G.M. Suspends Production Indefinitely and Cuts Paychecks

March 27, 2020
Business

Catch up: Here’s what else is happening today.

The surge in interest in video games by people sheltered at home has led to a shortage of Nintendo Switch consoles at retailers like Best Buy and Target. Nintendo of America acknowledged the lack of availability and provided some hope to gamers, saying in a statement, “Nintendo Switch hardware is selling out at various retail locations in the U.S., but more systems are on the way. We apologize for any inconvenience.”
Some banks are adding job security to the list of things their employees are getting in exchange for working through the coronavirus crisis. James Gorman, the chief executive of Morgan Stanley, told employees in a memo that the bank would not resort to layoffs in 2020, according to a copy seen by The New York Times. Citigroup is taking a similar, though smaller step. A spokeswoman said that the bank had suspended any planned layoffs — for now.
Hilton Worldwide Holdings said on Thursday that it was furloughing or reducing the hours for much of its corporate staff for 90 days starting on April 4. Furloughed employees will maintain health benefits. Staff that isn’t furloughed will have their pay reduced by 20 percent for the duration of the crisis. The company will suspend dividends and share buybacks. Hilton’s chief executive officer, Christopher Nassetta, will forgo his salary for the rest of the year.
ATT announced it would pay a 20 percent bonus to all union employees, including those in the field or working from home. The company didn’t divulge how many workers that would cover, but it had bargaining agreements with about 100,000 employees as of March.
Cargo volumes at the Port of Los Angeles, one of the largest in the United States, are about 80 percent below normal, Gene Seroka, its executive director, said. The effects of the coronavirus pandemic coupled with what an “ill-advised” trade war with China will suppress cargo traffic throughout the year, he added.

Reporting was contributed by Marc Tracy, Neal Boudette, David Gelles, Niraj Chokshi, Vindu Goel, Kate Kelly, Peter Eavis, Neil Irwin, Tara Siegel Bernard, Ron Lieber, Clifford Krauss, Ivan Penn, Matt Phillips, Peter S. Goodman, Patricia Cohen, Edmund Lee, Tiffany Hsu, Kevin McKenna, Ben Casselman, Geneva Abdul, Amie Tsang, Carlos Tejada, Alexandra Stevenson, Su-Hyun Lee and Heather Murphy.

Article source: https://www.nytimes.com/2020/03/26/business/stock-market-rises-coronavirus.html