Tens of thousands of job cuts announced by blue-chip companies are a warning sign for the world's recovery and emerge just ahead of two key reports forecast to show limited progress in the U.S. labor market.
In one of the biggest layoff announcements since the pandemic caused widespread economic shutdowns, Walt Disney Co. said Tuesday it's slashing 28,000 workers in its slumping U.S. resort business.
The fallout isn't contained to the entertainment sector. U.S. Royal Dutch Shell will cut as many as 9,000 jobs as crude's crash forces billions of dollars in cost savings, while German auto-parts supplier Continental's supervisory board approved a restructuring plan that will cut or shift 30,000 jobs worldwide.
Announcements like these point to further challenges in a rebound that's already slowed after an initial bounce back in May and June. Weekly figures due Thursday are estimated to show filings for U.S. unemployment benefits remain far above pre-virus levels, while Friday's jobs report — the last before the November presidential election — is expected to reveal that employers added a half-million fewer workers in September than in August.