The Airlines, Allstate, and Shell Announce Mass Layoffs


Just in Time for the Election (or a Bailout)

American and United Airlines will bring back workers if they get more aid. Otherwise, Say Goodbye to 32,000 Jobs. 

“We implore our elected leaders to reach a compromise, get a deal done now, and save jobs,” United said Wednesday night. The airline said over 13,400 employees will be out of a job starting Thursday.

 American, which has planned deeper cuts than any other carrier, also told Treasury Secretary Steven Mnuchin that it will bring its 19,000 workers back if lawmakers can approve more aid in the next few days, Chief Executive Doug Parker told employees in a letter. 

Mr. Mnuchin and House Speaker Nancy Pelosi (D., Calif.) renewed their stalled negotiations this week, though they failed to reach an agreement Wednesday afternoon. Still, Democrats and the White House continued to seek common ground. The House of Representatives opted to delay a vote on a $2.2 trillion coronavirus-aid package, which Democratic aides said would allow the two sides to keep talking. As it stands now, the legislation has no chance of passing in the Senate.

3,800 Layoffs at Allstate

With people driving fewer miles and traffic accidents down, Allstate to Lay Off 3,800 Employees. That’s about 8% of the insurer’s approximately 46,000 workers.

Shell to Cut Up to 9,000 Jobs

It’s another tough quarter as the pandemic continues to sap demand for oil.

If people aren’t driving or flying what’s an energy company to do?

Here’s the obvious answer: Shell to Cut Up to 9,000 Jobs.

The update from Shell gives a first glimpse at how the world’s biggest oil companies have continued to struggle in the most recent quarter. The pandemic has sapped demand for oil, sending prices tumbling and hitting profits hard. That has already prompted Shell to write down the value of some of its assets and cut its dividend for the first time since World War II.

Shell said it was restructuring to focus more on the highest value oil it produces, grow in liquefied-natural gas and invest in low carbon energy businesses, while shrinking its refining operations.

The planned job cuts follow similar moves at peers including BP PLC and Chevron Corp. to rein in costs amid the pandemic.

The announced cuts of 7,000 to 9,000 are about 10% Shell’s 80,000 workforce.

If traffic won’t return, what’s the point of paying people to do nothing?

Mish 

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