Employers are cutting shifts, suspending work and starting to lay off workers as the new coronavirus devastates business across the country. 'It’s kind of a demoralizing thing.'
Companies from restaurant operators to wedding caterers have started to let workers go as they ratchet down operations. Many firms have moved cautiously to date, furloughing employees and moving workers to part-time status. But for many companies, economists say, layoffs are likely next.
Molly Moon’s, an eight-store ice cream chain in Seattle, usually boosts its staff from 120 workers to 230 as summer draws near. Instead, last week it was weighing cutting employees’ hours back nearly 20 percent. Unite Here, a labor union that represents over 300,000 people working in hotels, gaming, food service, manufacturing, textiles, laundry, transportation and airports in the U.S. and Canada, said Wednesday it expects 80% to 90% of those workers to be laid off.
That means cutting shifts instead of a full layoff can still feel like a job loss for workers, says Daniel Schneider, an assistant professor of sociology at University of California, Berkeley. “It’s kind of a demoralizing thing, and I’m worried about all of my friends who are also bartenders and cooks,” said Jesse Gustafson, who was laid off from a $14-an-hour line cook job at a bar in Portland, Ore.
Marriott International Inc. said Tuesday it expects to furlough tens of thousands of employees as it closes hotels across the globe. Oil-field-services firm Halliburton Co. will begin a mandatory furlough next week that will cover 3,500 employees in Houston. Norwegian Air Shuttle AS A outlined plans to temporarily layoff around 7,300 workers.Some companies are hiring, including supermarket chains trying to meet demand. Amazon.com Inc. plans to hire an additional 100,000 employees in the U.S.
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