Mass Layoffs In Anticipation Of Recession

Obama's reelection is certainly bad news for job seekers and employees in that the certainty of the implementation of Obamacare will inexorably lead to reduced hiring and layoffs. However, while the conservative media are spinning the numerous post-election mass-layoff announcements as the private sector's reaction to the results from this past Tuesday, I offer a contrarian explanation: regardless of the outcome of the "fiscal cliff" negotiations, the country is likely going back into recession in a matter of months, and many of the announcements would have been made even if Romney had been elected. Even though December and January are known as the worst months for layoffs, November is a good time for non-retail companies to terminate employees if they foresee reduced business activity in the new year (or the prospect of a "fiscal cliff") because December is typically slow, and severing an employment arrangement is easier for both the employer and the employee when it's conducted before the holidays. But, regardless of the reasons behind the announcements, the size and scope of the layoffs is impressive. Some highlights:

Boeing: 30% of management staff

Vestas Wind Systems: 3,000 employees

Energizer: 1,500 employees

US Cellular: 980 employees

Husqvarna: 600 employees