More unemployment
In a desperate effort to press the congress to give 12 billions in loans, General Motors cut jobs, factories, brands and executive pays.
This 12 can be use like this, 4 billion in immediate loans to stay in business after December, and another 8 billion to carry it through the first part of next year.
Without this help this biggest automaker could topple into insolvency within weeks and drag down the other two members of Detroit’s troubled Big Three.
But the depths of GM problems were greater than thought, as the company laid out a dire situation if it is unable to secure government assistance. While Ford said it could survive for now without federal aid, it asked for up to 9 billion in loans should the United States vehicle market continue to deteriorate. G.M., on the other hand, is rapidly running out of time.
Another company goes down
There is another company that is coming down for the turmoil thanks to the financial crisis. Sun mycrosystems can lose 6.000 employees and of course, they can lose their jobs as well.
The company, already dealing with layoffs announced in May, expects to save $700 million to $800 million a year as a result of the moves, while also taking up to $600 million in charges in the next 12 months.
“The focus here is to eliminate some of the inefficiencies that have made it hard to do business with Sun,” said Jonathan I. Schwartz, chief executive at Sun, adding that a “new economic reality” had taken hold in the market. Sun shares were up about 3.9 percent in afternoon trading.
Last week, Cisco Systems, the largest provider of network equipment, warned that sales in its current quarter could drop 10 percent. Intel, the world’s largest producer of chips used in PCs and servers, added to the gloom this week saying its sales for the current quarter could plummet as much as 19 percent as both consumer and corporate customers had pulled back on technology spending.
These are just 3 of a list of companies affected by the crisis, this is no a good situation at all, we be aware.
Verizon going up
Between the financial crisis the country’s second largest telecommunications company, Verizon said on Monday that it earned $1.67 billion, or 59 cents per share, compared with $1.27 billion, or 44 cents a share, a year ago.
Verizon Communications Inc.’s earnings rose 31% in the third quarter as it wireless arm did better than expected, while its traditional phone business kept declining.
I know the communication business is different to the banks, but WOW this is great for this company, and for the country also, this business is going to up! I hope with the bailout plan the banks can say the same next year.
