Sunday, May 20, 2011, Jim Cramer went on Meet the Press criticizing Mitt Romney for destroying jobs and making people rich, but in the same week, Cramer praised companies that cut thousands of jobs to survive.
Cramer said on Mad Money that “we think the world of CEO Emanuel Chirico, you know that” of PVH Corp. Cramer recommended his viewers monitor the performance of the apparel company that markets IZOD, ARROW, Bass, Calvin Klein, Tommy Hilfiger and Van Heusen. Odd that on Sunday, Cramer is criticizing Mitt Romney as a destroyer of jobs, but in the same week praises Chirico’s management of PVH. In 2009, when the economy stalled, PVH closed 175 stores and laid off 400 worker all while Chirico was at its helm.
In addition, Cramer praised Toll Brothers Inc. a high-end home builder who shed hundreds of jobs. For example, in the hard-hit region of Las Vegas, Nevada the company cut half of its staff. Based on information available on the internet, Toll Brothers cut its overall employment from 5,500 in 2006 to less than 2,200 people. The numbers reportedly do not include contract employees or construction workers.
Cramer also claimed he interviewed at Bain Capital. At that time, Cramer said, Bain’s focused on cutting the fat from companies which included reducing the number of employees. The philosophy of gaining profits through efficiency was “chic” at that time. However, Cramer does not explain how the current business atmosphere makes it possible for inefficient, over-staffed companies to turn a profit. In fact, Cramer clearly selects stocks based on management that responds to economic troubles by reducing their workforces.