10 Giants Blown Away by the Coronavirus Pandemic

Coronavirus

When the world moved its way due to the coronavirus pandemic, many American companies took the blow and axed a major part of their workforce. All in the line of reducing the payrolls and saving for the future.

Here is the list of 10 most highly valued companies and their story of axing.

Airbnb – online booking platform plans to lay off its staff by 25%. The company plans to lower its scale and put a hold on new investments in hotels, resorts, and flights. The company also announces, to pay the employee’s health insurance cost for a year. This layoff plan will affect about 1,900  employees at Airbnb.

Uber – the ride-hailing company plans to cut off 3,700 of its staff due to the lockdown, which is about 14% of its workforce. CEO Dara Khosrowshahi will waive off his $1 million base salary. Though there has been a drop in its taxi services by more than 60%. But there had been an increase in Uber Eats food delivery service.

Virgin Atlantic announces to axe 3,150 jobs in the UK and terminate its operations at Gatwick airport, to survive the COVID–19 crises.  The chief executive of Virgin Atlantic said, to protect our future and emerge from this crisis, we must take significant action to cut down our costs and preserve cash. The company is pursuing new investors to survive through this pandemic.

American multinational corporation, Boeing, plans to lay off about 10% of its employees. Boeing is offering voluntary layoffs to its employees. Whoever wants to quit their services with pay and benefits packages, is more than welcome at this point in time.

TripAdvisor – the online travel company dismissed 900 employees, which is a quarter of its workforce. About 600 employees who are dismissed are based in the US and Canada. The company will be asking its salaried employees to resume their work for 4 days a week. There will also be a reduction in base salary by 20% for 3 months starting from June.

Hertz – the car rental giant lays off 10,000 of its employees out of 29,000 employees from its North America operation because of the COVID – 19. The company’s stocks have fallen drastically, they have lost more than half their share value in a month. Hertz has a $17 billion potentially unsustainable debt and is planning to work with a debt restructuring advisor.    

Disney lays off 100,000 workers at its theme park and resort, which is half of its workforce. The company will save about $5 million per month in salaries, as Disney tries to overcome the pandemic crisis. Chairman Bob Iger will let go of his $3 million salary for the remaining year. The CEO Bob Chapek will waive off half of his $2.5 million base salary. The company said in a statement that it is a difficult time, this pandemic has a very adverse effect on our world so we all have to make sacrifices.

Sephora is laying off about 3,000 of its store workers out of its 13,000 employees due to the closing of all stores in the US. The workers who have been laid off have worked for a shorter span and for limited hours.

JC Penney is temporarily laying off its hourly store staff, as the stores and offices are closed. The company will provide employees with a health benefits program. Employees will also get state unemployment benefits while on furlough. Distribution centers and customer care division of the company will still be operational.

Best Buy – the consumer electronics retail giant lay off 51,000 employees, which is more than half of its workforce. The employees affected by the cuts are mostly hourly workers, some are full-time workers. On one side the company has sold more products such as computers and freezer, but the overall sales have taken a deep dive. The executives of the company have also taken a pay cut to minimize costs.

According to experts, the overall jobs lost are twice as much as the 2008 recession. This will definitely take its toll in the coming days. Life after the pandemic will have to be sought once again on infrastructure, technology, medicine, and lifestyle fronts, but nonetheless the world has a way of uniting people and making miracles happen on a daily basis.

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