Timesizing® Associates - HOMEPAGE
Downsizings, May 2002
[Commentary] ©2002 Phil Hyde, The Timesizing Wire, Box 117, Harvard Square, Cambridge MA 02238 USA (617) 623-8080
5/31/2002 1 downsizing, totaling 46 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
5/30/2002 6 downsizings, totaling 8,605 jobcuts + unspecified, reported in (NYT) NY Times & (BG) Boston Globe -
- Essex County newspapers name editors and announce layoffs - Restructuring aims to 'find efficiencies', by Mark Jurkowitz, BG, C3.
N.E. MASSACHUSETTS - Less than 2 months after announcing the $70m purchase of The Salem Evening News, Gloucester Daily Times, and The Daily News of Newburyport, Lawrence Eagle-Tribune publisher Irving "Chip" Rogers is moving quickly to put his stamp on the new operation.
[Or just to stamp on the operation.]
That includes the layoff of an estimated 46 full-time employees and a restructuring that moves William Ketter, former editor of The Patriot Ledger of Quincy, into a new super editor role....
Almost as soon as the sale was announced, Eagle-Tribune management began hinting at possible cuts....
[Again, the growth-gutting, downturn-inducing takeover-downsizing connection.]
And in recent days, letters sent to terminated employees indicated that they would be eligible for a severance program based on 2 wks' pay for each year of service (with a cap of 26 wks) and offered workshops on employment "transition" conducted by a career management consulting company.
5/29/2002 2 downsizings, totaling 22,028 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe
- Nortel to cut more jobs, sell off units, by Peter Howe, BG, E1.
With no turnaround in the telecom-equipment market in sight, Nortel Networks...based in Brampton, Ont. \North America's 2nd biggest maker of phone equipment\ will slash another 3,500 jobs, or about 7% of its workforce, and may sell off operations including a Wilmington start-up it bought for $1.4B 2 years ago....
[Proof positive that Canucks can be just as dumb as Yanks. The %-deficient NYT version is -]
Nortel to cut 3,500 jobs, by Andrew Zipern, NYT, C6.
- Britain: New job cuts at bank, Bloomberg via NYT, W1.
Barclays, the British bank, plans to shed about 1,000 consumer banking jobs, or 4% of the unit's staff, after profit stagnated last year. The reductions are in addition to 1,800 jobcuts announced in Feb.
[Didn't see anything about it then, so we'll count'em now: 1800+1000= 2,800 total jobcuts.]
- Labor dispute to halt most Aer Lingus flights, by Brian Lavery, NYT, W1.
Dublin -...Aer Lingus has already shed more than 2,000 jobs....
[We counted a total of 2,500 by 10/18/2001 #6, and didn't count 2,000 reported by AP on 11/01/2001 "not counting" section. So now we'll count those 2,000 cuts.]
- Energy trader plans layoffs, Bloomberg via NYT, C4.
HOUSTON...- The El Paso Corp., the natural gas pipeline owner, reduced its profit forecast [yester]day, and announced plans to lay off about 300 employees [2%] in its trading unit and to sell assets and $1.5B in stock to raise cash and trim debt....
- Companywide layoffs hit IBM Vt. plant, wire services via BG, E2.
A handful of employees [so let's call it 5] were laid off in a support unit at the Essex Junction, Vt., IBM plant said IBM spokesman Jeff Couture.
[Évidemment pas haute couture, alors peut-être basse couture.]
"It's in the single digits," he said,
[All this coyness over a single-digit layoff!?]
adding that the layoffs were part of companywide layoffs in the Global Services unit....
[which we've probably already counted but 5 don't make much difference one way or t'other.]
Employees...reported about 220 jobcuts in three locations....
[These 220 may be part of the 700 in 3 locations reported on 5/24 #2 below, and we have more references on 5/14 #1 below, but mostly to Burlington, not Essex Junc., Vt.]
- Britain - After 150-plus years, feisty Punch pulled, Reuters via BG, A8.
LONDON - Punch, the satirical magazine that lampooned the British establishment for more than 150 years, has closed, its owner announced yesterday.
The magazine, published twice a month, has seen its circulation slump to less than 6,000 per issue from a peak of 175,000 in the 1940s. With the periodical costing $58,000 per issue, Mohammed Al Fayed, the Egyptian multimillionaire, has decided to pull the plug.
[A "name" for 150 years? - he can't find a buyer for that kind of pedigree?! What a disgrace. And meanwhile, why on Earth would the British establishment enjoy being mocked by an foreigner, dahling, especially a "Hayrab" at this post-9/11 juncture?]Therein lies the big risk in selling one of your national institutions to a foreigner in the first place. Perchance we can offer Punch the best snob swansong in the immortal words of the Flanders & Swan song,
The British, the British, the British are best.
I wouldn't give tuppence for all of the rest!]
...A virtual Punch will continue on the Internet.
["virtual" - smirch-u-al.]
(not counting continentwide industrywide story, "European Union plans to cut fishing fleets," AP via NYT, A8, which states, "The EU's head office announced plans [yester]day for a major overhaul of the 100,000-vessel fishing industry, including a call for cutting some national fleets by as much as 60%. National politicians are wrangling behind the scenes in an effort to soften the measures, which could erase thousands of jobs across Europe. ...Fish stocks in European waters have been vastly diminished by overfishing. ...Fisheries Commissioner Franz Fischler[!] said...'The desperate race for fish has to stop.'" But it ain't gonna stop until the EU gets serious about sharing the vanishing work, or joins India & Pakistan in a major mutual population reduction à la nucléaire!) -
5/25/2002 1 downsizing, totaling 5500 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe
- Deutsche Telekom to ax 22,000 jobs, AP via BG, C5.
...or 9%, by the end of 2004 as the telecommunications giant struggles to cut costs and pull itself out of debt....
[But there's a NYT version -]
Telekom cuts jobs, by Edmund Andrews, NYT, C4.
With its share price beneath the level of its IPO nearly 6 years ago, Deutsche Telekom said it would cut 30,000 jobs, or about 12% of its workforce, by the end of 2004....
[Why the big diff? Only the Globe version has the answer -]
..\..Deutsche Telekom's embattled chief executive...Ron Sommer said...Telekom would cut almost 30,000 from its 245,000-strong workforce in Germany by the end of 2004, but plans to hire staff in the same period would bring the net number of jobcuts to about 22,000....
[Followup - we think this is about the same cuts -]
Germany: Deutsche Telekom jobs to be cut, by Petra Kappl, NYT, W1.
...Europe's biggest phone company plans to cut 29,500 jobs at its fixed-line unit T-Com by 2005 [compare "by the end of 2004" above] to increase efficiency and reduce costs.... Being the group's core profit division, T-Com['s] earnings declined.... The 29,500 jobcuts include 7,200 that were part of of a previously announced cost-cutting program. Deutsche Telekom said it planned to cut 14,000 jobs next year and another 8,500 the following year....
- Holland & Knight hires 4 senior lawyers - Move comes month after firing of 32, AP via BG, C3.
...including four partners....
[First we've heard of it, so we count them now.]
James Smeallie, executive partner for the Tallahassee, Fla.-based firm, said the 32 firings in Boston were "part of a strategic plan to align our resources, including our lawyers, with client needs."...
[Like humans aren't versatile? Per above story, 32 down, 4 back up nets 28 jobcuts. It gets worse -]
"Lots of law firms are getting rid of costs in various ways," said Jeff Coburn, a consultant to law firms in Boston. That means cutting young lawyers, administrative staffers, and expensive meetings, he said.
[Yeah, gotta "get rid of" those nasty employee-unit costs - never mind the flaws in the concept of an employee-less economy.]
"The most courageous ones are cutting partners as well," he said....
[Now we're supposed to admire those who are downsizing, i.e., ungrowing, their firms for their courage? Wouldn't the Limits to Growth team (MIT, 1971) love this!]
(not counting economywide story, "Brazil: [April] unemployment rate rises [to 8.2%, highest in 2 yrs]," Bloomberg via NYT, B2, which states, "Construction and retail companies laid off workers and a weak economy failed to absorb an increasing number of people seeking work.") -
5/24/2002 3 more downsizings, totaling 2,060 net jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Japan: Carmaker has narrower loss, AP via NYT, B2.
Isuzu Motors, which is controlled by GM, reported a narrower loss for the most recent fiscal year...of ¥43B ($344m).... It lost ¥67B a year earlier. Isuzu has cut 5,500 jobs, sold assets and closed a plant to reduce costs....
[Last cuts (3300) on 11/27/2001 #1.]
5/23/2002 3 downsizings, costing 3,500 jobs, reported in (NYT) NY Times & (BG) Boston Globe
- Japan: Dairy company overhaul, by Ken Belson, NYT, W1.
The scandal-ridden Snow Brand Milk, Japan's largest dairy, asked its main creditors for another 50B yen in financial aid and announced an additional 1,300 jobcuts by September. The company will also sell part of its ice cream and baby foods businesses. Snow Brand has been under attack since some of its milk products sickened thousands of customers last year....
- Layoff notices at I.B.M. plants, AP via NYT, C4.
More than 700 employees at IBM plants around the U.S. were told yesterday that their jobs would be eliminated. The cuts were announced at plants in Endicott and Poughkeepsie in New York, San Jose CA, and Rochester MN. A spokeswoman for the IBM server group, Jan Butler, said layoffs were under way at IBM plants but could not confirm the number of employees or plants affected.
- Avon to close plant in New York State and cut 260 jobs, Dow Jones/AP via NYT, C4.
Avon Products...would phase out its plant in Suffern NY over the next 12 months as part of a realignment of manufacturing operations in the U.S. The majority of the production will be transferred to a larger and more efficient plant in Springdale, Ohio.... Avon said that about 260 jobs would be eliminated at Suffern, about 35 miles northwest of Midtown Manhattan, but that it expected to add about 200 jobs at Springdale. Avon also said it planned to build a research and development center to replace the Suffern plant.
[So, net job loss of 260-200= 60 positions.]
(not counting "City [of Somerville MA] forced to layoff workers - School department hit first, 42 jobs on chopping block - Worst yet to come: City workers to be hit," by David McLaughlin, Somerville Journal, front page) -
5/22/2002 1 downsizing, costing 500 jobs, reported in (NYT) NY Times & (BG) Boston Globe -
- Germany: Siemens cuts jobs, by Petra Kappl, via NYT, W1.
The German electronics and engineering group [will] cut 2,000 jobs and sell nonprofitable activities of its industrial services unit, affecting another 5,000 jobs, after the division posted a first-half operating loss. The industrial unit, which has 30,000 employees, said demand for its products and services was weakening. About 2/3 of the jobs will be cut in Germany. The restructuring aims at saving more than 500m euros ($464m)....
[The 2000 cuts are 6.7% of the total workforce of 30,000.]
- Germany: Job cuts at Bayer, Reuters via NYT, W1.
The German drug maker [will] double jobcuts at its drug operations, to 2,600, to save an additional 400m euros ($3368.1m) over the next 18 months. The plan follows a disappointing performance at Bayer's life sciences unit in Q1....
[So, half of 2600 is 1,300 jobcuts.]
[Followup - tipped off by an article next year, we scoped back to 8/10/2001 #1 and found the number of layoffs they were doubling here was 1800, so the total should have been 3600 here, not just 2600. We correct this on 4/26/2003.]
- Guidant is cutting 200 jobs at 3 California plants, AP, NYT, C3.
...as it revamps its divisions. The workforce reductions will be at endovascular solutions operations in Santa Clara, Menlo Park and Temecula, with about half of the workers expected to be offered positions at other Guidant sites.... Guiidant, which is based in Indianapolis, has more than 10,000 employees and makes instruments to treat heart and vascular diseases, including pacemakers, defibrillators and drug-coated stents.
5/20/2002 yet 2 more downsizings, totaling unspecified jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Fairchild Dornier allowed to shift bankruptcy filing, Bloomberg via NYT, C4.
...from Chapter 7, which calls for liquidation, to Chapter 11, which allows for a reorganization.... On April 25, 12 former employees filed an involuntary Chapter 7 bankruptcy petition against the company's U.S. unit in Federal Bankruptcy Court in Alexandria, Va. [The] maker of regional jets had earlier laid off 500 of its 700 workers [71%] in the U.S....
5/18/2002 2 more downsizings, totaling 5,000 jobcuts + unspecified, reported in (NYT) NY Times & (BG) Boston Globe
(not counting regional story, "Jobless rate hits 4.7% in the [Mass.] - Rise in job seekers cited in increase to a 6-year-high in April," by Thomas Palmer, BG, D1) -
- Online gallery is on the block: Visitors came, but didn't stay, by Matthew Mirapaul, NYT, C6.
...Last May, Getty Images folded its Art.com venture.
[Unmentioned in NYT or BG till now so we count it now - unspecified lost jobs.]
The domain was bought by Allwall.com, an online poster vendor that continues to operate a site at that Web address....
- Online gallery is on the block: Visitors came, but didn't stay, by Matthew Mirapaul, NYT, C6.
Eyestorm.com [which] was established to sell exclusive artwork to the Internet masses has been declared insolvent and is now itself for sale. ...The company soon learned what most suspected: unlike the online purchasers of books and CD's, art lovers are reluctant to buy works they have not experienced first-hand..\.. David A. Ross, who abruptly left his post as director of the San Francisco Museum of Modern Art and became Eyestorm's chairman last October,
[- the more fool he! (but maybe he didn't have a choice) -]
confirmed in an email message Thursday that the company, based in London was being liquidated.... Mr. Ross...referred inquiries to BDO Stoy Hayward, a British accounting firm.... Former employees said staff members who were assigned to attract big-name artists spent lavishly in the pursuit. To offset these costs, the company set high sales goals that, when they were not met, resulted in frequent layoffs and reorganization.... Last Wednesday, BDO reps arrived at Eyestorm's London HQ and sent everyone home without pay, except for a skeleton crew, former employees said....
[Unspecified lost jobs.]
5/17/2002 2 downsizings, totaling 60 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- BellSouth plans to eliminate 4,000 to 5,000 jobs, AP via NYT, B4.
...or as much as 6% of its workforce as it struggles with a weak economy and tougher competition. Management employees will be offered incentives to leave, but if too few accept by June 14, layoffs will begin in July, the company said. Nonmanagement jobs will be worked out through the workers' union. In October [see 10/19/2001 #1], BellSouth, based in Atlanta, cut 3,000 jobs. In December [see 12/15/2001 #4], it eliminated another 1,200 jobs.
- Landmark store hanging up its boots - Rising rent forces out Western wear retailer Walker's, by Thomas Grillo, BG, D1.
After providing bikers, equestrians, and rock stars with Western wear for 70 years, Walker's Riding Apparel on Boylston Street will close its doors May 31.... The landmark store, whose regulars have included entertainers Willie Nelson, Eric Clapton, Aerosmith, Elvis Costello, Peter Wolf, and Boston's legendary Rex Trailer, has fallen victim to Boston's hot real estate market. The landlord, Emerson College, plans to raise the rent for the 2,500-sq-ft space from $5,000 to $9,083 per month, according to Walker's own Peter Gordon... as the opening of the mixed-use Millennium Place - with a Ritz-Carlton hotel, luxury condominiums and a 19-screen cinema - has driven up property values in the neighborhood.
[Doubling the rent?! Thus proving that if colleges ruled the world, it wouldn't be any better. Unspecified jobs lost.]
5/16/2002 1 downsizing, totaling 950 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Etc...Variagenics Inc., Globe staff & wire services, BG, E2.
...of Cambridge MA plans to reduce its workforce by 30%, or 40 jobs, as it restructures to conserve cash and focus resources on its onocology molecular diagnostic development programs. ...The company will have 90 employees after the reductions.
[40/(40+90)x100% actually equals 30.77%, so say 31%.]
- Purge at Hynix, by Don Kirk, NYT, C5.
Hynix Semiconductor dismissed a third of its 60 top executives yesterday, including Cho Kyu Chung, its chief financial adviser, and Jeon In Baek, restructuring chief....
[1/3 of 60 is 20 dismissals.]
5/15/2002 3 downsizings, totaling 438 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe
- Canada: A telecommunications bankruptcy, Reuters via NYT, W1.
Teleglobe Inc., a unit of BCE Inc., Canada's dominant telecomms company [will] seek bankruptcy protection, lay off half of its 1,600 employees and exit businesses to focus on its core voice operations. Stung by excess capacity in the telecomms industry, Teleglobe said it would quit its Web host and data transmission services.... Teleglobe said it would lay off 850 to 950 employees, half of them in the U.S....
[We take the max because this is one of those outfits that starts with a rounded-down fraction (half of 1600=800) and comes in with a range that doesn't even start till 50 higher. 950 is 59% of 1600.]
(not counting "California will lay off 4,000 state workers," Bloomberg via Metro, 03) -
5/14/2002 3 downsizings, totaling 1,319 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Allmerica Financial to eliminate 20% of agents, by Scott Nelson, BG, D2.
...The Worcester MA insurer..\..plans to reduce its agent workforce by 377...of the total sellers of its property-casualty insurance, and stopped another 314 agencies from peddling its property-casualty products. CEO John O'Brien sa[id] he was paring agents who write unprofitable business and exiting another 20 specialty lines of insurance...that don't contribute to the bottom line.
- Daewoo US unit to file for bankruptcy, AP via BG, D2.
The US arm of Daewoo Motor Co. will file for bankruptcy within days, according to a company official. "We basically don't have any products we can distribute any more," said Mike Mahoney, general manager of field operations at Daewoo Motor America. Last month, GM said it would buy a stake in a new company that includes the assets of the bankrupt South Korean automaker Daewoo Motor Co., but not Daewoo Motor America. Only 60 employees remain at the company's Compton, Calif. headquarters, Mahoney said....
[No products to sell? That's "curtains" for these 60 hitherto survivors.]
- Changes unfold at The Pilot newspaper - Editor departing, layoffs are set, move weighed - Monsignor Peter V. Conley, the longtime editor of The Pilot, will officially leave the paper this week, by Michael Paulson, BG, A19.
The [Roman] Catholic newspaper of the Archdiocese of Boston has laid off one of its two full-time reporters, is considering moving from its downtown headquarters, and has replaced its longtime top editor [Conley]. The changes are the result of budget woes and a transition in the paper's management that predate the clergy sexual abuse crisis, according to church officials....
[Well, as me dair olde grannie used to say, "I believe you but thousands wouldn't."]
...Since September, Conley's sole duty has been writing the paper's editorials, and he drew nationwide attention in March with an editorial which said that questions such as the role of priestly celibacy and whether the priesthood attracts a disproportionate number of gay men "have taken on an urgency and will not slip away."
[Whoah, radical - not, but...]
Cardinal Bernard Law[less?], the publisher of The Pilot, immediately distanced himself from the editorial, saying it "unfortunately created confusion" and that "it is not the editorial position of The Pilot that clerical celibacy should be reviewed by the church with the purpose of a change in discipline."...
["Discipline"? What "discipline"?]
Although Conley's March editorial promised that the paper would address "the questions that circulate around the issue of ordaining women" the following week, that editorial was never published....
[Vatican Inc/USA continues its implosion.]
5/13/2002 1 downsizing, totaling 3000 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Layoffs said to loom at IBM - Securities firm says ax will fall at Vermont plant, by Hiawatha Bray, BG, D2.
["Ax" in this story, AXA in the next.]
...Fechtor, Detwiler & Co..\..a Boston securities firm, is telling its clients that IBM Corp. plans to lay off up to 1,500 workers at its huge Burlington, Vt. microprocessor plant, and that IBM is seeking a buyer for the site....
[We caught a probable 500 of these layoffs in a group of 1200 jobcuts on 11/29/2001 #1 s.1 and saw a reference to a probable 730 more of them on 1/11/2002 among the uncounted mentions, making the current 1500 figure likely. So we'll now count the still uncounted 1500-500= 1,000 jobcuts in Burlington Vt.]
- France: Insurer's revenue rises, by Kerry Shaw, NYT, W1.
Europe's second-biggest insurer, AXA...is taking steps to cut costs by 600m euros;..\..its CEO, Henri de Castries...eliminated 530 positions in the U.S.
[we counted 525 of these on 12/19/2001 #4, leaving 5 still to be counted.]
and has hinted at cutting as many as 300 more in Britain.
[On the theory that CEOs don't usually come out with such morale-bashing "hints" without reason, we'll count these. So our total is 5+300= 305 jobcuts.]
- Harvard publishing division fires 14, by D.C. Denison, BG, D3.
Harvard Business School Publishing, the Harvard University subsidiary that publishes the Harvarad Business Review, fired 14 staffers yesterday. According to spokeswoman Sarah McConville, the layoff was "the outcome of a long-term strategic planning process." The publishing group...now numbers around 250 employees....
[We're going to interpret "fired" as "laid off" here, though it's possible there was some kind of mutiny following top editor Suzy Wetlaufer's forced resignation last month after she revealed she had a "personal relationship" with an interviewee (Jack Welch). This then is a downsizing of 14/(14+250)x100%= 5.3% of the total workforce.]
5/11/2002 1 downsizing, totaling 60 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Telecom job-cut toll: 120,000 - Even more cuts expected in '02, Bloomberg via BG, C4.
...To cope with the collapse in demand, San Antonio-based SBC is cutting 8,000 positions, or 4% of staff, this year after posting its first loss in almost five years in the first quarter as sales fell 6%....
[We caught 5000 of these cuts on 4/19/2002 #1. That leaves 8000-5000= 3,000 jobcuts to count now. If 8000 cuts is 4% of staff, staff is 200,000 and 3000 layoffs is a 1.5% cut. This is in the right ballpark with the 216,000 employees they had back in Oct. according to our 10/23/2001 #2 story.]
5/10/2002 our recent run of daily doubles continues with 2 downsizings, totaling 13,400 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe (not counting "Factory jobs, then workers, leaving poorest southern areas," by David Halbfinger, NYT, A16, which states, "Kingstree SC [is] the seat of Williamsburg County and the epicenter of the storm that has swept the manufacturing sector throughout the coastal Southeast. ...The exodus of [unemployed] people...has shrunk the workforce by more than 5,000 in recent years, but the unemployment rate - 14.1% in March - remains the highest in the state. The able-bodied workers who have not left their homes and families behind...often say that they would if they could only figure out where the jobs are. The recession's effects...have been felt most sharply in the predominantly black, persistently poor coastal lowlands, where small and medium-sized factories began cropping up...back in the 1950's.... Now, one weed at a time, nature is reclaiming many of those now-deserted industrial plants. ...In the 15 months that ended in March, factories in rural areas accounted for nearly 7 out of 10 manufacturing jobs lost in [SC, NC, and GA]. ...In South Carolina...rural economies are home to only 47% of the manufacturing workforce but [accounted for] 72% of the 29,400 jobs lost from Dec/2000 to Mar/2002.... In the production of durable goods...rural areas represented just 45% of the labor force, but accounted for 87% of the 12,200 jobs lost....") -
- Aspen buy rival for $99m - Hyprotech deal will mean end of 60 jobs, by Ross Kerber, BG, C1.
[Again the lethal takeover-downsizing connection.]
Aspen Technology Inc. of Cambridge, a maker of automation software for the chemical and oil industries, yesterday said it will [buy] rival Hyprotech Ltd., a unit of Britain's AEA Technology PLC. Aspen...said most of Hyprotech's 450 employees will remain in Calgary, Alta. Aspen plans to combine the business with its own engineering group of 400 people, however, and about 60 jobs would be eliminated from the total of 850, executives said. Aspen has 1,900 employees in all....
[So they're cutting 60/1900x100%= 3% of the total.]
5/09/2002 our daily 2 downsizings, totaling 8,600 jobcuts + unspecified, reported in (NYT) NY Times & (BG) Boston Globe -
- I.B.M. likely to eliminate 9,000 jobs - A technology industry rebound is slow in coming, by Steve Lohr, NYT, C6.
Reflecting the continued weakness in technology spending and shifts in its mix of businesses, IBM plans to trim its payroll by roughly 9,000 workers by the middle of this year, an industry executive close to the company said yesterday. The jobs to be lost make up fewer than 3% of IBM's worldwide workforce of 320,000, but most of the cutbacks will come among the company's 160,000 employees in the U.S., according to the executive.
[9000/160000x100% = 5.6% of the US workforce.]
...The cuts are the result of a resource allocation exercise, done by the company every year, that leads to paring in some areas and adding in others.
[So they throw members of their company out on the street as an "exercise"? What a change from the early days of IBM in the 60s and 70s when it was a good company to work for and it valued every employee. No wonder they're about to be overtaken by the likes of Carly Fiorina and the melange of HP-Compaq-Digital.]
Industry analysts noted that IBM had typically made annual cutbacks of 6,000 jobs or so in recent years.... "But...it's a very tough year"..\..said John B. Jones Jr., an independent analyst in San Francisco. "...IBM's management has already...said it will be a tough year."...
..\..The belt-tightening by..\..the world's largest maker of computers...runs counter to the optimism earlier this week when Cisco Systems, a maker of Internet networking equipment, reported results that exceeded Wall Street's expectations....
[Followup - "Layoffs said to loom at IBM - Securities firm says ax will fall at Vermont plant," by Hiawatha Bray, 5/14/2002 BG, D2 states "...Fechtor, Detwiler & Co..\..a Boston securities firm, is telling its clients that IBM Corp. plans to lay off up to 1,500 workers at its huge Burlington, Vt., microprocessor plant, and that IBM is seeking a buyer for the site...."]
- Louisiana-Pacific, NYT, C4.
...Portland, Ore., a maker of building materials [plans] to sell up to $700m worth of its properties over the next 12 to 18 months to pay down debt. The company also expects to close 25 to 30 of its 60 mills and reduce its workforce to 5,300 from 9,700.
9700-5300= 4,400 jobcuts or 45% of total workforce.]
5/08/2002 yet 2 more downsizings, totaling 60 jobcuts, reported in (NYT) NY Times & (BG) Boston Globe -
- Russia: Baltic Fleet to shrink, by Michael Wines, NYT, A10.
The [Russian] Navy will slash nearly half the workforce of its Baltic Fleet as part of a broader plan to cut costs and end conscription by shrinking the nation's military, the Chief of the Fleet, Admiral Vladimir Blauev, told the Interfax news service. The 19,000-sailor Fleet will lose 8,600 positions....
[oo, that should hurt the Russky economy! Let's see, 8600/19000x100%= a 45% cut.]
The Kremlin hopes to build a far smaller but more modern military to replace the current one, which has been forced since the collapse of the Soviet Union to reduce training, mothball equipment and cut benefits.
- Etc...Biotransplant Inc., Globe staff & wire services, BG, C2.
...The Charlestown MA medical products maker..\..will cut an unspecified number of jobs in an effort to reduce costs. ...It will also streamline operations to conserve resources to continue developing product lines....
5/07/2002 2 more downsizings, totaling 5,300 jobcuts + unspecified, reported in (NYT) NY Times & (BG) Boston Globe -
- Northland Cranberries to shut N.Y. plant, Bloomberg via BG, C2.
...The maker of Seneca juices whose sales have fallen...will close a NY bottling plant at the end of June. The plant's 44 workers will lose their jobs.... The company will move most of the plant's operations to its facility in Wisconsin....
- Etc...Arnold Worldwide, Globe staff & wire services, BG, C2.
...of Boston, New England's biggest ad agency, laid off 16 of 116 employees in its suburban Washington, DC, office after a big client decided to part ways with Arnold and reduce spending on advertising....
[Let's see, 16/116x100%= 13.8%, say, 14% of whole DC office.]
5/04/2002 2 downsizings, totaling 1,800 jobcuts + unspecified, reported in (NYT) NY Times & (BG) Boston Globe -
- Winn-Dixie will close Texas and Oklahoma stores, AP via NYT, C4.
...Operat[or of] 71 stores in Texas and 5 in Oklahoma \will\ close all 76 of [these] stores, laying off 5,300 workers. Winn-Dixie, based in Jacksonville, Fla...will also close a distribution center and dairy plant in Fort Worth....
- [2-in-1 downsizing story - we're counting two colleges that died this year]
More small colleges dropping out, by Yilu Zhao, NYT, A20.
...At least 27 of the nation's 1,600 private colleges - many important in their regions, a few known more widely - have announced plans to close since Jan/1997, a 35% increase from the previous 5-year period....
[There are two this year that we haven't counted yet, US Open and Marycrest Int'l, with unspecified job cuts.]
Going out of business [blowout] - A total of 34 private colleges have closed since 1995.... Source: Chronicle of Higher Education..\..
[For quick counting, we have prepended an R before colleges with unambiguously religious names, S before seminaries.]
United States Open University, Del.
Marycrest Int'l University, Iowa
R - Notre Dame College, N.H. [we counted this college on 12/2-03/2001 #3].
R - Trinity College, Vt.
Southern College, Fla.
Bradford College, Mass. [counted on 5/14/2000].
R - Lexington Baptist College, Ky.
Castle College, NH
S - East College Bible College, NC
R - Mater Dei College, NY
R - Aquinas College, Mass.
S - Arizona Bible College
Madison College, Wis.
Phillips University, Okla.
Syrit College, NY
Remington College, Ark.
R - St. Meinrad College, Ind.
Westmar University, Iowa
Sue Bennett College, Ky.
West Coast University, Calif.
Ambassador University, Tex.
Wilcox College of Nursing, Conn.
S - De Sales School of Theology, DC
R - Oblate College, DC
Ambassador College, Calif.
Columbia Pacific University, Calif.
Graceland University, Ind.
S - Florida Bible College, Fla.
S - Baptist Christian College, La.
Vernnard College, Iowa (1995-96)
S - St. Thomas Seminary, Colo.
Upsala College, NJ
S - Maryknoll School of Theology, NY
Montay College, Ill. (1994-95)
[Observation - Seven (20.6%) of these colleges appear to be theological colleges alias seminaries, and seven (20.6%) have religious names, together over 41%. Is this list a gauge of the decline of the major religion in America? Are all these small-college extinctions a harbinger of the increasing expense and irrelevance of all colleges? See #17 on our realms of makework page.]
5/03/2002 5 downsizings, totaling 2,504 jobcuts + unspecified, reported in (NYT) NY Times & (BG) Boston Globe -
- May Department Stores to consolidate four divisions, Reuters via NYT, B3.
The...parent of Lord & Taylor and Filene's [will] close 2 divisional offices and consolidate operations of 4 of its businesses, affecting 1,800 jobs.
[We read "affecting" jobs, in the context of closing offices and consolidating operations, as a euphemism for "eliminating" jobs.]
The retailer said the changes, an effort to cut costs, would be completed by Aug. 3.... May said that it would combine its Kaufmann's and Filene's divisions in the Northeast, as well as its Robinson-May and Meier & Frank divisions in the West and Northwest, cutting its business divisions from eight to six.
- Conoco and Phillips Petroleum plan job cuts after their merger, Bloomberg via NYT, B3.
...in 3 cities after they merge later this year...as early as Q3..\..to form the nation's 3rd-largest oil company. Jobs will be trimmed
Most of the cuts will be made by the end of 2003. [They] expect to save $750m a year from the merger....
- in Houston, the combined companies' HQ;
- in Tempe, Ariz.; and
- in Ponca City, Okla....
[Unspecified jobcuts, via the unsustainable takeover-downsizing strategy.]
5/02/2002 4 more downsizings, totaling 370 jobcuts + unspecified, reported in (NYT) NY Times & (BG) Boston Globe -
- Genuity plans to cut 30% of jobs - Up to 1,200 spots face ax after weak quarter, Bloomberg via NYT, C4.
...The Woburn Internet services provider [will] cut another 1,100 to 1,200 - about 30% of its workforce - after posting weak financial results.... Genuity has already slashed 2,800 jobs in the past year as the once-booming market for handling Net traffic, hosting Web pages, and related services has come crashing back to earth..\.. About 1,860 of Genuity's 4,000 employees work in Massachusetts....
- Canada: Job cuts at AT&T, Bloomberg via NYT, C4.
AT&T Canada [is] cutting its workforce by 1,000, or about 20%. The troubled company, which is based on Toronto and has debts of Can.$4.7B (U$3B), also...reached a new agreement with bank lenders to pay for its business plans through late 2003....
- Aurora Foods to close its bagel plant near Buffalo, Bloomberg via NYT, C4.
...A maker of frozen foods...based in St. Louis..\..is closing a Lender's bagel plant in West Seneca, NY, eliminating 204, or about 10% of its workforce. Aurora...also makes Duncan Hines cakemixes.... Production at the plant, near Buffalo, will stop May 31, though workers will be paid through July 2.... Production will be moved to Aurora's plant in Mattoon, Ill., the world's largest bagel bakery.... Shares...fell....
- 2 more firms pull back from Asia, Bloomberg via NYT, C4.
...In Hong Kong, J. P. Morgan Chase [is] laying off more than 100 investment bankers in the region in an effort to cut costs....
- 2 more firms pull back from Asia, Bloomberg via NYT, C4.
TOKYO -...With Japan's stock market near 18-year lows, the Goldman Sachs Group and three online brokers said today that they would close their overnight trading system for individual investors for lack of demand....
5/01/2002 4 downsizings, totaling 18,399 jobcuts + unspecified, reported in (NYT) NY Times & (BG) Boston Globe -
- Holland & Knight said to have laid off 30 in hub [=Boston] -
- Firm cuts 5% of its lawyers in US, by Beth Healy, BG, E3.
[lawyers? - well, maybe not so bad.]
The law firm...has let go 30 staff members and lawyers in its Boston office, including 3 partners, people in the legal community said yesterday. The cuts were part of a nationwide layoff the Tallahassee, Fla.-based firm announced Tuesday.
Holland & Knight said it let go 60 lawyers in all, or nearly 5% of its 1,250 attorneys in 25 US offices. 33 of those dismissed were partners.
[Partnership mustn't mean a whole lot.]
The others were associates or temporary lawyers. The firm also cut 170 staff jobs, or about 10% of its 1,750-member administrative workforce, spokeswoman Karen Schoening said....
[So we've got 60 lawyers + 170 ordinary staffers = 230 jobcuts in total, which is (60+230) ÷ (1250+1750) × 100% = 290 ÷ 3000 × 100% = 9.66%, say 10% of their total workforce.]
Law firm layoffs are rare and typically happen only in a sluggish economy. Many firms have slowed their hiring over the past year, having staffed up significantly when the market was humming..\.. The cuts represent a reversal for Holland & Knight, which spent the past decade aggressively expanding....
Robert Feagin, the firm's managing partner, has blamed the cuts on the slow economy since 9/11....
- Tiburon Networks goes out of business, by Peter Howe, BG, E2.
...A 2-year-old Andover MA telecomms start-up backed by $33m in venture funding from Nortel Networks [what are they doing risking this kind of dough with the state they're in?!] and others, quietly shut down this week and laid off its last 80 employees. Tiburon...never disclosed what kind of product it was developing [and were apparently worse marketers than Segway Inc.]....
- Lehman Brothers Holdings lays off 60 in Europe, Bloomberg via NYT, C10.
...and support staff members at its European business today after earnings declined in four of the last 5 quarters.... Lehman Bros. was one of the only major securities firms that did not lay off large numbers of bankers last year. [But] the firms profits fell by 23% in the first quarter. \So\ the layoffs are the first since Jeremy Isaacs became CEO of Lehman's European business 3 years ago. Mr. Isaacs has tripled Lehman's European staff, to about 3,400 people. "We decided to make a limited adjustment in staffing at a junior level to reflect our expectations about the size of the market in the future," said Stewart Prosser, a Lehman spokesman.
Wall Street firms have jettisoned more than 40,000 bankers in the last year to reduce costs....
- Maine: 34-year-old weekly closes, by Julie Flaherty, NYT, A16.
The issue last Thursday of The Maine Times, a weekly devoted to state news, was its last. The publisher, Christopher Hutchins, an executive from Bangor who bought the paper in 1999, told employees on Monday that it was closing. ...The 34-year-old paper with a circulation of 3,600 could not survive on its low advertising revenues and subscription rates.
- Spain: Bank cutting jobs, Bloomberg via NYT, C4.
Spain's largest bank, Santander Central Hispano...plan[s] to cut 11,000 more jobs this year, primarily in Spain and Latin America. Santander expects about 8,000 jobcuts in Latin America and the rest in its home market. The bank, which cut 14,000 jobs last year, now employs 113,000. The bank has been working to cut costs since Banco Santander and Banco Central Hispano merged to form Santander Central in 1999.
[Again, the jobs&markets-shrivelling takeover-downsizing connection. Of the 14,000 cuts last year, we've only counted 7,444 on 7/26/2002 #3, leaving 14,000-7,444= 6,556 cuts still to count. So, 11,000 this year plus 6,556 still to count from last year = 17,556 jobcuts = 17,556 ÷ (113,000+6556) × 100% = 14.68%, say, 15% of total workforce. Our only hesitation is that the previous story said the bank had 67,000 total workforce, but that's seems to be only the Latin American total.]
- The demise of Scudder was long, painful - and quiet - New owner dismantling local operations, by Beth Healy, BG, C1.
...In the month since Deutsche Bank bought Scudder and its affiliate for $2.5B, it has moved 600 of 900 downtown Boston positions to Chicago or New York. A service center in Norwell that employs about 220 people is expected to close by the end of June. Ultimately, only a small Scudder presence will remain, probably fewer than 200 people....
[Let's generously assume that only 50% of the downtown Boston employees whose jobs Deutsche moved to distant cities are going to move too - that's 50% of 600 = leaving behind effectively 300 layoffs. The moves will leave 900-600= 300 jobs in downtown Boston. But "ultimately" less than 200 jobs will remain, so that means 300-200=100 more layoffs. Then they're going to zap Norwell completely, @ 220 layoffs. Grand total = 300+100+220= 620 layoffs. Note previous layoffs on 12/29/2001 #1.]
- Ethan Allen to eliminate jobs in Vt., Bloomberg via BG, C2.
Danbury, Conn.-based Ethan Allen Interiors Inc, the largest US furniture retailer, will close a manufacturing facility in Randolph, Vt., and end lumber operations in Orleans, Vt., firing 223 workers. The company will fire all 154 employees in Randolph and cut 69 of the 501 jobs in Orleans....
[The NYT version (on p. C4) omits the Randolph cuts for some reason.]
- Minnesota: Governor shuts mansion, AP via NYT, A20.
Gov. Jesse Ventura shut down the Governor's mansion, laid off most of the staff and declared it unavailable for all but limited official functions.
The governor said lawmakers had left him no choice but to close the 200-room English Tudor-style residence when they cut his spending and reduced his security budget. Lawmakers said they might seek an injunction to reopen the mansion.
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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