The Economy has Never Been Stronger
The term "gaslighting" originates from the 1938 British play "Gas Light" by Patrick Hamilton, which was later adapted into two films - a British version in 1940 and a more well-known American version in 1944 titled "Gaslight".In the story, a husband manipulates his wife into questioning her own sanity as part of a scheme to steal from her.
One of his tactics involves dimming the gas-powered lights in their home while insisting to his wife that the lighting hasn't changed, making her doubt her own perceptions.
The plot of the play and films depicts an elaborate form of psychological manipulation, where the husband systematically undermines his wife's confidence in her ability to perceive reality accurately. This portrayal gave rise to the term "gaslighting" as we use it today.
It wasn't until the mid-2010s that "gaslighting" gained widespread popularity and entered the mainstream lexicon.
Today, gaslighting is defined more broadly as a form of psychological manipulation in which a person or group causes someone to question their own sanity, memories, or perception of reality. It's now recognized as a form of emotional abuse and can occur in various contexts, including personal relationships, workplaces, and even in politics and media.
Nike, Just Do it!
(Do what? Head for the unemployment line?)
Nike is currently facing significant financial challenges, resulting in a major workforce reduction. The company has recently laid off 732 employees, with a notable impact on top positions:
32 vice presidents
112 senior directors
174 directors
These high-level positions account for over 40% of the total job cuts.The company's financial struggles are reflected in its stock performance. Nike's stock price has dropped to $73.05, approaching its 52-week low of $73. This is a stark contrast to its previous high of over $177 in November 2021.Despite being the NFL's exclusive clothing supplier since 2012 with a contract extending to 2027, Nike's recent forecast of declining sales for the upcoming year has led to a substantial loss in shareholder value. Just ten days ago, the company lost over $28 billion in market capitalization.
This waterfall looks like some crypto product but it one trading day session
These layoffs and financial challenges highlight the significant difficulties Nike is currently facing in the market, affecting both its workforce and investor confidence.
&
Nothing Runs Like a Deere
(except for US Jobs running out of US)
John Deere has recently announced plans to move some of its manufacturing operations from the United States to Mexico. Here are the key details of this breaking news:
Relocation of production: John Deere is planning to move the manufacturing of mid-frame skid steer loaders and compact track loaders from its Dubuque, Iowa facility to a new plant in Ramos, Mexico.
Timeline: The new facility in Mexico is expected to be operational by 2026.
Layoffs: As a result of this move and other factors, John Deere has announced significant layoffs in the Midwest:
Approximately 610 production workers in Illinois and Iowa will lose their jobs by the end of summer 2024.
This includes 280 employees in East Moline, Illinois, 230 in Davenport, Iowa, and about 100 in Dubuque, Iowa.
Earlier in 2024, the company had already announced plans to lay off 650 Iowa employees.
Reasons for the move: John Deere cites several factors for this decision:
Rising operational costs and declining market demand.
The need to balance workforce needs in a tight labor market.
Freeing up floor space in Waterloo for manufacturing new products.
Economic context: The move comes amid challenging conditions in the agricultural sector:
USDA forecasts a continued decline in farm sector income, from $155.9 billion in 2023 to $116.1 billion in 2024.
Lower crop prices have led to excess inventory of tractors and combines.
Cost considerations: The move to Mexico is likely driven by lower labor costs:
American workers often make three to four times more than their Mexican counterparts.
Health insurance costs for U.S. employees are significantly higher than in Mexico.
Ongoing operations: Despite the move, John Deere will continue some operations in Dubuque, including manufacturing large-frame skid steer loaders, backhoes, and various types of dozers and loaders.
This move by John Deere is part of a broader trend of U.S. companies relocating manufacturing to Mexico, taking advantage of lower costs while maintaining proximity to the U.S. market