Falling Economy Leads To Home Depot, Sprint Layoffs

Armen Hareyan's picture

Caterpillar's massive job cuts are not the end of the bad economic news this morning. The Home Depot and Sprint also announced huge layoffs today as Sprint will cut 8000 employees and the Home Depot will slash 7000 jobs while exiting the Home Depot Expo business.

According to USNews.com the job loss tally so far this morning is 54,500 unemployed people. "On the same day it agreed to buy rival drugmaker Wyeth, Pfizer said it would cut 15 percent from its combined workforce (that's a bit less than 19,500 jobs). Meanwhile, Caterpillar is faring poorly in the global recession. It's cutting its workforce by 20,000 including 11 percent of its workforce, or 12,000 jobs, and 8,000 contractors. Home Depot, a lingering victim of the downturn in both consumer spending and housing, said it would slash another 7,000 jobs as it shutters its high-end EXPO business. And finally, Sprint Nextel is eliminating 14 percent of its workforce, or 8,000 jobs."

The Kansas City area residents and the economy will be particularly hurt by Sprint's job cuts that will affect 8000 employees. According to Kansas City Star "Kansas City currently represents about 15 percent of Sprint's nationwide workforce of 56,000 employees. The company has about 12,000 employees in the Kansas City area.

"The No. 3 wireless company said the cuts will save Sprint $1.2 billion a year, and be "largely completed" by March 31. The 8,000 reductions include 850 positions to be eliminated under a voluntary separation plan.

Sprint said the company also is suspending its 401(k) match for the year, extending a freeze on salary increases and is suspending its tuition reimbursement program."

Interestingly the Home Depot sent its shares up by 6 percent this morning by freezing the salaries "all officers as it looks to save money in a prolonged retail slump."

Home Depot, which now decided to exit the Expo business, had opened the Expo stand-alone stores in 1991. However, even during the most recent housing boom, the Home Depot Expo was not a strong business and has weakened significantly as demand waned for high-priced home improvement projects, the company said.

Home Depot will cut 7000 jobs to cut costs.

The Wall Street has responded positively. Dow Jones Industrial average, NASDAQ and S&P 500 are all in the positive territory by the mid afternoon.

Add new comment