HSBC to lay off 500 workers

[andy158]

Read today that HSBC is closing one of its offices in Delaware furlowing 500 workers. This was a claims and service department. Wonder how those said HSBC employees will be received if they have HSBC credit cards and cannot make the payments?

http://www.businessinsider.com/hsbc-slashes-500-us-jobs-2011-1

Ah what a viscious circle!

[chicagoannie]

Amex is also letting go 550 workers early this year, and relocating another 3500. And I had an evil little thought - I hope every one of those laid-off workers has a maxed out Amex card and BK's on them!

[BKOnce]

Nobody use their cards anymore.. that's why....

[Flamingo]

So many people have defaulted on debts owed to these companies that the companies have no choice but to cut costs...it's the trickle down effect that you are seeing everywhere in any business. Workers are the first to go. The same happens if a business loses income if folks stop buying there as it occuring with many supermarkets (due to folks going to the big box chains to save money) - the workers are the first to go or the company starts shutting down certain stores in certain areas.

All in all, everyone pays for all the defaults, foreclosures and bankruptcies occuring, even if we ourselves filed. At first one doesn't think about it but after a while reality hits.

[msm859]

So many people have defaulted on debts owed to these companies that the companies have no choice but to cut costs...it's the trickle down effect that you are seeing everywhere in any business. Workers are the first to go. The same happens if a business loses income if folks stop buying there as it occuring with many supermarkets (due to folks going to the big box chains to save money) - the workers are the first to go or the company starts shutting down certain stores in certain areas.

What? I thought people weren't buying anything and businesses weren't hiring because of all of the uncertainty of the top marginal tax rate. Now that they settled that issue businesses should be hiring again.

[Flamingo]

What? I thought people weren't buying anything and businesses weren't hiring because of all of the uncertainty of the top marginal tax rate. Now that they settled that issue businesses should be hiring again.

It's a combination of defaulted debt (bankruptcies), loss of revenue and lack of business. The first cuts to go are the employees and costs of fees/services will be raised in other areas. If the companies cannot survive after that, we all know what happens - they go under. It's a big circle and is happening all over. Someone has to pay for all the defaulted debt and the end result payor is John Q Public.

[shark66]

Flamingo wrote:

So many people have defaulted on debts owed to these companies that the companies have no choice but to cut costs...

While it is true that a huge amount of CC users have defaulted on their debt, let's not forget that most of them have paid a tremendous amount of interest on it before finally giving up...and that there are many that are still caught up in payments on the cards that will never be paid off...it's really not that any of the CC issuers are starving...both Bush and Obama took good care of them...not to forget their best friend, Uncle Joe of Delaware...

They lay people off because they can. Because that's what Wall Street has been telling everyone and their seventh cousin to do over the past two decades or thereabouts: trim the fat. Cut the costs. Lay off. Your stock will go up if you do so....

And so many of us actually believe this hogwash...anyone ever wonder how a heavily-unionized company that provides its workers withpremium salaries and benefits (even by German standards) like VW is still doing well...without massive layoffs and the like?

[banca rotta]

All in all, everyone pays for all the defaults, foreclosures and bankruptcies occuring, even if we ourselves filed. At first one doesn't think about it but after a while reality hits.

All except for the bank's executives. They sell their toxic paper to the fed for 100 cents on the dollar and make more bad bets and keep doing this all over again until we all learn to say enough!

http://www.thenewamerican.com/index.php/economy/sectors-mainmenu-46/5371-fed-data-reveals-trillions-in-bailouts-to-big-foreign-banks

[catleg]

Flamingo wrote:

So many people have defaulted on debts owed to these companies that the companies have no choice but to cut costs...

While it is true that a huge amount of CC users have defaulted on their debt, let's not forget that most of them have paid a tremendous amount of interest on it before finally giving up...and that there are many that are still caught up in payments on the cards that will never be paid off...it's really not that any of the CC issuers are starving...both Bush and Obama took good care of them...not to forget their best friend, Uncle Joe of Delaware...

They lay people off because they can. Because that's what Wall Street has been telling everyone and their seventh cousin to do over the past two decades or thereabouts: trim the fat. Cut the costs. Lay off. Your stock will go up if you do so....

And so many of us actually believe this hogwash...anyone ever wonder how a heavily-unionized company that provides its workers withpremium salaries and benefits (even by German standards) like VW is still doing well...without massive layoffs and the like?

I am in 100% agreement. It's the American corruption/capitalism model. Probably at the same time, those jobs are being outsourced. (HSBC and Amex are global operations).