Well if you thought the after effect of financial meltdown had slowdown and the impact of recession was slowing down then you are wrong. Over 80,000 job cuts in a single day clearly signifies the painful symptoms of the ongoing recession and will have a significant impact on other industries over the next few months. Global giants like Caterpillar, Pfizer, Home Depot, Sprint Nextel, Philips, ING, Corus and Texas Instruments together accounted for 80,000 lay-off announcements yesterday. Its clear now that the financial crisis has infected the whole of the corporate world, from IT, Pharma to heavy equipment makers. Caterpillar and Pfizer were the major contributors in the lay-off announcements slashing its workforce by 20,000 and 26,000 respectively.
Lay-offs have a direct and immediate impact on some of the industries like consumer goods, health care, pharma, automobile and oil and gas. Consumer spending goes down drastically and hence dampen the growth of these industries in short and long term. Circuit City Inc second largest electronic retailer in the United States went bankrupt and this was purely due to dried-up Consumer spending in the US. If we are to go by these trends then the worst is not over yet. We can just hope that President Barack Obama's stimulus plans can do some trick and have a quick impact, or else it seems we are in for some more shocks.
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