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Job cuts represent structural job losses

Evidence that companies think that much of the downdraft in the economy represents a structural shift to a lower revenue base instead of a cyclical shift comes from the enormous goodwill writedowns companies are taking.  Case and point is the $34 billion writedown by ConocoPhilips which I highlighted (Note of disclosure: I am fairly bullish on energy socks).  If companies thought that revenue was going back up, they would not need to write down so much goodwill.

In the video below, Tom Keene and company argue that this view of corporate captains — that we are experiencing a structural shift — is palpable at Davos and it is being felt in job losses.  Many of these obs are simply not coming back.

About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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