My Investing Muse (03Nov25)

My Investing Muse (03Nov25)

Layoffs, Bankruptcy & Closure news

• I’m afraid Amazon’s 30,000 job cuts are just the beginning. Leaked documents reveal the company’s robotics team plans to automate 75% of operations, potentially replacing 600,000 warehouse workers by 2033. Amazon is already drafting PR strategies to brace for the backlash. - Stock Market News

Screenshot of a FreightWaves article titled USPS tries to ban immigrant truck drivers with details on policy differences for employees and contractors, including a photo of a white USPS semi-truck with blue eagle logo driving on a highway near desert landscape, and text about outsourcing linehaul work via brokers and carriers.

The FreightWaves article details widespread layoffs and changes across the supply chain, broken down by company and their specific plans or outlooks:

E-Commerce and Retail

• Amazon: Confirmed plans to cut around 14,000 corporate positions, with reports suggesting the total could reach 30,000. The restructuring is tied to AI-driven automation and efficiency, as the company continues to invest heavily in rural delivery and fulfilment automation.

• Target: Is eliminating 1,800 corporate roles (including about 1,000 active layoffs) as part of an effort to simplify operations and reduce costs.

Manufacturing and Industrial

The manufacturing sector is facing widespread contractions, plant closures, and consolidations:

• Manna Beverages (CA): Eliminating 638 jobs as a result of a beverage co-packer closure.

• PGT Industries (FL): Cutting 442 positions as the window and door maker consolidates operations.

• Leprino Foods (CA): Plans to close its Lemoore East cheese plant, affecting 300 workers.

• Saputo Cheese USA (WI): Will lay off 240 employees as part of a dairy producer consolidation plan.

• Mannington Mills (GA): A flooring manufacturer that will close three plants and cut 200 jobs.

• rPlanet Earth (CA): Cutting 178 positions at the packaging recycler.

• Dart Container (CA): Laying off 175 employees.

• Lion Elastomers (TX): Will close its Orange facility, cutting 100 jobs.

• Wausau Equipment Co. (WI): Cutting 67 workers amid declining construction demand.

• Bumble Bee Foods (CA): Shed 56 jobs.

Automotive and Parts Suppliers

The auto sector is shedding jobs due to weaker consumer demand colliding with large electric-vehicle investments:

• IAC Alma (MI): Eliminating 246 positions.

• Dana Thermal Products (MI): Closing its Auburn Hills facility, resulting in 200 layoffs.

• Autokiniton (MI): Closing a Detroit stamping plant and cutting 133 jobs.

• Tenneco (TN): Reducing 82 positions.

• Federal-Mogul Motorparts (AL): Shut down its Boaz, Alabama plant, affecting 82 workers.

Logistics, Freight, and Warehousing

Third-party logistics providers (3PLs) and freight operators are trimming payrolls due to falling contract volumes:

• Averitt Express (AL): Cutting 193 positions after the end of a major Mercedes-Benz contract.

• ID Logistics (FL): Eliminating 174 jobs.

• Saddle Creek Logistics (GA): Laying off 128 workers after losing a key contract.

• Yang Ming Corp. (TX): Closing its Houston customer-service centre, affecting 118 employees.

• CBJ Logistics (PA): Plans to eliminate 101 jobs.

• Allen Distribution (PA): Laying off 70 workers as it closes an Allentown facility.

• 360x Logistics (WI): Closing its warehouse and cutting 59 employees (an Amazon Delivery Service Partner).

The above are some of the news about debts, closures and bankruptcies.

My final thoughts

The S&P 500 is a reflection of the hopes and values of investors. Hope needs to be met with value eventually before funds flow to other assets. With leverage, there is a constraint on time and demand for returns that is translated into risk-taking. When people are laid off, it may not be possible to land a job offering similar income, benefits and satisfaction immediately. It is not surprising that more people turn to the stock market as a source of income. There would be more joining the stock market as passive or active wealth accumulation. Stock market rewards those with knowledge, patience and self-control. If you dare to step into the “stock market” ring, there is no mercy from the market because you are new. Let’s monitor.

The market is currently sending mixed signals. Market breadth indicators occasionally show more declining stocks than advancing ones, a pattern observed during the recent S&P 500 peak. However, a temporary relief rally followed the meeting between President Trump and President Xi, suggesting a potential easing of trade tensions. For confident, long-term investment, the market requires a proper and definitive conclusion to trade disputes.

Upcoming shopping seasons, including Thanksgiving, Black Friday, Cyber Monday, and Christmas, should provide a temporary boost to the retail sector, especially with the current easing of tariff concerns.

Looking ahead, a key question remains: will the recent decline in interest rates be sufficient to stimulate significant market activity? While recent reports show an increase in unemployment, partly attributed to AI-driven automation, it remains to be seen if these cost savings will translate into less inflationary pressure across the broader economy. We hope that growth through innovation will drive the economy forward.

Financial Strategy and Outlook

Let us spend within our means, invest only what we can afford to lose, and avoid leverage. Let us review our current holdings with the intention of divesting from businesses that are losing their competitive advantages. Additionally, I will consider adding both hedging strategies and defensive positions to our portfolio to mitigate risk.

As we move forward, it is crucial to conduct thorough due diligence before assuming any new responsibilities.

Wishing everyone a successful week ahead.

@TigerStars

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