Freedom Works has compiled a list of companies that have announced layoffs this week following the re-election of Barack Obama.
It should be pointed out that the planning that goes into downsizing a business can take several weeks or months. However, it is not unreasonable to assume that companies are responding to the increased costs associated with complying with Obamacare and other administration regulations.
It is impossible to know if there would have been fewer or no layoffs if Romney had been elected. But perhaps the certainty that Obamacare will survive crystallized the thinking of these businesses and forced them to go ahead with their plans.
A few of the companies that have announced job cuts:
Welch Allyn, a company that manufactures medical diagnostic equipment in central New York, announced in September that they would be laying off 275 employees, or roughly 10% of their workforce over the next three years. One of the major reasons discussed for the layoffs was a proactive response to the Medical Device Tax mandated by the new healthcare law.
Dana Holding Corp.
As recently as a week ago, a global auto parts manufacturing company in Ohio known as Dana Holding Corp., warned their employees of potential layoffs, citing “$24 million over the next six years in additional U.S. health care expenses”. After laying off several white collar staffers, company insiders have hinted at more to come. The company will have to cover the additional $24 million cost somehow, which will likely equate to numerous cuts in their current workforce of 25,500 worldwide.
One of the biggest medical device manufacturers in the world, Stryker will close their facility in Orchard Park, New York, eliminating 96 jobs in December. Worse, they plan on countering the medical device tax in Obamacare by slashing 5% of their global workforce – an estimated 1,170 positions.
In October of 2009, Boston Scientific CEO Ray Elliott, warned that proposed taxes in the health care reform bill could “lead to significant job losses” for his company. Nearly two years later, Elliott announced that the company would be cutting anywhere between 1,200 and 1,400 jobs, while simultaneously shifting investments and workers overseas – to China.
In March of 2010, medical device maker Medtronic warned that Obamacare taxes could result in a reduction of precisely 1,000 jobs. That plan became reality when the company cut 500 positions over the summer, with another 500 set for the end of 2013.
A short list of other companies facing future layoffs at the hands of Obamacare:
Smith & Nephew – 770 layoffs
Abbott Labs – 700 layoffs
Covidien – 595 layoffs
Kinetic Concepts – 427 layoffs
St. Jude Medical – 300 layoffs
Hill Rom – 200 layoffs
This is a drop in the bucket. Sequestration will result in hundreds of thousands of layoffs. And even if the fiscal cliff is avoided, our national defense is going to be gutted by cuts in the budget already announced.
The new normal for the American worker in several industries, including retail, hospitality, and restaurants, will undoubtedly be the rise of the part-time worker. Already, more than 8 million Americans are working part time despite wanting a full-time job. This number will accelerate dramatically as companies rush to adjust the hours of their workforce so that they can avoid some of the costs associated with Obamacare.
Other businesses will likely just give up and shut down. Increased taxes, increased regulation, Obamacare, and the prospect of who knows what a second Obama term will bring will likely combine to drive thousands of small companies out of business.
Nice “plan” you got there, Barry.