Despite Wall Street receiving a private sector payroll report from Automatic Data Processing, Inc., on Thursday showing an increase in job numbers, big companies like PespsiCo and Boeing continue to cut hundreds of jobs.
According to the ADP report, jobs increased by 325,000 in December, but mainly in the service and small business sectors. The report also showed a drop in unemployment from a little above 9 percent to 8 percent levels, MSN money reported.
Not all companies are moved by the positive data, however. Employees of the aircraft maker Boeing in Kansas will soon be facing layoffs, MSN money reports. Boeing decided the Kansas facility no longer permits the company to competitively build planes in the current market, and by 2013, the company will leave Wichita entirely, along with over 2,100 workers.
According to The New York Post, PepsiCo may cut close to 4,000 jobs, and possibly reduce its contributions to pension in an effort to increase company revenue. Pepsi, which employs approximately 300,000 workers around the world, is hoarding revenue gains from eight consecutive quarters and may see a 37 percent increase from 2008 in its 2011 fiscal earnings, the New York Post reported.
Defense Secretary Leon Panetta, who is reviewing plans to shave of $450 billion from the military’s budget over the next 10 years.
Military contractors have already started to eliminate thousands of jobs and shrink their manufacturing facilities in preparation for the cuts, according to MSN money.
Although jobs have increased slightly, the increase is mainly in the small business sector, while big businesses continue to hoard dollars and cut employees to stay relevant.