Facebook will allow many of its employees to work permanently from home, said Mark Zuckerberg, Managing Director of Facebook, during an employee meeting that was broadcast live on his Facebook page.
The social media giant sent its employees home in March when the corona virus spread to the United States. Mr. Zuckerberg said the temporary changes caused by the virus caused the company to reevaluate its requirement that employees work in a shared office. In a decade, half of the company’s more than 45,000 employees would work from home.
Mr. Zuckerberg’s announcement followed similarly Decisions on Twitter and the payment company Square, both led by Jack Dorsey. Mr. Dorsey said last week that employees of his company are allowed to work from home indefinitely. At Google, employees were told that they could work from home by the end of the year.
This is a “downturn without a modern precedent,” said the Fed chairman.
Federal Reserve Chairman Jerome H. Powell and other senior central bank officials warned on Thursday that the United States was experiencing an extraordinary shock in the coronavirus pandemic and that it was completely unclear when and how low unemployment and widespread prosperity would be Return.
The US economy is in a “downturn without a modern precedent,” Powell said a few hours after government data showed another 2.4 million people submitted new unemployment claims last week.
“In the best of times, it is difficult to predict the path of the economy with certainty,” he added. “We are now experiencing a whole new level of uncertainty as questions that only the virus can answer make the outlook difficult.”
The Fed chief’s comments underscored a point that his colleagues repeatedly raised in a series of lectures on Thursday: the road to recovery is not obvious as the economy and the labor market have been absorbing the greatest shock in generations. With this in mind, both Fed and Congress and White House policymakers should be ready to do more if necessary.
“Depending on the course of the virus and the depth and duration of the downturn it causes, additional support from both monetary and fiscal policies may be required,” Fed Fed Vice Chairman Richard H. Clarida said during an event Beginning of the year day.
Even when the restrictions on companies in the United States were lifted, Another 2.4 million workers applied for unemployment benefits last week, the government reported Thursday, increasing the total number of new claims to more than 38 million in nine weeks.
“The bleeding has continued,” said Torsten Slok, chief economist at Deutsche Bank Securities, about the increasing loss of jobs. He expects the official unemployment rate to approach 20 percent in May 14.7 percent reported by the Department of Labor for April.
And there is growing concern that many jobs will not return, even for those who see themselves temporarily laid off.
Nicholas Bloom, an economist at Stanford University, co-authored one After analyzing the impact of the pandemic on the job market, 42 percent of recent layoffs will result in permanent job losses. “I hate to say it, but it will take longer and look grimmer than we thought,” he said of the road to recovery.
Airports on this Memorial Day weekend are likely to be far emptier than usual, but people who want to fly will notice a lot of changes in every part of the screening process.
On safety lines, signs and other markings remind passengers to keep their distance. The Transportation Security Administration announced on Thursday that its agents would wear masks, gloves, and in some cases eye protection. Passengers are asked to scan their own boarding passes and place all food in their luggage in a separate container during screening to limit cross-contamination.
“In the interest of T.S.A. Front workers and health of travelers, T.S.A. is committed to carefully changing our screening processes to limit physical contact and increase physical distance as much as possible, ”said David Pekoske, administrator of the agency, in a statement.
Most normal rules remain, but the T.S.A. said it would relax you: passengers can now bring up to 12 ounces of hand sanitizer on their trip.
The airlines are also making changes. For example, travelers who need to check a bag or print a ticket may find a sneeze guard that separates them from a ticket seller, with precautions being taken in some places United Airlines and Delta Airlines. If they choose a kiosk instead, passengers may interact with a kiosk that works without contact.
The answer may be for now.
It remains unclear whether lawmakers will agree to an extension of the unemployment benefit included in the $ 2 trillion stimulus package approved in March that provides an additional $ 600 a week to unemployed people.
This expanded benefit expires in late July, and House Democrats have included a provision in Friday’s $ 3 trillion stimulus package to extend it until January 2021.
But the Republicans, along with the entire House bill, have rejected this measure and are not planning to vote on it in the Senate. You have expressed concerns that the higher benefits are a negative incentive to work.
In a private phone call to the House of Representatives Republicans on Wednesday afternoon, Senator Mitch McConnell of Kentucky, the majority leader, vowed that the Republicans would “clean up the crazy Democrat policies that pay people more to stay unemployed than they would earn if they did they would return to work. “
Democrats have repeatedly beaten Republicans for what New York Senator Chuck Schumer, the leader of the minority, described as “amazing” inaction on corona virus legislation on Thursday.
The Atlantic fires 17 percent of its employees.
The Atlantic Atlantic Media chairman David G. Bradley said Thursday in an email from staff that the publication was struggling with the same forces – mostly a decline in digital advertising – said 68 employees in Events, Sales and editing “. who have affected Tens of thousands of jobs in the news media during the coronavirus crisis, although the number of subscribers has risen sharply.
The layoffs make up 17 percent of all staff, The Atlantic said in a statement. Managers will cut their wages and there will be general wage freezes.
Bradley, a long-term strategic linchpin for a business model that relies heavily on reader revenue, said: “Is accelerated – and made necessary – by the nightly and almost complete reversal of the person Events and for now a sharp drop in advertising. “
The Atlantic set up an online paywall last year and has added 160,000 new subscribers since then, Bradley said. Over 90,000 of these have been added since March. The 163-year-old magazine, once published by Ralph Waldo Emerson, has been widely praised for its coverage of the pandemic.
Three years ago, Bradley sold a majority stake in Atlantic Media Emerson Collective, the organization founded by billionaire Laurene Powell Jobs.
L brandswho owns Bathing and body work and Victoria’s secretReaffirmed its commitment to the separation of the two companies on Thursday, saying that Victoria’s Secret will close 250 stores in the US and Canada this year and reduce its fleet to around 850 locations.
The company said on Thursday’s call for profits that it would expect further closings of Victoria’s Secret stores to continue next year and in 2022. Bath & Body Works closes some stores, but reopens others as it works to close certain stores. “Vulnerable shopping centers. “
Victoria’s Secret, which was planned to be sold to a private equity firm fell apart that month, dropping almost half of its sales in the first quarter of this year. Bath & Body Works sales fell 18 percent during this period.
Bath & Body Works, however, was a bright spot with an 85 percent increase in digital sales due to the overwhelming demand for hand sanitizers and soap. When calling for a profit, the brand announced that it had tried to keep up with the rapid purchase of disinfectants both online and in stores.
Macys, one of the largest department store operators in the United States, Preliminary net sales for the first quarter were approximately $ 3 billion, a 45 percent decrease from the same period last year and an operating loss of up to $ 1.1 billion. The company released the figures on Thursday before the first quarter results were fully released on July 1.
The company that also owns Bloomingdale and Bluemercurysaid March was “very tough” but the digital business exceeded April expectations.
Macy’s, which announced an ambitious plan to reopen all 775 stores by the end of June, announced on Thursday that its plan was on the right track and that 190 locations of Macy’s and Bloomingdale had already been opened. Another 80 Macy’s stores are scheduled to open by this weekend.
Macy initially expected only 15 percent of his typical business from reopened stores, but “it is coming stronger than that,” said Jeff Gennette, the company’s general manager, during a presentation on Thursday. Business in reopened stores has dropped about 50 percent and is improving with every week the store is open, he said.
Mr. Gennette added that it has had new roadside pickup successes outside of digital sales and has worked with New York over the coming weeks to expand service at its flagship store in Herald Square.
Macy plans to offer another business update on June 9 before the first quarter results are officially released.
Wall Street stocks fell Thursday, pulling back after key benchmarks recovered the day before.
The S&P 500 fell less than 1 percent and the global benchmarks were also lower.
It’s been a turbulent week for the markets, with stocks switching between gains and losses every day as investors assess new economic developments and the prospect of customer reopening.
On Thursday, data on unemployment claims from the Department of Labor showed that the number of layoffs had reached more than 38 million in nine weeks.
However, economic data from Europe caused more optimism. A monthly flood of index reports from European purchasing managers showed that business activity was slowly picking up: The manufacturing index in the euro area was up 39.5 points above expectations and rose from 33.4 last month, while the services index rose from 12.0 last month to 28.7.
In Asia, monthly trade in Japan decreased nearly 22 percent year over year, underlining weak demand for goods in the country’s factories. The heated rhetoric in Washington against China suggested that relations between the two largest economies in the world would deteriorate further. Investors were also concerned about tensions worsening between China and Australia, a country dependent on Chinese demand to fuel large parts of its economy.
Catch up: Here’s what’s going to happen.
Lululemon, the sports company known for its $ 100 yoga pants, 70 percent of its businesses were expected to reopen with new security measures in the coming weeks. It is planned to add cashless payments “where permitted” and to ask employees “to submit a daily health declaration before each shift”. The company, which had 491 stores worldwide on February 2, announced that it has reopened 150 locations and will open another 200 in the next two weeks. The company declined to provide details about the health statement or certain openings in the United States.
Best buy On Thursday, the company announced that first-quarter sales fell 6.3 percent to $ 8.6 billion, as a net profit of $ 159 million was achieved. The chain benefited from consumers looking for products to work or study at home, as well as toys. In Germany, comparable online sales increased by 155 percent compared to the previous year. The retailer announced that it switched to curb-only service on March 22 in the middle of the quarter for security reasons and had retained approximately 81 percent of last year’s sales in the last six weeks of the quarter that ended on May 2.
TJX, The owner of T.J. Maxx, Marshalls and HousewaresSales declined 52 percent to $ 4.4 billion in the first quarter due to store closures, resulting in a net loss of $ 887 million. However, the low-cost retailer said he was encouraged by “very strong sales” when he started to do business again. The company has reopened stores in whole or in part in 25 states and anticipates that most of its locations could reopen by the end of June based on state guidelines.
The coverage was provided by Jeanna Smialek, Kate Conger, Emily Cochrane, Niraj Chokshi, Geneva Abdul, Jack Nicas, Patricia Cohen, Marc Tracy, Mohammed Hadi, Sapna Maheshwari, Alexandra Stevenson, Cao Li, Carlos Tejada, Katie Robertson, Daniel Victor and Kevin wrote Granville.