. . . well, it looks like it’s already started. Here they are – job cuts announced or planned to date by businesses specifically due to AHCA mandates. Numbers are full-time positions to be cut:
- Welch Allyn – 275 (approx 10% of their workforce)
- Dana Holding Corp – estimated to be approx $24 million over 6 years, or $4M per year (no firm number given besides the 6 or so in management who’ve gotten the ax so far)
- Stryker – 5% of global workforce (aprox 1,170)
- Boston Scientific – between 1,200 and 1,400 US jobs (investment focus and hiring will shift to China)
- Medtronic – 1,000
- Smith & Nephew – 770
- Abbott Labs – 700
- Covidien – 595
- Kinetic Concepts – 427
- St. Jude Medical – 300
- Hill Rom – 200
That’s over 6,700 full-time jobs getting the axe so far – plus however many jobs $24 million in payroll equates to at Dana Holding. Assuming an average salary of $90k and allowing +1/3 for benefits, that comes to another 200.
Above and beyond those reductions, many other companies are actively looking for ways to reduce current or future workers’ hours. Seems as if the AHCA penalty calculation formula doesn’t count part-time workers – so replacing a full-time worker with two part-timers is now really a net plus for the company. Companies that are looking at doing exactly this (e.g., reducing many workers to 28 hours weekly or less) include the following:
- Darden Restaurants (Red Lobster/Olive Garden/Longhorn)
- JANCOA Janitorial Services
The reductions identified above are, of course, only the beginning. So if you’re hoping to find a full-time job some time in the foreseeable future – well, your search likely just got a whole lot harder.
Each of these reductions will also have a ripple effect due to forced reductions in spending by those who lose jobs or who saw their hours reduced. The overall net effect will be to reduce business activity overall – leading to more cutbacks and layoffs in other industries affected by that reduced spending.
And this doesn’t include pending cuts due to sequestration, targeted Federal budget cuts, and the like.
Yeah, looks it looks like we’re in for really good times. Laissez les bon temps rouler!
(For the perception-challenged, yes – the last two sentences were indeed sarcasm.)