Bloody Monday: U.S. Cut 50,000 Jobs In One Day

From drugs to computer chips, top companies announced Monday that they are laying off nearly 50,000 employees as a reeling economy took a heavy toll on the already strained job market.

Monday’s efforts to downsize companies included layoffs and buyouts across the economic spectrum, and top economists predict that the job picture will worsen as the year goes on. The departures also come as negotiations continue in Washington, D.C., on the size and shape of an economic stimulus package — a priority for President Barack Obama, in office for barely a week.

Caterpillar, the world’s largest manufacturer of construction equipment, announced that its fourth-quarter profit dropped 32 percent, a symptom of the worldwide economic slowdown. Because of the drop, the company will eliminate 20,000 jobs, about 18 percent of its work force, through layoffs and buyouts, Caterpillar announced.

Drugmaker Pfizer, which announced it will acquire rival Wyeth for $68 billion, said it will cut about 8,000 jobs from its current work force. Once the companies are merged, another 15 percent of the work force, nearly 19,000 jobs, could be eliminated, Pfizer spokesman Ray Kerins said in a telephone interview.

Home Depot, the nation’s largest home-improvement retailer, announced it will cut about 2 percent of its work force, or 7,000 jobs. It said it will eliminate about four dozen stores, including all of its specialty Expo Design Center stores.

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Will Feb. 10 Become National Bankruptcy Day?

A new government regulation scheduled to take effect next month has thousands of retailers, thrift stores and small businesses worried they will be forced to permanently close their doors – and destroy their merchandise.

The law is expected to have such a devastating impact that Feb. 10 is now unofficially known as “National Bankruptcy Day.”

Congress passed the Consumer Product Safety Improvement Act of 2008, or HR 4040, a retroactive rule mandating that all items sold for use by children under 12 must be tested by an independent party for lead and phthalates, which are chemicals used to make plastics more pliable.

All untested items, regardless of lead content, are to be declared “banned hazardous products.” The CPSC has already determined the law applies to every children’s item on shelves, not just to items made beginning Feb. 10.

The regulations could force thousands of businesses – especially smaller ones that cannot afford the cost of lead testing – to throw away truckloads of children’s clothing, books, toys, furniture and other children’s items and even force them to close their doors.

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