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American, United furlough 32K workers amid coronavirus pandemic

Airlines' lack of bailout money has forced massive layoffs across the industry. Yahoo Finance's Sibile Marcellus and Kristin Myers discuss.

Video Transcript

KRISTIN MYERS: Well, no stimulus package as of yet has meant that no extra funds have been heading to the airlines. Well, American and United say that they will be going forward with over 30,000 furloughs. So for more on this, we're joined now by Yahoo Finance's Sibile Marcellus. Hey, Sibile.

SIBILE MARCELLUS: That's right. So the CEOs of major US airlines have been warning us that if Congress is not able to come up with another round of fiscal stimulus, which would include bailout money for the airlines, they would have to involuntarily separate workers from their companies by October 1. Well, as we know, Washington talks are ongoing. But we still don't have a deal.

So as a result, we're seeing American. What they're doing is they've unvoluntarily furloughed approximately 19,000 workers. You look at United. They did that for 13,000 employees. And Alaska Airlines involuntarily furloughing 532 workers.

But the layoffs that we're seeing aren't just limited to the airlines. We're seeing layoffs from Wall Street to Main Street. Just to name a couple of those companies, Disney announced this week that it's laying off 28,000 workers. Goldman Sachs said that it's cutting 400 jobs. Citigroup, they cut-- eliminated the jobs of three managing directors and are looking at further layoffs.

You've also got Allstate, the insurance company, looking at 3,800 workers that it is laying off. So we're seeing the labor market deteriorate. Another over 800,000 Americans filed for unemployment last week.

KRISTIN MYERS: All right. Thank you so much, Sibile. I do want to mention right now looking over at United, investors seem to be shaking off that news about those layoffs. United right now up about half a percentage, with American Airlines up roughly 2%.

And later on today, You can catch both me and Sibile of our special "2020-- A Time For Change" at 4:30 PM. We'll be speaking with NBA player C.J. McCollum, who is launching a new social justice talk show. You're not going to want to miss that.