Timesizing® Associates - HOMEPAGE
Downsizings, April 2002
[Commentary] ©2002 Phil Hyde, The Timesizing Wire, Box 117, Harvard Square, Cambridge MA 02238 USA (617) 623-8080
4/30/2002 3 downsizings, totaling 2,396 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
4/27/2002 1 downsizing, totaling 180 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- DuPont Textiles to cut 2,000 jobs and take a charge, AP via NYT, C4.
...as part of a restructuring effort expected to save $120m a year.... More than two-thirds of the jobcuts, which amount to about 10% of the company's workforce, will be in the U.S., with most of the balance in Europe. In the U.S., DuPont plans to shut down a manufacturing unit in Niagara Falls, NY, and parts of its spandex operation in Waynesboro, Va.... DuPont Textiles is a unit of E.I. du Pont de Nemours & Co.
[Additional info published later -]
Consolidation of some assets to eliminate about 650 jobs, Dow Jones via 10/31/2002 WSJ, B2.
...In April, the company's DuPont Textiles & Interiors unit said it would cut more than 2,000 jobs, or 10% of its workforce, in preparation for a spinoff by the end of 2003....
- State Street lays off 375, hints at more cuts, by Beth Healy, BG, D3.
After weeks of rumors about a planned layoff, State Street Corp...the Boston MA-based financial services giant..\,,yesterday cut...3% of its eastern Massachusetts workforce, and hinted there could be similar cost-trimming moves in the future....
[American employers still confuse cutting employees - and associated markets - with cutting costs.]
Yesterday's layoff affected mainly people working in technology groups and in adminstration..\.. Some systems workers showed up at State Street's Quincy operations and technology hub yesterday to find that their building passes no longer functioned, employees said.
[Real suave. Companies that treat their employees like crap can't possibly treat customers any better, because it's those same crap-equated employees that come in contact with customers. So you can expect this company's so-called financial "services" to really crap out.]
Security guards directed those people to a conference room, where they were told the bad news.... The layoffs were effective immediately. The workers were offered severance pay and "transition services," State Street said....
State Street has let go of at least 66 other workers in the past few months, in human resources and in bond trading. The company employs 19,500 worldwide....
[Well, we caught 52 of these 66 on 2/14/2002 #4 but that leaves 66-52= 14 still to count. So adding these to the present 375, we get 375+14= 389 jobcuts.]
- Auto parts makers grinding to a halt - Small tool and die shops catering to Big 3 face a changing world - Harbingers of downturns now await an upturn, by Danny Hakim, NYT, C1.
Tom Libera of J & T Tool & Die in Bay City, Mich., used to have nine workers but is down to two. "I'm facing closing," he said. "There's only so much automotive work." [photo caption]
[Let's see, 9-2= 7 jobcuts. Guess all the mainstream economists are going to be yelling and screaming at this guy because he's so totally guilty of their precious "Lump of Labor Fallacy" with that ree-dick-yoo-louse statement that "there's only so much automotive work." However -]
...There are now 965 tool and die shops in the state, about 100 less than five years ago, according to HarrisInfoSource, a publishing and research company that compiles Michigan industrial statistics....
["Oh dear!" shriek mainstream economists, "They're falling for that dopey Lump of Labor Fallacy too! Everyone knows that work is infinite." Yeah, sure. Everything's infinite in infinity, but we're talking about here and now. And according to Tom Libera, around there -]
"Everybody's in the same boat."...
4/26/2002 2 downsizings, totaling 7,450 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Comdisco eliminates jobs and names a president, Reuters via NYT, B4.
The technology and finance company...based in Rosemont, Ill. \will\ cut 180 jobs, or 20% of its workforce, and still hope[s] to emerge from Chapter 11 bankruptcy [see 7/17/2001] late this summer....
4/25/2002 1 downsizing, totaling unspecified jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- As questions persist, Tyco International halts breakup - Plan is called mistake; 7,100 will be laid off, by Alex Berenson via NYT, C1.
...One of the world's largest conglomerates abruptly reversed business strategies yesterday for the second time this year amid persistent questions about its accounting practices and its management credibility.
[Nice way to say that CEO Dennis Kozlowski is a complete moron. "Quit merging and MANAGE" is too-late advice for him. He probably can't really manage, any more than "Chainsaw" Dunlap.]
Just 3 months after saying it would split into 4 pieces and sell a 5th division, Tyco said that the plan was a mistake and that it would break off only one unit. At the same time, the company said that it would lay off 7,100 workers to cut costs and that its profits this year would be much lower than expected.
["Oh what a surprise!" - not]
The announcement drove Tyco's stock to its lowest level in 4 years and left some analysts questioning whether Tyco, which is burdened with $23B in debt, can survive.
[Now we know how dopey Dennis paid for all those takeovers - megaborrowing, which like Enron, he probably dressed up as credits on his books.]
Once one of the stock market's 20 biggest companies, Tyco has lost 65% of its value this year, costing shareholders $76B, almost as much as was lost in the collapse of Enron.
[Serves them right for buying stock in such a bunch of phoneys.]
Tyco's sudden fall from favor is another sign of investors' skepticism about companies that have accounting practices that are confusing and executives who appear less than forthcoming. For most of a decade, Tyco "prospered" [our quotes - ed.], and was strongly supported by Wall Street analysts, despite nagging questions about its financial reporting....
[Yet another indication of how superficial Wall Street is.]
Its board is facing tough questions from investors unhappy about the company's poor performance and the rich pay packages of its top executives.
...Tyco has 240,000 employees....
[So 7100 is 3% of that total. Again the toxic takeover-downsizing connection and again in the downsizing below -]
- VeriSign fires 10% of work force, Bloomberg via BG, E2.
...Sell[er of] Internet security services and regist[rar of] dot-com addresses...fired 10% of its employees after a string of acquisitions boosted its payroll by 1,400 workers. VeriSign fired 350 employees.... VeriSign said its Q1 loss narrowed to $20.9m...from $1.38B...a year before.
4/24/2002 1 downsizing, totaling unspecified jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- BSA Security to fire 200, reorganize, Bloomberg via BG, D2.
Bedford [Mass.-based] make[r of] computer security software is cutting 17% of its workforce, as part of a plan to reorganize and cut costs. The firings this week will cost $8-10m in the second quarter.... Shares fell....
4/23/2002 5 downsizings, totaling 27,580 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Washington [state]: Seattle plans layoffs, by Matthew Preusch, NYT, A18.
Mayor Greg Nickels of Seattle said city departments would probably have to lay off employees as they make budget cuts to deal with a deficit that has grown to $50m. City agencies will probably have to cut 5-18% from their 2003-2004 budgets under the mayor's plan. Mr. Nickels said debt from investments in the 1990's and increased healthcare costs, along with declining tax revenues, were to blame for the budget crisis.
4/22/2002 2 downsizings, totaling 113 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- L. M. Ericsson battens down its hatches - Europe is gloomy over technology, by Alan Cowell, NYT, W1.
As Europe's mobile phone industry reels from mountainous debt and emptying order books...the leading maker of wireless network equipment [will] cut its work force by an additional 20%, that it would still probably lose money this year and that it would ask its shareholders for almost $3B in new investment.... The layoffs...will eliminate 17,000 jobs this year and next, reducing the total work force to 65,000, the company had 107,000 employees at the end of 2000....
[By last 10/26/2001 #3, we had counted 22,000 jobcuts.]
- Lucent Technologies jettisons jobs in its quest for profitability, by Kenneth Gilpin, NYT, C1.
Struggling to stanch losses in an extremely difficult operating environment...the nation's largest manufacturer of telephone equipment said it lost $495m \and\ that it planned to cut 6,000 more jobs - reducing the company to less than half its peak size.... The company has now lost money for 8 consecutive quarters.... The company said yesterday that it intended to pare its work force by the end of September to about 50,000 people, from 56,000 at the end of March.
At its peak, Lucent, which is based in Murray Hill, NJ, had 106,000 employees. That figure does not include about 30,000 employees who work for businesses that Lucent has either sold or spun off....
- MeadWestvaco posts quarterly loss and will cut jobs, Bloomberg via NYT, C4.
...A paper and packaging maker formed through a merger in January had a first-quarter loss and said it would eliminate 3,000 jobs, or 10% of its work force, by 2004. The loss was $63m...on sales of $1.46B.... The company, which is based in Stamfordd, Conn., is closing plants and laying off workers to reduce expenses by $325m a year.
- Dun & Bradstreet to cut 1,300 jobs, Bloomberg via BG, D2.
...Provide[r of] business information said it plans to cut 1,300 jobs by June 2003. The new cuts would bring the total number of jobs eliminated since Oct. 2000 to 3,300, or about 31% of the work force.... Dun & Bradstreet expects to record costs of $30-35m in the current quarter for severance pay and the write-off of assets....
- Guilford Mills to close mills and trim its work force, Bloomberg via NYT, C4.
...A textile maker that filed for Chapter 11 bankruptcy protection last month said it planned to eliminate about 280 and close plants in Mexico and North Carolina. Guilford will shut an apparel plant in Altamira, Mexico, which employs 180, and an associated knitting plant in Lumberton NC with 80 employees. Another 20 sales and support jobs will be lost at headquarters in Greensboro, NC, the CEO, John Emrich said.
4/20/2002 4 downsizings, totaling 18,060 jobcuts + unspecified, reported in (NYT) NY Times & (BG) Boston Globe -
- Staff cuts halt probe of welfare fraud cases, by David Abel, BG, A1.
...On March 1, looking to offset [Massachusetts'] budget crunch..\..Acting Governor Jane Swift...slashed the number of investigators at the Bureau of Special Investigations from 68 to 5, a steep cut on top of the dozens of investigators laid off in recent years..\..
[68-5= 63 jobcuts.]
The state [of Massachusetts] has stopped investigating all new reports of welfare fraud, with about 1,500 new cases untouched since last month, when...Swift drastically cut the number of fraud investigators....
- 50 D'Arcy workers to lose their jobs, by Stuart Elliott, NYT, C10.
D'Arcy Masius Benton & Bowles is laying off about 50 employees, or 10% of the staff in its New York office. Diana McSweeney, a spokeswoman for D'Arcy, confirmed an Adweek report, that about 50 jobs were being eliminated from the New York agency, saying, "the layoffs affected all departments and were across all management levels."
The layoffs come two weeks after Procter & Gamble, moved its $30m Pampers account in the U.S. from D'Arcy to Saatchi & Saatchi in New York, part of the Publicis Groupe. Lance Smith, president of D'Arcy New York, said the layoffs were in response to "recent economic conditions."
4/19/2002 5 downsizings, totaling 9,100 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- NTT of Japan to cut 17,000 jobs, by Ken Belson, NYT, B3.
...about 8% of the total..\..two weeks after announcing the biggest loss for a nonfinancial corporation in Japanese history [¥12.6T=$6.7B]. Nippon Telegraph & Telephone [NTT], the world's largest phone company, said \yester\day that [this would in part] restore its profitability over the next three years.... Beside the jobcuts, the company will slice 15% off its capital spending....
[Another ship of fools that thinks it can grow by shrinking, instead of growing by spreading the work and wages more thinly to centrifuge the nation's spending power and free it from its unspendable concentration under the mattresses of the affluent. Why do we say it's under the mattresses and not invested? Because there are no investments in Japan that are sustainably market supported. The concentration of income, though less than America's, is still so great as to suction the spending power and markets away from its own potential investment targets. The rich just don't spend enough money. There isn't enough time in the day for them to do so. And "investment" in the financial markets creates far too few jobs, and centrifuges far too little spending power, for any significant recovery.]
- Polaroid to close Waltham plant, by Jeffrey Krasner, BG, C1.
...its landmark Waltham film plant for good this summer and move film assembly to plants in Mexico and the Netherlands.... Staffing in the facility, which once employed 600 people in three round-the-clock shifts, has been shrinking ever since Polaroid sold the facility in May....
[We know that 65 were laid off from Waltham per 12/04/2001 #4 so we'll just count 600-65= 535 jobcuts now, even though it's possible that some of the 2000 cuts on 6/14/2001 #2 came out of Waltham.]
- Politics kills momentum of Madagascar job boom, by Henri Cauvin, NYT, B3.
ANTANARIVO...- The political turmoil gripping this country for weeks [2 'presidents' fighting] has produced an ominous side effect: It has knocked flat a booming garment industry serving American retailers.... Workers do not shift so easily, and thousands have been laid off, many of them in the last few days. On an island as poor as it is vast, the effects will be punishing, and they will almost surely outlast the political crisis....
"We have no more salary, but we still have expenses - we must buy some food," Haja Andrianajaina...a garment inspector at the Pret Export factory, said last week, a few hours before the plant closed. "It's not possible to find another job."
The factory, down to one-quarter of its former staff of 700, was trying to finish up one last order - 4,500 pairs of red shorts for the Target chain in the U.S....
[So, 1/4 of 700 = 525 lost jobs.]
- Budget cuts may shelve bookmobile stops, by Trudy Tynan, BG, B5.
SPRINGFIELD, Mass. -...The Pittsfield satellite office..\..of the Western Massachusetts Regional Library System's headquarters in Hatfield...is being closed in July and its bookmobile operation, which serves about 40 libraries, is being consolidated with [Hatfield's], which serves about 60 libraries....
4/18/2002 2 downsizings, totaling 5,900 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- SBC Communications says outlook for '02 is poor, AP via NYT, C4.
...One of the largest telephone companies reported a first-quarter loss yesterday as a result of a charge relating to the reduced value of an e-commerce unit.... A new accounting rule that eliminates goodwill amortization forced SBC to recalculate the value of its Sterling Commerce unit...with the parent company taking a $1.8B charge.... The company, based in San Antonio, said it would cut capital spending and operating costs. A spokesman noted that it had cut 10,000 jobs over the last two quarters.
[Well, we've only counted 5,000 of them so far (1/25/2002 #4), so that leaves another 5,000 jobcuts to count now.]
- Qwest Communications International cuts jobs and predicts a loss, Reuters via NYT, C4.
The voice and data services company [will] cut 2,000 jobs...because of slack demand and the weak economy....
[Some 'recovery,' huh, folks? (This is Will Rogers sitting in, tonite, folks.)]
It said the job cuts, through attrition and layoffs, would cut the number of its employees to 53,000 by Sept. 30. Qwest shares fell....
- PPG Industries to cut 1,000 jobs as earnings fall 39%, Bloomberg via NYT, C4.
...A maker of paints, specialty chemicals and glass products [will] cut...about 3% of its workforce after first-quarter earnings fell 39%.... Revenue fell 11%....as sales dropped in every line of business. PPG has been cutting jobs and closing plants as orders have declined after the makers of automobiles, appliances and electronics sold fewer products. Net income included costs of $55m...related to the jobcuts and plant closings in its automotive-coatings business. Plants in Detroit and Troy, Mich. will be closed and production will be greatly reduced at a plant in Birmingham, England....
- Z-Tel Technologies lays off 350 as it closes an office, Bloomberg via NYT, C4.
...A telecommunications company [that] combines Internet and phone services..\..laid off about 350 employees, or 27% of its staff, as it closed a customer service center in Minot, ND. Z-Tel will move customer service to an office in Atmore, Ala....
[Probably the lowest-wage shantytown in America.]
Z-Tel, based in Tampa, Fla., cut more than 650 jobs and shut three offices last year....
[Well, folks, somehow those 650 jobzaps evaded us last year, so we're going to count all 650+350= 1,000 jobcuts now.]
- Reader's Digest Association says it will cut 100 jobs, Reuters via NYT, C4.
...and exit some product lines as it restructure[s] the U.S. operations of its North America Books and Home Entertainment business.... The jobcuts will be in its U.S. Books and Home Entertainment unit in Pleasantville, NY..\..
[Pleasantville becomes a little less pleasant.]
The publisher said it would eliminate a catalog unit; exit the video business, except for children's videos; and consolidate units to reduce operating losses....
4/17/2002 3 downsizings, totaling 140+?? jobcuts, reported in (NYT) NY Times & (BG) Boston Globe (not counting regional story "Biotech's exiting wounds - New Haven [Conn.] losing jobs, more as firms outgrow it," by Jeffrey Krasner, BG, D4) -
- Delphi links job cuts to a loss in the first quarter, Bloomberg via NYT, C4.
...An autoparts maker [is] eliminating 6,100 jobs, incurring costs that led to a first-quarter loss of $51m. The jobcuts, some previously announced [1,400 were announced on 12/11/2001 #3], began in January and resulted in $174m in expenses, said the CFO Alan Dawes.
[Proving once again that timesizing is a lot cheaper than downsizing.]
The cuts represent 3.2% of the workforce of 192,000. Delphi, based in Troy, Mich. is cutting 17,540 positions, including the most recent reductions, in a program begun in March 2001 [3/30/2001 #1]....
[So, 6100-1400= 4,700 newly announced jobcuts, which is 4700/192000= 2.4% of the total workforce. Note also cut the 8,000 Mexican jobs they cut last year - see 5/01/2001 #1. Alas, they had started the year with such intelligent timesizing - see (1/27 & 1/23/2001).]
- Tellabs to cut work force by 18%, AP via NYT, C6.
Tellabs...based in Napierville, Ill..\..is cutting its work force [by] about 1,200, closing a manufacturing plant and consolidating other sites because of a decline in customer demand. The company will complete the layoffs...by the end of the year, and the Ronkonkoma, NY, manufacturing plant will close in June.... About 950 layoffs will made in the U.S. and 250 overseas.... The layoffs and plant closing are expected to save $100m for the rest of 2002.
[And how much demand will they also 'save' unintentionally?]
4/16/2002 2 downsizings, totaling 11,000 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Cereon Genomics to shut; some jobs shift to Monsanto, by Naomi Aoki, BG, D4.
...A wholly owned subsidiary of Monsanto Inc...will be shut down this summer. The 140 employees of Cereon were told last week of Monsanto's decision to close the Cambridge research outfit.... Some of the employees, although it is not yet clear how many, will be relocated within Monsanto, the spokesman, Mark Buckingham said. Others who choose to remain in Cambridge, however, will have to look elsewhere for jobs....
Cereon was formed in 1997 as part of an alliance between Millennium Pharmaceuticals and Monsanto..\.. "Cereon had, by and large, completed the objectives we'd envisioned for them in terms of establishing a platform for genomics and developing a pipeline of good leads," Buckingham said. "Now we need to take some of those developments forward to turn them into commercial products."...
[So why couldn't Cereon shift gears and do that?]
- Medical device manager to close a plant in San Diego, Reuters via NYT, C4.
...Paradigm Medical Industries said yesterday that it would close its San Diego plant as part of a plan to cut costs by at least $2m a year. The company, which makes surgical and diagnostic equipment, said that it would transfer manufacturing operations to its Salt lake City plant.... By June 30, Paradigm will have cut its workforce by 50%, compared with December 2001, the company said.
- Global Crossing closes flagship Beverly Hills office, AP via BG, D2.
...after a bankruptcy judge ruled the firm could break its $400,000-a-month lease at the historic property owned by [Bermuda-based] Global Crossing's chairman. The opulent building [was] in one of the country's most exclusive neighborhoods....
[A little conflict of interest there? And with the nerve to try the Bermuda route to US tax evasion? Chintzy. And unspecified jobcuts. Stories like make you believe that Micheal Moore is right about CEOs - they don't have a shred of shame - or decency. Quick, we need to review our rare stories of some good CEOs.
4/15/2002 1 downsizing, totaling 850 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- G.E. to cut 7,000 jobs in financial services unit, AP via NYT, C4.
...this year at...GE Capital, as it seeks to cut costs by $1B at the division. The cuts represent slightly more than 2% of G.E.'s workforce of 310,000.... GE Capital has cut 19,000 jobs since the second half of 2000....
- Corning chief is retiring; job cuts set, Bloomberg via NYT, C10.
...The top maker of optical fiber...plans to cut about 4,000 jobs, its CFO, James Flaws, said in an interview....
["Flaws" is right. As corporate strategy, downsizing has a lot of flaws.]
Corning, which eliminated 12,000 jobs last year, is cutting more to reduce expenses....
[And will also get reduced markets as a byproduct of this suicidal excuse for a corporate "strategy." What should they be doing instead? Why, timesizing, not downsizing, naturally!]
[Followup - "Corning will lay off 600 workers in North Carolina, Reuters via 6/12/2002 NYT, C4, "...The maker of fiber optic cable [will] cut more than 600 jobs as it scales back its Corning Cable Systems operations and restructures a plant in N.C. The cuts are part of a previously announced plan to lay off about 4,000 employees, or 12.5% of the global work force, to reduce costs...."]
4/13/2002 1 downsizing, totaling 465 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Paging company set to declare bankruptcy, Bloomberg via NYT, C2.
Metrocall Inc. [the No. 2] paging-services provider, plans to lay off 495 workers and file for Chapter 11 bankruptcy protection from creditors later this month, the company said in a regulatory filing. Metrocall lost $612.8m in 2001, according to the company's annual report filed Friday with the SEC.
In all, Metrocall said it would lay off about 850 of its 2,976 workers this year, or about 29% of its employees, and close a...number of its 30 stores.
Metrocall, which serves about 5.4m customers and has not earned a profit since 1992, is the latest victim in an industry losing customers to cellular telephones and other devices.
[Another quiet refutation of the loud, repeatedly chanted dogma of conventional economists, "But technology creates more jobs than it destroys!"]
The number of one-way pager users in the U.S. fell to about 30m at the end of 2001 from about 50m in 1998, the Cellular Telecoms & Internet Assoc. reported. Metrocall's top 2 competitors are already in bankruptcy court [and]
Motorola, which invented the one-way pocket pager five decades ago, said in December that it would stop making the devices this year.
4/12/2002 2 downsizings, totaling 830 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Avon Products to close British factory, eliminating 465 jobs, AP via NYT, B4.
...The company plans to cease manufacturing in Northampton, Britain, over the next 12 months. Most of that production will be carried out instead at Avon's recently expanded plant in Poland....
[resulting in lower wages in the global economy, more concentrated (and there less active) spending power in the global economy, less decentralized spending power in the UK economy, more job insecurity in the UK, lower domestic demand and weaker markets in the UK, - this kind of job flight to "save" pennies (and concentrate income) is a net loss to the global economy. It's a win-lose strategy, not a win-win one. It wins for Poland (more lower-than-UK wages and slightly higher spending activity) and loses for Britain (no wages for layoffees, more job insecurity felt by all, much lower spending activity). If this poor excuse for corporate strategy cannot be detached from capitalism or transformed into timesizing from downsizing (trimming hours for all, not jobs for a few, and a few more, and...), then near-sighted "capitalist" CEO's themselves will ensure that Marx's prediction of capitalism's self\-destruction will come true.]
4/11/2002 1 downsizing, totaling 150 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Switzerland: Swiss Life layoffs, by Elizabeth Olson, NYT, W1.
Switzerland's largest insurer [will] cut 6% of its workforce, about 800 jobs.... Last year, profits fell 87% as an expansion plan, which included the purchase of Banca del Gottardo of Switzerland, drove up costs.
[Expansion by acquisition isn't expansion. It's just culture clash, job insecurity and debt. So again, the toxic takeover-downsizing connection.]
- Napster cuts 30 jobs, by Matt Richtel, NYT, C3.
...leaving it with a staff of about 75..\.. The Internet service that has been offline since July 2001...is running low on money....
4/10/2002 4 downsizings, totaling 341 jobcuts + unspecified, reported in (NYT) NY Times & (BG) Boston Globe (not counting 'distant early warning' = "Dresdner Kleinwort seen cutting staff," Reuters via BG, C2) -
- Barnes Group cuts jobs, Bloomberg via NYT, C4.
BRISTOL, Conn.- ...A maker of parts used in automobiles and aircraft...eliminated 150 positions in the first quarter, and profit fell 7.5% during the period.... The job cuts at Barnes Aerospace accounted for about 2.8% of the company's work force.
[Though this is not at all clear from this terse article since it doesn't name the implied automobile division of the Barnes Group, only what we take to be the the aircraft division (Barnes Aerospace), we're going to assume that all 150 eliminations were at Barnes Aerospace. At any rate, these 150 lost jobs wipe out the 150 saved jobs we reported on our timesizing-cases page today - see 4/11/2002 #1.]
4/09/2002 6 downsizings, totaling 14,382 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Vitria Technology cuts jobs, Bloomberg via NYT, C3.
...Make[r of] software that permits different computer systems to work together..\..dismissed about 175 workers or 20% of its workforce as it tries to return to profitability. The company...based in Sunnyvale, Calif..\..said that it now employs 700 people. Most of the jobcuts were in North America....
- Menino budget would force layoffs, cut funding for the arts, by Scott Greenberger via BG, front page.
Mayor Thomas Menino [of Boston, Mass.] released the outlines of the first truly bad-news budget of his tenure yesterday, dramatically slashing spending on the arts and for a fiscal watchdog group and forcing the dismissal of 86 central office workers in the Boston public schools. The school system is one of many departments that would get more money than last year, but it would nevertheless have to make cuts because the extra dollars aren't enough to cover the rapidly rising expenses that are unavoidable, such as workers' health insurance.... The primary reason for Boston's budget-tightening is the likelihood of a steep decline in state money, which makes up 30% of the city's overall revenue....
[See yesterday's epidemic of 'crying wolf' about states' so-called budget crises on our timesizing-cases page, 4/09/2002 #2.]
- Lycos Europe to cut French work force, Bloomberg via BG, C2.
...by as much as half to cut costs "in the face of the advertising market's growth slowdown"..\.. The Internet service provider owned by Bertelsmann AG and Lycos Inc...will eliminate between 60 and 80 jobs at its French unit from the current 162 employees....
- Etc., wire services via BG, C2.
Citibank, the world's biggest currency-trading bank, will use State Street Corp.'s electronic trading system after Atriax, a rival network it cofounded, said last week it would shut down....
[Unspecified lost jobs.]
4/08/2002 1 downsizing, totaling 1000 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe
- Andersen to fire 7,000, Reuters via NYT, C4.
...or more than a quarter of its US workforce..\..staggered by a rapid loss of clients because of its role in the Enron scandal.... The layoffs, which Andersen had warned last month were inevitable [unless they cut hours not jobs - ed.], come with the firm's reputation in tatters, its overseas network fast disintegrating, and more US companies replacing it daily as their auditor. ...The layoffs will take place over the next several months. Its audit practice and administrative services will bear the brunt of the personnel cuts from among its 26,000 US employees.
The 89-year-old firm employs about 5,300 people at its headquarters in downtown Chicago.... Employees in Chicago were told in an e-mail to check their voice mail last night to learn whether they should report to work today....
- Levi Strauss to fire 3,600, shut 6 US plants, Reuters via NYT, C4.
...as the jeansmaker shifts production to lower-wage countries such as Mexico.... The jobcuts equal 22% of Levi's workforce. Three factories in Texas and one each in Georgia, California, and Tennessee will close, Levi said. That will leave the closely held firm..\..whose sales are falling for a sixth year...with two US plants, in San Antonio, down from 31 in 1997.... Levi...began making jeans for goldminers in 1887.... San Francisco-based Levi said it is the largest single jeans brand by market share in the world.... About 28% of Levi's jeans for its US businesses have been made at its US plants, down from about two-thirds in 1997....
[The NYT headline is "Levi Strauss to close 6 U.S. plants and lay off 3,300," but right at the end of the article they add, "The two [US] plants that will stay in operation are in San Antonio...but 300 jobs will be trimmed from one of those plants as well."]
- China: Toy factory closed, Reuters via NYT, C4.
...China Labor Watch, which is based in New York...said 1,500 workers were fired Saturday without their February or March wages \by\ the Shiuhe Electronics factory in Dongguan in the southern province of Guandong.... Most were from poor, inland provinces and could not afford to get home from Dongguan, on the coast near Hong Kong.... The factory declared bankruptcy on Saturday.
- Japan: Tobacco job cuts, Reuters via NYT, C4.
Hurt by high costs and a decline in smoking, Japan Tobacco Inc. [JT] will speed up jobcuts and other restructuring steps to increase profit. JY, which controls about 70% of Japan's tobacco market, will eliminate 1,300 jobs, or 7.3% of its workforce, by March 2005. The company will merge domestic production facilities and sales offices and expand its pharmaceutical and food businesses....
- Enterasys Networks set to fire 30% of work force, Bloomberg via NYT, C8.
...The computer-networking equipment maker under investigation by federal regulators will dismiss 730 workers or 30% of its employees and trim capital spending as sales fall. The workforce will be reduced to 1,700.... The CEO and two other senior executives quit last week amid a two-month inquiry by the SEC.... Enterasys...based in Portsmouth, NH..\..has no debt and $260m in cash after spending $70m in the first quarter....
- La-Z-Boy will slow manufacturing and cut some jobs, Reuters via NYT, C4.
The furniture maker [will] close a plant in Virginia and halt manufacturing at a plant in North Carolina as a result of the slowdown in the lodging industry after 9/11.... The Virginia plant, in Chilhowie, will be closed as of mid-June, with a loss of about 245 jobs. Production will be shifted to a plant in Martinsville, Va., where about 75 jobs will be added to handle the additional volume.... The other plant, in Granite Falls, NC, will be phased out by July with the loss of 82 jobs.
[So, 245 down, 75 up and 82 back down gives us net 252 jobcuts.]
(not counting sectorwide "Tech sector jobless see global force as culprit - Some blame H-1B visa program, offshore labor [outsourcing] for layoffs," 4/07/2002 Boston Sunday Globe, J1) -
4/06/2002 1 downsizing, totaling 1000 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe
(not counting overview [U.S.] unemployment rises to 5.7%, erasing a gain, by Louis Uchitelle, NYT, front page) -
- Australian bank cuts jobs, AP via NYT, A11.
SYDNEY...- Australia's biggest and most profitable bank [will] cut 2,050 jobs as part of a major restructuring and cost-cutting plan. The National Australia Bank [NAB] said that 1,500 of the jobs would be eliminated in the next 18 months as part of its strategy for future growth.
[You can't grow by downsizing. And you can't grow by cutting your own best markets (your own employees) and your corporate morale. NAB is inducing recession in Australia, like any damn fool company that downsizes despite profit. And as for all those idiotic conventional economists who claim that technology creates more jobs than it destroys -]
The bank's CEO, Frank Cicutto, said that streamlining throughout the group as a result of investment in new technology would reduce the number of jobs the bank needs to operate, particularly in administration and back-office areas.... Details of the job cuts came after the bank confirmed last week it would shut 56 branches in rural areas across Australia....
[More technology, less service and convenience. These guys just don't get it. Technology can make things easier for human beings but caught in the grip of outdated ideas, today's CEOs downsize instead of timesizing, "consolidate" instead of facilitating further services to further rural areas, and turn technology's promise into a curse - a new kind of Luddism.]
The company said it would invest more than $100m to improve its wealth management operations in Australia, the U.S. and Britain.
[And these CEOs have such a herd mentality, they just want to do what everybody else is doing - more and more desperate marketing to fewer and fewer richer and richer people who have get more and more solicitations and don't have anything sustainable to invest in, because their super-consolidated income is sucking the markets away from their own investment targets.]
4/05/2002 1 industrywide story, and 3 downsizings totaling 948 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Japan: Another bank loss, by Ken Belson, NYT, B3.
The Sumitomo Mitsui Banking Group...Japan's second biggest lender..\..accelerating its write-off of non-performing loans, tripled its loss for the fiscal year that ended on Mar. 31.... The announcement came after financial regulators completed a round of special inspections to re-evaluate the amount of non-performing loans at banks. Sumitomo Mitsui also lowered its dividend and said it would lay off an additional 1,000 workers.
- Retail sector could face record job cuts, AP via BG, C2.
The pace of retail job cuts, which increased dramatically after 9/11, has accelerated in 2002 and this year's losses could be the worst in at least two decades, as the industry consolidates, according to...a survey by Challenger, Gray & Christmas Inc., an employment research and recruiting firm.
[Retail is the flagship of the services sector. If that's in the toilet, what's left?
During the first three months of this year, 51,078 retail jobcuts have been announced, including the 22,000 job losses [at bankrupt Kmart. In retail alone,] that is already [over] halfway to...last year's record of 96,741 cuts, Challenger said.
- [First we mechanized the agricultural sector with tractors and combine harvesters, and while mainstream economists were assuring us that "technology creates more jobs that it destroys," people let go from the farms left rural America in their 100,000s to get factory jobs in the cities, same as they're doing in China right now. The consolidation of spending power picked up and the boom-bust cycle intensified and busts were mitigated by jerkily cutting the workweek, from 80 in 1840 to 40 in 1940.
- [Then we robotized the manufacturing sector, and while mainstream economists were sneering at anyone who so much as hinted that we might have to divide among ourselves the limited or shrinking employment available, calling such a silly notion the "the lump of labor fallacy," people let go from the factories nevertheless resorted to the services sector in their millions, with considerable loss in pay, and the rest of the world followed. The consolidation of spending power accelerated and the boom-bust cycle intensified further and busts could only be "solved" by militarization.
- [Now we're automating the services sector with voice recognition and desktop publishing and super-spreadsheets like Turbotax, and while mainstream economists still fail to recognize worktime per person as a variable let alone a control variable let alone THE control variable of our stage of social evolution, the consolidation of wealth has gone beyond imagination and the boom-bust cycle has intensified even further and busts can only be "solved" by a combination of militarization and prison construction. The rest of the world is beginning to smell suicidal stupidity among our mainstream economists and turn to Europe, not us/US, for even hints of a better solution. Japan's labor minister went to Germany in January to study work-sharing systems.]
[Note that Challenger Gray & Christmas, a PRIVATE firm, is doing the critical research that none of our mainstream or government economists are doing. Is there perhaps a lawsuit for negligence and malpractice here, if not against mainstream or government economists, at least by them against Challenger for showing them up as the irrelevant place-holders they are?]
...[John] Challenger said the job losses [in retail alone this year] will be the worst since the early 1980s. Challenger believes the retail category could be ranked among the top two industries, rivaling the telecom and automotive sectors, as having the largest downsizing this year. Last year...telecoms...lost 317,000 jobs. [But] since 1993, when Challenger officially started tracking the employment data, 586,523 jobcuts have been announced by retailers - 41% of which have occurred since 2000 [in the last 25% of that 9¼-year period].
[With stories like this from the services sector, plus a little push today from "Andersen thinning its ranks," pointer summary (to C1), NYT, A2, which states, "Arthur Andersen is preparing to shed up to 7,000 employees through layoffs," is it any wonder we're getting headlines like today's "Pension change puts the burden on the worker - U.S. workers are facing a new kind of retirement - Why are Americans optimistic about retiring when they've saved so little?" by Edward Wyatt, NYT, front page & C2. Now that we've tossed Jack Kevorkian in jail, the only possible answer left is that our policy of transfering tax revenues from libraries and schools (eg: see "Michigan: Teacher layoffs" below) and healthcare to Pentagon and prisons and Israel has made our DDA program - to Dumb Down America - successful beyond our wildest dreams.]
4/4/2002 2 downsizings, totaling 4600 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Monsanto plans closings and jobcuts as it revamps, Bloomberg via NYT, C3.
Monsanto will cut up to 5% of its workforce and close some plants as it reorganizes while awaiting regulatory approval of new bio-engineered crops....
[Double Frankenstein - frankenfoods and frankenstrategy.]
Monsanto, which has 14,600 employees, will cut fewer than 700 jobs.... The reductions will be at labs, offices and other plants in North America, Asia, New Zealand and Australia....
- Layoffs at AOL investment, Reuters via NYT, C4.
Time Warner Telecom...released 140 employees, parly because of the sluggish economy. ...The company, which is based in Littleton, Colo., and is partly owned by AOL Time Warner...expect[s] to employ about 2,200 people after the release of the workers....
- Michigan: Teacher layoffs, AP via NYT, A18.
More than one-third of East Lansing's teachers will be laid off at the end of the school year in a budget-cutting measure. The district handed out pink slips to 108 of its 279 full- and part-time teachers and said others would also be laid off. The district [has] 3,700 students....
[Moving its teacher:student ratio from 1:13 to 1:34.]
4/03/2002 3 downsizings, totaling 450+?? jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- WorldCom to redeem notes to try to cut debt, Reuters via NYT, C4.
...WorldCom, which is based in Clinton, Miss., [will] lay off 3,700 workers at its main data and Internet business, or 4% or its total workforce, as it continues to trim costs to offset slowing revenue growth.
[Glad we didn't jump yesterday and count the reputed 7000.]
- Japan: Verio to get loan, by Ken Belson, NYT, W1.
...[from] parent NTT Communications [which] has also announced 900 jobcuts and plans to close data centers.
4/02/2002 2 downsizings, totaling 1,630 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Credit Suisse First Boston eliminates 300 executive positions, by Andrew Sorkin, NYT, C10.
...including those of about 50 managing directors, as part of the bank's aggressive campaign to trim costs.... Yesterday's cut represent about 15% of the professional staff, bringing the total to 2,200....
[Again, we'll "wait for it" on the "7,000 jobs expected to be cut at WorldCom," by Simon Romero, NYT, C11.]
- Bangor Hydro might cut work force, AP via BG, C2.
Employees of Bangor [Maine] Hydro-Electric Co. say the utility might slash its 425-person workforce by almost half. The utility, a subsidiary of Emera Inc. of Nova Scotia, informed employees last week that 71 workers were offered early retirement packages and that another 79 union jobs will be cut....
[71+79= 150 company-acknowledged jobcuts so far.]
- Mass. mulls pulling pension money, Bloomberg via BG, C2.
Schroders PLC, Europe's 3rd-largest pension fund manager, might lose the business fo the $29B retirement fund for Massachusetts state employees.... The state is "very concerned about the organizational stability and underperformance" of Schroders.... Schroders is shedding jobs and shuttering offices after it said it overstated its 2000 profits because of accounting errors.
[Unspecified lost jobs.]
- Interpublic Group of Cos. to eliminate 1,600 jobs, Bloomberg via BG, D2.
...The world's largest advertising agency will eliminate...3% of its workforce by midyear to reduce costs.... The jobcuts are part of reductions that led to 5,200 firings in 2001.... Interpublic has 54,100 employees....
- Xybernaut plans to lay off workers, NYT, C4.
...Make[r of] wearable and mobile computer hardware and software [will] cut about 15-20% of its workforce or about 30 employees, as part of a program to reduce costs.... The company [is] based in Fairfax, Va....
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