Stocks are up nearly 2% today alone, with the S&P back to green for 2015. Among the reasons for today's rally: lower overhead courtesy of KO and CAT, which announced that between the two of them, they would fire some 2,000 workers, which is great news for stocks if not for actual employees as there will be even more dry powder for another record quarter of stock buybacks.
First Coke, via the WSJ [3]:
Coca-Cola Co. said Thursday it will eliminate at least 1,600 to 1,800 jobs globally as part of its earlier announced $3 billion cost-cutting drive.
The Atlanta-based beverage giant said it began notifying some of the affected employees Thursday and that the cuts will be carried out over the coming months.
“We have committed that we will ensure fair, equitable and compassionate treatment of our people throughout the process,’’ it added in a written statement.
Coke said it is still completing changes in some of its businesses, but that ”at this time’’ it has identified 1,600 to 1,800 affected positions. That raises the possibility of additional job cuts at a later date.
And then CAT [4]:
Peoria-based Caterpillar said Wednesday it is laying off 200 workers at its Decatur and East Peoria facilities beginning Jan. 19.
[5]"Products built in these locations are used in the mining industry, which continues to witness weak market conditions," the company said in a statement.
The company has already laid off hundreds of workers at factories where mining equipment is produced. Caterpillar has said a decline in commodity prices has led mining companies to halt expansions and the building of new mines, leading to reduced demand for equipment.
"While some cost reduction measures have already been implemented, including temporary shutdowns and reductions in the flexible workforce, more permanent measures must be taken in the near term," the statement read
As a visual reminder, here's Caterpillar [6]:
[7]
And its growth strategy: [8]
[9]
And with companies continuing to layoff workers - because if you are firing you aren't hiring - it means the BLS' January seasonal adjustments to goalseek the NFP number above 200K for the 12th month in a row will be a sight to behold.
