Coronavirus Crisis Costs Many Jobs and Forecasts Can be Trash
Coronavirus Crisis Costs Many Jobs and Forecasts Can be Trash. More and more companies are dropping their financial prospects for this year because of the corona crisis.
There is also an intervention by, for example, temporarily stopping share buyback programs. Besides, many jobs are being cut, especially in the United States.
On Tuesday evening, for example, German reinsurer Munich Re announced that it would drop its forecast and pause share buyback programs. Furthermore, sports goods maker Adidas has decided not to continue buying shares for the time being.
In recent days, several companies have come up with this kind of news. Scrapping dividends is also a frequently heard intervention.
A more robust measure was announced by oil service provider Schlumberger, among others, who cut his salaries at the top. The company also needs to cut jobs to cut costs.
The American retail chain JC Penney reported that the majority of its 90,000 employees would be put on the street for the time being. This follows the chain industry colleague Macy’s, who already released similar news on Monday.
Many retail chains in the U.S. temporarily send their staff home to cut costs. Partly as a result of this, some 3.3 million applications for unemployment benefits were added last week. That was the highest number ever in one week.