In response to criticism, Musk asserted that departmental cuts were independently planned, with DOGE merely assuming productive employees would be retained. This echoes previous claims that DOGE only recommends cuts, leaving implementation to agency heads. While Musk privately admitted to errors, these errors resulted in job losses, highlighting the significant human cost of his decisions. The consequences for agencies failing to comply with DOGE directives remain unclear.
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February’s job cut announcements reached a 12-year high, totaling 172,017, a 103% increase from January. Government sector cuts, primarily driven by the Department of Government Efficiency’s actions, accounted for a significant portion (one-third) of the total, with a staggering 41,311% increase from the previous February. These cuts, alongside bankruptcies and economic uncertainty, fueled the surge in layoff plans. While initial jobless claims remain low, the ADP report showed a significant slowdown in private sector hiring, suggesting potential weakening in the labor market.
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To streamline operations and improve efficiency, Starbucks is eliminating 1,100 corporate positions globally, alongside several hundred unfilled roles. This restructuring, announced by new CEO Brian Niccol, aims to reduce complexity and improve accountability within the company’s corporate structure. The layoffs do not affect Starbucks’ store-level baristas. This action follows similar workforce reductions at other large companies and comes as Starbucks seeks to revitalize sales and enhance customer experience.
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ThyssenKrupp Steel Europe, facing intense competition from cheaper Asian imports, plans to cut its workforce by over 11,000 by 2030, reducing it from 27,000 to 16,000. This restructuring includes 5,000 job cuts through production and administrative adjustments, and another 6,000 through outsourcing or business sales. To combat overcapacity, production capacity will be reduced from 11.5 million to 8.7-9 million metric tons. While the company aims for voluntary departures, the plan has been met with strong opposition from labor unions.
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UPS announces 12,000 job cuts, saying that package volume slipped last quarter. This news is disheartening, but not entirely surprising given the changing landscape of the shipping industry. As someone who ships around 100 packages a week, I’ve observed a shift in the market. It used to be a 90/10 split between UPS and USPS, but now it’s more of a 10/90 split due to USPS’s Ground Advantage service, which offers lower prices. This has undoubtedly impacted UPS’s market share.
The rise of e-commerce giant Amazon has also played a role in UPS’s struggles. A few years ago, UPS took a stand and told Amazon to either accept their rates or develop their own shipping program.… Continue reading
John Q. Hosedrinker