Timesizing® Associates - HOMEPAGE

Downsizings, July 2002
[Commentary] ©2002 Phil Hyde, The Timesizing Wire, Box 117, Harvard Square, Cambridge MA 02238 USA (617) 623-8080


7/31/2002  3 downsizings, totaling 1,944 lost jobs, reported in (NYT) NY Times & (WSJ) Wall St Journal -

  1. Providian Financial will close 3 offices and cut 1,300 jobs, Reuters via NYT, C4.
    The credit card issuer [will] close 3 offices and cut...about 16% of its workforce, as it reported lower quarterly earnings. Once phased in, the latest jobcuts would leave the company with about 6,700 employees, nearly half the number it had last October when the company announced a reorganization.... Providian, which catered to individuals with patchy or thin credit histories, has had big losses on consumer defaults in the last year, forcing the company to try to sell its riskier loan portfolios to survive. ...It [will] close offices in Sacramento and Fairfield, Calif., and Salt Lake City.
    [See also previous cut on 0201a.]

  2. MeadWestvaco Corp.,, NYT, C4.
    ...Stamford, Conn., the paper company formed by the combination of Mead Corp. and Westvaco Corp. in January, [will] close an envelope factory in Worcester, Mass., and lay off 150 people to reduce costs. The company plans to cut 400 more jobs this year.
    [For a total of 150+400= 550 jobcuts. And again it's the fatal takeover-downsizing connection.]

  3. Motient Corp.,, NYT, C4.
    ...Reston, Va., a provider of wireless communications...laid off 94 of 323 employees to cut costs.

7/30/2002  1 downsizing, totaling 215 lost jobs, reported in (NYT) NY Times & (WSJ) Wall St Journal - 7/29/2002  2 downsizings today, totaling 580 lost jobs, reported in (NYT) NY Times & (WSJ) Wall St Journal -
  1. Job cuts caused by merger will affect 11% of workers, Dow Jones via WSJ, C11.
    Brook-PRI Automation Inc., Chelmsford, Mass...plans to eliminate about 350 jobs, affecting 11% of its 3,100 employees. The postmerger job cuts will be implemented over several months....
    [Again the lethal takeover-downsizing connection.]

  2. Vivendi corporate staff in Paris, New York may face deep cuts, by Bruce Orwall & Robert Frank, WSJ, B10.
    ...Vivendi Universal notified its corporate staff last week that Constantin Group, a consultant hired by the company, had recommended the elimination of 100 jobs at Vivendi's headquarters in Paris, where it has about 370 corporate employees, and about 130 jobs at the New York office, where it has a staff of 200. The recommendations come after a review of corporate efficiency that was launched this spring....
    [Again, the failure of current corporate leaders to practice a kind of efficiency that doesn't destroy their own markets, even their predecessors practiced it commonly from 1790 to 1940 when they cut the workweek in half. Again, the habit of current corporate leaders to evade responsibility - to blame economic conditions or in this case, consultants, for their corporate mutilation, instead of articulating productivity standards and pruning on a case-by-case basis, offering due chance for improvement. Management skills always deteriorate severely in a labor glut, because there are always so many potential replacements for any employees stupid enough to take them up on their invitations to think 'outside the box.'   100+130= 230 jobcuts.]

7/27/2002  3 downsizings today, totaling 2,949 lost jobs, reported in (NYT) NY Times & (AR) Arizona Republic -
  1. Avaya to cut 2,500 more jobs in continuing slump, Bloomberg via NYT, B4.
    ...The nation's biggest maker of office telephone equipment [will] eliminate...about 12% of its workforce, amid a continuing slump in demand. The company will have about $150m in fiscal Q4 costs for cutting jobs, closing offices and terminating leases, as well as declining asset values.... Avaya, based in Basking Ridge, NJ, has cut 7200 positions since last June because customers reduced spending on telephone equipment....
    [What do they expect when they and almost every other company is throwing people out of work instead of merely trimming hours for all and keeping everyone employed? Do they think markets come out of thin air? Do they imagine customers swarm out of unemployment lines? What stupid shortsighted men (and in Carly Fiorina's case, women)!]

  2. Digest - ...Workplace - ...Sanmina-SCI, Republic news services via AR, D2.
    In a major blow to the central Maine economy, the Augusta Sanmina-SCI electronics plant will shut down at the end of September, putting 440 people out of work.... Executives from the San Jose-based company blamed the shutdown on a significant drop in orders for products such as computer chips, circuit boards, and cables.
    ["Drop in orders," "slumping demand," "reduced spending" - all hallmarks of the Great Depression, and reasons why there will be no recovery while downsizing continues to displace timesizing as the kneejerk response to corporate belt-tightening - or rising earnings (see Bausch & Lomb yesterday).]

  3. Saks sells most of its credit card business, Reuters via NYT, B4.
    ...Owner of the Saks 5th Avenue department stores...sold most of its private-label credit card business to Household International Inc. for more than $300m.... Saks said it would use the proceeds to buy back stock and reduce debt.... Saks, which employs about 550 people to administer the private-label business, expects fewer than 10 jobs will be cut.
    [So let's say 9 jobcuts.]

7/26/2002  6 downsizings today, totaling 1,098 lost jobs + unspecified, reported in (NYT) NY Times & (WSJ) Wall St Journal -
  1. Bausch & Lomb says it will eliminate 450 jobs, AP via NYT, C4.
    ...The maker of eye-care products [will] take several steps to streamline operations and cut...3.75% of its workforce.
    [Bausch is one of the louzy Root of Recession companies and here's why -]
    The moves were disclosed as the company, helped by strong sales of newer-style contact lenses, reported that its earnings more than tripled in the quarter.... To lower production costs, Bausch & Lomb, based in Rochester NY, [will] close or consolidate several plants, including those in Miami; Barcelona, Spain; and Umsong, South Korea, cutting 325 jobs. The company will also close a distribution center in St. Louis, cutting 50 jobs. The remaining [75] cuts will come from changes in information technology operations.
    [All we can say is, boycott Bausch - they're downsizing despite prosperity, and that's the kind of behavior that induced this recession and the kind of behavior that is turning this recession into depression.]

  2. General Motors, NYT, C4.
    ...Detroit,...reached an agreement with the union at its plant in Sao Caetano do Sul, Brazil, to reduce the number of workers who will be dismissed to 108 from 808 and offer early retirement to at least 1,000 employees.
    [So total jobs lost will be 108+1000= 1108, of which we've already counted 800 (see 7/17 #3 below). So we need now to count 1108-800= 308 lost jobs.]

  3. Tweeter Home Entertainment says it will cut 240 jobs, Bloomberg via NYT, C4.
    ...An electronic retailer...cut about...6% of its workforce as its Q3 profit fell 96% because of higher costs. The positions were eliminated through attrition and layoffs that took place last week.... Selling expenses climbed to 28.8% of sales from 26.2% because of increases in compensation and insurance costs....

  4. Unkind cuts?, by Randall Smith, WSJ, C5.
    E*Trade Group Inc...the Menlo Park, Calif., brokerage company, earlier this month let go about 100 people in Atlanta, prompting many to recall [the] vow in 2001 \of its CEO,\ Christos Cotsakos, the brokerage industry's highest-paid CEO...that he would cut his pay to zero before laying off any employees....
    The company announced in May that Mr. Cotsakos took home $80 million, which was later reduced to $60 million after shareholders balked.... Mr. Cotsakos's new employment agreement, effective May 15, 2002, already says he will receive no annual base salary over the next year - subject to review based on the firm's performance....

  5. Jacobson Stores, struggling department store chain, to close, AP via NYT, C4.
    ...A 134-year-old regional...chain is going out of business.... Jacobson, based in Jackson, Mich., has 18 stores in Mich., Ind., Oh., Ken., Kan., and Fla..\.. The decision ended months of uncertainty during which the company was unable to pay its bills or find a buyer.... Going-out-of-business sales are to begin today....
    [What a disgrace. Management skills have gotten so bad that a firm that survived the Great Depression can't even survive our current turbulence. Unspecified lost jobs.]

  6. JDS Uniphase announces narrower loss and job cuts, Bloomberg via NYT, C2.
    ...The biggest maker of parts for fiber optic equipmentsaid its Q4 net loss narrowed...as acquisition costs declined.
    [Another CEO who ruined his own company with acquisitions.]
    Sales fell to 63% and the company [will] eliminate more jobs. ...The company, based in San Jose CA...said slumping demand would force it to make more cost-cutting moves, including an undisclosed number of job reductions and site closings....

7/25/2002  4 downsizings today, totaling 5,015 lost jobs, reported in (NYT) NY Times & (WSJ) Wall St Journal -
  1. Wall Street is dead end for some brokers - Mergers-advisory slump renders investment bankers vulnerable; Smaller boutiques are hit hard, by Susanne Craig & Randall Smith, WSJ, C1.
    [This is one industry, that the more it slumps, the healthier the economy will be in the future.]
    ...Wall Street securities firms...have cut a total of 25,910 employees, or 7% of their work force, since the end of 2000, according to the Securities Industry Assoc. trade group....
    Some of the biggest firms have done the most significant trimming. Merrill Lynch & Co., with the nation's largest brokerage force, has reduced is staff by about 17,400, or roughly 25%, since the end of 2000....
    [So far we've only counted 15,000 of this figure (1/10/2002 #3), so we must now count the remaining 17400-15000= 2,400 jobcuts. If 17400 is 25%, then 100% is 17400x4= 69,600. We've already taken 15,000 off this figure, leaving 69600-15000= 54,600, and so this 2,400 is 2400/54600x100%= 4% of the total workforce. After this downsizing, their headcount is down to 54600-2400= 52,200.]

  2. Wall Street is dead end for some brokers, by Craig & Smith, WSJ, C1.
    ...Morgan Stanley shed 4,141 people, or 6.6% of its workforce, in that time....
    [We only caught 1870 of these people so far, so we must now count the remaining 4141-1870= 2,271 jobcuts.]

  3. Illinois: Galesburg, AP via USA Today, 6A, via Grand Canyon Kodak rep Kevin Fuller.
    Knox County's largest employer plans to lay off about 300 workers without any indication of when they may return to their jobs. The Maytag Refrigeration Products plant employs about 2,000 people. Most of those affected help manufacture the plant's top-shelf refrigerator line....

  4. Wall Street is dead end for some brokers, by Craig & Smith, WSJ, C1.
    ...Yesterday, Cullen/Frost Bankers Inc., of San Antonio, said it would eliminate about 44 jobs of a 50-employee securities firm, Frost Securities, which willl get out of all research, sales, trading, and capital-markets activities....

7/24/2002  3 downsizings today, totaling 11,100 lost jobs, reported in (NYT) NY Times & (WSJ) Wall St Journal
(not counting "more than 3,000 [golf]club-related jobs in Mexico [that] have been cut as So. Calif. companies such as foundry Coastcast Corp. and grip maker Lamkin Corp. respond to competitive pressure from Southeast Asia [which response is] go out of business or set up in China" according to "A good job spoiled: the golf exodus - Mexico can't even keep its iron-and-wood work safe from Asian rivalry," by Joel Millman, Wall Street Journal, A12) -
  1. Another 7,000 jobs to be cut as Lucent reports more los[s]es, by John Schwartz, NYT, C8.
    [or the WSJ version -]
    Lucent [Technologies] posts a wider net loss and plans to slash work force, by Dennis Berman,WSJ, B9.
    ...The largest U.S. maker of gear used by telecom carriers...said it will cut...about 13% of its work force, as it attempts to cope with a seemingly endless contraction in spending on telecommunications equipment.... Lucent said it will cut 7,000 jobs by the end of the calendar year, in what CFO Frank D'Amelio described as "volume related" positions, such as service technicians. The company expects to shed an additional 1,000 jobs through attrition, bringing its work force for 45,000 by year end....
    [So the total is actually 7000+1000= 8,000 job losses. If 7000 cuts are 13% of the total, 8000 are 13/7000x8000= 14.9%, say 15%.]
    Mr. D'Amelio said the restructuring will extend into the company's 4th quarter and will likely include further job cuts....

  2. GE Power Systems will eliminate 2,500 jobs, AP via NYT, C4.
    ...in the next nine months, with further reductions coming in 2003, because of a reduction in demand for power generation equipment. The company...based in Atlanta, said the initial reductions would come at turbine production plants in Greenville, SC, and Schenectady, NY, where each plant would eliminate 1,000 jobs. The remaining 500 jobs will be cut at other undisclosed GE Power Systems locations and through some early retirements.

  3. Work force cuts are planned due to weak prof[i]t margins, Dow Jones via WSJ, B9.
    Utility concern Pinnacle West Capital Corp. said it will cut between 500 and 600 jobs, or 7% to 8% of its work force, citing weaker margins of profit from energy sales. Pinnacle West, Phoenix, also develops real-estate projects and employs about 7,200 people. The job cuts, designed to save$30-35m a year starting in 2003, will occur in the 2nd half of this year....

7/23/2002  2 downsizings today, totaling 1200 lost jobs + unspecified, reported in (NYT) NY Times & (USAT) USA Today
(not counting "Germany's Commerzbank to cut 900 jobs," AP 07/22/02 14:47 EDT via AOLNews via SWT search) -
  1. Comverse Technology will lay off 1,200, by Andrew Zipern, NYT, C5.
    ...A maker of software and systems for wireless communications and Internet services [plans] to lay off...21% of its workforce, because of continued weakness in telecomm capital spending. The company, based in Woodbury, NY, will have about 4,500 employees after the layoffs. About half of Comverse's employees are based in Israel where its research HQ are situated....

  2. Avaya cuts jobs after quarterly loss, Bloomberg via NYT, C2.
    ...A leading maker of office telephone equipment...which is based in Basking Ridge, NJ \and\ was spun off from Lucent...in Sept/2000, said [yester]day it that it would cut an undisclosed number of jobs and reduce capital investment..\..after reporting a fiscal Q3 loss of $37m and a 29% decline in sales. The loss, Avaya's 4th in a row, was 10 cents a share, in contrast to net income of $24m, or 6 cents, a year earlier. Sales in the period, which ended June 30, fell to $1.22B from $1.71B....

7/19/2002  1 downsizing today, totaling 200 lost jobs, reported in (NYT) NY Times & (USAT) USA Today -
7/18/2002  1 downsizing today, totaling 1164 lost jobs, reported in (NYT) NY Times & (WSJ) Wall St Journal -
7/17/2002  3 downsizings today, totaling 5610 lost jobs, reported in (NYT) NY Times & (AR) Arizona Republic & (WSJ) Wall St Journal
(not counting economywide "Hong Kong: Unemployment rises," by Keith Bradsher, NYT, W1, which states, " The seasonally adjusted unemployment rate...increased to 7.7% for [2Q02], compared with 7.4% for [the staggered quarter] March through May, as the HK economy remained stagnant."] -
  1. Intel jobcuts indicate slow chip recovery, by Jane Larson, AR, D1.
    Intel Corp. reported a 128% gain in net income for the 2nd quarter, but said it would cut 4,000 jobs worldwide, or 4.8% of its workforce, by the end of the year....
    [thus helping guarantee its dramatic gain will be shortlived.]

  2. Britain: Accounting layoffs, Bloomberg via NYT, W1.
    KPMG International, the world's 3rd-biggest accounting firm, plans to cut 810 jobs in Britain, or about 7% of its local workforce, as business slows with drop in stock prices. About 50 of the company's 600 partners are being cut along with 700 other employees and 62 people at the KLegal law firm, a KPMG spokeswoman, Louise Harvey, said.
    [Can't be a very meaningful "partnership" if partners can get laid off the same as anybody else. Must be an inflated job title, like "sales associate."]

  3. GM workers threaten to strike, WSJ, A12.
    General Motors is cutting 800 jobs at its biggest plant in Brazil as car sales nationwide dwindle.... Now the union, which represents workers at the Sao Caetano do Sul plant, [will] hold a strike starting Monday if the automaker doesn't back down on the jobcuts....

7/16/2002  1 downsizing today, totaling 775 lost jobs, reported in (NYT) NY Times & (USAT) USA Today - 7/13/2002  6 more downsizings today, totaling 2,908 lost jobs, reported in (NYT) NY Times & (AR) Arizona Republic -
  1. Sprint cuts 1,200 [employees] in its global markets division, AP via NYT, B5.
    ...which includes most of Sprint's struggling long-distance business..\..and eliminate another 100 unfilled positions to cut costs. The company, which employs 80,000 people...is based in Overland Park, Kan..\.. The cuts are to be made through layoffs and attrition over the next several weeks....
    [So, 1200+100= 1300 lost jobs, which are 1300/80000x100%= 1.6% of the total workforce.]

  2. FleetBoston decides to close its Robertson Stephens unit, by Andrew Sorkin, NYT, B4.
    Add another victim of the plummeting economy to the list.... "It's another loss for San Francisco. They were an institution," said Amanda Duckworth, director of marketing at Thomas Wiesel Partners....
    Just this week, the bank cut 100 jobs and closed Robertson Stephens offices in London, Munich and Tel Aviv in hopes of cutting costs ahead of an employee buyout. Indeed, even under the employee buyout plan, John Conlin, Robertson Stephens' CEO, had told the firm's managing directors that half the staff, or 450 people, would have to be cut....
    [So a stupid takeover artist, flatfooted Fleet, has ruined another financial institution through takeover, having first ruined BankBoston. If half the staff now is 450 people, the total staff now is 450x2= 900 and the total staff before the 100-job cut was 900+100= 1,000 people. So 1,000 people are now going to lose their jobs because of these clowns.]

  3. Poor computer sales lead to layoffs at Read-Rite, Bloomberg via NYT, B5.
    ...Make[r of] recording heads for computer disk drives...laid off about 500 employees, or 5% of its [10,000] workforce, as weak sales...have left it with mounting losses.... Read-Rite...has lost money for the last 3 quarters.
    [See previous 11% downsizing from 11,250 to 10,000 headcount on 1/31/2002 #1. So now they're down to 9,500.]

  4. Mercator Software announces layoffs of 15% of staff, Bloomberg via NYT, B5.
    ...A maker of products that link computer systems [will] lay off more than 90 employees, or about 15% of its staff, to save about $10m a year.... Mercator, based in Wilton, Conn..\..will cut the jobs this year, leaving 540 employees worldwide....

  5. Citigroup trims bond unit, Bloomberg via NYT, B15.
    The money-management unit of Citigroup laid off 12 people in its taxable bond department this week, including the fund managers James Conroy and John Bianchi, to cut costs.... The team managed about $7B in 14 Smith Barney mutual funds.... A team led by Peter Wilby, formerly of Salomon Brothers, will manage the funds. ...Salomon Bros. and Smith Barney...merged in 1997 to form the Salomon Smith Barney unit of Citigroup.

  6. Britain: Cuts at Lazard, Bloomberg via NYT, B5.
    The investment bank...which is trying to regain its standing in M&A, dismissed 6 of 22 bankers in its London office, a spokeswoman said. The cuts were part of a continuing review aimed at improving the profitability of individual bankers. The reductions come as Lazard, under the leadership of Bruce Wasserstein...who joined the firm in January, is trying to bolster the ranks with star deal makers....
    [A truly lizardlike approach.]

7/12/2002  6 downsizings, totaling 2,295 jobcuts, reported in (NYT) NY Times & (AR) Arizona Republic -
  1. Czech Republic: Electronics plant closes, Bloomberg via NYT, C3.
    One of the Czech Republic's more prominent foreign investors, the Singapore-based Flextronics International, [will] shut a newly built telecom equipment factory near the city of Brno and lay off about 1,000 workers. Production will be moved to Hungary where Flextronics already has a plant....

  2. German maker of software cuts forecast, Bloomberg via NYT, C6.
    WALLDORF, Germany...- SAP...stopped hiring and [will] shed jobs through attrition..\..as business in the United States declined.... If last year's attrition rate of 4.2% continues, that would equal about 600 employees in the second half. The company had about 29,350 employees at the end of June....
    [600/29350x100%= a 2% downsizing. Followup -]
    SAP AG - First-quarter profit surged despite 8% decline in revenue, Dow Jones via 4/18/2003 WSJ, B8.
    ...The big German software maker attributed the jump in profit to cost-cutting measures taken last year that have trimmed expenses and reduced staff \in\ what it called "tough" business conditions....
    [What's "tough" in German? "Hard" is "schwer," pronounced /shvair/.]

  3. Japan: Cuts at electronics maker, by Ken Belson via NYT, W1.
    The Kenwood Corp., a maker of audio equipment,...will eliminate more jobs because of a rising yen and weak mobile phone sales.... The company [will] eliminate 300 more jobs, bringing total layoffs to 3,000, or 35% of its workforce.

  4. Phoenix software company shuts down, by Jane Larson, AR, D1.
    ...Slow sales and investors' reluctance to put more money into the company led the board of directors of InfoImage Inc. to order the shutdown last month, Pres. Tom Niccoli said.... The company, founded in 1992 to build custom networks, switched to software and by 2000 had grown to more than 250 employees and $30m in annual sales..\.. Five employees remain...
    [So, 250-5= 245 lost jobs, hitherto unreported.]
    ...and the company is in discussions with a half-dozen potential buyers for its technology, he said....

  5. Boeing to eliminate 100 jobs at Georgia plant, Bloomberg via NYT, C3.
    ...of 800 jobs at a plant in Macon, Ga., after losing a contract for support work on Air Force KC-135 tanker planes.
    [The idea that jobs should vary with contracts is ludicrous and involves continuous low-level damage to our consumer base. Worktime should vary with contracts, that's all.]
    The workers will get 60-day layoff notices on July 19, a company spokesman, Al Stewart, said. A reduction in the number of parts the plant will supply for Boeing's C-17 transport plane and lower prices negotiated by the Air Force for those planes also forced the reductions, Mr. Stewart said.
    [You can't help feeling that some of these gov't contractors think they're going to spite the government by disemploying taxpayers if negotiations don't go their way.]

  6. Titan, a military contractor, to drop some businesses, Bloomberg via NYT, C3.
    ...parts of its telecomms business, resulting in Q3 expenses of as much as $200m. The company expects the sale or closing of businesses at its Titan Wireless unit to affect 50 employees, a spokesman, Wil Williams, said....
7/11/2002  2 downsizings, totaling 10,000 jobcuts + unspecified, reported in (NYT) NY Times & (AR) Arizona Republic
(not counting economywide "Ireland: Cuts by foreign employers," by Brian Lavery, NYT, W1, which states, "Overseas companies supported by the [Industrial Development] Authority created 13,500 jobs in 2001 and cut 17,500.") -
  1. Germany: Postal job cuts, Bloomberg via NYT, W1.
    Deutsche Post may cut 10,000 jobs, or 3% of its workforce, as an order from regulators to lower postage rates erodes profits.... Most jobcuts would be among mail delivery workers. The postal workers union [will] fight the cuts.

  2. Germany: Wal-Mart closings, by Victor Homola, NYT, W1.
    Wal-Mart Stores plans to close 2 stores in Germany, the first since the retail company entered the nation, Europe's biggest consumer market, in 1997.
    [Ah, the Germans have all the luck! What's their secret?]
    A store in Ingolstadt will be shut this year and two stores in Wilhelmshaven will be merged into one. The company [has] 95 German operations, [which] analysts say...have been losing money from the start.
    [Aha, boycott!]
    [Unspecified lost jobs.]

7/10/2002  2 downsizings, totaling 80 jobcuts + unspecified, reported in (NYT) NY Times & (AR) Arizona Republic
(not counting potential cuts in "Pentagon considers massive military cuts," Republic news services, AR, A6, which states, "The Army would lose one division, which could mean 20,000-25,000 soldiers. The Air Force could face a cut of 40,000 uniformed personnel. The Navy could lose 20,000 sailors...and the Marines might be reduced by 2,000-5,000.") -
  1. Coffee glut's human toll - Unemployment, migration, hunger on rise, by Peter Fritsch, AR, D1.
    ..."On my farm, I usually have about 100 permanent workers, but now I have just 20," said Jose Angel Buitrago, who has grown coffee in Matagalpa, Nicaragua, for 30 years....
    [80 jobcuts.]

  2. Excelon announces additional job cuts, Bloomberg via NYT, C11.
    ...Maker of data-management software...based in Burlington, Mass..\..that cut 25% of its staff in January [will] eliminate another 30% of its jobs as Q2 results fell short of expectations....
    [Unspecified jobcuts.]

7/09/2002  3 downsizings, totaling 2025 jobcuts + unspecified, reported in (NYT) NY Times & (USAT) USA Today
(not counting industrywide story, "High share of job cuts," Reuters via NYT, C10, which states, "One-third of all jobcuts announced in the first six months of the year came from technology companies, led by the telecommunications industry.... One quarter...were in communications equipment and services, Challenger Gray & Christmas, an executive placement firm, said in a report. Of the 735,527 jobs lost in all industries since January, 243,200 were in technology companies.") -
  1. Accenture to cut 1,000 jobs, mostly in management, AP via NYT, C6.
    ...in the United States, Britain, and Australia...over the next few months..\..to reduce costs..\.. The consulting firm [nee Anderson Consulting] which is based in Bermuda [yeah, sure], expects other hiring will offset the cuts, meaning the company's workforce of about 75,000 will remain at that level until the firm's 2002 fiscal year ends in September.
    [We'll believe it when we see it. Meanwhile, a 1000/75000x100%= 1.3% downsizing.]

  2. Allegheny Energy to cut jobs and cancel 2 new [power] plants, AP via NYT, C6.
    ...to counter weakness in the energy trading market.... Most of the jobcuts will come this year, through a combination of eaerly retirements, normal attrition and layoffs,... The [600] cuts represent 10% of Allegheny's workforce of 6,000. The company, which is based in Hagerstown, Md...canceled construction of a 1,080-megawatt generating plant in La Paz County, Ariz., and an 88-megawatt plant in St. Joseph County, Ind.

  3. Kemet will cut work force and close 2 factories, Dow Jones/AP via NYT, C6.
    ...Make[r of] capacitors \will\ lay off about 425 workers to save money amid a prolonged downturn in the electronics industry. The company...planned to close its [HQ] plant in Greenwood, SC, and one of two factories in Matamoros, Mexico. Kemet [Corp.] said the layoffs would mean 185 layoffs at its operations in the U.S. and 240 in Mexico....

7/06/2002  3 downsizings, totaling 442 jobcuts + unspecified, reported in (NYT) NY Times & (AR) Arizona Republic -
  1. Asarco, miners OK pact after recent layoffs of 250, by Max Jarman, AR, D3.
    Copper producer...and employees at its Ray mine, 70 miles southeast of Phoenix, have agreed to a new three-year contract that contains no wage increase in the first year. The new contract was announced a week after 200 employees were fired at the mine in Asarco's most aggressive cost-cutting measures in several years. The layoffs also included 50 workers at its Mission mine south of Tucson....
    ...Asarco, a subsidiary of Grupo Mexico SA de CV, has been hard hit by a prolonged slump in copper prices. Asarco laid off 90 miners at its Mission mine in December after furloughing 110 there in August....
    [So our total here is 250+90= 340 jobcuts, because we picked up nothing of this in December, although some may have been included in the 2000 Grupo Mexico cuts mentioned by us on 3/01/2002 #1 but not counted since they were not picked up by NYT or BG from Reuters.]
    The average hourly wage at the mine is about $18....

  2. Tyco workers say faith in company is in shambles, by Julie Flaherty, NYT, B1.
    Not long ago, the factory of AMP Inc. in Rock Hill, SC, was one of those places where everyone wanted to work. [But] even Tyco's stock began its plunge...more than a quarter of the 400 workers at the plant were laid off last winter, told that business conditions necessitated the cuts.
    [Let's call it 102 jobcuts, which may have been included in the 960 general-Tyco US cuts we counted on 2/15/2002 #2, but the only way we can be sure is by counting them now.]

  3. Actrade Financial's stock plummets 64%, Bloomberg via AR, D4.
    ...The electronic finance and payment company cut 20% of its workforce and lowered its estimate for Q4 results to range from break even to profit of 5 cents a share....
    [Unspecified jobcuts.]

7/05/2002  2 downsizings, totaling unspecified jobcuts, reported in (NYT) NY Times & (AR) Arizona Republic -
  1. Staffing cuts announced by American Airlines, by Jim Schmeltzer, AR, D1.
    ...The world's largest airline..\..still reeling from 9/11...plans to cut staffing further as it attempts to re[turn] to profitability. Donald Carty, chairman and CEO of Ft. Worth-based American...said in a message to employees this week the airline and its commuter affiliate, American Eagle, will use attrition, retirement, or if necessary, layoffs to reduce its workforce...to lower costs and change the way it operates..\.. Carty said the reductions...will take place over the next several years....
    Last fall, American cut 20% of its flights and laid off thousands of workers in the wake of 9/11. Since then, American and American Eagle have recalled about 6,600 of the 13,000 they laid off....
    Nine months after 9/11, the nation's airlines...are still losing billions of dollars and flying 10% fewer passengers than a year ago.... Many passengers are...opting to fly low-fare carriers, such as Southwest Airlines, American Trans Air or Jet Blue Airlines.
    [or "flying" Amtrak. Unspecified jobcuts.]

  2. Sole Vegas trauma unit shuts its doors, staff & wire reports, AR, front page.
    LAS VEGAS - ...The top-level trauma center serving southern Nevada and parts of Arizona, Calif., and Utah shut its doors Wednesday after private surgeons at the county-operated medical center refused to return unless lawmakers cap medical malpractice awards.
    [Unspecified lost jobs.]
    It had an almost immediate effect in Las Vegas, a city of almost 1.5m residents. With no Level 1 treatment center for car crash, gunshot or other life-threatening injuries,.\..critically injured patients in a four-state region...were being taken to hospital emergency rooms and, if necessary, flown out to out-of-state trauma centers. Valley [Phoenix AZ area] hospitals are ready to accept the patients, said Craig Fischer, a spokesman for Good Samaritan Regional Medical Center, one of five top-level trauma centers.
    [Bad article - never gives the exact name of the trauma center being closed.]
    [Followup]
    Deal on liability allows trauma center to reopen - County and Las Vegas doctors agree on cap, by Nick Madigan, 7/13/2002 NYT, A7.
    LAS VEGAS...- Ten days after it closed, this city's only trauma center...the trauma unit at the University of Nevada Medical Center..\..is to reopen on Saturday morning under an agreement that temporarily limits the liability of its doctors to malpractice lawsuits.
    [At last, the name!]
    Early [yester]day, at least a dozen of the orthopedic surgeons who had quit last week agreed to resume treating patients at the trauma center after Clark County officials promised to consider them county employees for at least 45 days, enabling them to be included under a sovereign immunity clause that limits such employees' liability to $50,000....

7/04/2002  4 downsizings, totaling 1,750 jobcuts + unspecified, reported in (NYT) NY Times
(not counting "Reported layoffs up 12% [by US companies in June, to 94,766 from 84,978 in May]," Reuters via NYT, C3) -
  1. Scientific-Atlanta eliminates 1,300 jobs in Mexico, Bloomberg via NYT, C3.
    ...or 16% of its staff, because of declining demand for products of the company.... The company trimmed production at its plant in Juarez to lower the work force to 6,700.... Scientific-Atlanta, 2nd to Motorola Inc. in the [TV] set-top box market, has experienced declines in sales of products that let viewers get digital TV, as cable operators sign up fewer subscribers for the service, which features hundreds of channels.

  2. [and "speak of the devil" -]
    Motorola cuts 400 manufacturing jobs in Arizona, AP via NYT, C3.
    ...and..\..end[s] manufacturing at its Computer Group in Tempe, Ariz...as part of an effort to cut costs. The center specializes in design and production of computer circuit boards and other systems that go inside telecom, military, aerospace, medical and industrial automation equipment. Those...operations will be transferred to other Motorola sites or contracted out to other companies.... About 600 employees will remain at the site after the cuts.

  3. Systemax, a computer seller, to cut 50 jobs in New York, Bloomberg via NYT, C3.
    ...as it combines two call and distribution centers to reduce costs. The centers are in Port Washington NY where the company is based. \The\ seller of personal computers and related supplies...is also discontinuing the development of a software system.

  4. Speechworks International to cut jobs, Bloomberg via NYT, C4.
    ...A maker of voice-recognition software [will] eliminate 17% of its workforce and trim expenses by 20% as it struggles to maintain sales....
    [Unspecified jobcuts.]

7/03/2002  2 downsizings, totaling 2035 jobcuts, reported in (NYT) NY Times & (USAT) USA Today -
  1. Investors fret as E.D.S. plans 2,000 layoffs, by Barnaby Feder, NYT, C3.
    The recently fragile support among investors for Electronic Data Systems frayed a bit more yesterday when the company announced that it would lay off...about 1.4% of a workforce of 140,000..\..to adjust to weak demand for some of its computer and consulting services.... EDS has been buffeted for more than a week by concerns about the future of its close relationship with WorldCom and growing questions about how it and other large computer services vendors account for long-term contracts....
    [Followup]
    Timing of E.D.S. layoffs proved costly to workers - Complaints about severance plans add to a company's woes, by Jennifer Bayot, NYT, 3-6.
    Electronic Data Systems, the big information technology contractor, picked a pivotal day this month to lay off 300 workers...it acquired...as part of its purchase of a unit of Sabre, the travel technology company..\.. Had it let them go a day earlier, on July 1, EDS would have had to pay the severance package it promised when it acquired [them]. Each laid-off worker would have received a month's salary, plus as much as a month's pay for each year served. But because EDS cut their jobs...the day after the one-year severance contract expired, the former Sabre workers will [only] receive 2-4 weeks of salary.
    The company, which employs 140,000 people, also laid off 1,700 workers that day who were not part of Sabre; EDS says the former Sabre workers' severance agreement had no bearing on the timing of the cuts....
    [Yeah sure. Another ratsnest of American executives 'endear' themselves to the public.]

  2. Ziff Davis Media to close magazine, Bloomberg via AOLNews, NYT, C3.
    ...The publisher of PC Magazine [will] close Yahoo Internet Life magazine and lay off 35 workers after the August issue because of a dearth of technology and Internet-related advertising. The monthly publication's ad revenue dropped 40% in May, to $2.16m, according to Publishers Information Bureau, [from] $5.22m in May 2000.... The magazine has about 1.1m subscribers, according to the Audit Bureau of Circulations....
    [Lordy, can't make it on a monthly schedule with over a million subscribers? Somebody's milking this cow dry.]

7/02/2002  2 downsizings, totaling 1632 jobcuts, reported in (NYT) NY Times & (USAT) USA Today -
  1. Compuware to cut 1,600 jobs, Bloomberg via NYT, C11.
    Shares [of the] make[r of] software to manage mainframe computers..\..fell 19% yesterday after the [announcement] and an analyst said its growth might be stymied.
    [Hey, maybe Wall Street's finally wising up about jobcuts. O'course, mainframe computers aren't exactly the latest thing any more so this analyst and these divestors are not exactly geniuses.]
    ...Compuware, based in Farmington, Mich., said in a recent filing to the SEC that it had laid off 1,049 workers by May 31 and planned to eliminate 551 more jobs in its fiscal first quarter, which ended on Sunday....

  2. Crime falls in [NY] city, but rises sharply elsewhere in New York [state], by David Halbfinger, NYT, A17.
    ...Despite Buffalo's troubling violent-crime totals for last year..\..the Buffalo police commissioner, Rocco Diina...said that he would lay off 32 police officers [3.6%]; the force has roughly 900 officers. He has also consolidated and disbanded several units and demoted some detectives back to patrol duties, moves that have drawn opposition from the police union and local community groups.


Click here for downsizing stories in -
June/2002.
May/2002.
Apr/2002.
Mar/2002.
Feb/2002.
Jan. 16-31/2002.
Jan. 1-15/2002.
Dec. 16-31/2001.
Dec. 1-15/2001.
Nov. 16-30/2001.
Nov. 1-15/2001.
Oct. 16-31/2001.
Oct. 1-15/2001.
Sep. 16-30/2001.
Sep. 1-15/2001.
Aug. 17-31/2001.
Aug. 1-16/2001.
July 16-31/2001.
July 1-15/2001.
June/2001.
May/2001.
Apr.16-30/2001.
Apr.1-15/2001.
Mar.16-31/2001.
Mar.1-15/2001.
Feb.16-28/2001.
Feb.1-15/2001.
Jan.16-31/2001.
Jan.1-15/2001.
Dec.16-31/2000.
Dec.1-15/2000.
Earlier Y2000 months accessible via links at bottom of Dec.1-15/2000 page.
Dec/1999.
Earlier 1999 months accessible via links at bottom of Dec/1999 page.
December/98.
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