Firms Cut Pay Instead of Jobs

Recession, takeover of Merrill to blame for latest employee dump

(NEWSER) - Bank of America said today it will cut between 30,000 and 35,000 jobs in the next 3 years, the AP reports; the move is spurred by the continuing economic downturn and the bank’s recent purchase of Merrill Lynch. Cuts will be broad and will affect both the parent company and its new acquisition. Final plans for the downsizing are expected in early 2009. More»

Unit shipments down as Americans find other ways to keep cool

(NEWSER) - This summer, some Americans are more concerned about their wallets than their comfort—so they’re turning off the air conditioning and putting up with the heat, the New York Times reports. Window air conditioner shipments from manufacturers to distributors dropped 39% the first half of the year versus the first half of 2008; central AC unit shipments have also fallen in recent years. More»

(NEWSER) - Already-downsized companies seeking to cut costs further will likely increase temporary layoffs this summer, hoping the season will ease the pain of a missed paycheck, Fortune reports. A recent poll found that 44% of US companies are considering or have already implemented furloughs. But some institutions and employees are getting creative about the possibilities; furcation, anyone? More»

Stay calm, be optimistic, or just go back to school

(NEWSER) - If you've gotten the ax or fear you're next, it’s time to prepare yourself without panicking, NPR reports. The American Psychological Association advises people to stay calm and make a financial plan to cope with tough times. "It's very hard, but try to stay focused in the present," one psychologist says. "It's a cliché, but it's really helpful right now to think about that." More»

626,000 claims filed last week, far more than expected

(AP) - New jobless claims jumped far more than expected last week in an already dismal labor market, and there's no relief in sight for workers as mass layoffs persist. The Labor Department reports that the number of laid-off workers seeking jobless benefits rose last week to 626,000 from the previous week's 591,000. The latest total exceeds expectations by 43,000. More»