Profits soar amid mass layoffs

[Donnachaidh]

http://www.wsws.org/articles/2011/jul2011/econ-j23.shtml

As dozens of major corporations announced increased second-quarter profits this week, the US working class was hit with a disastrous new round of mass layoffs.

On Monday, book seller Borders announced that it would liquidate all of its stores, laying off 10,700 workers. That same day, Cisco, the telecom equipment maker, said it would cut its workforce by 11,500. Within 24 hours, Lockheed Martin, the aerospace company, announced that it would eliminate 6,500 jobs.

At the same time, Caterpillar, the maker of construction equipment, said its profits were up 44 percent in the second quarter compared to last year. Office equipment maker Xerox saw its profits grow 41 percent in the same time.

General Electric’s profits were up 17 percent, PepsiCo’s were up by 18 percent, and McDonald’s, the fast food company, saw a 19 percent increase, reaching a new record.

More at the link --

[hack89]

1. So are the companies laying off workers the same ones making all the profits?

or are we mixing apples and oranges? Borders is bankrupt while Cisco's profits are down 17%.

unrec for misleading article.

[Wilms]

3. Well...

Cisco to cut 6,500 jobs to boost profits
http://www.bgr.com/2011/07/20/cisco-to-cut-6500-jobs/

Lockheed Martin Earnings Preview: Analysts Expect Higher Earnings, Revenue from Prior Quarter
http://www.benzinga.com/news/earnings/11/07/1790059/lockheed-martin-earnings-preview-analyts-expect-higher-earnings-revenue-?quicktabs_1=0

[hack89]

4. The thing about Lockheed Martin

is that as a defense company, employment will always ebb and flow as contracts start and end. In their case, they are looking at the end of F-22 production while F-35 funding is uncertain due to cost over runs and other management issues.


As for Cisco, it is forecasted that demand for their products will continue to decline - it makes sense to lay off people.

[Wilms]

5. And the point made was that despite the ups and downs...

the profits are up, and so are the layoffs.

[hack89]

7. But Cisco's profits were down 17%

secondly, not every company is laying off and not every company is making huge profits. The OP was deceptive in that it leaves one with impression that profits are up, and so are the layoffs.

[Wilms]

8. And they were greater than expected the year before.

So that made the "profits were down" percentage higher.

Your point is taken, as is the general corporate condition of higher profits, higher productivity, higher unemployment and lower wages.

[hack89]

9. The unemployment has more to do with the loss of jobs that are gone forever

most of the jobs lost were low tech manufacturing jobs. Those jobs will never come back.

I work for a large corporation that has had a good year - we have also hired people. It is a complex economy - there are sectors that are growing and hiring.

[Wilms]

10. I wrote that productivity is through the roof.

Some jobs didn't leave. They got handed to employees that weren't fired. Boss pockets the difference.

[hack89]

11. And shareholders like me and you. nt

[Wilms]

12. Short sighted, as is much that passes for capitalism.

One idea says that it is for serving the society, another that it's for serving the individual.

We're good at the latter.

[hack89]

13. Considering how many people's retirements depend on such investments

There is an excellent case to be made that capitalism helps society. My mother's comfortable retirement due to.my dad's.union pension is proof of that. What do you think created all.that wealth for all.those.retirees?_

[Wilms]

14. I said what "passes" for capitalism.

Of course there's an excellent argument for capitalism serving society. But abusing it or any system gives the kind of results we've had lately.

Meanwhile, "Cisco Systems Chief Executive John Chambers saw his compensation go from $9.2 million to $18.9 million in fiscal 2010, as the company showed signs of recovery from a recession-related slump."

http://news.cnet.com/8301-30686_3-20016162-266.html

[skepticscott]

2. Yes, how about showing both figures

for the SAME company? Some companies do well, others don't...what's sinister about that?

[Starry Messenger]

6. recommend.

[eppur_se_muova]

15. Typo/spelling correction: "amid" should be spelled "because of" nt

[kenny blankenship]

16. It was the best of times, it was the worst of times...

Which company's stock should I invest in if I expect a great boom in guillotines? Gillette - are they French?

[Supersedeas]

17. when bosses demand the employees who are left to work harder...effeciency rises

to a point where even the current employees have had enough