Bob Nardelli warns against mass layoffs
Bob Nardelli says that shrinkflation is not new.
Former top executive of corporate America warns that the U.S. is not on a rapid track to recovery as inflation is rising and mass layoffs are looming over the markets.
“The general public will not be fooled by this attempt to blame corporate America for inflation. Bob Nardelli, former CEO of Home Depot and Chrysler, said Monday on “Cavuto Coast to Coast” that the problem starts with raw materials, transportation, and energy. Wage increases are one of the many factors driving this increase.
He continued: “We are now seeing people laid off.” If you look at Chips, they have laid off nearly 40,000 people. There’s a huge shift in the employment situation, where people are being let go.
Companies like Cisco, Snap, and Estee Lauder have announced layoffs in the past two weeks as executives tighten up their belts due to rate volatility.
A recent report by business firm Challenger, Gray & Christmas revealed that employers planned 82,307 layoffs in January, a 136% increase over the previous month.
According to Challenger, Gray & Christmas report, America experienced a 136% month-over-month increase in layoffs in January.
This is still down by about 20% compared to the same period last year. This was the second-highest number of layoffs for January since 2009.
“Ford laid off people because of EV[s]” GM laid off people because of the Cruise Program. Nardelli stated that Stellantis was laying people off due to the UAW wage hike. “No, I don’t think we are in a period of inflation.” My prediction is that we won’t see a soft landing, but I hope to be wrong.”
The Labor Department announced Tuesday that the Consumer Price Index, which is a measure of prices for everyday items such as gasoline, groceries, and rent, increased by 0.3% from the previous months. This was higher than expected.
Refinitiv’s economists had predicted a 2.9% rise in prices, but the actual price increase was 3.1%.
Nardelli correctly predicted Tuesday’s CPI would increase, meaning there is still pressure to continue the Fed rate’s aggressive trajectory.
The former CEO stated that people don’t understand how high-interest rates “kill” lower and middle-market businesses.
Bob Nardelli, former CEO of Home Depot, gives his economic forecast and long-term price increases on Maria Bartiromo’s Wall Street. Video
Bob Nardelli says that these price increases will become the new standard of living for all.
Bob Nardelli, former CEO of Home Depot, gives his economic forecast and long-term price increases on Maria Bartiromo’s Wall Street.
We’ve seen interest rates that were $2 million now jump to $12, $14, $15 million. Nardelli said that the cash flow generated by the company will pay for the interest rates. We cannot afford to pay the interest rates we are paying today. You couldn’t do it on your own to balance your budget.
This is about buying votes, I believe. “This is about a government that is out of control,” he said. “We are more inclined to spend money than have a conservative or sustainable policy.”
