WASHINGTON — Rep. Thomas Massie says he will revive his…

By – Michallie K Harrison
America November 5, 2026
Trump Allies Break Ranks After Midterm…

WASHINGTON — Trump allies are publicly blaming the president’s decisions…

By – Michallie K Harrison
America November 5, 2026
Victoria’s Secret ‘PINK’ US TM Case:…

Victoria’s Secret has secured a significant legal victory in its…

By – Rachel Moore
America November 5, 2026
Netflix Releases  True-Crime Thriller Into Top…

By Jackie Allen | USA Herald A disturbing true-crime story…

By – Jackie Allen
America November 5, 2026
AI Flagged Bias in Trump Climate…

WASHINGTON — Researchers on a Trump climate panel asked Microsoft…

By – Michallie K Harrison
Breaking News November 6, 2026
Paraguay’s President Resigns as Ueno Bank…

President Santiago Peña resigned after Ueno Bank's collapse locked nearly…

By – Derek Johnson
America November 5, 2026
Dallas Cowboys Face  Crisis After Crushing…

By Jackie Allen | USA Herald The Dallas Cowboys are…

By – Jackie Allen
America November 5, 2026
Sister Wives Shake-Up: Janelle Brown Reveals…

By Jackie Allen | USA Herald Janelle Brown’s latest revelation…

By – Jackie Allen
America November 4, 2026
Mars: Newly Discovered Volcanic Activity Raises…

New findings from a European Space Agency spacecraft suggest that…

By – Jackie Allen
America November 4, 2026
WNBA: DeWanna Bonner Makes Emotional Admission…

ATLANTA — The WNBA Finals ended in heartbreak for the…

By – Jackie Allen
America November 4, 2026
3M $7.35 Billion PFAS Settlement Targets…

3M Co. is committing $7.35 billion over nine years to…

By – Rachel Moore
America November 3, 2026
Supreme Court Takes Up Colorado Preschool…

What the Justices Must Decide Colorado says every publicly funded…

By – Samuel Lopez
America November 2, 2026
California Botox Doctor Gets 15 Years…

What the Medicare Records Revealed A California doctor billed more…

By – Samuel Lopez
America October 31, 2026
A New 2026 Twin Study Revives…

Three Takeaways Identical twins and triplets were separated through adoption…

By – Samuel Lopez
America October 28, 2026
Michigan Double-Digit Health Insurance Hikes Set…

Michigan residents are facing another costly year for health coverage,…

By – Tyler Brooks
America October 28, 2026
Miyoko Plant Butter Recall Sparks Food…

A plant-based butter product distributed across 10 states is being…

By – Rachel Moore
America October 28, 2026
Pentagon Ketamine Contract: $41M Deal Under…

WASHINGTON — The Pentagon has awarded a Singapore-based pharmaceutical company…

By – Michallie K Harrison
America November 4, 2026
Inés Gómez Mont Arrested by ICE…

MIAMI —  Inés Gómez Mont, a former television personality who…

By – Jackie Allen
America October 31, 2026
Bill Belichick and Jordon Hudson Reportedly End…

Bill Belichick and Jordon Hudson reportedly ended their romantic relationship…

By – Jackie Allen
America October 29, 2026
Brewers Beat Rays to Win First…

ST. PETERSBURG, Fla. — The Milwaukee Brewers won their first…

By – Michallie K Harrison
America October 23, 2026
Connor Hellebuyck Traded to New Jersey…

The New Jersey Devils have made a major move to…

By – Tyler Brooks
America October 19, 2026
Information Ecosystem: Five Tools to Detect…

The information ecosystem is increasingly vulnerable to misinformation. There are…

By – Jackie Allen
America October 19, 2026
An Airman Died After a Pregame…

By Michallie K. Harrison | Opinion Tech. Sgt. Ian Patterson’s…

By – Michallie K Harrison

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter