Are the companies with the record profits the same that are cutting jobs?
From past reading of articles about how German carmakers are shedding jobs, I doubt it. This article says that they aren’t doing very well:
Carmakers revenue fell 1.2% and operating profit dropped 12%. BMW suffered the steepest decline, with EBIT down 39%, while Volkswagen and Daimler Truck each recorded a 9% drop.
I’ve seen several news stories about them doing layoffs. The industries that this article says are growing are:
Pharmaceutical and agrochemicals group Bayer and property company Vonovia recorded the strongest profit growth…defence, artificial intelligence and data centres, as well as banks and insurers…Chemical companies also benefited
Vonovia should be prohibited from making profits. All the earnings is directly payed by rent
Wait until you hear how German carmakers’ competitors from China treat their workers in a mix of exploiting a 996 work culture and slavery. It’s just not reported.
companies fundamentally do not “employ people because they can afford to”. they employ people because they make more profit if they do than if they don’t.
so, even if a company makes $1b in profit each year, they can still fire 2000 people as long as they think that it will increase profit to $1.2b per year. there is no (and i repeat: NO) connection between “a company is profitable” and “it will retain all or hire more employees”.
