Still waiting. Today had some important job cut announcements. These were the ones I wanted to explicitly comment on:
Schlumberger Net Income Falls; Job Cuts Affect 5,000. When the leader of an industry announces layoffs, expect more layoffs in that industry. I think Schlumberger is interesting because they’re dealing with the flip side of cheap oil. Also, 5,000 jobs is a lot (though that’s a worldwide figure).
Harley-Davidson Cutting 1,100 Jobs, to Take Up to $140M Charge. I occasionally look at the re-sale value of Harleys as an economic indicator. Just go to eBay and look at how many are for sale, where they are, what the starting bids are, and how much bid activity they are getting. Harleys are a middle-class luxury item. They’re the private jets of the working stiff. When people have to cut back to make ends meet, things like Harleys must go. Ohio was a great place to pick up a Harley a year or so ago. Now, anywhere will do. There are very few buyers, and dealers have to compete with the used market. Since the new models offer little to no improvement over used models, that’s fierce competition.
Dartmouth to Cut Budget After Endowment Loses 18%. That 18% doesn’t include losses that will be incurred from bad investments in illiquid assets. Like the banks, they’re pretending that all the value remains… for now. Early retirement and layoff incentives are being used, but the article indicates that further methods are inevitable. What’s really scary about this is that Dartmouth appears to be doing better than a vast majority of its peers. There’s going to be a lot of cuts at academic institutions. Think “tip” and “iceberg.”
Well, today wasn’t as bad as the Microsoft announcement.
