Another huge wave of layoffs hit workers yesterday, with major U.S. employers planning to cut almost 60,000 jobs across various industries in the latest sign of distress in the labor market.
Faced with falling profits, equipment maker Caterpillar Inc. said it's cutting 20,000 jobs, and Sprint Nextel Corp. plans to eliminate 8,000 jobs, mostly by the end of March. Home Depot Inc. said it will cut 7,000 jobs nationwide and close two of its design stores in Maryland. Other major employers announcing cuts yesterday included Texas Instruments and Pfizer.
The cuts affect workers and operations nationwide and add to a host of previously announced job losses at companies like Circuit City, General Motors and Hertz rental cars.
In Maryland, several private employers notified the state earlier this month of pending layoffs and closures that affect more than 600 workers, starting in March.
Economists warn of more job cuts amid a deepening recession that many expect to persist through 2009. The drumbeat of grim job news suggests employers across various industries are reacting to what will likely be a protracted slowdown in demand and sales, economists say.
The unemployment rate climbed to 7.2 percent last month.
"This recession, unfortunately, is an equal-opportunity recession," said Robert Dye, a senior economist at PNC Financial Services Group in Pittsburgh. "Everyone is feeling the pain."
In Maryland, 296,652 people filed new claims for unemployment benefits last year, up nearly 34 percent from 2007, according to Thomas Wendel, the executive director for the state's office of unemployment insurance. The state office of unemployment insurance has extended its hours to deal with the 60 percent increase in workload during the past 10 weeks compared with the corresponding period last year, he said.
Among yesterday's announcements, Home Depot Inc. said it is shutting down its higher-end Expo home-decoration business, closing 34 design stores nationwide by the end of April.
Pharmaceutical giant Pfizer Inc., which is buying competitor Wyeth, said it will reduce its combined work force by 15 percent, or 19,000 jobs, and close five factories.
Semiconductor maker Texas Instruments said it would reduce 12 percent, or 3,400 jobs, of its work force through layoffs and voluntary retirements.
Meanwhile, General Motors Corp. plans to slash about 2,000 jobs at two facilities in Ohio and Michigan, while cutting production at 13 other plants in the U.S. and Canada.
