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Downsizings, Dec. 16-31, 2001
[Commentary] ©2001 Phil Hyde, The Timesizing Wire, Box 117, Harvard Square, Cambridge MA 02238 USA (617) 623-8080

12/29/2001  8 downsizings, totaling 4,363 layoffs + unspecified, reported, announced or hinted on one Xmas-week day (today) in (NYT) NY Times & (BG) Boston Globe -

  1. Deutsche Bank plans to cut 2,100 jobs, Bloomberg via NYT, C3.
    ...at its corporate and investment-banking unit, part of a 10% reduction in its workforce this year. The cuts, plus the previously announced elimination of 300 jobs at the bank's money-management unit, will cost $256m in Q4. About 900 jobs in the U.S. will be cut.... The layoffs came as 2001 earnings fell by at least 25%.... The cuts announced by Deutsche Bank, [based in Frankfurt,] Europe's largest bank, amount to 5.3% of its 40,000 corporate and investment-bank employees....
    [We saw nothing of those 300 cuts so we'll now cut 2100+300= 2,400 jobcuts by Deutsche Bank, amounting to exactly 6% of its 40,000 total workforce, and they bring that workforce down to 40000-2400= 37,600 surviving jobs/employees.]

  2. Oracle, software maker, planning layoffs of 800, Bloomberg via NYT, C4.
    ...The database-software maker plans to lay off as [much] as 2% of its workforce to cut costs by reducing duplicate positions in consulting and sales. Oracle, which is based in Redwood City, Calif., has been trying to pare costs by cutting jobs and automating business with its own software....
    [So at last, here's one "physician" that's using its own "doctor's bag" to heal itself. Of course, using automation to cut jobs rather than cut hours only rises to the "bleeding" level of healing - and bleeding your own and others' markets is pretty ambiguous healing.]

  3. Tower Automotive, maker of auto frames, to cut jobs, Bloomberg via NYT, C4.
    ...A leading maker of stamped vehicle frames plans to eliminate 215 jobs and said it may close its Milwaukee press operations, which would affect another 490 workers....
    [Companies don't demoralize their employees with tentative announcements like this for nothing, so we'll count all 215+490= 705 jobs as doomed right now.]
    The jobcuts announced today, which involve salaried employees at centers in Michigan and Wisconsin and factories in the U.S. and Canada, followed Tower's announcement in October that it eliminate 500 jobs and close a factory in Sebewaing, Mich. Tower at that time had 18,000 employees..\.. The company [is] based in Grand Rapids....
    Tower is in talks with unions on a recommendation to close the Milwaukee press operations and expects a decision in Q1.... Tower had a Q3 loss of $1.36m...compared with net income of $6.97m [a] year earlier.... The company lost business as output fell at Ford Motor, its biggest customer.

  4. Lennox International plans to lay off 340 of its workers, Bloomberg via NYT, C4.
    ...Make[r of] heating and air-conditioning products [will] lay off 340 employees to reduce expenses and [will] report a Q4 loss because of lower sales and costs related to the job reductions.... The company expects to save $7m before taxes starting in Q2 and $11m a year beginning in 2003 from the layoffs.
    [Minus the profits they'll lose from now on directly and indirectly from the retrenched spending by the employees they're laying off.]
    The company, based in Richardson, Tex., said there was lower demand for air-conditioners and heat pumps in October.

  5. Inrange Technologies chief executive resigns posts, Bloomberg via NYT, C4.
    ...The company laid off 118 employees, or 10% of the staff, in October after its Q3 loss widened and sales fell. The company, based in Lumberton NJ, provides equipment software and services for directing the transmission of data between storage devices.
    [First we've heard of it, so we count it now.]

  6. Clothing retailer seeks to close 48 stores, Bloomberg via NYT, C4.
    The Casual Male Corp., the biggest specialty retailer of large-sized men's clothing, asked a bankruptcy judge yesterday for permission to close 48 unprofitable stores and hold sales at the locations.... The company, based in Canton, Mass., sought Chapter 11...on May 18.... The retailer, formerly called J. Baker Inc., sells apparel and accessories at 606 stores in 47 states under several names including Repp Big & Tall and Casual Male Big & Tall. If approved, the 48 closings would begin on Jan. 20.
    [The one near us closed last year, and we think the closings will be approved, so we're now logging unspecified jobcuts.]

  7. Saks Inc., Bloomberg via NYT, C4.
    ...Birmingham, Ala., the retailer, [will] close its 104,000-sq-ft Bergner's department store in the Lincoln Sq Mall in Urbana, Ill. in March.
    [Unspecified jobcuts.]

  8. Maker of rail cars warns about profit, Bloomberg via NYT, C2.
    Trinity Industries, a leading maker of railroad cars, said [yester]day that Q3 profit would be reduced as much as $65m, mainly to pay for jobcuts and plant closings related to the purchase of Thrall Car Manufacturing.
    [Again the toxic takeover-downsizing connection.]
    ...Trinity has not decided how many jobs it will eliminate or which plants it will close, the CFO, Jim Ivy, said.
    [Unspecified jobcuts, so far.]
    Trinity, based in Dallas...will give details of the job reductions and plant shutdowns when Q3 results are announced in Feb., Mr. Ivy said..\.. As much as $50m of the expected [$50-65m] Q3 expenses are related to jobcuts and plant closings resulting from the Thrall purchase and the decline in rail-car sales, Mr. Ivy said. From $10-15m of the costs are for closing some online businesses and for legal and warranty expenses..\.. Sales of railroad cars have fallen 50% in the last two years, Mr. Ivy said....
    [We all love that name so much we keep repeating it.]

12/28/2001  2 downsizings, totaling 600 layoffs + unspecified, cited in (NYT) NY Times & (BG) Boston Globe -
  1. Cablevision Systems says it plans to cut 600 jobs, Bloomberg via NYT, C4.
    ...The cable TV company that also owns Madison Sq Garden, the NY Knicks and the NY Rangers [is] cutting...4% of its full-time workforce...mainly in corporate, administrative and infrastructure functions....

  2. France: Renault to cut dealers, Bloomberg via NYT, W1.
    ...The big French automaker [plans] to cut the number of car dealers [outlets] in Europe more than half by 2004...to 800 from the current 1,900..\..in a bid to increase profit.... It will not cut the number of dealerships, said a spokeswoman, who did not give details on how many outlets the dealer[ship]s now operate....
    [Hooboy, was this ever poorly written, confusing the issue of exactly what they're cutting and what they're not. In any case, unspecified lost jobs.]

12/27/2001  1 downsizing, totaling 5,400 layoffs, cited in (NYT) NY Times & (BG) Boston Globe
(not counting general story "American companies had nearly a million layoffs this year," Bloomberg via NYT, C7 - that figure sounds ridiculously low considering NYC alone lost nearly 80,000 jobs in October alone - see our second homelessness story today, 12/27/2001 #2) -
  1. Mitsubishi Heavy Industries to miss goals despite cuts, by Ken Belson, NYT, W1.
    TOKYO...- The slump in civil aviation after 9/11 and the reluctance of the Japanese government to spend more money on public works projects to stimulate the economy are clouding the future for Mitsubishi Heavy Industries, Japan's largest manchinery maker. The company, whose products include jet engines and garbage incinerators, said [yester]day that it would eliminate 2,000 more jobs by 2006 and take other steps to cut costs. It has already announced 3,400 layoffs....
    [We saw nothing of the previous announcement so we'll now count all 3400+2000= 5,400 jobcuts.]
12/25/2001  2 downsizings, totaling 3,670 layoffs, cited in NY Times (NYT) & Boston Globe (BG) -
  1. Italy: Welch to advise Fiat, Bloomberg via NYT, W1.
    ...The Italian carmaker...will cut production by 8,300 units in the next two months, rather than by 1,800 as it said two weeks ago [12/11?!].... The company will lay off 3,400 people at its Mirafiori factory in Turin from Jan. 21 to Feb. 10....
    [We're going to count this 3400 as additional to the 6000 announced by 2004 on 12/11 #2 below because of the big additional production cut being announced today.]

  2. Engine maker cuts 145 jobs in Milwaukee, Bloomberg via NYT, C2.
    MILWAUKEE...- The Briggs & Stratton Corp., a leading maker of lawn mower engines...announced the latest jobcuts on Friday. \It has\ cut...jobs in Milwaukee by laying off workers and offering others early retirement, a move intended to save the company $6m a year.
    Briggs & Stratton last month offered early retirement to 190 employees at its Milwaukee offices and eliminated 45 salaried jobs. One hundred employees accepted the offer, which was made because the company shifted manufacturing to other plants and needed fewer workers in Milwaukee.
    James Brenn, the company's CFO, said the company would need to hire 20 new employees to fill some crucial positions that were vacated when early retirement offers were accepted. Including the new hires, the company's staff will be about 125 people, 7% less than before....
    [We heard nothing of the cuts last month, and the claim that you can cut 145+45+100-20 and wind up with 125 survivors, having cut only 7% less than before, just doesn't compute. So we're going to ignore the last statement and simply count the 145+45+100-20= 270 jobcuts.]

12/23/2001  2 weekend downsizing reports, totaling 16,125 layoffs, cited in NY Times (NYT) & Boston Globe (BG)
(not counting general story "Merry Christmas, you're fired - Firms flouting taboo of preholiday layoffs," by D.C. Denison, BG, E1, which only has two specific examples, both of which we caught {700 by FleetBoston on 12/20 #1 and 9400 by Motorola on 12/19 #1 below}) -
  1. Smaller manufacturers take big hit as customers cut back, Syre & Stein, BG, E1.
    [But they only give two specific cases and the one we need is a large manufacturer -]
    ...Solectron's debt rating was cut to junk status last week after the Calif. company announced a big quarterly loss and slumping sales. Company executives said they had eliminated 4m sq ft of production space and 25,000 jobs this year. Solectron's stock is down 70% in 2001....
    [We've only caught 8200 (3/20 #1) and 1075 (4/4 #1) of these 25000 jobcuts, so we must now count the remaining 25000-(8200+1075)= 15,725 jobcuts by Solectron Corp.]

  2. Ideas for an ailing hospital: Layoffs, consultants, and advertising on Imus, by David Halbfinder, NYT, A20.
    EAST MEADOW, N.J. -...400 [9%]...are to be laid off, out of 4,300 at..\..Nassau County's public hospital...by the end of the year....
    ["Merry Christmas"]
12/22/2001  3 downsizings, totaling 926 layoffs + unspecified, cited in NY Times (NYT) & Boston Globe (BG) -
  1. Caterpillar plans to eliminate more than 900 jobs, AP via NYT, C4.
    ...The heavy equipment manufacturer \will close\ an overseas plant and offering early retirement to some domestic workers. [It] plans to cut 520 jobs through the previously announced closure of its Perkins Engines manufacturing plant in Shrewsbury, in Britain. Production from that plant will be shifted to other engine-making sites. In the U.S., Caterpillar plans to cut about 420 jobs by June 30 through early retirement incentives in some of its divisions.

  2. Company gears down, Dow Jones via BG, C1.
    PurchaseSoft Inc. of Westborough MA plans to lay off most of its workers. ...PurchaseSoft will lay off 26 workers and retain eight....

  3. Japan: Trading firm to cut its debt, by Ken Belson, BG, C3.
    A leading Japanese trading firm, the Nissho Iwai Corp...will sell one-fifth of its assets and eliminate more than one-quarter of its staff to reduce debt....
    [Unspecified job cuts.]

12/21/2001  4 more downsizings, totaling 400 layoffs + unspecified, cited in NY Times (NYT) & Boston Globe (BG) -
  1. Striving to fill stockings in hard-hit town - As layoffs strike and donations fall, a toy drive fights to keep up, by Jodi Wilgoren, NYT, B1.
    NEVADA, Mo. - ...Honeywell International announced in November [but unmentioned till now] that it was moving its Nevada operation to Mexico, taking 200 jobs....
    [That "giant sucking sound" of American jobs getting vacuumed across the border famously mentioned by Perot.]

  2. Striving to fill stockings in hard-hit town, by Jodi Wilgoren, NYT, B1.
    NEVADA, Mo. - ...The payroll at FirstStar Bank's loan processing center in town has gone from 200 employees to about 50 this year, the bulk of the cuts in recent weeks....
    [200-50= 150 jobcuts.]

  3. Striving to fill stockings in hard-hit town, by Jodi Wilgoren, NYT, B1.
    NEVADA, Mo. - ...Key Industries, a manufacturer of work clothing, just closed its 50-worker plant....

  4. A haberdasher to royalty to close its last U.S. shop - A new generation prefers Italian designers over an upscale standard, by Terry Pristin, NYT, A24.
    Sulka, the men's haberdashery that once counted the Duke of Windsor, Winston Churchill, Henry Ford, and Clark Gable among its customers, will close its Madison Avenue store, the last of its shops in the United States, real estate sources said yesterday. Founded more than a century ago and long renowned for its hand-taliored shirts and ties, Sulka changed hands several times.... It is now owned by Vendome luxury Group, a division of Compagnie Financiere Richemont, of Switzerland.
    Vendome...this year has shuttered Sulka stores in Paris and London and six in this coutnry, including a boutique in the Waldorf-Astoria and a store on Park Ave. and 55th Street.... The only store still open in the U.S. is the one at Madison Ave. and 69th.... Sulka is expected to move out early next year....
    A smoking jacket at Sulka may cost $1,500, the fashion writer Anne-Marie Schiro wrote in The NYT in 1985. "But then," she added, "nothing from Sulka ever goes out of style." \Until...\ retailing experts said that as younger shoppers came to prefer designer labels or Italian lines like Ermenegildo Zegna and Brioni, Sulka's appeal became increasingly limited....
    [Unspecified job cuts.]

12/20/2001  4 downsizings, totaling 700 layoffs + unspecified, reported in NY Times (NYT) & Boston Globe (BG) -
  1. FleetBoston lays off 700 and writes off $650m, AP via NYT, C4.
    The banking company [will] lay off 700 [1.3%] of its 55,000 workers and take hundreds of millions of dollars in write-downs for the jobcuts, investments that have gone bad and exposure to the Argentine financial crisis.... FleetBoston [is] the nation's 7th-largest financial holding company and the parent of Fleet Bank.... The charges will all but wipe out FleetBoston's profits in Q4.
    [Again the toxic takeover-downsizing connection.]

  2. RadioShack plans to drop some product lines, Reuters via NYT, C4.
    The consumer electronics retailer [plans] to sell its headquarters, discontinue the sale of products like car stereos and security systems, and close 35 stores in an effort to strengthen its business. The chain of more than 7,300 stores, which is based in Ft. Worth, will also exit its commercial communications installation business. The company plans to take Q4 charges of $124m...includ[ing] a $45m loss on the sale of its Charles D. Tandy Center headquarters, which it plans to lease back until it begins moving into new space in downtown Ft. Worth in 2004.
    [Unspecified job cuts.]

  3. Advertising - Adcritic.com's creators say it is a victim of its own success, by Adrew Zipern, NYT, C5.
    ...A website that gained a broad following among devotees of TV commercials new and old, collapsed on Tuesday.... [Unspecified jobs lost.]

  4. Plug pulled on nuclear plant that had simmered for years, by Matthew Wald, NYT, A20.
    The Energy Dept. [is] closing a nuclear reactor that was built for a program canceled almost 20 years ago.... The Fast Flux Test Facility, on the Hanford nuclear reservation in Washington State, was the last gasp of the American program to build breeder reactors, which create more nuclear fuel than they consume..\..
    The department has spent about $1B on the reactor, with almost half of the money used to keep it in standy condition since 1992 in case anyone could find a use for it.... The Test Facility, completed in 1982, was intended to test components for a full-scale breeder, the Clinch River Breeder Reactor, which Congress canceled in 1983 after the Energy Dept. spent $4B on it....
    [There goes our tax money. Of course, we burn almost that amount every year on "foreign aid" to Israel, our most expensive, and arguably our most unruly, albatross. Unspecified job cuts.]

12/19/2001  5 more downsizings, totaling 18,534 layoffs, reported in NY Times (NYT) & Boston Globe (BG) -
  1. Motorola to cut 9,400 jobs, Bloomberg via NYT, C4.
    ...or more than 8% of its workforce. The company has now shrunk its workforce by 32% from 150,000 worldwide in August 2000. Motorola [is] the world's No. 2 cellphone manufacturer, and a leading maker of computer chips....
    [Followup: "Motorola offers layoff details," by Barnaby Feder, 1/11/2002 NYT, C2, states "the planned elimination [will] include 20% of [Motorola']s nearly 600 executives and...four plants [will] be closed this year."]

  2. Automaker cuts, AP via BG, F2.
    DaimlerChrysler, already struggling to turn around its money-losing Chrysler unit in the U.S., will shrink its work force in Germany by 5,000-6,000 workers by the end of 2002, a company spokesman said.

  3. G.E. to buy Interlogix for $777m, Bloomberg via NYT, C4.
    ...Separately, General Electric [will] cut 3,000 jobs at its GE Capital unit and will exit some financing businesses to reduce expenses.

  4. France: Insurer expects profits to fall, by Kerry Shaw, NYT, W1.
    The French insurance giant AXA...announced 525 layoffs in the U.S. The jobcuts, which total 625 for the year, are part of a plan to reduce costs by 700m euros in 2002. The Paris-based company...said the decline was a result of 9/11.
    [We've already counted 500 of these 625 cuts on 10/24 #2, so now we count the rest, 625-500= 125 jobcuts.]

  5. Random House begins layoffs as executives fear long sales slump, by David Kirkpatrick, NYT, C1.
    ...The largest publisher of general-interest books has begun a round of layoffs as it cuts costs to address what its executives call a prolonged downturn in book sales. Over the last two weeks, three of the company's publishing houses - Doubleday, Ballantine and Bantam Dell - have together laid off at least nine staff members, including several editors....

12/18/2001  5 downsizings, totaling 4,005 layoffs + unspecified, reported in NY Times (NYT) & Boston Globe (BG) -
  1. Parts maker lays off 1,600, Bloomberg via NYT, C4.
    The Kemet Corp., a maker of electronic parts for cellphones and hand-held computers, will lay off 1,600 workers in the U.S. and Mexico, its second wave of job cuts this year. The cuts represent as much as 15% of the company's workforce.... The company announced in June that it was laying off 1,805 workers. It said that customers were buying about one-third the number of capacitors, small parts that regulate electricity, that they did last year.
    [Familiar tho' it sounds, Kemet does not show up on our search of previous downsizings this year, so we'll count all 1600+1805= 3,405 jobcuts now. If 1600 is 15%, the whole workforce before this cut was 1600/15x100= 10,667 employees and before the previous 1805 cut was 10667+1805= 12,472 people. This means that the overall 3405 cut is 3405/12472x100%= 27% of the total workforce at the start of the year.]

  2. Britain: Airbus Industrie cuts jobs, by Kerry Shaw, NYT, W1.
    The European aviation giant [will] eliminate 500 jobs in Britain, and announced cost-cutting measures that would save the equivalent of 9,400 jobs in France, Germany and Spain. The CEO...Noel Forgeard, insisted that these measures did not include layoffs....
    [See our Timesizing-cases page today (12/18/2001). Hey, if us English-speaking economies are too short-sighted to constrain jobcuts, slam us with them since we've swallowed Schumpeter's crap about "creative destruction" and let continental Europe bury us economically as the only large area with consumer markets left. And if we think they'll let the "free trade" cult kill them when they've got the only consumer base left standing, dream on.]

  3. Miscellany...Campbell-Ewald, by Elliott & Fass, NYT, C8.
    ...Warren, Mich., part of the FCB Group division of the Interpublic Group of Cos., is laying off employees. Advertising Age reported that the layoffs totaled 50 to 100 from a staff of 1,370.

  4. DrKoop.com site is closing, Reuters via NYT, C4.
    ...and liquidat[ing] after failing to come up with additional debt or equity financing.... The company [was] started in 1998....
    [Unspecified job cuts.]

  5. Excite UK plans to close, Reuters via NYT, C4.
    The Web portal [will] sut down after a last-ditch financing effort failed....
    [Unspecified job cuts.]

Click here for downsizing stories in -
Dec. 1-15/2001.
Nov. 16-30/2001.
Nov. 1-15/2001.
Oct. 16-31/2001.
Oct. 1-15/2001.
Sep. 16-30/2001.
Sep. 1-15/2001.
Aug. 17-31/2001.
Aug. 1-16/2001.
July 16-31/2001.
July 1-15/2001.
Earlier Y2000 months accessible via links at bottom of Dec.1-15/2000 page.
Earlier 1999 months accessible via links at bottom of Dec/1999 page.
Earlier months accessible via links at bottom of Dec/98 page.

For more details, our laypersons' guide to our great economic future Timesizing, Not Downsizing is available at bookstores in Harvard Square, Cambridge, Mass. or from *Amazon.com online.

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