Timesizing® Associates - HOMEPAGE
Downsizings, February 2002
[Commentary] ©2002 Phil Hyde, The Timesizing Wire, Box 117, Harvard Square, Cambridge MA 02238 USA (617) 623-8080
2/28/2002 3 downsizings, totaling 801 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
2/27/2002 4 downsizings, totaling 562 jobcuts + unspecified, reported in (NYT) NY Times & (BG) Boston Globe -
- A. G. Edwards & Sons to cut 400 jobs to trim some costs, Bloomberg via NYT, C4.
...primarily at its headquarters as part of a cost-cutting plan announced in December. \The\ brokerage company, based in St. Louis [saw] Q3 earnings [fall] 61%. Edwards aims to cut nonbranch salary expenses by 8%, or about $21m. Cuts are being made through termination, attrition and voluntary retirement, the company said.
[In short, any way they can.]
- A unit of Tyco International will close a factory in New Jersey, AP via NYT, C4.
...for making undersea telecom equipment because of slumping business. The factory employed about 650 people last fall. The Tyco Telecommunications plant, in Clark, NJ, is already vacant, as 361 workers were laid off in October.
[We'd say they were part of the 700 cuts we counted on 10/26/2001 #7 but they were in Texas and these were in New Jersey. So we'll count these now.]
The remaining 288 [hence the "about 650" comes from 361+288= 649] were notified on Feb. 7 that they were no longer needed but would be paid for two more months....
["Well isn't that special." We'll assume these 288 were included in the non-NH 500 counted on 2/08 #2 below.]
Tyco International, which employs about 247,000 people worldwide...
[Wonder what vintage that figure is. We were told of only 220,000 on 8/14/2001 and there's been multiple bloodbaths since then. But then Tyco's accounting is probably as Swiss-cheesey as Enron's. Here's one small warning light on the gross overreach of Tyco's "dashboard" -]
...is run from Exeter NH but has its "corporate headquarters" [our quotes - ed.] in Bermuda.
- Arnold Worldwide trims 40 jobs..., by Chris Reidy, BG, C6.
...at its Boston MA headquarters. The largest ad agency in New England...had employed about 720 workers in Boston before the layoffs took effect and about 1,100 people in North America. Arnold president Francis Kelly cited 2 reasons for the layoffs:
In a recession, ad budgets are often one of the first items that companies and governments slash....
- a tough economy and
- a decision by the Commonwealth of Massachusetts [not much meaning left in that overblown term today] to cut spending on the antismoking ad campaign that Arnold had created for the Mass. Dept. of Public Health....
[Another is training.]
The region's 2 other big players, Hill Holiday of Boston and Mullen of Wenham MA, also have "had to" [our quotes] cut staff over the last 15 months, and one Boston ad agency, Holland Mark, was forced to go out of business.... "We think 2002 will continue to be tight"..\..Kelly said.... Last summer, Arnold made its first staff cut in a decade....
[That would be 18 curts on 7/19/2001 #8. Then there was 8/03/2001 #3 and 11/10/2001 #6.]
2/26/2002 1 downsizing, totaling 37 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Consultant slashes work force, by Susan Stellin, NYT, C4.
...Sapient Corp. [is] eliminating 545 jobs, or 22% of its workforce..\.. The technology consulting company...is based in Cambridge, Mass...reported a net loss of $189.8m in 2001....
[The glaringly obvious problem with eliminating jobs is that it's so blatantly unextendible. Every company that does it has to hope that no other company follows its example, because if it catches on (and oh yes, it has caught on), we're in a death spiral. "Do as I say, and not as I do" is the motto of every downsizing company. And they have to want everybody else to bite the bullet somehow (by Timesizing?! shhh, keep it secret, as mainstream economists have since ignoring Sismondi in 1819) and maintain their workforce, payroll and portion of the consumer base. Such a blatant violation of the Golden Rule as downsizing is completely contradictory, because it relies critically on no one else doing it - or at least as few as possible. As Barbara Tuchman says, it's "The March of Folly." (And then listen to all these CEOs and pols prating about liberty and freedom when they're terrified of the most obvious and fundamental freedom, free time!)
- eBay exits Japan for Taiwan, by Chris Gaither, NYT, C4.
The online auction company [plans] to buy a Website in Taiwan, but also announced an intended pullout from Japan after failing to crack the market dominated by Yahoo Japan.... Even as it entered Taiwan, Asia's third-largest e-commerce market, eBay [will] close its operations in Japan on March 31, laying off its 17 employees there....
[We'd say the 'new' Taiwan operation would cancel out these Japan jobcuts but sounds like they're just buying a ready-made operation in Taiwan, no new jobs required.]
- A 'damaged' information office is declared closed by Rumsfeld, by Schmitt & Dao, NYT, front page.
WASHINGTON...- Defense Secretary Donald Rumsfeld disbanded the Pentagon's Office of Strategic Influence today, ending a short-lived plan to provide news items, possibly even false ones, to unwitting foreign journalists to influence public sentiment abroad....
[Unspecified jobcuts. You'd like to think that only Americans would be sooo charmingly naive as to announce their new military information office was going to issue lies, but it's probably been done before. We just can't think of any examples right now. You know, it really is mind-boggling how stupid our present government is. And how much stupidity is abroad. Right next to this article on the front page of our national newspaper is a photo of a tall lifesize steel tree that has just been "installed" as a "public artwork" after "years of debate" in...NYC's Central Park??! Just where you need a tree in the midst of natural trees. What a money-wasting mockery. What an insult to the real trees. Wuzzamatta, they ain't good enough? Do we need a Trees' Rights Movement now to contain our arrogant income-desperate folly? It all comes down to jobs. Guess this should go in our makework section today, though we admit, makework in our featherbedding economy is sooo pervasive we only notice it when it's particularly stupid, like this "temporary" steel tree in Central Park.]
- TMP Worldwide to cut jobs on forecast, Bloomberg via BG, D2.
...Owner of the Monster.com job search Website plans to cut its staff to maintain profit as sales decline, the company's president...and COO James Treacy said..\.. TMP, which also places help-wanted advertising in newspapers and provides executive search services, will cut some jobs in its recruitment advertising division and in its temporary staffing business in Europe....
2/23/2002 2 downsizings, totaling 3,500 jobcuts + unspecified, reported in (NYT) NY Times & (BG) Boston Globe -
- Organogenesis cuts 37 jobs, refocuses company, by Naomi Aoki, BG, D3.
...or 16% of its workforce, to reduce costs and focus the Canton MA company's resources [off] three...research programs...which are at least 5 years away from producing marketable products...
..\..[and onto] the 2 programs with the greatest opportunities for near-term revenue..\..
- coronary vascular graft
- liver assist device, and
- pancreatic islet cell-transplantation program
- Organogenesis Inc...markets its lead product, a skin substitute known as Apligraf, with the Swiss drug maker Novartis AG. The skin graft, approved in 1998, is used to treat diabetic foot ulcers and venous leg ulcers.
- More recently..\..the financially ailing company...has begun to sell a tissue repair product and a tissue support material....
2/22/2002 3 downsizings, totaling 500 jobcuts + unspecified, reported in (NYT) NY Times & (BG) Boston Globe -
- The Netherlands: Chemical group cuts jobs, Reuters via NYT, B2.
...One of the world's largest chemical groups..\..Akzo Nobel, forecast higher earnings this year but said it would cut more jobs as part of its restructuring....
[Here is recession creation in its purest form. They all assume nobody else is going to do it and the consumer base will sail along as usual, but when over a critical mass of companies do it, Netherlands sinks a little deeper into downturn, despite its advanced policy of full-time benefits for part-timers.]
Akzo, which recently expanded its restructuring program at its coatings and chemicals divisions, said that job cuts, originally expected to total 2,000, would now be about 3,500, about 5% of its total workforce.
- Japan: Food maker to close, by Ken Belson, NYT, B2.
The Snow Brand Food Co., which is accused of falsely labeling its meat products to recover government subsidies, said it would close in April. Sales fell as much as 85% after the accusations emerged in January....
[Unspecified job cuts.]
2/21/2002 1 downsizing, totaling 800 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Colt Telecom loss widens after bailout, Bloomberg via BG, C2.
...Provide[r of] voice and data services to businesses in 13 European countries said its Q4 loss widened [to] $361.3m..\..as it cut the value of some assets. It plans to cut 500 more jobs. Colt was bailed out by its Boston-based majority owner, Fidelity Investments, last year when it backed a $708m share sale....
- Spiegel to sell credit business and close 40 stores, Bloomberg via NYT, C4.
...The owner of Spiegel and Newport News catalogs...based in Downers Grove, Ill..\..plans to sell its credit card business and close 40 Eddie Bauer stores. ...While reporting its Q4 results yesterday...it said it lost $378.1m...in contrast to net income of $65.4m...a year earlier. Sales fell 13%, to $1.01B....
["Downers Grove" is right! Unspecified jobcuts.]
- Archer Daniels Midland, NYT, C4.
...Decatur, Ill., the world's largest grain processor, [will] close its cocoa processing plant in Koscian, Poland, effective July 15.
[Unspecified Polish jobcuts.]
02/20/2002 4 downsizings, totaling 3,393 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- British industrial icon is joining exodus trend, by Alan Cowell, NYT, W1.
MALMESBURY, England - ...When James Dyson...turned his iconoclastic ideas [no-wheel wheelbarrow, no-bag vacuum] into a privately held business with sales of $316m in 2000..., the inventor became an icon of innovative Britain.... His surname has become a brand and has been imprinted on the 8m Dyson bagless vacuum cleaners his company has sold since 1993.
Now, though, Mr. Dyson...having said he would never abandon the land that nurtured him...announced this month that he planned to close an assembly line here and shift production of all his vacuum cleaners to a much cheaper Asia.
The move will eliminate 800 of the 1,800 jobs at his 6-year-old plant near this ancient market town 100 miles west of London, saving payroll and other costs as Mr. Dyson prepares to introduce his products into the U.S. market this summer.
[800/1800x100%= 44.4% of total workforce.]
Labor unions have accused him of betrayal....
[Hey, just set up a link - no wages for us, no markets for you.]
2/19/2002 1 downsizing, totaling 200 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Britain: Invensys will sell units, by Alan Cowell, NYT, W1.
The engineering group Invensys, which cut 11,000 jobs last year to bring its work force down to 76,000, said that it would sell businesses worth $2.1B and restructure other divisions to reduce debt of over $4.2B.... The units to be sold, which make valves and sensors, generate almost one-third of the company's sales.
[We caught 8,500 of these cuts on 6/01/2001 #1. That leaves 11000-8500= 2,500 jobcuts to count now. Assuming the formula is 2500/(76000+2500) we get a proportion of 3% of the total workforce at the time.]
- AT&T to eliminate 500 jobs at Broadband cable TV unit, Bloomberg via NYT, C4.
...at its AT&T Broadband cable television headquarters through layoffs and transfers under a plan to move decision making to its field offices. AT&T Broadband is the biggest U.S. cable TV service. About 12% of the company's Englewood, Colo., work force of 4,400 [in] field offices across the country..\..will be affected.... The jobcuts are not related to the Comcast plan to acquire AT&T's cable TV business.
- General Mills will close two plants and lay off 372, Bloomberg via NYT, C4.
...as the company integrates its purchase of Pillsbury..\..
[Again the toxic takeover-downsizing connection.]
The maker of Cheerios cereal and Old El Paso Mexican food...will shut a Mexican ingredients and sauces plant in Anthony, Tex., in March. A plant in Geneva, Ill., that makes frozen breakfast products will close Friday. Closing the 2 Pillsbury plants will save General Mills about $28m this year, the CEO, Stephen Sanger, said....
- 9% of staff is laid off at Kirshenbaum Bond, by Danny Hakim, NYT, C8.
The Kirshenbaum Bond Creative Network in New York is laying off 21 employees...of its staff of 223.... Most of the layoffs are coming at the New York advertising agency, Kirshenbaum Bond & Partners...after the loss of the Revlon account.
2/16/2002 2 downsizings, totaling 6,000 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Big U.S. dairy to cut 200 jobs, Bloomberg via NYT, C3.
The Dean Foods Co., which was created in December when the Suiza Foods Corp. bought the original Dean Foods, will eliminate...jobs in Illinois in the next year to help reduce costs after the acquisition.
[Again, the toxic takeover-downsizing connection.]
The cuts will be at the former HQ of Dean Foods in Franklin Park, as well as at sites in Rosemont and Rockford.... After the [cuts], Dean Foods, the largest U.S. dairy, will employ about 500 people in the Chicago area....
[So this is a downsizing of 200/(200+500)x100%= 28.6% of their total workforce.]
2/15/2002 5 more downsizings, totaling 9,673 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Sprint PCS Group to cut 3,000 jobs, or 9% of its work force, Bloomberg via NYT, B3.
...A mobile phone unit \of\ the Sprint Corp., the No. 3 long-distance phone company \will\ shut 5 customer service centers to cut its annual costs by $60m.... On Feb. 4, Sprint PCS reported a Q4 loss of $328m. The Sprint Corp. has already announced plans to cut 7,500 positions as it loses long-distance customers to new competitors and prices fall [see 10/18/2001 #2].
- Lloyds TSB to cut 3,000 jobs, pointer digest (to B2), NYT, B1.
The British banking group [will] shed...4% of its workforce after its full-year net income fell 7.7%.
[In a more advanced design, the corporation won't fool around with discretionary/arbitrary percentages - or layoffs - and will simply, automatically adjust working hours for the entire firm by the same percentage change as its income fluctuations.]
Lloyds attributed the fall to a 38% increase in bad-debt provisions and falling revenue in an investment unit.
2/14/2002 5 downsizings, totaling 6,407 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- G.M. plans to lay off nearly 3,000 people, by Danny Hakim, NYT, C5.
...at two plants, including 1,100 at a truck plant in Linden, NJ [and] 1,750 workers at a plant in Orion Township, Mich., near Detroit....
[Giving us an actual total of only just 2,850 jobcuts. But -]
The announcements [yester]day were not part of previously announced jobcuts. GM said last month that it would cut its white-collar workforce 10%, or more than 5,000 workers, through buyouts..\..
[We started waiting for an announcement on 1/09/2002. An announcement came for Ford on 1/12 but we never saw one for GM, so we get to count these 5000 as well, giving us a total of 2850+5000= 7,850 jobcuts. So if 10% of its total workforce is more than 5000 people, its total workforce must be more than 5000x10= 50,000, and 7850 layoffs must be 7850/50000x100%= 15%-16% of the total.]
Detroit's belt-tightening [more like its own noose tightening - ed.] comes after a year of big sales but shrinking profits....
- Tyco to lay off 1,473, by Jeffrey Krasner, BG, F2.
...and close 47 facilities in connection with companies it acquired in the last 3 months of 2001. [The layoffs] include 960 in the US and 451 in Europe.
[Again the toxic takeover-downsizing connection, and Tyco is one of the most toxic and suicidal takeover scammers of all.]
Bermuda-based Tyco, which has executive offices in Exeter NH...
[tax evader too - see "U.S. corporations are using Bermuda to slash tax bills - Profits over patriotism - Becoming an island company is a paper transaction that saves millions annually," by David Johnston, 2/18/2002 NYT, front page]
...also said it laid off 4,482 people from companies it acquired in the 2001 fiscal year, including those at
[4482 is B.S. We were told of 6400+2000= 8400 half-eaten bodies from Tyco's bloody gobbling cannibalism on 8/14/2001 alone. Then there were 700 more in Texas on 10/26/2001 #7 and 1000 more, half in NH, just last week on 2/08 #2 below. Then there's Tyco's "Enron syndrome" -]
- the Lucent Technologies Power Systems division,
- CIT Group finance business,
- and Cambridge Protection Industries LLC....
Tyco officials [are] under fire for complex and difficult-to-decipher accounting....
[Tyco's right in the line behind Enron after ImClone and Global Crossing. Its chief con artist, Dennis Kozlowski, is right behind Al "Chainsaw" Dunlap in destroying once-profitable companies in the US and global economies and disgracing capitalism. Just keep chanting that mindless mantra for morons, boys - "Schumpeterian creative destruction, Schumpeterian creative destruction" - a concept that is soon to be replaced in all prosperous economies (not necessarily ours) by Buckminster Fuller's burgeoning, mutually non-interfering diversity and Christ's "don't tear up the tares" (Matt.13) cuz the disruption you cause outweighs the benefit and the "cure is worse than the disease.]
- Anger over $112K court job - Workers, facing broad layoffs, question timing, by Michelle Kurtz, Boston Globe, B5.
Court employees [in Boston, Mass.] were fuming yesterday when they learned that the administrative office of the trial court had posted a $112,000-a-year executive position, just as court officials are poised to lay off as many as 250 workers and have asked all employees to work 8 days without pay.
...Chief Administrative Justice Barbara Dortch-Okara...within the last few weeks...has asked the trial court's 7,900 employees to work without pay for 8 days with the understanding they would later be reimbursed or given extra vacation time. But even with the vast majority of employees agreeing to do so, the courts still are $2.5m short.
On Wednesday, Dortch-Okara said the system was [still] planning to lay off between 200 and 250 of the least senior employees by March....
[Followup - "Trial court system losing 200 employees," 2/22/2002 BG, B2, but with a situation this fluid, we're not going to bother doing any adjustments in our jobcut count.]
- Vineyard dog days - Famed island restaurant cuts staff in bid to survive, by Chris Burrell, BG, B1.
VINEYARD HAVEN, Mass. - When it opened...back in 1971, the Black Dog Tavern aspired to be little more than a place [for] year-round residents...but over 3 decades, it grew into an empire [for] tourists. [However,] the Black Dog, which for years was the Vineyard's largest for-profit employer, has hit on hard economic times.... Sales were down $2m in 2001, about 20% of their gross revenue.... The payroll has been cut back to 64 - a long way from recent years when the Black Dog carried more than twice that number on its year-round workforce....
[So let's conservatively estimate 65 jobcuts.]
- Curis to cut jobs, suspend programs, Bloomberg via BG, F2.
Cambridge MA-based...speciali[st] in developing therapies to repair or restore damaged cells,...will eliminate 35 jobs..\..including top executives, and suspend research programs...par[ing] research spending by 35% to $26m from $40m this year..\..to reduce costs while it focuses on protein and stem-cell programs....
2/13/2002 8 downsizings, totaling 10,125 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe (not counting 17,000 union jobs lost multiyear since 1998 at AT&T according to "Unions reject AT&T offer," Reuters via NYT, C5) -
- In shift, British Airways looks to coach, by Alan Cowell, NYT, C1.
LONDON...- After years of pinning its fortunes to the deep pockets of business travelers, British Airways [BA] announced a strategic flipflop [yester]day, saying that it would try to compete with Europe's booming budget airlines by offering cheaper travel over the Internet to passengers in coach.... The change in strategy was coupled with an additional 5,800 jobcuts as BA searched for a way to return to profitability after 9/11.... Last week, BA said it had lost $205m in Q3....
With the latest layoffs, mainly affecting administrative and support staff, BA will have reduced its workforce by 13,000 - almost a quarter - from 56,700 last August.
[So the previous cuts amounted to 13000-5800= 7200 and the running balance after those cuts was 56700-7200= 49,500. So the present cuts are 5800/49500x100%= 11.7% of the interim total workforce. All we have of previous cuts are 200 on 10/06/2001 #5, 5200 on 9/21/2001 #1, 1800 on 9/05/2001 #3 (and 1000 on 12/12/2000 #2 and a previous 1000 on 8/20/1999). But the question of when we start counting the 13,000 is answered in the above by "last August," i.e., Aug/2001. And since then, we've counted 1800+5200 = 7000, +200= 7200, +5800= 13,000.]
More than 150,000 workers in the airline industry lost their jobs worldwide after Sept.11. The latest layoffs...stunned union leaders. "We expected mild surgery but what we...got was butchery," said Bill Morris, the leader of the Transport and General Workers' Union....
[Get back "on issue" then, Bill. Of the 2 historic union goals of higher pay and shorter hours, the first alone gives you neither and the second alone gives you both. Getting higher pay without shorter hours allows a huge labor surplus to build up and motivates employers to butchery of the workforce, but shorter hours without higher pay gradually creates a shortage of labor and Supply&Demand dba Market Forces inexorably push up wages and benefits. It ain't rocket science.]
Britain: More airline cuts, by Alan Cowell, 3/27/2003 NYT, W1.
British Airways [will] cut flights...by 4% until the end of May..\..and speed a program of jobcuts, adding to the setbacks for the airline business. ...Europe's biggest airline [will] move 3,000 layoffs up to March from September, completing an overall reduction of 13,000....
[We'll assume these are the same 13,000 cuts mentioned above, though there's a possibility that the above refers to an additional 3,000 cuts over and above the 13,000.]
Aid to airlines from Europe is unlikely - Europe is unlikely to aid its airlines in travel slump - Cutbacks and layoffs as war and illness deter passengers, by Christine Whitehouse, 4/4/2003 NYT, W1, W7.
...British Airways, which has already eliminated 10,000 jobs in the last year, said it would speed plans for another 3,000 layoffs. Service to the Middle East has been cut by one-fourth, including all flights to Kuwait, while flights elsewhere ha[ve] been cut more modestly - 6% on its vital routes to the U.S. and 4% elsewhere.
British Airways posts profit but is wary about outlook - Cuts in capacity and jobs aid earnings in a tough travel period, Reuters via 5/20/2003 NYT, W1.
...The airline, which has cut more than 10,000 jobs and reduced its capacity, posted a pretax profit of £135m ($220m) for the year that ended Mar.31, in contrast to a loss of £200m ($326m) a year earlier....
British Air's balancing act, by Blake & Michaels, 8/01/2003 WSJ, B4.
...The carrier has since accelerated its target of shedding 13,000 staff to September of this year from Feb/2004. The company already has cut about 11,000 of the jobs out of a total workforce of 56,700....
- Maker of uranium fuel plans to cut jobs at Ohio plant, AP via NYT, C4.
[will] cut 440 jobs at an Ohio plant as it consolidates shipping operations at a Kentucky plant this summer in an effort to reduce costs by $40m a year. The cuts amount to 14.9% of its workforce of 2,950. USEC, a maker of enriched uranium fuel for commercial nuclear power plants...based in Bethesda, Md..\.. said the layoffs would be over 6 months at its plants in Portsmouth, Ohio, beginning in June. Up to 50 jobs will be added at the plant in Paducah, Ky....
[So, 440 jobs down and 50 jobs up gives them a net of 390 jobcuts.]
- SilverStream Software firing 20% of work force, Bloomberg via BG, E3.
...A maker of software programs for corporate Web sites is firing about 20% of its workforce to lower costs after its revenue has been cut by more than half. SliverStream is firing about 120 workers at its operations in the U.S. and overseas.... The Billerica MA-based company employed about 600 people at the end of last year....
- State Street lays off 52 in human resources group, by Beth Healy, BG, E1.
...following a reorganization. While jobcuts at the financial services giant are rare, executives did not rule out future changes in other parts of the company, citing ongoing pressures to trim expenses. The jobcuts, announced Tuesday, represent 15% of State Street Cp.'s total human resources group. Most of the affected workers are in the Boston area. The company employs 19,800 people around the world in investment management and servicing mutual funds and pension funds; 13,000 of those work in Massachusetts....
- Smithsonian cutting jobs, NYT, A27.
WASHINGTON...- The Smithsonian Institution [has] laid off 45 employees and cut its budget by $9m to cope with dwindling tourism since 9/11. The Institution said the number of visitors to its 16 museums in recent months fell by as much as 45%.... The layoffs represent less than 1% of the Smithsonian's workforce of 6,300.
2/12/2002 1 downsizing, costing 60 jobs, reported in (NYT) NY Times & (BG) Boston Globe -
- Japan: More job cuts at retailer, Reuters via NYT, W1.
Japan's largest supermarket operator, Daiei Inc., [plans] to cut 1,400 jobs at its parent company through voluntary retirement, 400 more than originally planned. Under a restructuring plan announced last month, Daiei...intended to reduce its group workforce by 5,000 jobs, including 1,000 parent[-company] jobs out of 11,286, by March 2005.
[We saw no mention of the originally planned 5000 reductions last month, so we'll count them now, giving us a total of 5000+400= 5,400 jobcuts.]
The retailing giant, struggling under a mountain of debt and sluggish consumer spending, ...aims to cut interest-bearing debt to under one trillion yen ($7.5B) by March 2005 by closing 50 money-losing stores and slashing jobs.
[That should speed up the Japanese economy's death spiral. Followup: "Japan: Daiei expects another loss," by Ken Belson, 4/20/2002 NYT, B3 states "Earlier this year [i.e., 2/13], Daiei...won a 520B yen debt waiver from its main banks, a move that many analysts say saved it from bankruptcy. In return, Daiei eliminated 20% of its workforce and closed one-third of its stores." So 'in return' for a debt waiver, the banks wanted Daiei to swing another blow at their flailing economy by laying off even more consumers? Brilliant! And the predictable happened - "Sales, however, have not recovered, falling 14% last year." How much pressure is it going to take to get rigid-thinking Japanese employers to see that they HAVE TO do work sharing and they have to do it FAST and on the biggest scale in the world?!]
- Milacron, equipment maker, plans to close 14 plants, Bloomberg via NYT, C4.
...A maker of equipment used to mold plastics [will] eliminate about 1,150 jobs, or 11% of its workforce...because of falling demand. The company, based in Cincinnati, expects to complete most of the cuts by midyear. Milacron has about 10,000 employees....
- Asahi Mutual Life Insurance to cut 1,000 jobs, Bloomberg via BG, F2.
...in 2 years and sell its Tokyo headquarters to shore up capital after merger talks with another insurer broke off, the Nihon Keizai newspaper said. Japan's 5th-largest insurer also plans to sell $4.52B of its stockholdings, or about a third of its portfolio, by March to raise cash, the paper said....
[Bad time to sell - but maybe it won't get any better until Japanese work sharing gets rolling.]
- New York to trim ranks of police by 1,600 - Expected cutbacks to be made via attrition - A sign that the spending levels of the Giuliani years are gone, by Kevin Flynn, NYT, A24.
...in a striking signal of New York City's financial distress.... The reduction in uniformed positions will lower the size of the police force to 39,110.... The cutback would be the first planned reduction in the police force in more than a decade, although the department has struggled in recent years to maintain its strength in the face of a surge in retirements. Department staffing is already being stretched to meet the demand of increased security at landmarks and transportation hubs because of the elevated possibility of terrorism.
The cutbacks also would signal a new era in police tactics [from] an ever-expanding supply of officers [to] operat[ing] effectively with fewer officers [and] hir[ing] 800 lower-paid civilians who will assume the clerical and maintenance work now done by officers, freeing those officers to return to patrol..\..
[So, 1600 cuts and 800 hires is a net result of 800 cuts.]
Budget officials decided personnel cutbacks were the only way the Fire and Police Depts. could reduce their spending by 5% as..\..Mayor Michael Bloomberg...had requested to offset a budget deficit of more than $4B for the fiscal year that begins July 1....
[Did they consider cutting hours, not jobs = Timesizing, not downsizing?]
- Texas casino shut down in Supreme Court ruling - State had called tribe's operation illegal, by Ross Milloy, NYT, A18.
...After 9 years in operation, the Speaking Rock..\..Casino & Entertainment Center...operated by the Tigua Indian tribe - was ordered closed on Monday night after the U.S. Supreme Court refused to grant a stay to let the 70,000-sq-ft casino remain in operation while tribal leaders fight a protracted legal battle with state authorities who want the casino shut down. State officials say a 1987 federal law that recognized the Tiguas as a tribe put them under the jurisdiction of state gambling law, under which casinos are illegal....
The economic impacts of the shutdown are expected to resound far beyond the sliver of Tigua tribal land on El Paso's outskirts. A state report has indicated that losing the casino will cost this area 2,200 jobs and at least $60m in payroll at a time when El Paso is already hard hit by the loss of 14,000 jobs since 1995 because of military base closings, global competition, and the economic slowdown.
Tigua leaders worry about the effects on the tribe's 1,248 members. Half the tribe's workforce was unemployed before the casin opened in 1993. Recently the tribe's unemployment rate was [down to] 1%.
"Indian tribes are encouraged to become self-sufficient and we're always criticized for expecting federal handouts or state welfare programs," said Albert Alvidrez, tribal governor for the Tigua Indian Reservation of Texas. "But now, when we provide for our own communities, lift ourselves up by our bootstraps and become successful, the government wants to shut us down because of the competition.: Mr. Alvidrez said state officials wanted to shutter the casino, which provides $55-60m/yr to tribal programs in education, housing, and health care, and employs nearly 800 people here, because Speaking Rock [hm, a tribal name for dice?] competed with the state's own lottery and other [approved] games. "The state operates 14,000 lottery terminals, there are 45,000 state-licensed slot machines in Texas, plus horse tracks, dog tracks, carnivals, and 2 other Indian tribes that have casino gambling...," Mr. Avidrez said....
Attorney General John Cornyn, who sued to shut the casino in 1999, has said little about the lawsuit....
- AG John Cornyn couldn't leave well enough alone. Oh no, he couldn't allow the harmonious sharing to go on. Some rich b*st*rd who got obsessed with raw dollars wanted more, no matter what the cost in the general wealth of his Texas neighbors and the resulting offsetting cut in his own markets. Now he and they will both go down. Brilliant.
- If anybody gets out of the gambling business, it should be governments. What the hell are governments doing in the gambling industry all over this sick sick country? Saving the miserly b*st*rds in the top income brackets a few bucks in taxes that they don't need and wouldn't have spent anyway. Pathetic. The top brackets will yell and scream to high heaven against government intervention in private industry, but when it comes to invading and stifling the gambling industry to save themselves a few unneeded bucks, they turn into total hypocrites. They don't want small government. They just want their government.]
- Steelcase to eliminate up to 500 jobs, Bloomberg via BG, F2.
...because of lower than expected sales..\.. The biggest maker of office furniture...will cut 200-300 jobs in Europe in the next 6-9 months and 150-200 salaried jobs in North America in the next 60 days....
- New York to trim ranks...- Expected cutbacks to be made via attrition, by Kevin Flynn, NYT, A24.
The Fire Dept., with 11,500 uniformed members, is also scheduled to lose about 275 firefighter positions..\..according to officials who have been briefed on the mayor's budget....
[See also story #5 above.]
Budget officials decided personnel cutbacks were the only way the Fire and Police Depts. could reduce their spending by 5% as..\..Mayor Michael Bloomberg...had requested to offset a budget deficit of more than $4B for the fiscal year that begins July 1....
[Did they consider cutting hours, not jobs = Timesizing, not downsizing?]
- Reuters Group reveals more job cuts, AP via NYT, C2.
...The news and financial information provider is cutting 200 more jobs, or less than 1% of its workforce, as the global economic slowdown and fallout from 9/11 continue to hurt earnings. The jobcuts, which are in addition to 1,100 announced in July [actually 1,340 on 7/25/2001 #3] and 500 in October [10/17/2001 #6], were announced today when Reuters reported that its 2001 earnings fell from a year [previously].... The jobs are being cut worldwide. More than 1,000 [employees] left by the end of December 2001 and the rest will leave this year.... The company employs 20,700 people worldwide....
[Followup - Our 6/21/2002 #1 story says the staff on Dec. 31 numbered 19,000, so we're going to assume that this 20,700 figure was prior to the two cuts last year, whether totaling 1100+500= 1,600 (so 20700-1600= 19,100 and round down to 19,000) or totaling 1340+500= 1,850 (so 20700-1850= 18,850 and round up to 19,000).]
2/09/2002 2 downsizings, totaling 4,200 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Etc...Kadant Inc., Globe wire services, BG, F2.
...which makes papermaking and recycling equipment...cut 10% of its workforce since October to reduce costs as sales and profit fell in Q4. 60 positions were eliminated in the most recent round of cuts.... Kadant will also close a redundant lab at its Ohio plant in Q2.
2/08/2002 3 downsizings, totaling 3,100 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Goodyear Tire & Rubber, in cutbacks, may reduce sales to carmakers, Reuters via NYT, B3.
...The company..\..will eliminate 3,500 more jobs and may cut sales to automakers.... About 2,200 of the...employees to be eliminated work for [the company] and the balance work for the company's joint ventures. [The company] cut 10,000 workers last year, including 2,200 in Q4, putting total year-end employment at 96,000. For the year, [it] lost $204m, its first annual loss since 1992....
- US icon adds Canadian flavor - Kraft shifts production of Life Savers to Montreal, by Colin Nickerson, BG, A1.
For nearly a century, the hard candy with the hole in the center has been a confectionary icon, a circular symbol of that...hankering for sugar. Who hasn't savored a Pep-O-Mint or been sweetly soothed by Butter Rum? Invented in 1912 as an antidote for "stormy breath," Life Savers evolved into candies deemed so essential to...snack habits and morale that tens of millions of rolls were packed in the field rations of US soldiers durng World War II....
Next year a final...loop of flavor will bounce off the candy line in Holland, Mich.... Kraft Foods Inc., the new owner of the brand, announced the...news earlier this month: Producton...will shift next year to a plant in Montreal. "It is a tragedy...because hundreds of working people are going to lose good-paying jobs," said Mark Davis, an official of the Retail, Wholesale, and Department Store Union that represents most of the 700 Michigan candymakers soon to get the copy....
[We need to deduct unspecified new jobs that this move will create in Montreal (which needs them badly) but the truth is, the facility there is going to be higher-tech and fewer jobs, and possibly lower-paid jobs too.]
Blame an aging production facility that would cost lots to upgrade. Or blame an edict from the FTC that forced Kraft to abandon its Breathsavers line as part of last year's merger between Nabisco and Philip Morris Co. (owner of Kraft), thus shutting down a portion of the Michigan plant. The FTC claimed the deal put Kraft in a position to win a breath mint monopoly.
[It probably did, so why blame the FTC. Blame our whole business culture - our CEOs and business schools - for focusing on merging rather than managing.]
...In the end what really soured Kraft on continuing to make Life Savers in the United States is the high price the company was forced to pay for the most elemental candy substance: sugar. Sugar from sugarcane and sugarbeets is "at least twice as expensive in the US as on the world market," said Kraft spokeswoman Claire Regan.... Just by moving to Canada, the cost of sugar that makes Life Savers will drop by up to $10m a year.
But the issue of sugar is not clearcut. Sugarmakers contend that foreign sugar is also heavily subsidized...
[..."also"? So what's to choose between these parasites upon the taxpayer? Only the flexibility afforded by overtime-to-training conversion and workweek-vs.-unemployment adjustment = Timesizing's one-two knockout punch, can offer the option of free trade without devastating domestic employee-consumers and markets. Otherwise, we need foreignsubsidy-offsetting tariffs - and no subsidies of our own except for nationalsecurity-related industries.]
...and that America's hard-pressed 12,000 sugarbeet growers and 1,000 sugarcane farmers need the protection of tariffs to survive..\..
[With the continuous free-flowing training afforded by Timesizing, maybe sugarbeet/sugarcane growers/farmers can actually learn to grow/farm something the market will pay more for without tariffs. Adaptibility seems to be an unfamiliar radical concept for some American agriculturalists.]
"With its low dollar, cheap hydroelectricity, and lower wage scales, Canada is becoming an attractive place for American businesses to relocate," said Jacques Dostie, who tracks manufacturing trends for the accounting firm Ernst & Young....
[Note article today, "Challenging the dogmas of free trade," by Louis Uchitelle, NYT, A15, which tells how the "blunt, almost tactless" moderator gave "Dani Rodrik, Harvard [Kennedy School of Gov't] economist...just 3 minutes at the podium [at the World Economic Forum in NYC] - less time than other panelists - to speak out as the designated challenger of globalization as it is practiced today [with lockstep] laissez-faire.... 'There is no single, simple model of globalization,' Mr. Rodrik said." How interesting that the arguments for laissez faire are becoming so weak that its proponents have to put "tariffs" on any alternative views in order to protect their own. Laissez-faire in the context of frozen 1940-level global workweeks and unlimited income concentration is just a formula for global impoverishment via global concentration of income and the marginal utility of capital.]
2/07/2002 2 downsizings, totaling 20 jobcuts + unspecified, reported in (NYT) NY Times & (BG) Boston Globe -
- Visteon to cut 1,600 jobs and take $95m charge, Bloomberg via NYT, C8.
...A maker of auto parts [with] about 80,000 employees..\..is eliminating...2% of its workforce...as it reorganizes engineering operations and sells a unit. Visteon...plans to eliminate about 400 engineering jobs to cut research and development expenses, and 825 jobs as part of a plan to sell its airbag sensor business to Autoliv. The 400...include 150 cut last week. The remainder will be eliminated by the end of Q2....
- Citing industry slowdown, Tyco cuts 1,000 jobs from troubled cable unit, by Beth Healy, BG, D1.
...TyCom Ltd. fiber-optic cable unit, slashing 44% of the group's workforce of 2,250. 500 of the positions were in New Hampshire. Tyco, with HQ in Exeter, NH and Bermuda [slime alert!] were due to the global slowdown in the telecom markets and were in the works before the company came under scrutiny for its accounting practices and for a plan to split the conglomerate into 4 parts.
[Tyco is the big spider (and that's an insult to spiders). The neighboring article says, "Tyco said this month that it paid about $8B for more than 700 acquisitions over the past 3 years that it didn't announce." And God knows it announced plenty, as a search of our M&As pages will reveal. CEO Dennis Kozlowski can merge but not manage - except with a lot of very friendly Andersen-ilk accountants (nudgenudge, winkwink). Apparently he aspired to be Kenneth Lay or Chrysler in the 80s and become too big to permit the government to allow to fail. Tyco is in the long line behind ImClone and Enron to keep our economy deteriorating. Yet still we hear nonsense about recovery and fundamental stock values. Our system has no credibility. All these guys think they can do anything and it won't matter. They think the ocean is infinitely fishable and pollutable, the ground water is infinite and infinitely self-purifying, the job market is infinitely absorptive, the consumer markets are infinitely absorptive, stockholders are infinitely gullible so they can do absolutely anything on their corporate reports, no amount of conflict of interest matters so we can tear down the old safeguards of the 30s, like the barriers between banking, brokerage and insurance set in place by "old-fashioned" Glass-Steagall so recently "reformed" out of existence. What suicidal ignoramuses. They have not learned the lessons of history so we are all doomed to repeat them, like a recurring nightmare.]
- 3M cutting 500 jobs as it phases out tape plant, AP via NYT, C8.
...as it phased out most production at a tape and abrasives plant in St. Paul MN and developed a technology resource center. The plant has about 1,500 employees, 2/3 engineers and designers [wasn't education supposed to protect you from this?] and 1/3 maintenance and production workers.... Longer term..\..the Minnesota Mining & Mfg Co...expects employment to climb at...the technology resource center....
[...if there are any markets left by then after all this consumer-base downsizing.]
2/06/2002 6 downsizings reported on the 6th, totaling 5,825 jobcuts + unspecified, cited in (NYT) NY Times & (BG) Boston Globe -
- Simon & Schuster says it laid off 20 workers, by David Kirkpatrick, NYT, C5.
...as the major book publishers tighten their belts to adjust to flagging sales....
Adam Rothberg, a spokesman for Simon & Schuster, said..."We are doing everything we can to be in fighting shape."
- ...amounted to less than 2% [actually 1.4%] of its total staff of 1,450 people, and less than 3% of its 850-member staff in New York.
- ...included editorial employees as well as sales and administrative employees.
- ...are the first in many years at \the\ books division of Viacom...which has expanded its workforce by about 300 since it sold its large educational and professional division in 1998.
- ...stemmed partly from a regular annual financial review that was delayed by 9/11 and partly from the consolidation of its Pocket Books line into its other adult and children's publishing divisions last fall.
- ...reflected a desire to lower costs in the face of flat sales..\..
[Yeah sure, the Third Reich's (not Bob Reich's) brilliant strategy - zap a percentage of your own people to "be in fighting shape." How much better to trim hours, not people.]
- SBA Communications to close offices and cut workers, Bloomberg via NYT, C4.
...Lease[r of] antenna space to mobile-phone service providers,...based in Boca Raton, Fla..\..plans to cut an unspecified number of jobs, close offices and...build or buy 250-350 towers this year instead of 400-600....
2/05/2002 5 downsizings reported on the 5th, totaling 2,900 jobcuts + unspecified, cited in (NYT) NY Times & (BG) Boston Globe -
- Britain: Job cuts at phone concern, by Suzanne Kapner, NYT, W1.
Mm02, the mobile phone company spun off from British Telecom in November,...to cut costs \will\ cut 1,900 jobs, or 13% of its workforce.... Most...will be in Britain and Germany....
- Delta will lay off fewer pilots than expected, AP via NYT, C4.
Delta Air Lines expects to furlough 1,400 pilots instead of the 1,700 it estimated four months ago after 9/11. The revised number "was an adjustment based on operational needs," a Delta spokesman, John Kennedy, said on Monday. The jobcuts began in December and will continue into the spring....
[We do indeed treat indefinite "furloughs" as jobcuts (as refered to in above sentence) or layoffs (as refered to on 12/17 #1).]
Delta's pilot union, the Air Lines Pilots Assoc. [ALPA], is opposing the furloughs at a hearing this week in Washington. The union says the pilots' jobs are protected under the contract signed last spring, which includes a no-furlough clause.
[Seems Delta and ALPA both have the habit of refering to layoffs under the euphemism of furloughs, which are properly leaves of absence of definite length.]
After 9/11, Delta eliminated 13,000 jobs as part of a broader effort to reduce its operations because of a decline in traffic [see 9/27 #1].
- BMC Industries, NYT, C4.
...Minneapolis, a maker of eyeglass lenses and components for TV and computer screens, [will] eliminate 400 jobs, in addition to 675 jobs cut last year, for a total reduction in its workforce of 42%, in response to slowing sales and a Q4 loss.
[We caught no NYT or BG announcement of the previous 675 cuts so we'll count all 1,075 jobcuts.
- Network Plus files Chap. 11 - Funding bid falls through for firm; 650 face job loss, by Peter Howe, BG, C3.
...A Randolph MA telecommunications service provider for 75,000 small business customers along the East Coast has filed for bankruptcy protection and plans to lay off 650 of its 1,000 employees this week.... About 600 of its 1,000 employees are based in Massachusetts..\.. The shakeout in the telecom sector [is] showing few signs of easing....
- Ciena cutting 400 jobs, by Andrew Zipern, NYT, C2.
...The optical networking equipment maker [will] cut...alomst 12% of its workforce and post a Q1 loss...citing reduced purchases by several major customers.... It also [will] close its R&D center in Marlborough, Mass....
- Do-it-yourself corporate travel, pointer digest (to C7), NYT, C1.
There has been a sharp increase in the number of business travelers who make their own airline, hotel and car-rental arrangements using corporate booking systems.
[So travel agents get whacked again, after the airlines progressively cut their commissions throughout the 1990s. Unspecified job loss.]
2/03/2002 1 weekend downsizing report, totaling 45 jobcuts, cited in (NYT) NY Times & (BG) Boston Globe -
- Global cuts at Gemplus, by John Tagliabue, NYT, C10.
The maker of chip-embedded smart card...is announcing plans this week to cut as many as 1,200 jobs globally, or 18% of its workforce, according to French labor representatives, because of collapsed sales to cellphone makers, who account for roughly half of total revenue. Gemplus...already cut 900 jobs last year....
[None of which we counted although we noted 450 of them from Reuters on 7/12/2001. So we'll counted them all now - 1200+900= 2,100 jobcuts. If 1200 cuts are 18% or its workforce, its workforce is 6666.66 and 2100 cuts are 31.5% of its workforce.]
- Rohm & Haas increases planned job reductions by 500, AP via NYT, C12.
...A specialty chemicals manufacturer \will\ cut up to 1,860 jobs, 500 more than it announced in April.... It announced its 4th quarter results, posting a profit of $37m,...a decline of 47% from $70m...a year earlier.
[Layoffs without red ink damage the consumer base damage consumer demand and induce a vicious circle.]
Rohm & Haas attributed the decreases to a decline in demand for road salt because of mild weather at year's end, and because of a drop in demand for chemicals used in computer manufacturing. In April, the company said it expected to eliminate 1,200 to 1,300 jobs....
[And indeed we counted 1260 jobcuts back on 5/03/2001 #1. To our reckoning, this means R&H is going to have 600 more jobcuts than previously announced, not just 500. AP is usually pretty good and we have no idea what the AP reporter was smoking when writing this story.]
- Kulicke & Soffa Industries, NYT, C12.
...Willow Grove, Pa., the largest maker of semiconductor assembly equipment [will] cut about 200 jobs and move production of machines to China and Singapore to reduce expenses.
[thereby also reducing its American markets, as is clear to everyone except those who think that markets, like their cheerleading, are infinite.]
- Shurgard Storage Centers closing two warehouses as way to cut costs, Reuters via NYT, C12.
...A self-storage real estate investment trust [will] close two [Atlanta and Orange County CA] of 5 Shurgard Storage to Go warehouses and restructure management to cut costs....
- Electronics Boutique Holdings Corp., NYT, C12.
...West Chester, Pa., [will] close its EB Kids unit and sell its BC Sports Collectibles business to focus on its core business, video games.
[Unspecified jobcuts, despite -]
The company will offer jobs to workers displaced by the moves.
[The language we're looking for is, "The company will reassign employees to similar jobs at their other facilities in the area." It is employers' cavalier attitude to people's livelihoods, regardless of all our cultural rhetoric about "earning a living and supporting yourself," that creates the drag on our economy that boomerangs back against employers.]
2/2/2002 6 downsizings, costing 10,110 jobcuts + unspecified, reported in (NYT) NY Times & (BG) Boston Globe -
- Journal's unions agree to job cuts, AP via BG, A5.
JERSEY CITY, N.J. -
[So the grand total is 45 jobcuts out of 96 grand total, giving us a 47% downsizing.]
- In a last-minute deal, the drivers union at the Jersey Journal agreed to give up half its 18 jobs yesterday to save the 135-year-old daily.
[So, 9 jobcuts out of 18 total.]
- The Newspaper Guild, which represents 36 editorial employees, voted overwhelmingly Thursday to allow cutting half the staff;
[So 18 jobcuts out of 36 total.]
- and the union representing 42 sales and office workers agreed to cutting 18 employees.
[So 18 jobcuts out of 42 total.]
2/01/2002 2 downsizings, costing 100 jobcuts + unspecified, reported in (NYT) NY Times & (BG) Boston Globe -
- Lear, an auto parts supplier, to eliminate 6,500 jobs [net], AP via NYT, B3.
...and closing 21 facilities as it adjusts to declines in auto production that left it with a loss...of $48.8m...for 4Q01, versus earnings of $72.4m...the previous year..\.. It expect[s] to complete the job reductions and closings by the end of the year. Overall, Lear is cutting 9,500 but it is adding 3,000 at other sites.
- Lucent Technologies plans more cuts, AP via BG, C1.
...A telecomms equipment maker..\..which has reduced its Merrimack Valley workforce by half in the past year, has notified workers that another 800 jobs will be cut by the end of March. [It] has 2,700 employees in its North Andover MA facility. It plans to trim down to 1,550 workers in preparation for a sale of some of its manufacturing lines.
[Well, 2700-1550= 1,150 planned jobcuts, not just 800.]
- Amtrak sets austerity plan and seeks aid - Threatens to end long-haul routes, by Anthony DePalma, NYT, A13.
...like the Chicago-to-Seattle Empire Builder and the Crescent, which links New York adn New Orleans..\..if Congress does not provide $1.2B in financing next year.
[$1.2B? Symmetry. $2.1B was United Airlines' record loss last year, according to today's "United Airlines' loss for 2001 breaks records," by Laurence Zuckerman, NYT, B2.]
To cut costs, Amtrak will eliminate 1,000 union and management jobs, about 4% of its national workforce.
[So, a national workforce of 25,000. Oohoohooh, we always wanted to work for the RR & drive a locomotive, preferably a steamer (diesel if absolutely necessary). Dad said to work for the CPR cuz you could work your way up to president, but the head of the CNR was a government appointee.]
It will also defer station improvements and limit the refurbishment of railcars to urgent repairs. Ticket window hours at 73 of the least-used rail stations in the nation will be shortened, while spending for advertising, marketing and research will be reduced.... In making the announcement, the company's president, George Warrington, abandoned efforts to reach operational self-suficiency by the end of this year, a goal mandated by Congress.... Mr. Warrington made it clear that he thought the railroad could not run properly without subsidies....
[Hey, we subsidize trucking like crazy repairing roads and highways from the incredible wear and tear these monsters inflict on them, not to mention the huge medical costs of breathing their totally unnecessary but still mega pollution. And we subsidize airlines because the whole airport thing is public ownership. And railroads are a lot safer and less polluting/more efficient than trucking or air cargo.]
- Japan: Layoffs at tape maker, by Ken Belson, NYT, B2.
The world['s] largest maker of magnetic tapes and ferrite, the TDK Corp., will eliminate 400 jobs by the end of March in response to the steep downturn in global sales. The company already plans 9,360 layoffs at its subsidiaries by March 2004. The two rounds of jobcuts will slash the company's workforce 28%.
[We caught 8800 of the previous cuts on 10/06/2001 #1 so now we must count 9360-8800 plus the current 400 cuts = total 960 jobcuts. The 8800 was billed as 20% (so total workforce = 44,000) and the grandtotal of (9360+400=) 9760 is here branded 28% (which if rounded up from 27.8857% gives us a total workforce of only 35,000). But 44000-9760= 34,240. So which is right? Our theory - Ken Belson or his newswire source goofed and took the percentage on the after-cut total instead of the before-cut total. Consider: if October's 20% was rounded down from 19.55% so that the original total workforce was 45,000 and 45000-9760= 35,240, or in round figures = 35,000, we have an explanation. So, we're going to assume the pre-cut Oct. workforce was 45,000. Minus Oct.'s 8800 cut gives us 36,200. And the 960 cuts we're counting now is 2.65% of that midstep total.]
- AMR to cut  jobs and routes at American Eagle, Bloomberg via NYT, B3.
...and may sell a related business [Executive Airlines], actions that would let AMR's American Airlines, the largest carrier, increase its use of efficient regional jets. The layoffs come because a contract clause limits the size of American Eagle while pilots at American Airlines remain on furlough.... American Eagle will ground a...number of turboprop planes, cease operations in 2 cities and curtail flights in 7 markets....
- Butler Manufacturing Co., NYT, B3.
...Kansas City, Mo., a maker of building systems and components...agreed to sell its metal buildings operation in Europe and [will] close offices in Germany and Britain and lay off some workers as part of the accord....
- Elizabeth Arden plans to cut 10% of its workforce, Bloomberg via NYT, C6.
...The maker of cosmetics and fragrances...based in Miami Lakes, Fla. \plans\ to cut 100 jobs...after Q4 sales dropped....
- Staples set to close up to 30 stores, Bloomberg via BG, F2.
...The 2nd-largest US office supply chain, [based in] Framingham MA,...plans to close as many as 30 stores in the next 3 months to cut costs. All but two of the stores are in the United States with the rest in Europe, a spokesman said. He declined to comment on how many employees would be affected, though he said workers will be offered jobs elsewhere in the company.
[Unspecified jobcuts. We're assuming because of the language here that this Staples downsizing is different and additional to the one mentioned below on 1/30/2002 #3. Confirmed correct by more informative NYT story tomorrow. 326 jobcuts but with 120 new stores opening, a net increase of 874 jobs. See tomorrow's good news, 2/2/2002.]
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.
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