Skip to main content

Jim Cramer: When Is a Company Cutting Costs to Be Healthy?

Publish date:
Video Duration:

Need some investing advice?

In the wake of Volkswagen's layoffs, Rite Aid laying off their C-Suite and Tesla's layoffs, investors may be wondering whether or not the layoffs are for the best.

Rite Aid

Rite Aid (RAD) - Get Rite Aid Corporation Report said it would cut about 400 full-time positions, or more than 20% of its corporate positions at the company's headquarters and "across the field organization."

Chief Executive Officer John Standley, Chief Operating Officer Kermit Crawford, Chief Financial Officer Darren Kast and Derek Griffith, executive vice president of store operations, will all be departing under the transition plan.


Volkswagen (VLKAY) plans to cut between 5,000 to 7,000 jobs by 2023 as the German carmaker shifts its focus to electric vehicles.

The job cuts won't come strictly through firings. Much of them will be done through retirement offers, as 11,000 workers will be eligible for retirement by 2019

Related. Jim Cramer: I'm Not Buying This Tech Multiple Expansion


Tesla (TSLA) - Get Tesla Inc Report  laid off about 150 workers from its global recruiting team.

The layoffs are just the latest cost-savings move by the electric carmaker.

Related. Don't Let Bearish Disaster Scenarios Prevent You From Making Money Today

Want more exclusive tips from Jim Cramer? Lucky you, his next call kicks off March 14 at 11:30 E.T. Here's how you can watch.

Will You Have Enough Money Retire? Want to learn about retirement planning from some of the nation's top experts? Join TheStreet's Robert "Mr. Retirement" Powell live in New York on April 6 for our Retirement Strategies Symposium. For a limited time, tickets are available for $99 for this full-day event. Check out the agenda, learn about the speakers and sign up here.

Related Videos