AP: Pink slips pile higher amid deepening recession

[Omaha Steve]

http://apnews.excite.com/article/20090108/D95IQJJO0.html

By JEANNINE AVERSA

WASHINGTON (AP) - Pink slips are piling higher as companies scramble to cut costs even deeper to survive the country's economic and financial storms.

Just days into the new year, managed care provider Cigna Corp. (CI) (CI), aluminum producer Alcoa Inc. (AA) (AA), data-storage company EMC Corp. (EMC) and computer products maker Logitech International were among those announcing layoffs to cope with a recession that has just entered its second year. The flurry of job cuts suggest the employment picture will remain grim this year.

A barometer on layoffs is expected to show Thursday that the number of newly laid off people signing up for state unemployment insurance last week rose to 540,000, up from 492,000 in the previous week, according to economists' projections.

The number of people continuing to draw jobless benefits is projected to stay near 4.5 million, demonstrating the troubles the unemployed are having in finding new jobs.

Electronic unemployment filing systems have crashed in at least three states in recent days due to the crush of newly jobless Americans seeking benefits.

"Businesses were panicked at the end of the year and those that had been holding off on layoffs are now capitulating," said Mark Zandi, chief economist at Moody's Economy.com.

FULL story at link.

[Possumpoint]

1. The Good News

continues to flow. If retail sales stay in the basement that will be the next sector cutting jobs and declaring bankruptcy. I expect to see a tidal wave of failures in that sector.