Question

Due to the temporary downturn in the economy, sales revenues have decreased by 50% to 60% for many restaurants and eateries, retails stores and service-oriented businesses (e.g., hair salons ) thus affecting profitability and the ability to continue business operations.  In order to survive the slowdown, businesses must make some adjustments or risk going out of business.

In term of actions involving cost reduction or increasing revenues, briefly provide some recommendations for these businesses to help them stay profitable or at least minimize losses during this period? (Be specific).. Hint: Think about what some business have been doing to control their costs and generate other streams of revenues.

Answer 1

There was already a fundamental shift under way in the workforce as new technologies and thoughts on workplace culture started to change the way we work. The Covid-19 pandemic accelerated these changes at a nearly unimaginable pace. The Workforce Wire is tailored news and information specifically for employers and executives to keep track of what companies are doing with regard to their workforce to help leaders navigate through this unprecedented time.

Amazon extends work-from-home plan until Oct. 2

Amazon fulfillment center package

Amazon.com has told staff whose job can be done from home that they can do so until at least Oct. 2, pushing out the timeline on a return to work for many employees.

"Employees who work in a role that can effectively be done from home are welcome to do so until at least October 2," an Amazon spokesman said in an emailed statement on Friday, adding it was applicable to such roles globally. The statement did not specify how much of the company's overall workforce that would pertain to or specifically which roles.

Separately, the tech giant said it plans to spend all of its profit for the second quarter of this year — an estimated $4 billion — on its response to the coronavirus pandemic.

Some of the $4 billion will be spent on higher wages for workers, personal protective equipment, better cleaning protocols at facilities and "less efficient process paths" that will allow for social distancing.

Union reports Covid-19 cases at meatpacking plant more than doubled 'in a number of days'

Covid-19 cases at a JBS meatpacking plant in Colorado have more than doubled "in a number of days" and a sixth employee died of the virus, a union official said on Thursday, according to a Reuters report. This news underscores the risks of U.S. meat plants reopening.

The beef plant in Greeley, Colorado, started operating April 24 after it was closed for about two weeks following an outbreak among workers.

Confirmed cases among workers at the plant rose from 120 on April 26 to 245 on the evening of April 29, a union spokeswoman told Reuters, citing numbers from the Colorado Department of Public Health and Environment.

Uber CTO announces resignation, company reportedly considering layoffs

Uber Technologies' chief technology officer, Thuan Pham, the ride-hailing company's longest-serving executive, is resigning effective May 17.

Members of Uber's engineering team will perform Pham's duties until the company finds a permanent CTO.

Separately, according to the website The Information, Uber is considering layoffs as it copes with a sharp decline in its ride-hailing business due to the coronavirus pandemic.

The report says that as much as 20% of Uber's workforce, or about 5,400 workers, may be affected.

Ford to restart European manufacturing production with enhanced employee protection protocols in place

Ford is planning to restart vehicle and engine production at most of its main manufacturing sites in Continental Europe in a phased approach beginning May 4.

To protect its returning workforce, Ford global standards on social distancing and health and safety protocols are being implemented.

The company is also making its own face masks to protect employees across Europe and is providing employees with "personal-care kits."

The production restart plan supports Ford dealer sales sites reopening in key markets and are subject to national movement restrictions.

Nearly 350K Nevada workers have filed for unemployment amid hotel and casino shutdowns

According to data from Applied Analysis, a Las Vegas-based economic research firm, nearly 350,000 workers in Nevada — a jobless rate of about 25% — have filed for unemployment benefits since the coronavirus crisis began escalating, in mid-March.

The state's local economy is largely dependent on the leisure and hospitality industry, which provide jobs that largely can't be done remotely.

Casino operators such as Wynn, MGM Las Vegas and Sands Resorts all have announced layoffs and furloughs.

AutoNation will return $77 million in forgivable PPP loans after furloughing 7,000 employees

AutoNation, the largest U.S. auto dealership chain, will return $77 million it received in forgivable loans from the Paycheck Protection Program.

Marc Cannon, a spokesman for the company, told Reuters that AutoNation was "clearly eligible and applied on behalf of the 7,000 employees furloughed caused by the COVID-19 crisis."

The decision to return federal funds came after the Small Business Administration issued new guidance for the program and those applying for aid.

Stanford Health Care to furlough workers, cut wages 20%

Stanford Health Care employees, including doctors and nurses on the front lines of the Covid-19 pandemic, will see a 20% pay cut for 10 weeks starting April 27.

The pay reductions will apply to all employees at Stanford Hospital, Lucile Packard Children's Hospital Stanford and, in the East Bay, Stanford-ValleyCare.

According to Palo Alto Online, employees can choose to lose pay but continue to work full-time, work fewer hours while taking paid time off in full-day increments, or work fewer hours but take up to 96 hours of flex time as time off. If they are not eligible, they can take unpaid time off. The hospital will offer tips on how to file for unemployment insurance.

Addressing Stanford executives in an open letter, 16 employees said they are dismayed by the hospital's actions. "Stanford Health Care is now turning its back on front-line health care workers and refusing to acknowledge our input when it comes to furloughs. Your refusal to work collaboratively and negotiate is extremely disrespectful to all of us who have been coming to work every day, often without proper protection, putting our lives at risk to care for patients," they wrote.

Additionally, the letter read, "You've presented your furlough plan as a 'shared sacrifice' as if this extreme measure has the same impact on the CEO who makes over $3 million/year and a housekeeper or a nursing assistant who struggle to pay rent and feed our family in the Silicon Valley on $60,000 or $70,000 a year. This shows a stark lack of empathy and understanding for the reality of our lives.