Monday, October 20, 2008

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Financial: It Begins

by Reb Akiva at Mystical Paths

I tag these articles financial for those who are uninterested, just skip it.

Hoshanah Rabba, this Monday, is the sealing of the heavenly books. The verdict has already been delivered, but on Monday it's sealed, and the agents of the judge are dispatched to execute this year's sentence - for good (may it be Hashem's will!!!) or, G-d forbid and protect us, otherwise.

L'havdil, major corporations of the US and the West have rendered their judgment and begun to execute their sentence. Courtesy of some friends and contacts, here it is...

- Our cutbacks of 10% of the staff will be effective as of November 1. No need to worry (about the company), these layoffs will assure the company remains strong during this economic downturn. We have set aside a large reserve for severance packages, those who leave on good terms will receive (some months) of pay corresponding to their time of service with the company.

- To further strengthen the company, we will be completely offshoring and outsourcing some departments, effective immediately. We're certain you'll be happy to know that while some services will be somewhat degraded, the company will be financially stronger for it. While these jobs will be gone forever, we're certain you'll agree this is a good thing for the company.

- All corporate purchases, hiring, raises and bonuses are completely suspended.

Human Impact: 3,000 employees, 5,000 employees, 750 employees, 500 employees.

Financial Impact: Watch the stock market jump on this news. Corporate layoffs make stock prices go UP, as the viability of the company improves though the unemployment impact tanks the economy as a whole.

Economic Impact: Watch the American holiday season, where many businesses earn 30-50% of their years revenue, go into the toilet. Either because people have lost their jobs, or are terrified that they will.

This is the big splash, the rolling impact. Watch out. (This is not every company, some companies actually see an increase. Example: Wal-Mart has an increase in shoppers as people turn to money saving stores.)


josh said...

IMO, wrong conclusion, please fix.

I would have wished to all readers that whatever happens, they should not lose faith or get sad, build emunah and love for God, and search for the good because everything is for the better.

The stock market is not going to rise on this. They are talking about a recession in the world not a short term fix. Besides trust in God, we need to build trust in other humans so that we all get through this together.

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