Timesizing® Associates - HOMEPAGE
Downsizings, Jan. 1-15, 2002
[Commentary] ©2002 Phil Hyde, The Timesizing Wire, Box 117, Harvard Square, Cambridge MA 02238 USA (617) 623-8080
1/15/2002 1 downsizing, costing unspecified jobs, reported in (NYT) NY Times & (BG) Boston Globe -
1/14/2002 4-in-1 weekend downsizing, costing unspecified jobs, reported in (NYT) NY Times & (BG) Boston Globe -
- Internet magazine closes, by Andrew Zipern, NYT, C4.
Internet Week, a weekly print magazine that reported on Internet business and strategy, stopped publishing on Jan. 7, a spokeswoman for CMP Media, the magazine's publisher, said. The spokeswoman, Alexandra Raine, said layoffs were inevitable but some workers would probably find jobs at the company's 30 or so other technology publications. Internet Week was found in 1984 as Comomunications Week and changed its name...in 1998.
["If it works, don't fix it!" (Shades of the company that boomed as Boston Chicken and has struggled ever since it changed its name to Boston Market.) Unspecified lost jobs.]
1/12/2002 4 downsizings, costing 36,500 jobs + unspecified, reported in (NYT) NY Times & (BG) Boston Globe -
- Financial exchanges try to deal with dark days, by Beth Healy, Boston Globe, C1.
These are dark days for the spate of financial exchanges that sprouted up on the Web in 1999 and 2000 [because of] a thin venture market and a slow economy.... They had names like
They were all involved in online trading of loans or mortgage-related securities. And they no longer exist, despite millions of venture dollars raised in some cases, and some...promising technology....
- Visible Markets,
- UltraPrice, and
[Another feature of 1929 - the dry-up of venture capital. Unspecified lost jobs.]
1/11/2002 10 more downsizings, costing 7,936 jobs, reported in (NYT) NY Times & (BG) Boston Globe (not counting 2 general stories, "Study: Sept. 11 to cost 1.8m jobs - Losses will spread across industries," AP via BG, D2, and "IBM layoffs," AP via BG, D5, which states, "Layoffs at IBM will have a ripple effect on Vermont's economy, causing consumers to spend less, jobs to be cut, and personal income and population to drop in northwestern Vermont, according to an economic study [by] Economic & Policy Resources Inc. of Williston, Vt.... A total of 730 additional full- and part-time jobs will be lost by 2004 as a result of the cuts at the state's largest employer." This is one of the few articles that mentions the huge ripple effects that spread out from every downsizing, an integral part of the recession-inducing role of downsizings.) -
- Ford Motor plans to cut 35,000 employees and shut 5 plants - Will eliminate 4 models - Seeking a rebound, new chief says company will return to its core business, by Danny Hakim, NYT, front page.
...The company said it would step up jobcuts begun early last year that, when finished by the middle of the decade, would reduce its worldwide staff of 350,000 by 10%, including 21,500 workers in North America..\.. No longer will the company make Lincoln Continentals or Ford Escorts [or] the Mercury Cougar and...Villager..\..as it cuts North American capacity by nearly a million cars and trucks a year.
[Comments Timesizing.com regular, Ken Ellis - "I guess we all heard this unfortunate bit of news by now. Its suicidal nature lies in this: All of those workers get dismissed and disengaged from the legal economy, make the legal economy less viable..., sending us further into recession, and possibly into a depression. When pessimistic, I sometimes wonder if a depression will HAVE TO occur before people awaken to the benefits of work[time] reductions [to share the vanishing employment]. If Republicans can keep the 35-hour week at bay until 2004, maybe newly-elected Democrats will further stave it off by giving us yet another 'tax and spend' New Deal. History repeats itself, but how often in the same old way until [we're forced to discover] something new...?"]
- CareGroup votes to shut Deaconess-Waltham Hospital, by Emily Sweeney, BG, C1.
Struggling CareGroup HealthCare System voted to close its 180-bed community hospital in Waltham MA after it failed to find a buyer.... [It] posted $8m in operating losses last year.... Deaconess-Waltham was established in 1886 and employs 1,200 people, not including its medical staff of 200, some of whom have private offices and affiliations with other hospitals [but presumably including] 200 registered nurses [who] work at the hospital..\.. The hospital has an emergency room that treats 20,000 cases annually....
- Federal Signal's earnings are below expectations, Bloomberg via NYT, B6.
...A maker of emergency vehicles and public-safety equipment...based in Oak Brook, Ill..\..cut almost 300 jobs, or 5% or the staff....
- Federal regulators close Miami bank, AP via BG, C2.
...with roots among Cuban-Americans, citing worries about its financial soundness. Hamilton Bank, with about $1.3B in assets and $1.2B in deposits, specializes in financing trade deals between companies in the US, Central America, the Caribbean, and South America. Six branches of the bank, with about half the insured deposits, were closed permanently yesterday by the Office of the Comptroller of the Currency. The Federal Deposit Insurance Corp. [FDIC] was appointed receiver.
The Comptroller's Office said Hamilton had
In Miami and West Palm Beach, the FDIC said, 3 Hamilton branches and their deposits were being acquired by the Israel Discount Bank of New York.... The bank's parent, Hamilton Bancorp Inc., has been in a dispute with the comptroller's office. It filed a suit saying the comptroller's bank examiners are prejudiced against Hispanics.
- inadequate capital
- poor earnings
- a high level of bad loans
- concealed information from bank examiners....
[Playing the "race card"? Meanwhile, unspecified lost jobs and a little taste of early 1933 in terms of the epidemic of bank closings.]
1/10/2002 '10 on the 10th' downsizings, costing 37,520 jobs + unspecified, reported in (NYT) NY Times & (BG) Boston Globe -
our CEOs continue their relentless devastation of our consumer base and their own markets -
- Burlington Industries announces layoffs and bonuses, Bloomberg via NYT, C3.
...The textile maker [will] lay off 4,000 workers as part of a reorganization and asked a judge hearing its bankruptcy proceedings to approve up to $13m in executive bonuses to retain top employees.
[Here we go again. Polaroid revisited.]
The company, which filed for Chapter 11 protection on Nov. 20 [see 11/16/2001], said in court papers that it wanted to pay the bonuses to 71 executives it "simply cannot afford to lose" to rivals.
[As if rivals are going to be bidding big bucks for executives during a recession when many of them are fighting for survival themselves, such as Pillowtex (1/03/2002) and Malden Mills (11/30/2001).]
Burlington also asked for approval of a $1m bonus payment to Douglas MacGregor, the CEO....
[Here we go. The Big Request is just a cover for this moron's attempt to get his own big incentive for failure. Anti-capitalism at work.]
The company said yesterday that it would close 5 factories and lay off 2,800 workers in N.C., Miss., and Va., reduce operations at another N.C. plant and lay off 1,200 workers in Mexico.
- The Netherlands: Chemical maker restructuring, by Desmond Butler, NYT, W1.
The Dutch chemical group Akzo Nobel will expand a previously announced restructuring program. ...The company hoped to save more than the 100m euros ($89m) originally announced by raising the number of jobcuts and accelerating the schedule. The company had announced cuts of 2,000 workers in July after reporting a sharp fall in Q2 earnings.
[First we've heard of this, so we count them now.]
- Equifax cuts 700 jobs and takes $37m charge, Bloomberg via NYT, C3.
...A consumer-credit reporting company [has] eliminated...about 12% of its workforce, and closed offices after the July spinoff of a payment-processing business, Certegy Inc.... Equifax, based in Atlanta, said it needed to pare the workforce because the spinoff reduced sales by $800m.
[Then why the spinoff??]
...The cuts were mostly in Europe and Latin America.
- Imation, maker of data storage disks, to cut 500 jobs, Bloomberg via NYT, C3.
...A maker of data storage disks will cut...14% of its workforce, as part of a restructuring that will reduce pretax Q4 profit by $60-65m. The job reductions are in addition to 500 transferred to Kodak Polychrome Graphics, which bought Imation's color proofing and software business last quarter for $50m. The cuts will be completed through the course of the year....
- Ecolab plans to take a charge for job cuts, Reuters via NYT, C3.
...Make[r of] cleaning, sanitizing and maintenance products...based in St. Paul \will\ cut 350 to 450 jobs over the next 12 months.... The cuts equaled about 2% of its workforce....
- Forrester Research to cut nearly a quarter of staff, by Thomas Palmer, BG, D1.
...The Cambridge MA-based research and consulting firm that prospered with the technology boom [will] lay off 126 employees, almost a quarter of its staff....
[See previous cut on 7/13/2001 #6.]
- Continental Airlines layoffs, Bloomberg via BG, D2.
...The fifth-largest US airline will lay off 100 pilots in addition to about 440 already taken off their jobs. The additional cuts were made in keeping with a new flight schedule for this year that required fewer pilots....
[We'll assume the already laid-off 440 were included in the 12,000 announced on 9/16/2001 #1.]
- Famed bookshop to shut after 27 cluttered years, by Terry Pristin, NYT, A21.
...Coliseum Books, a Columbus Circle fixture for nearly three decades, and one of the few independent bookstores in Midtown Manhattan, is going out of business at the end of the month.... The store's closing will put about 50 people out of work, including nearly a dozen who have worked for Coliseum Books for a decade or more...said..\..George Leibson...who opened the sprawling bookstore at 57th Street and Broadway in 1974 with two partners, Sy Rubin and Irwin Hirsch. [He] said they will no longer be able to afford the rent when the lease expires on Jan. 31.... It has struggled in the face of competition from the chain stores and the Internet and was hit particularly hard when a Barnes & Noble superstore opened near Lincoln Center in 1995. Business has declined by 30% since then, and the store has been losing money for several years, making renovations impossible, Mr. Leibson said. When...the building housing the 16,000-sq-ft bookstore changed hands two years ago, the new owner, the Monian Group, told Mr. Leibson that his annual rent of $1.2m was likely to double....
- Etc...Markem Corp., Globe staff and wire services via BG, D5.
...the Keene, N.H.-based printing technology firm, has cut 25 jobs, most of them in Keene. Markem has about 1,000 worldwide, with about half in Keene.
- Playtex to move most operations to Connecticut, AP via NYT, C3.
...Maker of Wonderbra...a unit of Sara Lee Intimate Apparel, [will] consolidate with Sara Lee's other underwear operations in May to cut expenses. About 50 jobs will be eliminated in marketing, finance, forecasting and human resources. About 20 jobs will remain in Stamford. A design shop will remain in NYC. After consolidating jobs among divisions, the company expects Playtex Apparel to create about 40 new jobs in N.C.
[So net jobucts is 50-40= 10 jobs lost.]
1/09/2002 7 downsizings, costing 34,413 jobs, reported in (NYT) NY Times & (BG) Boston Globe (not counting "Loss of at least 15,000 jobs expected at GM and Ford," - we'll wait for the announcements) -
- Leader of former Communists is taking Berlin's economy post, by Steven Erlanger, NYT, A13.
...Gregor Gysi, leader of the Party of Democratic Socialism,...wants to encourage investment in the bankrupt capital, which will be governed by a coalition of the Social Democrats, under Mayor Klaus Wowereit, and his own party, a direct descendent of the East German Communist Party.... Mr. Wowereit has said that 15,000 government jobs must be cut to trim personnel costs by $890m and help balance the budget by 2006....
- Verizon job cuts, Reuters via BG, C2.
Telephone company...cut 7,000 union jobs, or 2.7% of its workforce, and added fewer-than-expected wireless customers in Q4....
- On saggy Wall St., Merrill Lynch leads way with retrenchment, by Patrick McGeehan, NYT, front page.
...The nation's biggest brokerage firm revealed yesterday just how thoroughly it was remaking itself to become more profitable and to deal with the weaker stock market and the recession. The firm reported that it had trimmed 9,000 jobs since October, on top of 6,000 cut earlier last year. Merrill has eliminated more than 20% of its jobs in a year - by far the biggest cutback at any Wall Street firm.
[So far, we have only found and counted 2600 jobcuts since October (11/17 #1) so we have still to count 9000-2600= 6,400 jobcuts for that period minus the 1200 in Japan that we're going to count today separately below, leaving us with 6400-1200= 5,200 to count now, and we've only counted 3800 jobcuts earlier last year, so we still have to count 6000-3800= 2,200 more for that period. Together, that means we have to count 5200+2200= 6,400 more Merrill jobcuts now. If all the 9000+6000= 15,000 jobcuts constitutes 20% of Merrill's total jobs, that means the total workforce is 15000/20x100%= 75,000 and the currently counted 6,400 cuts constitute 6400/75000= 8.5% of the total.]
The company also handed shareholders the bill. It said it will take its largest charge ever, $2.2B, against its Q4 profit, to cover the cost of eliminating the jobs and to pay for changes in what the company does and where it operates....
- Bad news keeps coming for Japanese economy, by James Brooke, NYT, W1.
...Kotobukiya, a major supermarket chain, [will] dismiss 3,500 workers and close one-third of its 134 outlets....
- Cigna plans $65m charge and job cuts, Reuters via NYT, C4.
...The 3rd-largest health insurer in the [US], after Aetna Inc. and the UnitedHealth Group \will\ eliminate 2,000 jobs and take a $65m after-tax charge in Q4 as it realigns service operations in its employee health, life and disability benefits unit....
- Bad news keeps coming for Japanese economy, by James Brooke, NYT, W1.
...Kansai Electric Power, the nation's second-largest utility, announced 1,300 jobcuts over the next three years....
- Bad news keeps coming for Japanese economy - Merrill Lynch to cut its operations drastically, by James Brooke, NYT, W1.
...with 20 of 28 branches to be closed and 70% of jobs eliminated.
[From the other Merrill article today above we get the specific figure - "On saggy Wall St., Merrill Lynch leads way with retrenchment," by Patrick McGeehan, NYT, front page & C5, which reveals, "Merrill said yesterday that it planned to close 20 branches and eliminate 1,200 jobs in its Japanese brokerage business, a 4-year-old venture which has been a financial disaster. Ah, the financial industry - "how much money can we make without doing anything productive of our own?"]
Just three years ago, the country was hailing Merrill's expansion here as a sign that foreign investment would help lift the country out of its doldrums....
[That might work if the underlying problem all over the world was not the concentration of profits into unspendable holdings in the top income brackets, which then look around for huge, spending-supported productivity to invest in and act surprised when there isn't any, because - you have to centrifuge profits and pay a lot more people a little more money to regain a huge enough volume of spending to support all the technology-amplified productivity you'd like to invest in.]
Since then, the Tokyo stock market has fallen by half, and Merrill's retreat spotlights the evaporation of short-term hope for recovery.... "By the end of March, we will have a financial crisis - that is 100% true," one influential ruling-party legislator, Yoichi Masuzoe, said today. "All economic fundamentals have become worse."...
- BP says it plans to reduce its operations in Alaska, Reuters via NYT, C4.
The Alaska unit of BP will cut about 120 of its 600 staff positions in Anchorage and shelve a costly development project....
- End of the road for HomeStyle, despite remake, by Alex Kuczynski with Elaine Louie, NYT, C4.
Four issues after a redesign and editorial overhaul, HomeStyle magazine closed yesterday, the latest in a string of consumer magazines to shut....
- Excelon job cuts, Bloomberg via BG, C6.
Burlington MA-based [developer of] databases that break computer code into blocks [will] fire 25% of its staff [because of] the overlapping businesses following the acquisition of C-Bridge Internet Solutions in May....
[Again the recession-inducing takeover-downsizing connection.]
Jobs will also be eliminated at the Object Design division....
1/08/2002 10 downsizings, costing 3,775 jobs + unspecified, reported in (NYT) NY Times & (BG) Boston Globe -
- US Postal Service plans layoffs and 3-cent rise in postage, NYT, A14.
...Since September, the Service has cut about 4,000 jobs, officials said. The cuts follow the earlier reduction of 11,600 jobs last year, when the service lost about $1.7B....
[This is the first we've heard of any disasters at the USPS over the last 3 years. So chalk up 4000+11600= 15,600 jobcuts that we count now.]
The Postmaster General, John Potter, told the post office's board here that he anticipated cutting 10,000 to 15,000 more jobs during the remainder of this year..\..
[OK, following our usual practice of taking the bad news early on the theory that CEOs don't scare people needlessly (an admittedly over-generous assumption), we finally get the dope on what's been happening at our anthrax-bedeviled P.O. and get to count two years' layoffs at once: 15,600+15,000= 30,600 jobcuts at the USPS.]
As of the year 2000, the Service said, it had 787,000 employees....
[OK, so these 30,600 jobcuts are 30600/787000x100%= 3.888% of the total original workforce, which is now down to 787000-30600= 756,400.]
Richard Strasser, the USPS's CFO, said commercial, standard and express mail declined, in part, because of a "softening in the advertising market." Overall mail volume dropped by nearly 3 billion pieces from 9/08 to 11/30, a decline of 5.5% from the same period in 2000, he said. The USPS asked for $5B from Congress in November to help cover losses caused by 9/11 and the cost of handling the anthrax crisis, including buying mail-sanitizing equipment.
- Ford to cut 1,600 jobs in South America, Bloomberg via BG, C3.
...job reductions that a spokesman said may be included in a restructuring plan the 2nd-largest automaker will announce Friday. The jobcuts will affect operations in Brazil, Argentina, and Venezuela, Ford spokesman Paul Wood said.... The automaker's Brazilian unit will offer employees incentives to leave voluntarily, a spokeswoman for the unit said yesterday. The unit has about 7,000 employees in Brazil.
Ford reported a Q3 loss of $56m in its South American operations, part of an overall quarterly loss of $692m....
[A mere bagatelle compared to what's going on in Japan.]
["Duh. I'm an investuh. An' I got nowhere else to put my gazillions."]
- Sears, Roebuck & Co. to cut 1,500 jobs and leave carpet business, Bloomberg via NYT, C4.
...as it frees space for more profitable products like appliances....
[Good, leave the rug biz to the quintillions of little rug companies around the country.]
Sears, which employs 275,000, may shift some affected workers to other positions..\..a spokeswoman, Peggy Palter, said....
The jobcuts add to 4,900 positions the company is eliminating in an attempt to double its profit in the next 3 years in its retail, product-installation and repair businesses.
[You ain't gonna double profits by laying off consumers when you're not in trouble. That's what got us into this recession in the first place. And with behavior like this from compulsive and nearsighted CEOs, we're inducing chronic depression a la 1930s.]
Sears, based in Hoffman Estates, Ill., has about 860 department stores and sells carpet at 560 sites.
- Soviet hotel in Moscow to be razed, by Sylvia Tavernise, NYT, W1, W7.
A hulking glass, stone and concrete 1970 eyesore in the heart of Moscow...
[Hey wait a minit. Whaddawe think the NY WTC was?! Lighten up on the Russkis!]
...the Intourist Hotel shut its doors for good today and awaits demolition, as the city prepares to remove a major Soviet-era wart [oh c'mon!] from its skyline for the first time since the fall of Communism.
[What about all the giant statues of Stalin?!]
The hotel, owned by the Moscow city government and situated half a block from the Kremlin...is 22 stories if you include the karaoke Chinese restaurant in the basement....
[Actually, it sounds a lot less intrusive than the Twin Towers. So what we're saying here is, Osama should have taken out Moscow's big Intourist Hotel instead of NY's WTC, and saved taxpayers a lotta dough?]
The hotel served many noted - and notorious - guests over the last three decades, including French and Russian astronauts....
The hotel's closing leaves approximately 450 employees without jobs, according to its management..\.. Zoya Timoshina [has been] the hotel's main cashier for all of its 31 years.... "I came here as a young beauty, and now am going away as a grandmother. We earned good money. I had a driver, and a heater in my room. It's a good building. They have these in America."...
[There it is again - America as the rest of the world's idealized reference point.]
The hotel's management opposes the demolition.... They say the hotel was profitable asn could have been upgraded for much less than the $130m the city expects is needed to rebuild [it] completely \as\ a more glamorous, smaller building - 12 stories are planned - to better fit the otherwise elegant block, which includes a theater and another hotel, built in 1903.
["Otherwise elegant" except -]
"...What about the Macdonald's nearby"..\..said Alexander Kolesnikov, deputy director of the hotel, responding to criticism that the building is unsightly. "Tourists loved this place. We had almost a 100% occupancy rate. Every epoch has its buildings. Why do we need to destroy this one?"...
[A: jobs - it all comes back to jobs. Or to call a spade a spade, makework in an age of frozen 1940 workweek levels and inpouring automation and robotization.]
- Club Med has first loss in 4 years and closes 6 more resorts - 'We are flying blind; it's not very comfortable,' the chairman says, by Kerry Shaw, NYT, W1.
PARIS...- Reflecting the plunge in international travel since 9/11, the resort operator Club Méditerranée...reported a loss of 70m euros ($62.5m) for the fiscal year ended Oct. 31, its first loss in four years and a sharp reversal of fortune from the previous year.... The company said in a statement that its overall bookings were 19% lower in December than in the previous winter season and that travelers were making reservations much later than before..\..
[Yeah, we're waiting till the last minute to see how many more kooks with shoe bombs and kids with Piper Cubs come close to reenacting 9/11.]
Club Med...operates more than 100 "villages" on beaches and ski mountains around the world.... Measures announced in October [but not picked up by NYT or BG - ed.] included reorganizing some villages, temporarily closing 24 of them, and shedding 154 jobs at the Paris headquarters....
- Ad marketer says profit will meet reduced forecast, Bloomberg via NYT, C4.
The R.H. Donnelley...plans to cut 100 jobs and says 2001 profit was at the lower end of its reduced forecast.... Donnelley's advertising sales have been hurt as companies have curtailed spending in a slowing economy....
[So what. It was still profit. And downsizing the work-related spread of income without even a loss to rationalize it is cutting the economy's consumer base and consumption function - and guaranteeing further decline that will probably plunge Donnelley into the red in the further downspiral. In short, they're eliminating their customers' customers. How smart is that?]
Profit for the year was $2.35-2.37 a share, excluding $30m in pretax Q4 costs, partly related to eliminating the 100 jobs....
[Brilliant, these suicidal morons are spending $30m that could be profit, to guarantee they'll have less profit this year.]
- Etc...Bedford MA-based Opta Food Ingredients Inc, Globe staff and wire services, BG, C8.
...cut more than 6% of its staff under a broad restructuring plan designed to shave $1m from the company's annual costs. According to the company's Web site, Opta has 140 full-time employees.
["More than 6%" of 140 is 9 jobcuts.]
1/07/2002 1 weekend downsizing report, costing 250 jobs, cited in (NYT) NY Times & (BG) Boston Globe -
- Lear to close 4 plants, Bloomberg via NYT, C4.
...A leading maker of automobile interiors and seats plans to eliminate about 1,200 jobs and close four plants to consolidate production....
[Unfortunately, this strategy also consolidates spending power, and consolidated spending power is much less active that diffused spending power.]
The cuts represent 1% of Lear's workforce of 116,900.... Lear is based in Southfield, Mich.
- 500-700 layoffs for Beth Israel Deaconess Medical Center in effort to avert sale, by Liz Kowalczyk, BG, front page.
...or 10-15% of the staff, in part to forestall...selling the Harvard Medical School teaching hospital to a for-profit healthcare company.... The [Boston MA] hospital's 900 nurses will be exempt from layoffs, which means that some other department will see their ranks shrink by more than 15%. Physicians will not be spared, but administrators and other "behind-the-scenes" employees will be hardest hit....
[Increasing your chance of getting your healthy right leg amputated than your gangrenous left one.]
- Clorox says it will meet its profit forecast, Bloomberg via NYT, C4.
...The nation's leading maker of household bleach said an expected 1% sales decline because of the devaluation of the Argentine peso would be offset by cost savings, including the elimination of 585 jobs....
- Dycom Industries to acquire Arguss Communications, Bloomberg via NYT, C4.
...based in Rockville, Md., [which] provides system services to telecom and cable companies. It said in November that it had
eliminated 500 jobs last year.
[First we've heard of them, so we count them now.]
- Big paper maker will cut jobs, AP via NYT, C2.
International Paper [(IP) will] cut 350 jobs [which] represent a 10% reduction in the mill workforce of the Industrial Packaging Group, while maintaining current production levels...through the use of new technology and other moves..\..
[So much for "technology creates more jobs than it destroys" and the lump of labor "fallacy." Let's hear it for Jeremy Rifkin's 1995 wakeup call, "The End of Work."]
All reductions should be completed this year.... A container-board mill in Oswego NY will be shut down by the end of January, eliminating 102 jobs.... Most of the reductions will occur at a mill in Savannah, Ga....
"As Oswego closes, IP's customer needs will be met by other larger facilities within our multimill system that have unused capacity," said Dennis Colley, VP for industrial packaging. "Shifting production to our more efficient mills will generate a better return for IP shareholders."
[Until it's clear that you can't have return on investment when you can't sell your production, and you can't sell your production when every company is cutting the consumer base by cutting their workforce instead of their workweek. Ford, "Let's see you unionize these robots!" Reuther, "Let's see you sell them cars."]
The jobcuts are the latest in a series of layoff announcements by IP. Last June, IP announced 3,000 jobcuts.
- John Hancock Financial Services lays off 160 local workers, by Scott Nelson, BG, D3.
...at its Boston headquarters yesterday, about 3.5% of the insurer's workforce in the downtown office tower that carries its name.... One employee said most of the layoffs appear to be among technology workers and those who work in the retail-products division..\.. The laid-off workers will be given a severance package and offered outplacement benefits....
As of Dec. 31, Hancock had 8,355 workers worldwide, about 4,500 of whom were in Boston. The latest staff reduction eliminates almost 2% of the company's workforce worldwide. No senior executives lost their jobs as part of the cutback.
[Contrast Lincoln Electric of Cleveland - "All sacrifice together, starting at the top." Of course, that involves timesizing, not downsizing. The story of Vizzavi below, however, includes a downsizing sacrifice right to the top.]
- France: Vivendi to sell shares, Bloomberg via NYT, C4.
...Separately, Vivendi and Vodafone Group said that an Internet portal they jointly own, Vizzavi, would cut 100 jobs and replace its CEO, Evan Newmark....
- Uniroyal Technology to cut 90 jobs and freeze pay, Bloomberg via NYT, C4.
...A maker of light-emitting diode display products [also plans to] reduce the pay of top executives...to save [money]. Bonuses were eliminated in 2001.... Uniroyal, based in Sarasota, Fla., has lost money in each of its last 3 years as it sought to make the transition from making chemicals and plastics.
- PhotonEx report, by Peter Howe, BG, D7.
...A Maynard MA optical-networking start-up that's developing 40-gigabit-per-second telecom systems...had about 190 employees in the fall, and is reportedly cutting 60 to 90 positions....
- Morton's closes restaurant, Bloomberg via NYT, C8.
...its Morton's of Chicago restaurant in Sydney because of Australian restrictions on beef imports..\..
The Morton's Restaurant Group...which is based in New Hyde Park NY, also said it is trying to sell the company.
1/05/2002 5 downsizings, totaling 5,874 jobcuts + unspecified, reported in (NYT) NY Times & (BG) Boston Globe -
- Independent voice hurt by a culture of secrecy, by Brian Lavery, NYT, C7.
DUBLIN...- As Ireland rocketed through the economic and cultural booms of the last decade...The Irish Times...capitalized on its histori role as Ireland's paper of record.... Advertising revenue hit record highs; foreign bureaus expanded to nearly a dozen from one in 1986....
However...in November, management announced that losses for 2001 would hit $2.3m, and escalate to $20m in 2002. Reporters and editors, ad salesmen and printers rose up in near revolt at the news that 35% of the workforce - 250 of 710 jobs - would be shed to make up the difference.
When the extent of the losses emerged, attention quickly focused on the Irish Times Trust...created...in 1974 to protect the paper from hostile takeovers..\..and on Maj. Thos. Bleakley McDowell, the newspaper's...patriarch [and (from photo caption)] chairman of the trust governing the [paper]. The paper's troubles have raised questions on the secrecy of the trust and Maj. McDowell. [Back to text -]
Worried staff members and readers had no idea that falling advertising could threaten the paper's existence. Back in 1973, The Irish Times came with 10,000 punts of filing for bankruptcy, but even then, there was no talk of cutting jobs.
[Presumably the secrecy will now end -]
Staff members criticized management on the airwaves and even in their own columns, accusing executives of lining their own pockets and going recklessly overboard with capita spending....
"We were unfortunate in our timing," said the editor, Conor Brady.... "At the point when our cash reserves were depleted, the downturn kicked in, gutting the paper's lucrative property and recruitment sections."...
- Construction of a $69m printing plant - paid for entirely in cash - was completed in the fall....
- A glossy weekend magazine, introduced to compete with the rival Irish Independent, loses $23,000 a week and cannot be printed on the new presses.
- And Ireland.com, The Irish TImes's award-winning Web site, has separate newsgathering and publishing operations from the newspaper itself, requiring separate staff and increasing costs....
1/04/2002 3 downsizings, totaling 1,050 jobcuts + unspecified, reported in (NYT) NY Times & (BG) Boston Globe -
- AT&T plans to lay off 5,000 workers, by Reed Abelson, NYT, B1.
...this year..\..in a continued attempt to reduce its costs.... The company [will] take a charge of about $1B...in 4Q01 to cover the costs of these layoffs and the costs of having already dismissed 5,100 employees.... The majority of the layoffs affect employees who work in management..\.. About 2,000 of the employees laid off last year and this year work in New Jersey, where many of the company's operations are based....
- Bausch & Lomb to reduce its work force by 700, AP via NYT, B4.
...Make[r of] a variety of eye care products \is\ cutting about...5.8% of its work force, and scaling back profit projections amid slowing demand for contact lenses and laser eye surgery equipment. The company, which employs about 12,000 people...recently began shutting down contact lens manufacturing plants in Sarasota, Fla. and Madrid, and eliminated 250 jobs in the 4th quarter. Another 450 jobs will be cut throughout the company during the first 3 months of 2002.... Troubles began building at the end of 2000 when demand for laser vision correction machines declined.
- Store chain will close three of its Lazarus stores, Bloomberg via NYT, B4.
...in Indiana and Ohio, affecting 150 jobs.... Federated Department Stores Inc., the parent of Bloomingdale's, Macy's and other chains...is based in Cincinnati..\.. Employees at Washington Sq. Mall in Indianapolis, Tippecanoe Mall in Lafayette IN and Colony Sq Mall in Zanesville OH were informed yesterday.... The stores are expected to close in early spring....
- India: Bank transfers protested, by Saritha Rai, NYT, B3.
India's banking system was paralzyed yesterday as more than 500,000 bank employees struck to protest the "transfer" of 24 employees of Standard Chartered PLC [our quotes - ed.]...after they refused to accept a voluntary retirement plan.... A union leader said the strike was to deter Standard Chartered from further enforcing a policy of layoffs through forced transfers.
- Service Merchandise, a retailer, to close, AP via NYT, B4.
...A 42-year-old retail chain...based in Nashville..\..that has operated under Chapter 11 bankruptcy protection since March 1999 said yesterday that it would go out of business. ...The weak economy and slow sales after 9/11 hurt the 2001 results and prevented the company from completing its planned business reorganization and emergence from bankruptcy. Service Merchandise, with more than 200 stores in 32 states...as of November had liabilities totaling #1.34B and assets of $1B....
[Unspecified jobs lost.]
1/03/2002 4 downsizings, totaling 15,310 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Providian Financial to lay off 800 workers..., AP via NYT, C3.
... in Calif. and Kentucky, and it warned of more layoffs as it struggled to recover from mounting loan losses. The layoffs, affecting 6% of the workforce, follow 550 jobcuts made after the...San Francisco-based issuer of credit cards..\..decided in Nov. to close a Nev. office. The latest cuts involve employees in four Calif. cities, San Francisco, Oakland, Pleasanton and Sacramento, as well as Louisville, Ky....
[We counted 700 for Providian back on 11/15 #11, according to this story 150 too many. So now we'll just count 800-150= 650 jobcuts. Now if they had 13,000 employees when this little bloodletting started, they only had 12,300 by the time they axed 700, so the number we're counting today is 650/12300= 5% of the total workforce.]
- GreenPoint Financial to close mobile-home lending unit, Bloomberg via NYT, C3.
...the 2nd-largest in the nation, because loan defaults had surged. The bank plans to lay off 400 people and post a loss for 2001 as it shuts the unit, bought three years ago for $703m.
[Again the toxic takeover-downsizing connnection.]
"We came to a conclusion that the manufactured-housing business is not a good business for us," said the CEO, Thomas Johnson....
[Then why'd you buy it, big guy? - to distract people from your managerial incompetence? Real managers don't takeover other people's businesses, they grow their own.]
- Disney plans more cutbacks as chief forecasts rebound, Reuters via NYT, C3.
LOS ANGELES...- The chairman of the Walt Disney Co., Michael Eisner, acknowledged that he, like many shareholders, was disappointed with Disney's stock price, but said it was poised for growth when the economy turned around.
[Add misplaced focus to that credibility gap.]
In his annual letter to shareholders, Mr. Eisner [wrote], "We are now officially in a recession, and people have less disposable income for travel."...
[And what is the world's highest paid CEO doing about the unspendable concentration of income besides whining to shareholders???]
Mr. Eisner said Disney would close 50 more Disney Stores as it continues to revamp its retail unit. Disney aims to drop the number of stores to 300-400 in North America from more than 600 in fiscal 1997....
[Unspecified jobcuts. This overpaid imbecile is forecasting rebound while engineering deeper downturn. What do we expect him to do? We expect him spread around some of that unspendable 'compensation' he's getting and trim working hours for everyone in the organization (meaning the creation of more jobs at the most profitable locations), not stores and jobs. We expect a victory-guaranteeing process, not a defeat-guaranteeing one. We expect timesizing, not downsizing.]
1/02/2002 1 downsizing, costing unspecified jobs, cited in (NYT) NY Times & (BG) Boston Globe -
- Textile maker files a revamping plan, AP via NYT, C5.
...In addition, the VF Corporation, a North Carolina-based apparel maker, cut 13,000 jobs in November....
[First mention in NYT or BG, so, counting now.]
- PacifiCare Health Systems to cut 15% of its work force, Bloomberg via NYT, C4.
...One of the biggest operators of Medicare health plans in the nation will cut 1,300 jobs...to reduce costs.... PacifiCare, based in Santa Ana, Calif., said most of the jobs would be cut in Q1.
- Textile maker files a revamping plan, AP via NYT, C5.
CHARLOTTE, NC...- Since filing for bankruptcy protection in late 2000, Pillowtex has closed four plants and cut hundreds of jobs....
[This sounds pretty vague but we do have an uncounted AP report from 5/17/2001 specifying 780 Pillowtex cuts, so we'll count them now.]
- Sykes Enterprises to close 3 service centers and dismiss 230 people [1.5%], AP via NYT, C4.
...An operator of customer service centers...for computer companies like Microsoft and Apple Computer..\..[will] close 2 centers in the U.S. [Greeley, Colo. and Bismarck, ND] and one [of its 5] in Europe.... Sykes...blamed the slow economy.... Sykes employs about 15,000 people in 41 centers worldwide.... Employees have been notified and most have received 2 weeks' pay in a severance package, the CFO, Michael Kipphut, said.
1/1/2002 2 downsizings, totaling 825 jobcuts + unspecified, cited in (NYT) NY Times & (BG) Boston Globe -
- New York's new mayor sets agenda, vowing to trim staff by 20%, by Jennifer Steinhauer, NYT, front page.
Barely half a mile from the spot where terrorists struck NYC this fall, Mayor Michael R. Bloomberg called on New Yorkers yesterday to recognize the limits of government in trying times without sacrificing big dreams and big ideas....
[What a disgrace. Giuliani's successor apparently can't see the similarity between ending people's lives and ending people's livelihoods. And as for big dreams and ideas - they were sacrificed when this rich boy bought the mayor's job for a record $93 million in campaign spending.]
On a day of monumental shifts in the city's government - there was a change of guard in the offices of public advocate and comptroller and roughly two-thirds of the City Council - Mr. Bloomberg said he would set an example of sacrifice by trimming 20% of the staff in his own office, and he asked other elected officials to do the same....
[He has the gall to talk about "sacrifice" when he's pushing all the pain onto others? Will Rogers used to point out that the richest squeal loudest, with least reason - if anything threatens their unimaginable excess. So, unspecified lost jobs - for others. Contrast Timesizing which shares the pain throughout the organization or economy. As Lincoln Electric puts it, "all sacrifice together, starting at the top."]
- Softbank's chief executive resigns from Ariba's board, Bloomberg via NYT, C3.
Ariba, a money-losing maker of Internet-commerce software...based in Sunnyvale, Calif., has cut 900 jobs this year [assume 2001]....
[We only caught 75 of these on 11/21 #2, so we must now count 900-75= 825 jobcuts.]
- Office to close, Bloomberg via BG, C4.
Israel-based Lumenis Ltd., a maker of medical lasers, will shut a sales office in Norwood MA as part of its acquisition of Coherent Medical Group and also 2 mfg plants and 4 other sales offices.
[Unspecified lost jobs.]
Click here for downsizing stories in -
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.
Questions, comments, feedback? Phone 617-623-8080 (Boston) or email us.
Return to Top |
Return to Home Page