Job cuts represent structural job losses
Evidence that companies think that much of the downdraft in the economy represents a structural shift to a lower revenue base instead of a cyclical shift comes from the enormous goodwill writedowns companies are taking. Case and point is the $34 billion writedown by ConocoPhilips which I highlighted (Note of disclosure: I am fairly bullish on energy socks). If companies thought that revenue was going back up, they would not need to write down so much goodwill.
In the video below, Tom Keene and company argue that this view of corporate captains — that we are experiencing a structural shift — is palpable at Davos and it is being felt in job losses. Many of these obs are simply not coming back.