Within 48 hours of the election the following companies have announced layoff plans (we do not yet have all the #’s): Boeing (30% of mgmt staff, def div), US Cellular, Westinghouse, Iberia, Research in Motion, Groupon (80), West Ridge Mines (102), Energizer Holdings (1500), ING, Ericsson, Bristol-Meyers (500), Corning, Boston Scientific, CVPH Medical Center, Abbott Labs, St Jude, Caterpillar, Hawker Beechcraft (400), Pepsi (4000).
Last week, Ohio-based auto parts manufacturer Dana Holdings warned employees of potential layoffs just ahead if Obama wins. CEO Roger Wood isolated the burden of “increasing taxes on small business,” and the need to “offset increased costs that are placed on us through Obama’s new laws and regulations.” The mandate will cost Dana, “approximately $24 million over the next six years,” Wood noted.
On Nov/7 a Las Vegas business owner with 114 employees fired 22 as a result of Obama’s re-election. “I explained to them a month ago that if Obama gets in office that the regulations for Obamacare are going to hurt our business and I will make provisions to make sure I have enough money to cover the payroll taxes, the additional health care I will have to do.”
In almost all cases, the layoffs listed above are tied to Obamacare; the rest are industry-specific such as pharmaceutical and coal (both industries penalized by the adm) and Boeing of course tied to likely defense cuts.
Through the period leading up to the election, then with a final installment on Sunday, Nov/4, we were very specific in our advice to clients – given an Obama second term, both consumer discretionary activity and jobs-related activity will wilt.
Set trades accordingly.
Robert Craven
Last week, Ohio-based auto parts manufacturer Dana Holdings warned employees of potential layoffs just ahead if Obama wins. CEO Roger Wood isolated the burden of “increasing taxes on small business,” and the need to “offset increased costs that are placed on us through Obama’s new laws and regulations.” The mandate will cost Dana, “approximately $24 million over the next six years,” Wood noted.
On Nov/7 a Las Vegas business owner with 114 employees fired 22 as a result of Obama’s re-election. “I explained to them a month ago that if Obama gets in office that the regulations for Obamacare are going to hurt our business and I will make provisions to make sure I have enough money to cover the payroll taxes, the additional health care I will have to do.”
In almost all cases, the layoffs listed above are tied to Obamacare; the rest are industry-specific such as pharmaceutical and coal (both industries penalized by the adm) and Boeing of course tied to likely defense cuts.
Through the period leading up to the election, then with a final installment on Sunday, Nov/4, we were very specific in our advice to clients – given an Obama second term, both consumer discretionary activity and jobs-related activity will wilt.
Set trades accordingly.
Robert Craven
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