Tags: Coronavirus | Financial Markets | Money | business | restrictions | pandemic | companies

Companies Expect Longterm Disruptions as Pandemic Surges

a graphic showing the market impact of coronavirus shutdowns
(Dreamstime)

By    |   Monday, 20 July 2020 04:21 PM

Many U.S. companies are revising their business strategies from the spring as several states reimpose restrictions to slow an increase in the number of cases of novel coronavirus, The Wall Street Journal reported.

Companies are cutting some services, adding others, even altering what they considered core businesses.

"It's going to be a different game," the Journal quoted Bill George, the former CEO of medical-device company Medtronic PLC and a senior fellow at Harvard Business School.

George said among the shifts he expects are hospital chains shifting to a long-term strategy of telemedicine while clothing manufacturers determine how to sell their items if most stores do not reopen.

Air carriers Delta and United Airlines both have said they were reducing their plans to increase the number of flights they were planning. Delta said it would only add half of the normal flights it usually does in late summer and it would fly only a quarter of the capacity in the September quarter that it had last year.

Burrito restaurant chain Chipotle, conversely, said it has hired 8,000 workers since May to adjust its business. The change includes orders placed online and picked up in stores it has reconfigured with drive-through lanes. Chipoltle opened its fist drive-through lane two years ago and now expects 60 percent of new locations to have them.

The moves come as some states reimpose the prohibitions – or suspend further easing, mostly on indoor activities, that they began to remove in early summer after seeing the number of confirmed cases of infection subside.

California again banned indoor gatherings at bars, restaurants, salons, and gyms less than a month after permitting them to reopen. Schools in numerous cities have resisted calls for reopening, saying their online remote plans would remain in place this autumn, which will hamper businesses seeking to get working parents back on site.

Job site Indeed, with headquarters in Austin, Texas, and Stamford, Connecticut, said it will not require employees to return to its offices before July 2021.

Confirmed new daily infections of the novel coronavirus have trended upward in the United States since June 9, based on a seven-day moving average, from 21,294 to 68,680 on Sunday, according to Worldometer. Daily deaths trended downward from a seven-day average of 2,254 on April 21 to 517 on July 6. The trend then increased again, but has appeared relatively flat since July 12, going from 741 to 791 on Sunday.

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Many U.S. companies are revising their business strategies from the spring as several states reimpose restrictions to slow an increase in the number of cases of novel coronavirus, The Wall Street Journal reported.
business, restrictions, pandemic, companies, unemployment
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2020-21-20
Monday, 20 July 2020 04:21 PM
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