Thousands of jobs were lost this week. Here’s where

By Tori 3 years ago

Just look at the most recent numbers: Another 1.5 million US workers filed for first-time jobless benefits last week, the Department of Labor said Thursday, for a total of more than 45 million Americans who have done so first-time benefits since mid-March.

Large companies are reducing their headcounts as a result of the pandemic. Here are some of the largest companies that announced workplace reductions this past week.

Mid-tier gym chain 24 Hour Fitness kicked off the week with a Chapter 11 filing. CEO Tony Ueber explicitly blamed the temporary closures caused by Covid-19 in a statement Monday.

“If it were not for Covid-19 and its devastating effects, we would not be filing for Chapter 11,” he said. “We expect to have substantial financing with a path to restructuring our balance sheet and operations to ensure a resilient future.”

The company permanently closed more than 100 gyms across the United States, resulting in an indeterminate number of layoffs. The company is “unable to provide details on the number of employees impacted by the difficult decisions that were made during this time,” it said in a statement to CNN Business.

Likewise, the owner of New York Sports Club and a number of other gyms located predominantly on the East Coast revealed that it laid off much of its 7,000 person workforce because of temporary gym closures.

Town Sports International (CLUB) said in a regulatory filing Monday that the “scope and duration of the interruption to our operations has substantially reduced our cash flow.” Town owns around 200 gyms, including Sports Club branded locations in Boston, Philadelphia and Washington, DC.

AT&T

The telecom giant is closing 250 stores and cutting several thousand jobs, according to one of its unions.

The Communications Workers of America says the job cuts will come to 3,400 technicians and clerical staff, as well as 1,300 additional workers at AT&T Mobility and Cricket Wireless stores.

The company had 244,000 employees as of March 31, so a 4,700 headcount reduction would represent a 2% decrease in its global staff.

AT&T (T) would not confirm the headcount reduction numbers cited by the CWA. The company, which owns CNN, said the cuts were made necessary by customer preferences gravitating away from “legacy” products, such as landline phones, and in response to the Covid-19 pandemic.

Hilton

Hilton (HLT) Hotels said Tuesday it’s laying off 2,100 employees, or roughly 22% of its corporate workforce, as the lingering effects of coronavirus continue to depress demand for leisure and corporate travel.

“Never in Hilton’s 101-year history has our industry faced a global crisis that brings travel to a virtual standstill,” CEO Christopher Nassetta said in a press release, adding that he was “devastated” by the decision.

Covid-19 all but destroyed the global tourism industry, resulting in temporary hotel closures, border restrictions and flight reductions. Large hotel chains were some of the biggest victims, including rivals Marriott (MAR) and Hyatt (H). Both of those companies announced furloughs and layoffs in the recent months.

HSBC

The banking giant resumed plans to cut 35,000 jobs, or roughly 15% of its global workforce, saying that the coronavirus pandemic has made the overhaul it announced earlier this year even more urgent.

Thursday’s announcement is a continuation of layoffs it halted in March to reduce uncertainty for employees and protect its capacity to serve customers amidst the coronavirus pandemic.

The Covid-19 crisis has crippled the bank, which is embarking on one of the deepest restructuring programs in its history. HSBC’s profit plunged 48% to $3.2 billion in the first quarter, compared to a year earlier, and it set aside billions of dollars to cover credit losses arising from the pandemic.

–CNN Business’ Chris Isidore and Hanna Ziady contributed to this report.

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