Job cuts represent structural job losses

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Evidence that companies think that much of the downdraft in the economy represents a structural shift to a lower revenue base instead of a cyclical shift comes from the enormous goodwill writedowns companies are taking.  Case and point is the $34 billion writedown by ConocoPhilips which I highlighted (Note of disclosure: I am fairly bullish on energy socks).  If companies thought that revenue was going back up, they would not need to write down so much goodwill.

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In the video below, Tom Keene and company argue that this view of corporate captains — that we are experiencing a structural shift — is palpable at Davos and it is being felt in job losses.  Many of these obs are simply not coming back.

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