The coronavirus outbreak has triggered unprecedented mass layoffs and furloughs. Here are the major companies that have announced they are downsizing their workforces.

Taylor Borden and Allana Akhtar BUSINESS INSIDER MAY 22,2020

People gather at the entrance for the New York State Department of Labor offices on March 20, which closed to the public due to the coronavirus outbreak in the Brooklyn borough of New York City. Andrew Kelly/Reuters


The spread of the coronavirus is projected to impact millions of jobs worldwide.
In just eight weeks, more than 39 million Americans have filed for unemployment insurance. The US unemployment rate spiked to 14.7% in April — the highest level since the Great Depression.

The travel and hospitality industries have taken a significant hit. In addition to several airlines, major businesses like ride-share company Uber and Marriott, the world's largest hotel company, have both announced furloughs.

Here's a roundup of the major companies who have announced downsizing their workforce due to coronavirus thus far.

IBM will eliminate "several thousand jobs," mainly in the company's technology-services division. Cuts come a month after new CEO Arvind Krishna withdrew IBM's financial outlook amid economic uncertainty caused by the pandemic.

Photo by Brian Ach/Getty Images for Wired
Source: Business Insider

Weeks after ride-hailing giant Uber announced it is cutting 3,700 jobs (14% of its workforce), CEO Dara Khosrowshahi announced on May 18 that he will cut 3,000 additional jobs and close 45 offices.

Uber CEO Dara Khosrowshahi. Carlo Allegri/Reuters
Source: Business Insider, WSJ


Airbnb announced it is laying off about 25% of its workforce, or 1,900 employees, on May 5. Its severance package includes several months' pay, a year of healthcare, and support finding a new job.

A woman talks on the phone at the Airbnb office headquarters in San Francisco. Reuters
Source: Business Insider

Richard Branson's Virgin Atlantic announced it would cut 3,150 jobs on May 5, in addition to retiring its iconic Boeing 747-700 planes a year early.

Virgin Atlantic Boeing 747-700. Louis Nastro/Reuters
Source: Business Insider


In a leaked May 4 memo, United Airlines said it expects to lay off at least 30% or some 3,400 employees on its administrative staff on October 1.

United Airlines planes at George Bush Intercontinental Airport in Houston. 

ASSOCIATED PRESS
Source: Business Insider, Chicago Tribune

Ride-hailing company Lyft is laying off 982 employees and furloughing another 288, accounting for 17% of the company's workforce. The company made the announcement on April 29 and added that other cost-cutting measures include pay cuts for executive leadership.

A Lyft ride-share car waits at a stoplight in Sacramento, California in July 2019. Associated Press
Source: Business Insider


Boeing announced that it would cut about 10% of its workforce — or about 16,000 jobs — on April 29. The cuts are expected to be through a combination of buyouts, voluntary layoffs, and involuntary layoffs.

Workers enter the Boeing factory in Renton, Washington on April 21, 2020 as commercial airplane production resumes following a suspension of operations in response to the coronavirus pandemic. Reuters
Source: Business Insider

On April 28, online travel company TripAdvisor announced it was laying off more than 900 of its employees, amounting to a quarter of its workforce.

A TripAdvisor sign on a storefront, a ubiquitous site at tourist spots around the world. Shutterstock
Source: Business Insider


Hertz said it plans to lay off 10,000 employees on April 20. The car rental company previously employed 38,000 people.
A sign displaying the Hertz logo. Reuters

Source: Reuters

On April 12, a union representing workers at Walt Disney World said the company will be furloughing 43,000 employees starting April 19. The amusement parks have been closed since March 16 and 200 essential workers will continue maintaining them.
 

Walt Disney World's Magic Kingdom in January 2020. AP Photo/John Raoux
Source: New York Times, Vox


On April 7, Tesla sent an email to employees saying it will furlough all nonessential workers until at least May 4, and reduce all employees' pay by at least 10%. These cost-cutting measures are expected to start April 13.
  

Tesla's factory in Fremont, California. David Butow/Corbis News via Getty Images
Source: Business Insider, CNBC

JCPenney has already started furloughing workers and confirmed it would continue to furlough a "significant portion" of its 85,000 employees as of April 5.
  

The exterior of a JCPenney store. Shoshy Ciment/Business Insider
Source: JCPenney, Business Insider


On April 3, Under Armour announced that it will temporarily lay off about 6,700 employees starting April 12.
  

An Under Armour store. Alex Tai/SOPA Images/LightRocket via Getty Images
Source: Baltimore Sun

The Wing, a buzzy Instagram-ready women's coworking company, is laying off nearly all of its hourly employees and half of its corporate staff as of April 3, according to Vice. The company confirmed the layoffs but did not elaborate on numbers. Its founders are foregoing their salaries.
  

The Wing's Dumbo location in Brooklyn, New York. Sarah Jacobs/Business Insider
Source: Vice


ClassPass, the billion-dollar fitness platform, furloughed or laid off over half of its 700 employees on April 2 — 22% were laid off and 31% were furloughed.
  

ClassPass CEO Fritz Lanman. Diarmuid Greene/Sportsfile via Getty Images
Source: CNBC

On April 2, airplane manufacturer Boeing announced that it would offer a voluntary layoff plan to employees to cut costs. Those opting into the layoff plan will leave with a pay and benefits package, but the company offered no details about compensation.

A Boeing employee works on a 747-8 Intercontinental airplane at the Boeing factory in Everett, Washington. Stephen Brashear/Getty
Source: Business Insider


Famed auction house Sotheby's is furloughing 200 people — or 12% of its workforce —as of April 1, according to the Wall Street Journal.

Sotheby's employees carry a painting by Roy Lichtenstein called 'Two Paintings with Dado, 1983' during a press view at the auction rooms in London. Kirsty Wigglesworth/AP
Source: Wall Street Journal

Sephora laid off over 3,000 employees across the US via conference call on March 31. "It is our sincerest hope that we are able to bring these employees back on staff in the near future," Sephora said in a statement.

A Sephora store in New York City's Times Square. Reuters
Source: Business Insider


Macy's CEO Jeff Gennette informed his staff via email that the company would be furloughing most of its 125,000 employees on March 30. The company only plans to have work for "the minimum number of employees necessary to maintain basic business operations" across Macy's, Bloomingdale's, and Bluemercury, Gennette wrote. He will stop receiving his salary, along with the rest of the board of directors.

A Macy's store in New York City. REUTERS/Andrew Kelly
Source: Business Insider, CNN

Bird, the buzzy electric scooter company, laid off 30% of its staff via a Zoom call on March 27. The call lasted only around 2 minutes.

A Bird electric scooter. Mike Blake/Reuters
Source: Business Insider


Everlane, the clothing retailer focused on ethical sourcing, laid off over 200 employees and furloughed 68 others on March 27. CEO Michael Preysman will reduce his salary to zero.

A pair of Everlane jeans. Jessica Tyler/Business Insider
Source: Vice

ZipRecruiter laid off 443 employees and furloughed dozens more on March 27, days after CEO Ian Siegel said the billion-dollar online job-hub company was safe.

Ian Siegel founded ZipRecruiter in 2010 and serves as the company's CEO. ZipRecruiter
Source: Business Insider

Sonder, a billion-dollar apartment-rental startup billed as a hospitality industry disruptor, laid off or furloughed 400 people — one third of its workforce — on March 24, according to The Information.

A Sonder apartment in New York City. Katie Warren/Business Insider
Source: The Information


GE announced that it will be reducing approximately 10% of its aviation unit's workforce, amounting to about 2,500 employees, on March 23. It also announced a three month furlough impacting 50% of its maintenance and repair employees. GE CEO Larry Culp will forgo his salary for the rest of the year, while GE Aviation CEO David Joyce will give up half of his salary.

The logo of General Electric is shown at its subsidiary company GE Aviation in Santa Ana, California on April 13, 2016. Mike Blake/Reuters

Source: GE, Wall Street Journal


According to the Washington Post, at least 200 workers across President Trump's hotels in Washington DC, New York City, and Las Vegas were laid off as of March 20. Other Trump properties, like Palm Beach's Mar-a-Lago, have temporarily closed.

A police boat patrols in front of U.S. President Donald Trump's Mar-a-Lago estate in Palm Beach, Florida, U.S., February 17, 2019. Kevin Lamarque/Reuters

Source: Washington Post, Business Insider

Air Canada announced it is set to lay off more than 5,100, or 50%, of its flight crew on March 19. Renee Smith-Valade, the airline's vice president, called the decision "difficult but necessary" in a statement.

An Air Canada aircraft. JOERG KOCH/AFP/Getty Images

Source: CBC


Cirque du Soleil announced it is laying off 95% of its 4,679 person staff on March 19, a week after canceling all its upcoming performances. The circus producer kept 259 staffers to plan and sell tickets for future tours.

Artists perform during a dress rehearsal for Quidam, a show by Cirque du Soleil, at the Royal Albert Hall in London January 4, 2014. REUTERS/Luke MacGregor

Source: Cirque du Soleil, Forbes

New York's Metropolitan Opera is the largest performing arts organization in the US by budget. On March 19, the Met laid off all of its union employees for the duration of the coronavirus outbreak. The Met also announced the cancellation of all performances through the end of the 2019-2020 season, which was set to end May 9.

The Metropolitan Opera in Lincoln Center at dusk. Siegfried Layda/Getty Images

Source: NPR


Famous restaurateur Danny Meyer's Union Square Hospitality Group, which owns beloved NYC staples like Gramercy Tavern, laid off 2,000 employees, or 80% of its workforce, on March 18.

Danny Meyer opened his first restaurant, Union Square Cafe, in 1985 at age 27, and went on to found Shake Shack, which is not currently part of the USHG portfolio. AP Photo

Source: Business Insider

Pebblebrook Hotel Trust, which owns over 50 hotels in the US including the W in Los Angeles, laid off 50% of its 8,000 employees on March 17. CEO Jon Bortz also told the Los Angeles Times that the company may need to lay off an additional 2,000 employees by the end of the month.

The W Hollywood. Tiffany Rose/Getty Images for Third Street Media Group

Source: Los Angeles Times


Marriott International, the world's largest hotel company, said it has started to furlough what could amount to tens of thousands of employees on March 17. Furloughs, as opposed to layoffs, occur when employees are required to take an unpaid leave of absence. Arne Sorenson, the president and CEO, announced that his own salary will be suspended for the rest of the year and senior executives' salaries will be reduced by 50%.

Arne Sorenson at a meeting with President Donald Trump discussing the economic response to the coronavirus outbreak on March 17, 2020. Drew Angerer/Getty Images

Source: Wall Street Journal, Business Insider, Business Insider

Norwegian Airlines announced the temporary layoff of 90% of its workforce on March 16, amounting to 7,300 employees. The airline also canceled 85% of its flights.

Norwegian aircrafts. Johan Nilsson/TT via AP

Source: Reuters


Scandinavian Airlines (SAS) announced that it would temporarily lay off 10,000 employees — 90% of its staff — on March 15. SAS also halted the majority of its flights and is operating with limited service.

An SAS airbus. Nicolas Economou/NurPhoto/Getty

Source: Forbes

USA 

30 blue-collar jobs with the highest salaries

Andy Kiersz and Madison Hoff May 21, 2020 BUSINESS INSIDER

A typical construction and building inspector earned $60,710 in 2019. 

Cineberg/Shutterstock


Using data from the Bureau of Labor Statistics, we found 30 high-paying blue-collar jobs.
The jobs come from sectors like manufacturing, equipment maintenance and repair, and protective services that have traditionally been viewed as blue-collar.
Nuclear power reactor operators topped the ranking with a median annual salary of $100,530.

IN CANADA NUCLEAR POWER REACTOR OPERATORS AS WELL AS GAS PLANT  OPERATORS ARE PAID MORE THAN THIS.  OIL PLANT OPERATORS, PIPELINE OPERATORS, AND GAS PLANT OPERATORS ARE ALSO PAID MORE IN ALBERTA

WHAT THIS ARTICLE SHOWS IS THAT BLUE COLLAR JOBS EVEN THOSE OF GREATER RESPONSIBILITY STILL PAY SHIT WHEN YOU LOOK AT THIS CHART OF THE PRODUCTIVITY OF THE AVERAGE WORKER IN THE USA PER HOUR SO THOSE EARNING THE AVERAGE AMERICAN SALARY OF $39,810 ANNUALLY PRODUCE $72

PROFIT PER HOUR 

THIS SHOWS THAT THE WORKING CLASS IN NORTH AMERICA SHOULD NOT BE PAYING ANY TAXES UNTIL THEY INDIVIDUALLY EARN MORE THAN $100,000 ANNUALLY 

Some traditionally blue-collar jobs pay very well.

The Bureau of Labor Statistics' Occupational Employment Statistics program releases annual estimates for employment and earnings for hundreds of detailed occupational groups. Using data from May 2019, the most recent period available, we found 30 traditionally blue-collar jobs with high median annual earnings.

All of the jobs on the list earned more than $59,000 in 2019, above the overall median annual earning of $39,810. 

Some of the jobs are operators and first-line supervisors of different sectors. 

BLUE, WHITE OR PINK THE COLOUR OF THE COLLAR NO LONGER MATTERS 

WE ARE ALL PROLETARIANS NOW.There isn't really a formal definition for what makes a job "blue collar," so to make our list, we looked at seven of the major groups defined by the BLS that are predominantly made up of traditionally working-class or blue-collar occupations: Healthcare support, protective service, food preparation and serving, building and grounds cleaning and maintenance, construction and extraction, installation, maintenance, and repair, and production occupations.

Here are the 30 occupations from those groups that had the highest median annual earnings in 2019, along with the number of people employed in the US in each job and a description of what workers in the occupation do, according to the Labor Department's O*NET Online jobs database:

30. Commercial and industrial equipment electrical and electronics repairers had a median annual salary of $59,300, and 58,930 were employed in the US.

morfous/Getty Images

What they do, according to O*NET: Repair, test, adjust, or install electronic equipment, such as industrial controls, transmitters, and antennas.

29. Construction and building inspectors had a median annual salary of $60,710, and 110,420 were employed in the US.

Cineberg/Shutterstock

What they do, according to O*NET: Inspect buildings and other structures to make sure they are in safe condition and comply with building codes and other regulations.


28. First-line supervisors of production and operating workers had a median annual salary of $61,310, and 631,100 were employed in the US.

Getty Images

What they do, according to O*NET: Supervise production workers and machine operators.

27. Occupational therapy assistants had a median annual salary of $61,510, and 44,990 were employed in the US.

BSIP/Getty Images

What they do, according to O*NET: Assist occupational therapists in treatments and other procedures.


26. Fire inspectors and investigators had a median annual salary of $61,660, and 13,710 were employed in the US.

Associated Press/Lisa Rathke

What they do, according to O*NET: Inspect buildings for fire hazards and to enforce fire ordinances, or investigate fires to find their causes.

25. Stationary engineers and boiler operators had a median annual salary of $62,150, and 32,520 were employed in the US. 

MY JOB ALSO AS A HEAD CUSTODIAN IN A SCHOOL IN CANADA  HEAD CUSTODIANS MAKE LESS THAN THAT

nimis69/Getty Images

What they do, according to O*NET: Operate boilers or similar machinery to provide heat or other utilities to buildings or for industrial processes.


24. Electrical transportation equipment installers and repairers had a median annual salary of $62,530, and 9,790 were employed in the US.

Paul A. Souders/Getty Images

What they do, according to O*NET: Install or repair electronics equipment for trains or other vehicles.

23. Chemical plant and system operators had a median annual salary of $62,550, and 28,840 were employed in the US.

Dmitry Kalinovsky/Shutterstock

What they do, according to O*NET: Control chemical processes or operate machinery that regulates chemical reactions.


22. Pile-driver operators had a median annual salary of $62,600, and 3,540 were employed in the US.

Sean Gallup / Getty Images

What they do, according to O*NET: Operate pile-drivers that install piles for building foundations and other construction projects.

21. Boilermakers had a median annual salary of $63,100, and 15,820 were employed in the US.

MEDITERRANEAN/Getty Images

What they do, according to O*NET: Build and maintain steam boilers and related equipment.


20. Police and sheriff's patrol officers had a median annual salary of $63,150, and 665,280 were employed in the US.

Pablo Blazquez Dominguez/Getty

What they do, according to O*NET: Patrol a designated area to enforce laws and prevent crime.

19. First-line supervisors of correctional officers had a median annual salary of $63,730, and 46,430 were employed in the US.

Shutterstock

What they do, according to O*NET: Supervise correctional officers, prison guards, and jailers.


18. Aircraft mechanics and service technicians had a median annual salary of $64,090, and 133,310 were employed in the US.

Official U.S. Navy Page/flickr

What they do, according to O*NET: Repair and maintain aircraft and their engines.

17. Wood patternmakers had a median annual salary of $64,880, and 370 were employed in the US.

Akhtar Soomro/Reuters

What they do, according to O*NET: Plan and make wooden patterns for forming sand molds for castings.


16. Avionics technicians had a median annual salary of $65,700, and 21,750 were employed in the US.

Reuters

What they do, according to O*NET: Repair and maintain avionics systems on aircraft, like radios, radar, and guidance systems.

15. First-line supervisors of construction trades and extraction workers had a median annual salary of $66,210, and 626,180 were employed in the US.

Matt Cardy/Getty Images

What they do, according to O*NET: Supervise construction or extraction workers.


14. First-line supervisors of mechanics, installers, and repairers had a median annual salary of $67,460, and 485,700 were employed in the US.

REUTERS/Ralph Orlowski

What they do, according to O*NET: Supervise mechanics, installers, or repairers.

13. Gas plant operators had a median annual salary of $70,710, and 14,410 were employed in the US.

Gleb Garanich/Reuters

What they do, according to O*NET: Operate equipment that distributes natural gas for power plants and other utilities.


12. Transit and railroad police had a median annual salary of $71,820, and 4,690 were employed in the US.

Tiraspolsky/Shutterstock

What they do, according to O*NET: Protect transit equipment, employees, and passengers.

11. Electrical power-line installers and repairers had a median annual salary of $72,520, and 111,660 were employed in the US.

Justin Sullivan / Staff / Getty Images

What they do, according to O*NET: Install and repair electrical lines for power distribution systems.


10. Signal and track switch repairers had a median annual salary of $73,890, and 6,860 were employed in the US.

APChanel/Shutterstock

What they do, according to O*NET: Repair and maintain the signal and track-switching equipment that guides trains in railroad systems.

9. Petroleum pump system operators, refinery operators, and gaugers had a median annual salary of $74,180, and 40,370 were employed in the US.

Justin Sullivan/Getty Images

What they do, according to O*NET: Operate oil refining and pumping systems.


8. First-line supervisors of fire-fighting and prevention workers had a median annual salary of $77,800, and 65,590 were employed in the US.

Justin Sullivan/Getty Images

What they do, according to O*NET: Supervise fire fighters and other fire prevention workers.

7. Power plant operators had a median annual salary of $81,990, and 33,620 were employed in the US.

Ashley Pon/Getty Images

What they do, according to O*NET: Operate electrical power generation equipment.


6. Powerhouse, substation, and relay electrical and electronics repairers had a median annual salary of $82,780, and 22,650 were employed in the US.

US Airforce/flickr

What they do, according to O*NET: Maintain and repair electrical equipment in power plants, substations, or other electrical distribution facilities.

5. Detectives and criminal investigators had a median annual salary of $83,170, and 105,620 were employed in the US.

BrandonKleinVideo/Shutterstock

What they do, according to O*NET: Run investigations to solve criminal cases or prevent crimes.


4. Elevator installers and repairers had a median annual salary of $84,990, and 28,350 were employed in the US.

Dmitry Kalinovsky/Shutterstock

What they do, according to O*NET: Install, repair, and maintain freight and passenger elevators in buildings.

3. Power distributors and dispatchers had a median annual salary of $90,700, and 10,770 were employed in the US.

Bruno Vincent/Getty Images

What they do, according to O*NET: Operate equipment that distributes electrical power or steam.


2. First-line supervisors of police and detectives had a median annual salary of $91,090, and 121,340 were employed in the US.

Kevin Hagen/AP

What they do, according to O*NET: Supervise members of a police force.

1. Nuclear power reactor operators had a median annual salary of $100,530, and 5,050 were employed in the US.
 
Mark Zaleski/AP

What they do, according to O*NET: Operate and maintain nuclear reactors in power plants.


SEE ALSO: The 40 highest-paying jobs you can get without a bachelor's degreeMore: Features Jobs

Giant companies like CVS, DaVita, Walmart, and Cigna are returning coronavirus stimulus cash. Here's why they're giving up millions.

Kimberly Leonard BUSINESS INSIDER MAY 23/2020

A CVS store in Spring, Texas. Associated Press

CVS Health, DaVita, Cigna, and Encompass are among the healthcare companies that are returning federal relief dollars intended to help healthcare providers weather the coronavirus pandemic. 

The funding automatically went to healthcare providers based on a formula that looked at how much they bill Medicare. 

Doctor's offices, clinics, and hospitals were among the recipients of the aid, but so were larger companies that provide healthcare in addition to other services. 

The Trump administration said the funding came with "no strings attached" but later released guidance that suggested providers should consider returning the cash if they didn't really need it.


Healthcare companies are refunding millions of dollars of coronavirus relief money from the Trump administration that was intended to help struggling hospitals and medical practices.

Walmart, CVS Health, DaVita, Cigna, and Encompass are among the companies who are returning funding, company spokespeople confirmed to Business Insider.

The companies were among more than 500,000 providers who received the earliest influx of coronavirus rescue cash. The money came from funds Congress set aside for healthcare providers through two bills President Donald Trump signed into law.

To get the money out quickly, Trump administration officials decided to automatically deposit $30 billion of the funds into the accounts of all the providers who recently billed Medicare, the government program that covers seniors and some people with disabilities. In all, the coronavirus relief money provided at least $175 billion to healthcare providers.

When she announced the plans for the fund on April 7, Seema Verma, the administrator of the Centers for Medicare and Medicaid Services, said the money would come with "no strings attached," unlike another program the agency had set up that healthcare providers had to apply for and pay back.

Seema Verma, the Centers for Medicare and Medicaid Services administrator. 

Jim Watson/AFP via Getty Images

Then, health agencies released guidelines about how healthcare providers could formally accept the funding, including by agreeing to a set of terms and conditions that show they're not accepting money they don't need. They're required to show that they used the money to handle increased expenses or cover lost revenue from the coronavirus.

Many providers, from doctor's offices to hospitals, will have to make a decision by this weekend about whether to keep the funds.

The provider fund isn't alone in getting another look when it comes to federal rescue cash. In the past couple of months, more than a dozen major corporations came under scrutiny and returned funding from another part of the government coronavirus package known as the Paycheck Protection Fund.

The fund for providers was different: Healthcare providers didn't apply for the funding — it just landed in their bank accounts.

Still, Allen Miller, the principal and CEO at the healthcare consulting firm Cope Health Solutions, said providers would make calculations about the funding based on not only financial expenses and losses but also appearances.

"Some large corporations may decide that even though they can document the need for the money, the public-relations and political drivers overcome the financial drivers, and they decide that it's better for them to simply give back the funding," he said.
The deadline is ahead as doctors, clinics, and hospitals weigh whether to keep the money

The first deposit to healthcare providers went out between April 10 and 17, and health officials gave them 45 days to decide whether to accept the funding through a website. As of May 14, a total of 179,305 providers had accepted the money, according to a list the Trump administration made public. For some, the money received is as little as $1.

Because of the timeline, many providers face a Sunday deadline to make a decision about whether to keep the money.

CVS Health CEO Larry Merlo. Courtesy Forbes

Some didn't wait that long. In a letter to the Trump administration sent Tuesday, CVS Health CEO Larry Merlo said the company would return $43.3 million.

"In my view, returning these funds is part of CVS Health's overall plan to do everything we can to help the communities we serve respond to the pandemic," Merlo wrote in the letter, first obtained by Business Insider.

Encompass — a company that provides in-home healthcare, rehabilitation, and hospice care — announced in a regulatory filing on May 7 that it wouldn't accept the $237 million in relief funds it received. The company declined to comment further when contacted by Business Insider.

The health insurer Cigna, which also owns businesses that provide healthcare, confirmed it returned all the funding it received. The government had given the company's Accredo business, which provides pharmaceuticals to patients, $41 million, according to an earlier iteration of the government database.

It's not yet clear how many healthcare providers will follow suit. A spokesperson at the Department of Health and Human Services said the agency didn't plan to name companies who return the funding. 

Dialysis giants take opposite approaches on relief cash

  

DaVita CEO Javier Rodriguez. RJ Sangosti/The Denver Post via Getty Images

Hospitals, healthcare clinics, and health systems are unlikely to give the money back in droves because they had to end nonemergency procedures and delay checkups, which badly bruised their finances.

In contrast, a company like DaVita, which provides dialysis for 200,000 people, continued operating. Dialysis needs to be performed on patients about three times a week so that they can survive.

DaVita said it still faced losses when it hired more people, compensated workers for overtime, and purchased more protective equipment. Nevertheless, it decided to return the $240 million it received from the relief fund.

DaVita CEO Javier Rodriguez said during the company's first-quarter earnings call that he didn't think the fund had been intended to "help companies make their earnings target." Instead, he said, the company saw the fund as a safety net "to be used for people that needed that money because the economic damage was so severe that they couldn't keep their doors open."

Fresenius Medical Care, a dialysis giant like DaVita, opted to retain its funding, but the amount isn't yet posted on the government website.

"It's reimbursement for the extraordinary expenses that we've incurred, no more, no less," Rice Powell, Fresenius' chairman and CEO, said during the company's earnings call.

Walgreens, a CVS competitor, was another company that opted to keep the $27 million it received in relief funds, according to the government's online database. The company didn't respond to questions from Business Insider.

Healthcare providers should document the damage they incurred from the coronavirus

Miller of Cope Health Solutions advised his clients to place the funds into a separate account if possible and hold them until some of the federal rules become more clear. As is often true with disasters, he said, governments tend to allocate money quickly but then work to make sure the money went to the right places.

"We are dealing with the government, and the government has the ability and the historical track record of sometimes changing the rules retroactively," Miller said.

He also advises providers to document all of their losses and expenses related to COVID-19, the disease caused by the coronavirus. He said providers shouldn't accept more money than their documented losses and expenses.

"If your losses and expenses do not exceed the money you received, you should expect that you will likely be asked to pay some of the money back," he added.

George Soros says Europe should tap up an obscure bond used during the Napoleonic Wars to save itself from a coronavirus depression

Saloni Sardana May. 22, 2020, BUSINESS INSIDER 

FABRICE COFFRINI/AFP/Getty Images


Hedge fund veteran George Soros says Europe should introduce so-called perpetual bonds — bonds that have no maturity — to help finance the response to the economic impact of the coronavirus.

With a perpetual bond, the principal, or the amount that is borrowed, is never paid back, and the borrower only repays the interest on the bond.

Such bonds have been issued during times of crisis before, Soros said, noting that the UK issued perpetual bonds during the Napoleonic Wars.

Soros' suggestion comes days after France and Germany proposed a €500 billion ($545 billion) billion recovery fund for the EU which would be funded by grants.

Soros said the EU needs to maintain an AAA rating or else bonds will be "unsaleable". 

Billionaire hedge-fund founder George Soros thinks Europe can help solve the economic crisis driven by the coronavirus by issuing so-called perpetual bonds, a little used form of bond that has no maturity or end date.

These bonds, also called consols or perpetual bonds, are unique because the principal — the amount borrowed — is never paid back, and only interest is paid by the issuing party. They must, however, pay that interest in perpetuity.

They've previously been used in times of crisis by governments around the world to fund things like wars.

Soros thinks they could be a handy way of helping governments deal with the economic fallout of the pandemic, which has locked down virtually the whole continent, seen businesses disappear, and millions become unemployed.

In a transcript of a De Telegraaf interview emailed to reporters, the hedge fund veteran and founder of Soros Fund Management said: "They [consols] have a long history in both countries. In the UK they were used, among other things, to finance the wars against Napoleon and to finance the First World War. In the US they were introduced in the 1870s."
How consols work

Soros warns that these bonds should not be mistaken with emergency coronavirus bonds, and pose a more elegant solution to the funding problems faced by European governments.

"The principal amount of a perpetual bond never has to be repaid; only the annual interest payments are due. A €1 trillion ($1.09 trillion) bond would cost €5 billion ($5.45 billion) a year, assuming an interest rate of 0.5%," he said.

Consols do not need to be sold all at once, they can be issued in tranches and can be sold by long-term investors, he said.

"As the markets familiarize themselves with the new instruments, later tranches would attract a larger set of buyers and eventually the bonds would fetch a premium," he added.

Soros said: "Unfortunately, my suggestion for perpetual bonds has been confused with "corona bonds" and this has poisoned the debate."

"The two have nothing to do with each other. Corona bonds have been decisively rejected, and with good reason, given that they require a degree of mutualization that is simply not acceptable."

The corona bonds mentioned by Soros are a set of mutualized bonds proposed by numerous European Union nations that would be jointly issued by the European Investment Bank. Spain, Italy, France are among those who have suggested the bonds.

How it's different from the recovery fund France, Germany proposed

Fine Art / Getty Images

France and Germany, the eurozone's two biggest economies proposed a €500 billion ($545 billion) coronavirus recovery fund this week.

It was heralded by one analyst as a modern day equivalent of the Marshall plan, the post-World War II economic package designed to save the European economy, according to analysts.

But it was based on issuing grants instead of loans, meaning that those given money would never have to pay it back.

Soros is suggesting the opposite.

"That is why I now speak about "consols." The only mutual obligation is the payment of the annual interest, which is negligible. €5 billion ($5.4 billion) annually secures an urgently required €1 trillion ($1.09 trillion) – an amazingly low cost/benefit ratio of 1:200!" he said.
What the EU needs to do before it can issue perpetual bonds

Soros said that the EU needs to maintain an AAA rating in order for consols to work, otherwise the bonds will be "unsaleable."

"That requires the EU to have what is called sufficient 'own resources' – taxes that can be levied to cover the cost of servicing the bonds."

As imposing taxes can be a long-winded process, Soros said taxes will only need to be authorized not implemented.

"The European Union is particularly vulnerable because it is based on the rule of law and the wheels of justice turn proverbially slowly. By contrast the coronavirus moves very fast and in unpredictable ways," Soros said.

"Issuing bonds whose cost/benefit ratio is 1:200 opens up an amazing amount of fiscal space. The money raised does not have to be distributed according to the so-called fiscal key, i.e. member states' shareholding in the ECB. It can be allocated to those in the greatest need."

The EU Commission is expected to propose its own blue print on May 27, but it could be months before any stimulus package is approved and enacted.

Hedge funds are piling into healthcare stocks at record levels, Goldman Sachs says

THE BEST HEALTHCARE MONEY CAN BUY

Ben Winck May. 22, 2020

Ramin Talaie/Corbis/Getty Images


Hedge fund positioning in healthcare stocks reached a record 10 percentage points overweight compared to the Russell 3000 index, Goldman Sachs said Friday.
The rotation was primarily fueled by soaring interest in biotech names. Recent weeks have seen investors pile into companies racing to introduce the first coronavirus treatment.
Positioning has grown more crowded both within and across funds in the second quarter, Goldman added, as managers rotate even further toward growth stocks and defensive plays.


Hedge funds are reaching record levels of exposure to healthcare stocks as the coronavirus pandemic rages on, Goldman Sachs said Friday.

The sector sits 10 percentage points overweight across hedge funds compared to the Russell 3000 sector, the bank added, making it the most favored industry among managers. Funds monitored by Goldman are nearly 25% concentrated in healthcare equities, with tech companies following with a 20% weighting.

Biotech stocks have been the biggest beneficiary and reached a 2.8 percentage point overweight through the start of the second quarter. The shift has come at a time where investors are rewarding companies working towards COVID treatments. Moderna, Gilead, and Sorrento Therapeutics have all skyrocketed in recent sessions after boasting positive results in their efforts to produce a coronavirus treatment.

Investors' optimism accelerated hedge fund inflows to the sector, Goldman said in a note, helping cement it as one of the best performers year-to-date.

The stock market's wild moves through the year have also driven greater concentration within fund portfolios, the team led by Ben Snider wrote. The start of the second quarter already featured historically high weighting in growth stocks and defensive industries, and recent weeks pushed even more fund cash into popular mega-caps including Amazon and Microsoft.

The average fund now holds 71% of its portfolio in its top 10 stakes, just one percentage point below the record high set in 2019, according to Goldman.

Commonality across fund holdings has also soared. The firm's crowding index matches the record high set in the first quarter of 2016. The heavy interest in growth over value stocks helped push Goldman's Hedge Fund VIP basket to a record high in both absolute terms and relative to the S&P 500.

Trump just declared houses of worship essential. Mounting evidence shows they're super-spreader hotspots.

Aylin Woodward BUSINESS INSIDER MAY 22, 2020

A woman sings during an Easter Sunday service at the Friendship Baptist Church in Baltimore, Maryland. ALEX EDELMAN/AFP via Getty Images

President Trump designated churches and other houses of worship as essential services on Friday.

There have been multiple reports of super-spreader events at US churches and synagogues, as well as a South Korean temple.

During these events, an infected person passed the coronavirus to an unusually high number of others, sparking local outbreaks.

The CDC warns that large indoor gatherings, particularly church events, can be potential disease hotspots.

President Donald Trump just declared in-person worship an essential service.

"I call upon governors to allow our churches and places of worship to open right now," he said during a Friday announcement at the White House. Trump added that he wouldn't hesitate to "override" state governors that refused to comply.

Although many people want to return to houses of worship, especially during a scary and stressful time, mounting evidence shows these places to be among the riskiest for coronavirus spread.

Clusters of infections can often be traced back to a super-spreader event, in which one person infects an atypically large number of people. So far, these events have shared a few key characteristics: They've mostly been indoors and put lots of people from different households in close, extended contact. That's precisely the type of gathering that churches, mosques, and synagogues facilitate.


"You can't have a super-spreading event unless there are a lot of people around, so you have to be very careful still about gatherings of people of any size — that includes religious services," William Schaffner, an infectious-disease expert from Vanderbilt University, told Business Insider.

Parishioners wear face masks as they attend an in-person Mass at Christ the King Catholic Church in San Antonio, Texas, on May 19, 2020. Eric Gay/AP Photo
"The virus doesn't respect any religions," he added. 

Houses of worship are coronavirus transmission hotspots

Research has found time and again that the risk of coronavirus transmission is much higher indoors, in poorly ventilated spaces where lots of people have sustained contact. That's because it primarily spreads via droplets that fly through the air when an infected person coughs, sings, talks, or sneezes.

"Any gathering, from the point of view of the virus, is ideal," Schaffner said. "People congregate, hug each other, exchange stories, and thank you very much, the virus is going to go from me to you."

A recent study found that talking loudly can produce enough droplets to transmit the coronavirus, and that those droplets could linger in the air for at least eight minutes. Vigorous singing, too, has been linked to the virus' spread.

That's what makes religious services dangerous. Trump indicated that it's up to religious leaders to minimize these risk factors.

"Ministers, pastors, rabbis, and imams and other faith leaders will make sure their congregations are safe as they gather and pray," Trump said on Friday. "They love their congregations, they love their people, they don't want anything bad to happen to them or to anyone else."

President Trump speaks with reporters about the coronavirus at the White House, May 22, 2020. Alex Brandon/AP

Super-spreader events at churches and a synagogue

In early March, a 57-year-old Arkansas pastor and his wife attended church events and a bible study group a few days before they developed coronavirus symptoms.


Of the 92 people they came into contact with at the church, 35 got sick. Seven had to be hospitalized. Three died.

Contact tracers from the Arkansas Department of Health then discovered 26 more cases and one other death among people who reported contact with the churchgoers. According to a recent CDC report chronicling that super-spreader event, "group gatherings during church events" could be a source of widespread coronavirus transmission.

"These findings underscore the opportunity for faith-based organizations to prevent COVID-19 by following local authorities' guidance," the authors wrote.

A man wears a face mask as he walks near Young Israel orthodox synagogue in New Rochelle, New York. Eduardo Munoz/REUTERS

The story of Lawrence Garbuz, the 50-year-old attorney from New York's Westchester County, underscores that point.


Garbuz was hospitalized with the virus in late February, and was among the state's first confirmed cases. A week later, New York had confirmed another 170 cases, including Garbuz's wife and two children.

Most of those cases were linked to him. The neighbor who drove Garbuz to the hospital got sick, as did the rabbi from his local synagogue and many congregants he'd interacted with during a bat mitzvah and a birthday party.

According to the CDC, houses of worship might therefore facilitate coronavirus transmission "beyond household contacts into the broader community."

That's also what happened in Chicago in February, when a person with not-yet-diagnosed coronavirus attended a birthday party. There, the individual sickened seven others, three of whom then attended church services a week later and infected at least one other person.

A super-spreader at a South Korean church infected 43 others

A person sick with the coronavirus can infect two to 2.5 other people on average, according the World Health Organization. But super-spreader events lead individuals to buck that average.

In mid-February, a 61-year-old woman attended church services at the Shincheonji Church of Jesus on February 9 and 16 in Daegu, South Korea. Soon after, she tested positive for the coronavirus — then so did dozens of others. South Korea's coronavirus case count quickly jumped from 29 cases on February 15 to more than 2,900 two weeks later.

Workers from a disinfection service company sanitize a branch of the Shincheonji Church of Jesus, where a woman with the coronavirus attended a service in Daegu, South Korea. Reuters

The 61-year-old super-spreader, dubbed "Patient 31," may have infected at least 43 people after she attended services, authorities said. Followers of the fringe religious faction were asked to remove protective masks to pray.

The super-spreader label, therefore, doesn't necessarily indicate that a person is more contagious than others, or that they're shedding more viral particles. Rather, they have access to a greater number of people in spaces that facilitate infection. A 2011 study found that a small percentage of a population — 20% — was responsible for 80% of disease transmission during an outbreak.