Further anecdotal evidence of the challenge in battling unemployment emerged in the last week with five of the top ten companies on Alacra’s Pulse’s list of companies under pressure announcing layoffs. They include Hewlett-Packard (HPQ) shedding 9,000 jobs worldwide as as part of the restructuring of its enterprise services division; Citigroup (C) detailing layoffs and branch closures at its CitiFinancial unit to make it more appealing to potential buyers; Xstrata (OTC:XSRAF) cutting back as a result of Australia’s mining profit tax; troubled Royal Bank of Scotland Group (RBS) making further cuts; and Whirlpool (WHR) closing a plant.
American International Group (AIG) and the UK’s Prudential plc (PUK) both got black eyes for the failure of the deal for AIG’s Asia unit.Ford Motor (F) said it would take a hit from phasing out its Mercury brand, though this could be seen as a positive in the long term. Tenet Healthcare (THC) was downgraded by R.W. Baird, and its plan to buy Australia’s Healthscope ran into trouble. Bank of Florida announced it was insolvent and then was delisted by Nasdaq.
BP’s (BP) problems continued to mount, with all three ratings agencies downgrading its debt, though it remains at a high investment grade.
The following sampling of companies under duress was compiled from a search of traditional and alternative media outlets using Alacra Pulse.
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