Many employers, especially small retailers, hotels, restaurants, airlines and entertainment venues, are still struggling. And millions of Americans are facing unemployment with vastly diminished aid since the expiration of a $600-a-week federal benefit this summer.
Domestic airlines industry has been significantly impacted by the coronavirus pandemic and subsequent suspension of local and international flight services.
The company's headcount falls to 2,81,200 employees, a 35 percent drop compared to the March quarter. Chief Financial Officer Karen McLoughlin steps down.
These employees will now be moved to a three-month extended bench to help find new projects. Failure to secure other projects could result in termination. Company silent on how many will be affected.
The drop in headcount a combination of voluntary and involuntary attrition.
Thursday's report from the Labor Department showed that the number of applications for unemployment aid fell from 1.4 million in the previous week. The figure has now topped 1 million for 16 straight weeks. Before the pandemic, the record high for weekly unemployment applications was fewer than 700,000.
Capgemini argued that the layoffs are purely based on performance
The furloughed employees were informed about this development by Chief Operating Officer Abhinav Sinha.
A company spokesperson says it is a performance management measure, which is a process across all companies in the IT industry.
The U.S. telecom and media giant also plans to permanently close over 250 stores, which would impact about 1,300 retail jobs, the union said.
Employees will be compensated for the period of the lockdown and will be paid their balance dues in full compliance with all applicable HR compliances, the company said.
According to National Information Technology Employees Senate (NITES), the IT union has filed complaints for over 68,000 employees just in Maharashtra region for terminations and pay cuts during COVID-19.
The pace of job cuts has been declining over the past two months after the coronavirus had struck hard in March, forced widespread business closures and sent the economy into a deep recession.
"The unprecedented coronavirus pandemic has affected every aspect of our life. It has impacted each one of us, our families, our customers, partners and businesses. These trying circumstances have compelled us to revisit and re calibrate our business strategy keeping sustainability and business continuity in mind," the company said in a statement.
New claims for state unemployment benefits totaled a seasonally adjusted 2.123 million for the week ended May 23, from a revised 2.446 million in the prior week, the Labor Department said on Thursday.
The layoffs are expected to be concentrated in the Seattle area, home to Boeing's commercial-airplanes business.
The job losses would mostly take place in its civil aerospace business, the company said, as it started consultations with unions.
According to industry watchers, layoffs are inevitable as business volumes come down and uncertainty around when the economy would recover.
After Cognizant, Infosys too has deferred on-boarding of freshers due to COVID-19. More companies are likely to follow.
Recent layoffs where thousands of mid and senior employees were laid off and terminations at the back of COVID-19 has spurred the unionisation activities
The plunge in private payrolls shown in the ADP National Employment Report on Wednesday suggested that national lockdowns to slow the spread of COVID-19, the respiratory illness caused by the virus, could leave lasting scars on the economy, even as large parts of the country reopen non-essential businesses.
The company was valued $6.8 billion and has raised $290 million 840 million. Softbank was its biggest investor and has invested $550 million.
The analytics-driven platform, People + Work Connect, was designed by Chief Human Resources Officers from Accenture, Lincoln Financial Group, ServiceNow and Verizon
The industries expect government support for only a short duration – just long enough for them to survive and ensure, in turn, the survival of millions of livelihoods
The airline industry is among the sectors worst hit by the virus and the ensuing travel restrictions, with thousands of flights cancelled, routes cut, and companies facing financial turmoil.