Boeing, a Las Vegas business, and 21 other companies announced layoffs following President Barack Obama’s victory last week.
Unemployment had been hovering around 8 percent in recent months, with signs of a stronger job market.
Immediately following the outcome of the election Boeing announced a major restructuring of its defense division. Boeing will cut 30 percent of management jobs from 2010 levels, close facilities in California and consolidate several business units to cut costs, according to Reuters.
“Boeing, the Pentagon’s second-largest supplier, said the changes were the latest step in an affordability drive that has already reduced the company’s costs by $2.2 billion since 2010,” Reuter reported from a memo obtained by the news service.
Whether through sequestration or the administration’s commitment to cut defense spending, Boeing apparently saw the handwriting on the wall. It made the decisive call in an effort to cut costs and preserve profit margins.
“In a message to employees, Dennis Muilenburg, chief executive of Boeing Defense, Space & Security, said the company aimed to cut costs by an additional $1.6 billion from 2013 through 2015.” Those cost-cutting measures equate to job cuts through that period.
More American workers received pink slips following last week’s election. A Las Vegas business owner with 114 employees fired 22 workers, as a direct result of President Obama’s re-election.
The business owner stated to KXNT radio that “elections have consequences” and that “at the end of the day, I need to survive.”
On Friday, an additional 21 businesses said they would be laying off employees to curb costs and expected tax hikes to businesses.
Some of the companies announcing layoffs include: Smith & Nephew - 770; Abbott Labs - 700; Covidien - 595; Kinetic Concepts - 427; St. Jude Medical - 300; Hill Rom - 200; Welch Allyn - 275; Stryker - 1,170; Boston Scientific - between 1,200 and 1,400; and Medtronic - 1,000 layoffs.
These reactions are, in the short-term, going to add to the huge number of unemployed Americans, while the economy sputters along.