FEI Weekly

May 28, 2020

American Airlines, Boeing, Amtrak plan major workforce cuts.

American Airlines, Boeing, Amtrak Plan Major Workforce Cuts

Reuters

American Airlines must reduce its management and support staff by about 30% and may have to cut frontline employees as it downsizes due to the coronavirus outbreak, showed a letter to employees made public on Wednesday. Amtrak also plans to cut its workforce by about one-fifth in the next fiscal year after the coronavirus pandemic reduced ridership and ticket revenue by about 95%. Boeing announced yesterday they plan to lay off more then 6,000 employees.

The Hertz Story You Didn't Know

Accounting Today

Hertz filed for bankruptcy last week, but a new filing with the SEC has revealed hundreds of people were given last minute bonuses. The short version of Hertz’s bankruptcy story goes something like this: Global pandemic obliterates the travel business and lands an iconic 102-year-old company in court to seek protection from creditors. The long version is a fable about what happens when a company relies on accounting and consolidation to keep shareholders happy. It’s a tale of lurching from one CEO to another and management teams failing to stay attuned to consumer tastes.

Businesses Fear PPP Consequences

NPR

While there are still some businesses waiting on funds, it appears that the overwhelming majority that wanted PPP money have gotten it. Beyond that, demand does not appear to be growing. One factor related to the slower PPP usage is smaller loans. Some business owners have decided that the PPP just doesn't work with their finances. The restrictions surrounding how the money must be spent — for example, that it must be spent in eight weeks, with 75% spent on payroll in order to be forgiven — have frustrated some business owners.

Le Pain Quotidien Files for Chapter 11

USA Today

Restaurant chain Le Pain Quotidien filed for Chapter 11 bankruptcy protection Wednesday and revealed plans to sell itself to another restaurant company in a bid to avoid liquidation. Le Pain Quotidien began plans to file for bankruptcy before the coronavirus pandemic and had been struggling with increased competition from nimbler competitors, including fast-casual companies, and had suffered from a lack of digital ordering.

Leaders Need to Adopt This Mindset Before It's Too Late

Quartz

This is no time to think big. Instead, lean on small signals. You will do your mental health a world of good, bolster your performance during this unusual period, and make your company’s future bottom line all the better. Rather than quarterly or yearly time frames, we need to focus on daily, incremental achievements that underscore developments that will pay off over the long haul.