Please ensure Javascript is enabled for purposes of website accessibility
Macy's Stops Paying Employees as Job Cuts Pile Up
gvw_ap_news
By Associated Press
Published 4 years ago on
March 31, 2020

Share

The outbreak of the coronavirus has dealt a shock to the global economy with unprecedented speed. Following are developments on Monday related to the global economy, the work place and the spread of the virus.

Air Care

Britain’s health service is asking airline cabin crew who have been laid off to go to work in temporary new hospitals being built to treat COVID-19 patients. The National Health Service says easyJet and Virgin Atlantic are writing to thousands of staff — especially those with first aid training — asking them to work at hospitals being built inside convention centers in London, Birmingham and Manchester. Those who sign up will perform support roles under the supervision of doctors and nurses.

American Airlines said it plans to seek $12 billion in government aid to cover payroll costs for the next six months while sweetening offers for voluntary leave and early retirement to reduce the work force.
Employees at 16 U.S. air traffic control facilities have now tested positive for coronavirus, including personnel at a center in Houston on Monday, according to the Federal Aviation Administration. The FAA said the Houston facility continued running while being cleaned. The control tower at a small airport on Long Island, New York, remained closed nine days after an undisclosed number of personnel there tested positive for the virus.
American Airlines said it plans to seek $12 billion in government aid to cover payroll costs for the next six months while sweetening offers for voluntary leave and early retirement to reduce the work force.
The airline is now offering to pay a portion of salary for workers who accept voluntary leave or early retirement. American will seek part of a $50 billion kitty that Congress and the White House created for passenger airlines under a $2 trillion measure to help the economy withstand a sharp downturn caused by the new virus pandemic.
Air Canada will temporarily lay off more than 15,000 unionized workers beginning this week as the airline struggles with fallout from the coronavirus pandemic.
Photo of A.J. Davidson packing face masks
In this Thursday, March 26, 2020 photo, A.J. Davidson, who works in the business development department at Blue Delta Jeans, packages face guards made at the jeans manufacturing site in Shannon, Miss. The company has shifted its operation from making custom jeans to help with the demand of face masks to combat the coronavirus outbreak. The new coronavirus causes mild or moderate symptoms for most people, but for some, especially older adults and people with existing health problems, it can cause more severe illness or death. (AP Photo/Julio Cortez)

Jobs Vanish, Pay is Cut

Macy’s will stop paying tens of thousands of employees who were thrown out of work when the chain closed its stores in response to collapsing sales during the pandemic. The majority of its 130,000 employees, including stock people and sales clerks, will still collect health benefits, but the company said that it is transitioning to an “absolute minimum workforce” needed to maintain basic operations.
Rent the Runway confirmed that it laid off its entire retail staff and is not sure whether stores will reopen. The layoffs were announced via video conference on Friday, the company said. Workers will be getting severance and two months of health insurance. It’s unknown how many employees will be affected. The company’s online subscription service continues. The job cuts were first reported by online news website Verge.
Gannett, the country’s largest newspaper publisher, is cutting pay and hours of newsroom employees by 25% in April, May and June because of advertising declines. Executives are getting a pay cut of 25%.

Restaurant Reservations

U.S. restaurant sales dropped 36% in the week ending March 22, according to consulting firm The NPD Group, with about 94% of restaurants operating under some restrictions that week.

U.S. restaurant sales dropped 36% in the week ending March 22, according to consulting firm The NPD Group, with about 94% of restaurants operating under some restrictions that week.
Dine-in restaurants like Olive Garden and Applebee’s reported sales declines of 71% compared to the same period last year. Fast food sales fell 34%.
To draw more customers, Restaurant Brands International — the parent company of Burger King, Popeyes and Tim Hortons — said it’s expanding delivery in the U.S. and Canada and adding curbside pickup to its mobile app for truckers or walk-up customers who can’t use the drive-thru windows. The Toronto-based company also said it’s mailing 15,000 thermometers to its restaurants so employees can be checked before they begin their shifts.
Meanwhile, OpenTable — an app that normally lets diners make reservations at 60,000 restaurants worldwide — is getting into the grocery business. Starting this week, OpenTable will let people reserve a time to shop at several California groceries, including Belcampo Meat Co. OpenTable says it’s making the technology available for free to groceries and other retailers.

Ford Ventilators

Ford is repurposing an auto parts factory west of Detroit to start building simple ventilators to treat coronavirus patients.
The automaker says that starting the week of April 20, it expects to produce 50,000 ventilators in 100 days. The plant in Ypsilanti Township, Michigan, would have the ability to build 30,000 per month after that.
Ford also is working with GE Healthcare to quickly double production of a more sophisticated ventilator at a factory in Madison, Wisconsin.
The ventilators to be built in Michigan are a designed by Airon Corp. Ford says they work on air pressure, not electricity, and can handle the needs of most COVID-19 patients.

Photo of volunteer workers in Spain
Volunteer workers in a clothing factory manufacturing firefighting gear, pose for a photo as they make hospital gowns for medical staff to protect them from the coronavirus, in Arnedo, northern Spain, Monday, March 30, 2020. The new coronavirus causes mild or moderate symptoms for most people, but for some, especially older adults and people with existing health problems, it can cause more severe illness or death. (AP Photo/Alvaro Barrientos)

Guests Are Gone

Hotels are bracing for a colossal drop in revenue this year. STR and Tourism Economics — two data firms — forecast revenue declines of 51% per available hotel room.

Hotels are bracing for a colossal drop in revenue this year. STR and Tourism Economics — two data firms — forecast revenue declines of 51% per available hotel room.
Revenue per available room is a key industry statistic; it grew for 10 years straight before reaching a record of $86.76 in 2019.
The American Hotel and Lodging Association estimates that by Tuesday half of all U.S. hotels will have closed, affecting 1.6 million jobs.
Marriott International — the world’s biggest hotel chain — has furloughed about two-thirds of its 4,000 corporate employees. Hilton plans furloughs or reduced hours for much of its corporate staff starting next week.
Airbnb, which has also seen a sharp drop-off in business, pledged Monday to offer more financial help to the hosts of its 7 million listings. Airbnb will pay hosts 25% of what they would have earned if a guest cancels a reservation between March 14 and May 31. It estimated the program will cost $250 million. Hosts were angered earlier this month when Airbnb announced guests could cancel their stays without any penalty. Airbnb also said it is creating a $10 million fund for some of its best hosts and experience providers to help them pay rent or mortgages.

The Virus

Johnson & Johnson expects to begin human clinical studies of its “lead vaccine candidate” no later than September. The company said the first batches of a COVID-19 vaccine could be available for emergency use in early 2021.
Shares of Abbott Laboratories jumped more than 6% Monday in the first day of trading since announcing that the Food and Drug Administration had approved its test for the detection of the novel coronavirus. Abbott’s portable ID NOW platform can produce positive test results in as little as five minutes, and negative results in 13 minutes. The tests are expected to be available next week and the company says it will ramp up manufacturing to deliver 50,000 per day.

Markets

Stocks pushed higher on Wall Street, led by big gains for health care companies announcing developments that could aid in the coronavirus outbreak. Monday’s rally tacked more gains onto a recent upswing for the market, which is coming off the best week for the S&P 500 since hitting bottom after the financial crisis. It was a different story in energy markets, where a barrel of U.S. crude plunged below $20 per barrel.

Extra

Facebook is investing an additional $100 million in local journalism to support reporting on the pandemic. Emergency grant funding of $25 million will go to local news through the Facebook Journalism Project and another $75 million will be devoted to media marketing. Facebook, which has a rocky relationship with the media industry, has already committed $300 million to journalism organizations.
One of Florida’s largest newspapers, meanwhile, announced Monday that it would temporarily change it’s print frequency to two days a week. The Tampa Bay Times, which is based in St. Petersburg, said it will deliver newspapers to homes on Wednesdays and Sundays, the paper’s largest circulation days.

DON'T MISS

Young Republicans on Why Their Party Isn’t Reaching Gen Z (And What They Can Do About It)

DON'T MISS

JD Vance Puts the Con in Conservatism

DON'T MISS

UC Merced Finally Annexed Into City Limits After Two Decades

DON'T MISS

Donors Challenged Fresno Pacific to Match Their $1.5M Gift. Was the Goal Reached?

DON'T MISS

Garlic, Curry, Fresh Corn – Would You Scream for This Ice Cream?

DON'T MISS

Meet Po: A Gentle Superhero Looking for a Home

DON'T MISS

Largest Housing Provider for Migrant Children Engaged in Pervasive Sexual Abuse, US Says

DON'T MISS

25 Million Watched Trump’s Speech at the RNC on Thursday

DON'T MISS

City Wants Hard Reset on Art Hop. Don’t Expect Food Trucks or Vendors in August.

DON'T MISS

More Victims Come Forward in Dinuba Sex Assault Case

UP NEXT

911 Systems Disrupted in at Least 3 States

UP NEXT

Mourners Gather for Funeral of Man Slain at Trump Rally in Pennsylvania

UP NEXT

Russia Convicts US Reporter of Espionage After a Trial Widely Seen as Politically Motivated

UP NEXT

Drone Strike by Yemen’s Houthi Rebels Kills 1 Person and Wounds at Least 10 in Tel Aviv

UP NEXT

Top UN Court Says Israel’s Presence in Occupied Palestinian Territories Is Illegal

UP NEXT

Widespread Technology Outage Disrupts Flights, Banks, Media Outlets and Companies Around the World

UP NEXT

Founder of Fandango Dies After Plunge From Manhattan Hotel

UP NEXT

Why Does Venezuela’s President Appear on the Ballot 13 Times?

UP NEXT

America’s Allies in Middle East See Some Advantages in Potential 2nd Trump Presidency

UP NEXT

Rally Shooter Had Photos of Trump, Biden and Other US Officials on His Phone, AP Sources Say

Donors Challenged Fresno Pacific to Match Their $1.5M Gift. Was the Goal Reached?

13 hours ago

Garlic, Curry, Fresh Corn – Would You Scream for This Ice Cream?

13 hours ago

Meet Po: A Gentle Superhero Looking for a Home

13 hours ago

Largest Housing Provider for Migrant Children Engaged in Pervasive Sexual Abuse, US Says

1 day ago

25 Million Watched Trump’s Speech at the RNC on Thursday

1 day ago

City Wants Hard Reset on Art Hop. Don’t Expect Food Trucks or Vendors in August.

1 day ago

More Victims Come Forward in Dinuba Sex Assault Case

1 day ago

‘Twisters’ Is the Long-Awaited Sequel to ‘Twister.’ Where to See It in Fresno.

1 day ago

Fresno Offers Free Movie Tickets for Seniors to Beat the Heat

1 day ago

Mexican President Calls Donald Trump ‘a Friend’ and Says He’ll Warn Him Against Closing Border

1 day ago

Young Republicans on Why Their Party Isn’t Reaching Gen Z (And What They Can Do About It)

Polls show that two-thirds of voters aged 18-24 say they don’t identify with the G.O.P. We asked young Republicans why. – By The New Y...

6 hours ago

Photo of President Donald Trump
6 hours ago

Young Republicans on Why Their Party Isn’t Reaching Gen Z (And What They Can Do About It)

8 hours ago

JD Vance Puts the Con in Conservatism

10 hours ago

UC Merced Finally Annexed Into City Limits After Two Decades

13 hours ago

Donors Challenged Fresno Pacific to Match Their $1.5M Gift. Was the Goal Reached?

13 hours ago

Garlic, Curry, Fresh Corn – Would You Scream for This Ice Cream?

13 hours ago

Meet Po: A Gentle Superhero Looking for a Home

1 day ago

Largest Housing Provider for Migrant Children Engaged in Pervasive Sexual Abuse, US Says

1 day ago

25 Million Watched Trump’s Speech at the RNC on Thursday

MENU

CONNECT WITH US

Search

Send this to a friend