Rockets Owner Lays Off 40,000 workers

[mesomorph]

My restaurant owner "fired" all of us two weeks ago tomorrow. We all understood it was for filing. He is not rich, it's a small place and he is about as month-to-month as the rest of us. Once this global catastrophe stabilizes, we will be hired back.

But why would you believe it will end soon? After corona virus, the global economic crisis can arrive. And then you could end up being unemployed for a lot more time than you expect.

[First Step]

Then no company should get this stimulus money...because that goes against capitalism

Well if you want companies that employ millions of Americans to go under, then don't provide the stimulus. When a company goes under, those jobs die. They aren't reallocated to another organization where that worker can get re-hired.

It's normal business practice to reduce the burn of your company when your organization is facing an economic crisis.

Im not arguing any of that at the moment...all Im saying is no one can really play the capitalism card when all these companies are going to get bailed out with this stimulus package funded by the taxpayers

Actually, many businesses are going to go bankrupt because of this and not get bailed out. Major companies that make up a huge portion of the GDP are going to get bailed out so we don't have massive unemployment. People are going to get assistance too. This has nothing to do with how businesses run payroll. For the record, I opposed the 2008 bailout because that was due to poor business decisions. Shutting your business because of a deadly virus is very different.

[Cactus Jack]

I mean can’t you just wish he sells the team? Which is what almost EVERY SINGLE rockets fan wants? Why wish that evil on us?

Even my grandmother wants him to sell the team cause he’s scum

(And this ones understandable, but he is scum)

Can I wish he'd move it instead!?

Dude, you can’t do that to me! Well wish together that another team is moved there, or better yet they get a brand new team and no one has to move!

I want basketball back in Seattle, too

Dude, you don't even live in Houston anymore. Why should you care!?

Go Knicks!


P.S. Ken has moved up here. He's all on board!!

[Mind_Odyssey]

I don't see anything morally wrong with this at all. He has a fiduciary responsibility to his shareholders. He needs to protect the business first and foremost.

You may not like this reality of capitalism, but it's the truth.

Then no company should get this stimulus money...because that goes against capitalism

Well if you want companies that employ millions of Americans to go under, then don't provide the stimulus. When a company goes under, those jobs die. They aren't reallocated to another organization where that worker can get re-hired.

It's normal business practice to reduce the burn of your company when your organization is facing an economic crisis.

If capitalism worked the way people claim it does. Somebody would come along and purchase that company from them.

[First Step]

Then no company should get this stimulus money...because that goes against capitalism

Well if you want companies that employ millions of Americans to go under, then don't provide the stimulus. When a company goes under, those jobs die. They aren't reallocated to another organization where that worker can get re-hired.

It's normal business practice to reduce the burn of your company when your organization is facing an economic crisis.

If capitalism worked the way people claim it does. Somebody would come along and purchase that company from them.

This does happen, but it's a moot point. Assume an airline company is going bankrupt because they are over-leveraged and revenues have tanked because of coronavirus. An investor group comes together to purchase the company with the long-term view that travel will pick back up in 12 months. What is the first thing they are going to do? Fire everyone and keep the overhead as low as possible. The point of the bailout money is not to go to the shareholders. It's to keep the employees working, which is why there are stipulations on the money. There are no stock buy-backs.

[Sgt P]

I don't see anything morally wrong with this at all. He has a fiduciary responsibility to his shareholders. He needs to protect the business first and foremost.

You may not like this reality of capitalism, but it's the truth.

Then no company should get this stimulus money...because that goes against capitalism

Well if you want companies that employ millions of Americans to go under, then don't provide the stimulus. When a company goes under, those jobs die. They aren't reallocated to another organization where that worker can get re-hired.

It's normal business practice to reduce the burn of your company when your organization is facing an economic crisis.

It is a catch 22, thing. Stimulus package existence is proof of economic/capitalism failure.
We have failed in the sprit of capitalism and democracy.

I wish we would have an honest conversation about these failures to really solve it vs. patch, hope, pray and repeat.

[ImSlower]

My restaurant owner "fired" all of us two weeks ago tomorrow. We all understood it was for filing. He is not rich, it's a small place and he is about as month-to-month as the rest of us. Once this global catastrophe stabilizes, we will be hired back.

But why would you believe it will end soon? After corona virus, the global economic crisis can arrive. And then you could end up being unemployed for a lot more time than you expect.

When did I say this will happen soon? I am as pessimistic as many. Hell I mentioned in the Bulls CV thread that my very own coworkers there threw themselves a damn party this week then mocked me for not attending. There's about 100 million Americans who still have their heads in the sand that this will disappear by like next week. If I go back to that job by June I will consider it a good thing. In the meantime, my unemployment has been processing for nearly two weeks, and even if it goes through, my paychecks are garbage (despite reporting my tips, so Uncle Sam taxes my cash but won't pay unemployment based on it).

So, yeah, thanks for reminding me what a terrible financial situation I'm in. I'm still keeping my head up, eating right and working out a lot. Studying some free online tech courses. All that jazz. I was merely providing input that it's not necessarily disgusting for owners in the hospitality industry to lay their workers off. What's my boss going to do, keep paying me the 5 bucks an hour for my 30 hours a week? Now if you got into contact with my regulars whose tips provide 80% of my income, maybe they can send me a check. I can video chat with them while they drink and tell my dumb bartender stories and laugh at their dumb rich-retiree ones. Yay!

[INKtastic]

Damn, I feel bad for the workers

why? they make more being laid off and the company surviving makes it more likely they have a job again when it's over.

[Pharmcat]

Well if you want companies that employ millions of Americans to go under, then don't provide the stimulus. When a company goes under, those jobs die. They aren't reallocated to another organization where that worker can get re-hired.

It's normal business practice to reduce the burn of your company when your organization is facing an economic crisis.

If capitalism worked the way people claim it does. Somebody would come along and purchase that company from them.

This does happen, but it's a moot point. Assume an airline company is going bankrupt because they are over-leveraged and revenues have tanked because of coronavirus. An investor group comes together to purchase the company with the long-term view that travel will pick back up in 12 months. What is the first thing they are going to do? Fire everyone and keep the overhead as low as possible. The point of the bailout money is not to go to the shareholders. It's to keep the employees working, which is why there are stipulations on the money. There are no stock buy-backs.

Airlines got huge tax breaks and they used it on stock buybacks , salaries , etc. Maybe they should have saved some $ for a rainy day instead they ran to to the govt for bailout money. It's very interesting everyone says the economy has been great for the last 3 years yet when we faced our first stress test, in the first round of said test companies and employees have flopped like harden . It was all smoke and mirrors.

[azcatz11]

My restaurant owner "fired" all of us two weeks ago tomorrow. We all understood it was for filing. He is not rich, it's a small place and he is about as month-to-month as the rest of us. Once this global catastrophe stabilizes, we will be hired back.

But why would you believe it will end soon? After corona virus, the global economic crisis can arrive. And then you could end up being unemployed for a lot more time than you expect.

When did I say this will happen soon? I am as pessimistic as many. Hell I mentioned in the Bulls CV thread that my very own coworkers there threw themselves a damn party this week then mocked me for not attending. There's about 100 million Americans who still have their heads in the sand that this will disappear by like next week. If I go back to that job by June I will consider it a good thing. In the meantime, my unemployment has been processing for nearly two weeks, and even if it goes through, my paychecks are garbage (despite reporting my tips, so Uncle Sam taxes my cash but won't pay unemployment based on it).

So, yeah, thanks for reminding me what a terrible financial situation I'm in. I'm still keeping my head up, eating right and working out a lot. Studying some free online tech courses. All that jazz. I was merely providing input that it's not necessarily disgusting for owners in the hospitality industry to lay their workers off. What's my boss going to do, keep paying me the 5 bucks an hour for my 30 hours a week? Now if you got into contact with my regulars whose tips provide 80% of my income, maybe they can send me a check. I can video chat with them while they drink and tell my dumb bartender stories and laugh at their dumb rich-retiree ones. Yay!

You'll be fine man...we'll all get thru this. If I remember correctly you used to be a bartender in NYC right? I remember a few good stories you have shared....

[XTC]

For all those asking for his head I ask you where is he suppose to supply the income to pay 40,000 workers with no revenue coming in?

These guys dont become rich by giving charities sadly and it's how they're hardwired. From what I understand Tillman isnt the wealthiest owner. While it sucks that he had to lay off 40,000 employees, I can understand it from his point of view.

[flavio_93]

How dare he not pay people to do nothing.


Sent from my iPhone using Tapatalk

[Mind_Odyssey]

Damn, I feel bad for the workers

why? they make more being laid off and the company surviving makes it more likely they have a job again when it's over.

Have you ever been laid off before...? In “theory” these people will be brought back, but in reality a lot of them won’t.

[InWestWeTrust]

Can you be fired temporarily?

Thread title needs to be changed

Absolutely, if/when things get back to normal I'm sure a lot of people who got laid off get their jobs back. Because all these non-essentials businesses will most likely come back. I guess depending on the way things go but Im optimistic.

[InWestWeTrust]

Damn, I feel bad for the workers

why? they make more being laid off and the company surviving makes it more likely they have a job again when it's over.

Have you ever been laid off before...? In “theory” these people will be brought back, but in reality a lot of them won’t.

I see it differently, I think A TON of people being laid off will get their jobs back. We really can't predict it though, just have to wait.

No one has ever been laid off due to a situation like this. At least in this century

[Dominator83]

I don't understand why this is wrong. Business is business.

And yet this very forum was full of outrage last week when the Sixers tried to pay their coaching and front office staff "only" 80% of their full salary.

When millions of wage workers living paycheck-to-paycheck are getting furloughed or fired during a world-wide crisis... sports fans somehow got outraged that these (relatively) wealthy NBA Coaches and Front Office staff would not be receiving the exact 100.0% amount of their six figure salaries.

Think about the full 100.0% salaries people demanded Fetita (and other owners) to pay their coaches right now, while laying off wage workers en masse.

Yea, I never understand why we care so much about how the top 1% gets taken care of, knowing damn well that they're doing fine regardless. Like, even if the RS doesn't continue and players lose out on those last 16-17 game checks, they're not gonna be homeless. Lots of average Joe's will be

[Mind_Odyssey]

why? they make more being laid off and the company surviving makes it more likely they have a job again when it's over.

Have you ever been laid off before...? In “theory” these people will be brought back, but in reality a lot of them won’t.

I see it differently, I think A TON of people being laid off will get their jobs back. We really can't predict it though, just have to wait.

No one has ever been laid off due to a situation like this. At least in this century

That’s fair and correct. It would be dishonest of me to project.

[LarsV8]

Lets all hate TF for the right reasons, not the wrong ones.

[NBAFan93]

I don't see anything morally wrong with this at all. He has a fiduciary responsibility to his shareholders. He needs to protect the business first and foremost.

You may not like this reality of capitalism, but it's the truth.

Yeah there are very likely investors that he must answer to - it’s not just his money that he’d be giving away.

And businesses pay quite a bit of money for unemployment insurance - plus just general taxes - that money is so the government takes care of these situations and the business doesn’t have to.

[NBAFan93]

He has no money coming him cause those businesses have been forced to close, and the people are no longer doing any work. You really expect him to use his businesses’ cash reserves to pay people for nothing? When there is a system called unemployment, that he’s been paying premiums toward for years, that will pay them instead?