With the state of recession in many international economies, many companies are looking to cutback unnecessary spending and build some level of financial security driven by decreased lending conditions internationally, and reductions in consumer spending in most markets.

For no moment is this an exhaustive list, for there have been over 500,000 job losses in the month of December alone (Department of Labor Statistics) and a total of 2 million over the fourth quarter of 2008.

Google announced Wednesday plans to shorten recruiting staff by 100, discontinue a number of their lesser used products, and shutdown three of their engineering offices around the world.

Motorola announced plans Thursday to cut jobs by about 7,000 over the course of 2009 - a reduction of over 10 per cent of their 66,000 staff - after reduced sales and poor performance in Q4 2009 triggered predictions of equally poor performance this quarter.

Citigroup announced in November that over the course of 2009 they would be submitting layoffs internationally to the tune of a shocking 75,000 jobs. Only soon to be followed by Washington Mutual’s estimates of 9,000 and Bank of America’s estimates of 30,000 jobs.

Thursday afternoon companies including publisher Random House Inc., sanitization company EcoLab (1,000), packaging company MeadWestvaco (2,000), software developer Autodesk (750), Reebok Inc. (300), Delta Air Lines (2000), storage hardware manufacturer Seagate (3,000 and a salary cut), IT products and consulting firm CDW (200), law firm Foley Hoag (32), and many more announced their layoff procedures after fourth quarter reports came in and were analyzed.

Consumer electronics developer Sanyo Electric Co. also announced 1,200 job cuts, with the expectation of breaking even in 2008 after a year of reduced sales and poor market conditions.

Analysts expect Microsoft Corp. to announce one of its first-ever layoff plans sometime this week, following in the company’s announcement last week that it is considering the option, and suggesting that the company is overstaffed and undercapitalized.

All of this sums up to explain why the United States’ Department of Labor Statistics announced Tuesday that unemployment had reached a 16-year high - a dangerous and self-feeding state for the economy to be in. A loss of jobs decreases consumer spending, in turn, reducing profits and likely causing more layoffs - an idea first formalized by John Maynard Keynes himself during the Great Depression. Furthermore, the current interventionist policies are unlikely to resolve the problem entirely, according to Ben Bernanke, chairman and chief economist at the Federal Reserve - Obama, however, claims that 4-million jobs will be recovered thanks to the new bailout plans designed by his upcoming administration.

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