The point about WorldCom laying off workers isn't that WorldCom is having problems - we knew that already, take a look at WorldCom's stock price - it's that 10,000 to 15,000 gainfully employed people are going to be without jobs - which means 10,000 to 15,000 houses without a breadwinner. And there's a ripple effect, people who are laid off don't buy cars, can't pay their mortgage, don't buy new clothes, don't pay taxes but do use tax-funded social services, etc., etc. These aren't just McDonald's type jobs, either. Add to that the 16,000 that Lucent is laying off, the 5,000 that Penneys' is laying off, the 7,000 that Sara Lee is laying off, the 2,000 that AOLTimeWarner is laying off, etc., etc. It's not an isolated incident, and it's not just "company specific."
>>Even General Electric (NYSE: GE - news) is getting hit. Chairman and CEO Jack Welch says the coming year will likely include what he calls ``significant'' layoffs, which analysts are predicting could put between 60,000 and 80,000 jobs on the chopping block. That news accompanied fairly positive fourth-quarter earnings reports on Jan. 17. Profits grew 16% to nearly $3.6 billion on revenue of $35 billion.<<
biz.yahoo.com
It's kind of like the canary in the coal mine. You can't tell trouble is coming but the canary keels over and dies. |
