American Airlines, Bed Bath & Beyond Both Cutting Thousands Of Jobs

More major job cut news landed in the US yesterday, with American Airlines (AAL) announcing that it plans to cut 19,000 jobs when the terms of its federal aid deal expire. The workers will be involuntarily furloughed or laid off. Although passenger numbers in the US have recovered somewhat from the depths plumbed in April, the number passing through official checkpoints has bounced around between the 500,000 and 700,000 mark in the past two months. On Monday, 727,788 travellers passed through TSA checkpoints, versus 2.4 million on the same day a year ago.

Retailer Bed Bath & Beyond (BBBY) also announced that it will be cutting 28,000 jobs, around 5% of its total workforce, as part of a restructure. The firm wants to focus more heavily on its online business, and expects to save $150m a year by making the cuts, which involves removing corporate management layers and repositioning field roles to better serve online shoppers.

US consumer confidence at a six year low

It was a mixed day for US stock indices on Tuesday, with the S&P 500 and Nasdaq Composite both in the green, and the Dow Jones Industrial Average closing slightly lower. A lower than expected consumer confidence reading for August was one factor that hurt sentiment, as it fell to its lowest level in six years.

In earnings news, Salesforce (CRM) stock jumped double digits during after-hours trading, after delivering a major beat versus analyst expectations. The company’s earnings per share figure came in at $1.44 per share, versus the $0.67 expected, while revenue of $5.15bn was more than $200m higher than anticipated.

Best Buy faced a tougher earnings report, with its share price closing 4% lower after a surge in online sales was hamstrung by product shortages. The firm was the biggest faller in the S&P 500, along with Tiffany & Co (TIF) and Exxon Mobil (XOM), which closed 4% and 3.2% lower respectively. At the top of the index was clothing retailer Gap, which added 10.4% after analysts at Citigroup doubled the target price on the company’s shares.

1 2 3
View single page >> |

Disclaimer: eToro (UK) Ltd is authorized and regulated by the Financial Conduct Authority. eToro (Europe) Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission. eToro AUS ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.