These industries may never see job recovery because of outbreak
Written by Site Hub on May 8, 2020
The SARS-CoV-2 pandemic is changing the world, especially the job market. Industries that revolve around a high amount of face-to-face traffic and can’t adapt to change are going bankrupt. As reported by CNN on Tuesday, May 5, Airbnb is just one of the most recent companies forced to cut their workforce because of revenue losses in the rental and travel industries. Airbnb plans to lay off at least 25 percent of its workforce, roughly 1,900 employees, around the world.
Beyond travel and previously reported retail losses, the airline industry is also taking a huge hit. United Airlines plans to reduce its staff and hours for workers who stay on through the rest of the year. The Cares Act has been the primary funding source for the company to keep its workers employed. UA officials estimate that it will need to lay off at least 30 percent of its workforce when those funds run out.
UA has also asked non-union workers to work four-day weeks and take off at least 20 unpaid days of leave by October. General Electric has also estimated that it will need to permanently terminate approximately 13,000 positions this year to stay afloat since the pandemic caused a drop in airline orders for jet engines and related parts. Warren Buffet has dumped all of his stock from the industry. He has even told other investors that the industry is a bad investment.
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