• Market Crumbs

Some Jobs Are Safe

Image via Campaign Creators on Unsplash

As the number of companies across the U.S. announcing layoffs and furloughs as a result of the coronavirus increases by the day, there's a handful of companies that are taking a different approach.

Rather than lay off or furlough employees during an already difficult time, these companies are looking out for their employees by committing to not lay off anyone as a result of the coronavirus.

Bank of America CEO Brian Moynihan told his company's more than 200,000 employees they don't have to worry about losing their jobs this year.

"We don’t want our teammates to worry about their jobs during a time like this," Moynihan said. "We told them all, there’s no issue, you’re all going to be working now through year-end. No layoffs, no nothing."

Other financial services companies such as Morgan Stanley and TD Bank Group offered similar assurances.

"I am sure some, if not many, of you are worried about your jobs," Morgan Stanley CEO James Gorman said. "While long term we can’t be sure how this will play out, we want to commit to you that there will not be a reduction in force at Morgan Stanley in 2020."

"It is only natural that the speed and scale of the impacts across society have employees feeling uncertain, even worried," TD Bank Group CEO Bharat Masrani said. "I want to remove one uncertainty for TD Employees and their families. There will be no job losses in 2020 as a result of COVID-19."

Salesforce, which has nearly 50,000 employees, committed to no "significant" layoffs over the next 90 days.

"Salesforce is pledging to its workforce Ohana not to conduct any significant lay offs over the next 90 days," Salesforce CEO Marc Benioff tweeted last week. "We will continue to pay our hourly workers while our offices are closed. We encourage our Ohana to pay their own personal hourly workers like housekeepers & dog walkers."

Salesforce isn't the only tech company telling employees to not worry about their jobs. Palo Alto networks also committed to not laying anyone off as a result of COVID-19.

"We have committed to no COVID-19 layoffs in our company because people are very insecure, people are concerned about whether they’ll have a job once this economic thing comes back around," Palo Alto Networks CEO Nikesh Arora said. "We’ve basically chosen to balance employees and people over profit in the short-term time frame because people are very concerned about what’s going on around them."

With so many people recently losing their jobs, it's refreshing to see there's a handful of companies that are promising their employees that they will not be laid off, even if it is only a temporary assurance.

Leftover Crumbs

  • They're not paying rent either. Urban Outfitters joined The Cheesecake Factory by saying they will not pay rent as a result of the coronavirus. Urban Outfitters said they won't pay rent for an undisclosed amount of time and will delay opening new stores. The company has made quite a few moves to preserve capital such as furloughing employees, slashing executive pay, freezing hiring and suspending its buyback.

  • 50,000 in 100 days. Ford is hoping to produce 50,000 ventilators within 100 days through a partnership with GE Healthcare. Manufacturing will begin by the week of April 20 at Ford's car parts plant in Ypsilanti, Michigan. "The Ford and GE Healthcare teams, working creatively and tirelessly, have found a way to produce this vitally needed ventilator quickly and in meaningful numbers," Ford CEO Jim Hackett said.

  • Xerox gives up. Xerox has pulled the plug on its hostile takeover attempt of HP. Xerox has withdrawn its offer for HP and will not nominate candidates to HP's board of directors. "The current global health crisis and resulting macroeconomic and market turmoil caused by COVID-19 have created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP Inc," Xerox said.

  • DOJ steps in. The U.S. Department of Justice has reportedly opened a criminal investigation into Carrie Tolstedt, the former head of Wells Fargo & Co’s community banking division, for her role in the bank's product mis-selling scandal from a few years ago. "Throughout her career, Ms. Tolstedt acted with the utmost integrity and concern for doing the right thing," said Tolstedt's legal counsel earlier this year in response to separate charges filed against her.

  • Energy CEOs head to the White House. The CEOs of seven major energy companies will head to the White House on Friday to meet with U.S. President Donald Trump to discuss energy policy. The meeting comes as energy prices have cratered, with West Texas Intermediate crude oil falling nearly 50% in March alone. According to sources, the CEOs are not there to discuss a bailout.