Many themes to take from huge Nissan layoffNissan is laying off over 20K employees globally, representing roughly 15% of its workforce. There are many takes from this, including:
- The automotive industry is not bouncing back anytime soon.
- High-quality, high-playing jobs will be eliminated permanently from the pandemic in huge numbers
- Companies that were struggling before the pandemic are just now having to come to terms with severely damaged balance sheets and long-term demand destruction.
Any one of these themes alone hurts the economy and the energy sector in particular. Combined, they are devastating. US GDP will fall anywhere from 30-45% in Q2. This is going to have devastating and permanent effects.
Unfortunately you can expect more and more announcements like Nissan’s to pop up going forward. This kind of job loss and shutdown of manufacturing has real and tangible impacts that reverberates through the global commerce. Energy companies are particularly vulnerable. Invest accordingly. JMHO. GLTA.
https://english.kyodonews.net/news/2020/05/e435aa15433d-breaking-news-nissan-looks-to-cut-over-20000-of-global-workforce-amid-pandemic.html