Dueling Views: Layoffs Loom, but So Do New Jobs

Bad News, Good News: Some major employers are considering layoffs this year, further fueling fears that the U.S. economy is sliding into recession. According to CareerProtection.com, a company that helps employees negotiate severance deals or retirement packages, job cuts by major corporations will accelerate in 2008. The New York-based firm says it “has been inundated this month with telephone calls from employees at Bear Stearns, Chrysler, Citigroup, Covidien Healthcare, Ford, GM, Indy Mac and Sprint Nextel, [which] have announced plans for reductions-in-force in January.”

Meanwhile, small-business owners are poised to add jobs. According to the Alternative Board, a Westminster, Colorado-based firm that provides advisory services, about 57 percent of the nation’s small businesses plan to hire more people in 2008. Less than 4 percent expect to downsize. Small firms also expect big things in 2008: Nearly 73 percent envision greater profitability, and 61 percent will increase their capital spending.