Timesizing® Associates - HOMEPAGE
Downsizings, September, 2002
[Commentary] ©2002 Phil Hyde, The Timesizing Wire, Box 117, Harvard Square, Cambridge MA 02238 USA (617) 623-8080
9/28/2002 4 downsizings, totaling 4,092 lost jobs + unspecified, reported in (WSJ) Wall St Journal &/or (NYT) NY Times -
9/27/2002 5 downsizings, totaling 17,996 lost jobs, reported in (WSJ) Wall St Journal &/or (NYT) NY Times -
- Canada: Bombardier cuts jobs, Reuters via NYT, C3.
...The world's third-largest maker of civil aircraft [will] cut nearly 2,000 jobs at its aerospace unit, suspend production of business jets and pare by $3.17m the assets managed by its finance arm. Concerns have mounted at Bombardier, where profits have slumped along with airplane deliveries, as investors worried about the weak market for business jets....
- Germany: MobilCom to cut jobs, by Petra Kappl, NYT, C3.
The German telecomms group MobilCom plans to cut nearly half of its work force, and freeze the rollout of its 3G program would affect 1,000 jobs. Another 850 jobs would be cut from the main mobile business, saving around 130m euros ($127m) a year, which should make the unit profitable in the first half of 2003....
[So we're talking 1000+850= 1,850 jobcuts.]
- Varian Semiconductor Equipment Associates Inc., NYT, C4.
...Gloucester, Mass., a maker of gear used to make computer chips, said that it would cut its workforce by 15%, to 1,370 employees, and that it expected to break even on a per-share basis in its fiscal fourth quarter.
[If 85% is 1370, 100% is 1612 and 15% is 242 jobs cut.]
- Meadwestvaco Corp., NYT, C4.
Stamford, Conn., the United States' second-largest maker of coated paper used in magazines, said it planned to sell 950,000 acres of timberland, up from 250,000, because, after closing several plants to cut costs, it would not need the wood.
9/26/2002 6 downsizings, totaling 3,240 lost jobs + unspecified, reported in (WSJ) Wall St Journal &/or (NYT) NY Times -
- Dresdner's fate, by Robert Frank, WSJ, C5.
When will the bloodletting end at Dresdner Kleinwort Wasserstein? Frankfurt's Dresdner [Kleinwort Wasserstein?] Bank AG, a unit of Allianz AG,...is cutting 3,000 jobs, on top of the 8,000 already announced. 2,000 jobs will be cut from the corporates and markets unit....
[Assuming that we're talking, as usual, about "already announced this year," we've only caught a non-specific hint of Dresdner downsizing on 4/10 and 20 cuts on 8/31 #2, so we'll now count the whole 8000-20= 7,980 jobcuts.]
- SBC to lay off 11,000 more workers - Economy and competition take toll on regional Bells, steady earners in the past, by Shawn Young, WSJ, A3.
...The coming round of layoffs will bring to 20,000 or about 10% of SBC's workforce, the number of jobs the company has cut this year....
[Actually, they've already announced 5000 (4/19 #1) plus 8000 (5/13) = 13000 cuts this year, so 11000 more should bring them to 24000 (were they counting the 5000 from 4Q01 mentioned on 1/25/2002 #4? However, with our typical retrained and 'conservative' rosification, we'll just accept the current 20,000 figure and count only 20000-13000= 7,000 new cuts right now. If 20000 is 10% of the total workforce, the whole bunch must be 200,000, making 7000 a matter of 3.5% of the total.]
- Work-force cuts are planned; Third-quarter charge is set, Dow Jones via WSJ, B5.
...The Hartford, Conn., insurance company..\..Aetna Inc. plans to cut its workforce by about 2,750 positions during the next year....
- Manugistics Group to cut jobs as sales decline, Bloomberg via NYT, C3.
ROCKVILLE, Md. - ...Software link[er of] businesses with their suppliers [plans] to eliminate 10-12% of its workforce, or as many as 166 jobs, to pare expenses as sales decline.... The company has 1,387 workers, a spokeswoman, Didi Blackwood, said....
- GoAmerica plans to cut 50% of its work force, Bloomberg via NYT, C4.
The...provider of wireless Internet services [will] cut 100 jobs through the end of the year....
9/24/2002 1 downsizing, totaling 50 lost jobs, reported in (WSJ) Wall St Journal &/or (NYT) NY Times &/or Boston Globe (BG) -
- H-P to lay off more employees, by Pui-Wing Tam, WSJ, B5.
Hewlett-Packard Co., blaming the weak economy,...will lay off an additional 1,800 employees beyond the 15,000 it said it would shed following its acquisition of Compaq Computer Co....
[From the original announcement (9/05/2001 #1), we learn that the 15,000 was 10% of their total workforce when merged. Therefore this 1,800 is 1800/(150000-15000)x100%= 13.3% of the total now). Walter Hewlett's worst fears are coming true. He should have prevailed in the proxy battle instead of the bizarrely testosterone-poisoned Carly Fiorina.]
Hewlett-Packard to cut 1,206 jobs in France, Bloomberg via 10/01/2002 NYT, C10.
...as a result of its $18.9B purchase in May of Compaq Computer.
[Again the economy-bashing takeover-downsizing connection.]
About half the cuts will be made in Grenoble, in eastern France, and most of the rest will be in the Paris region, the company said yesterday. Workers' committees and unions at Hewlett-Packard have been informed, as French law requires, the company said..\.. The world's biggest personal computer maker...based in Palo Alto, Calif., has said it will drop 16,800 employees....
- Andrew Corp., a maker of cable, will eliminate 800 jobs, Reuters via NYT, C4.
- Goodyear Tire & Rubber to lay off 450 workers [12%] in Tennessee, Bloomberg via NYT, C4.
- Organogenesis files for bankruptcy, Bloomberg via NYT, C5.
...A maker of bioengineered skin substitute [also] dismissed 110 workers after it stopped shipping its Apligraf tissue...its only product..\..to Novartis, its exclusive distributor....
[They sacked 37 back on 2/26/2002.]
- Handspring cuts workforce, Bloomberg via NYT, C5.
...A maker of hand-held computers has dismissed about 80 workers, or 20% of its worldwide workforce, as part of an effort to reduce costs and become profitable as sales decline.
[Never mind that this will also reduce its own best markets and marketers, its own employees, as compared with trimming hours 20% for all and keeping everyone on.]
The company still has about 320 workers left in its Mountain View, Calif. HQ and in Geneva....
- Briefly..., by David Oyama, WSJ, A12.
Canadian aluminum maker Alcoa, citing global overcapacity in the industry...plans to halt production by January at one of its two cold mills at its Fairmont WV plant.
9/22-23/2002 2 downsizings, totaling 75 lost jobs + unspecified,
- Applied Extrusion Technologies to shut Boston office, Dow Jones via BG, D2.
...The plastic films maker..\..plans to shutter its corporate office in Boston, cut 50 jobs, and realign business units as part of a reorganization plan designed to save $5m annually.... The company expects to report a full-year fiscal 2002 loss of $17.5m. Its loss from operations is expected to be $7.5m, with the remaining $10m loss coming from restructuring and plant-shutdown costs.
[So let's get this straight. These clowns are more than doubling a loss they haven't even suffered yet, by grotesque over-reaction to a mere forecast. Talk about a self-fulfilling prophecy (negative!). What pathetic B-schools did these morons graduate from?]
- 3.2 million Saudi Arabian jobless according to "Briefly," WSJ, A14, which states, "About a third of Saudi Arabians of working age...are jobless, Labor & Social Affairs Minister Ali Bin Ibrahim said in remarks published yesterday. The number was disclosed amid growing fears that rising unemployment in the kingdom could cause economic and social instability."
- 50,000 jobs lost in the past year according to "Bay State [Massachusetts] jobless rate highest in seven years," State House News via Boston Metro 9/23/2002, 06, which states, "The August unemployment rate hit 5.2%, up from 4.9% in July."
- unspecified lost jobs nationwide according to "Job cuts, jitters stalling recovery," Bloomberg via Boston Metro 9/23/2002, 18, which states, "Falling consumer confidence and rising job cuts pose threats to the U.S. economy's recovery.... The number of workers filing claims for unemployment insurance benefits probably totaled 420,000 last week, a Labor Dept. report is expected to show Thursday. That compares with 424,000 the week before and would be the 5th straight week applications have totaled more than 400,000, a level economists said suggests a slowing job market.") -
9/21/2002 2 downsizings, totaling 10,720 lost jobs, reported in (WSJ) Wall St Journal &/or (NYT) NY Times (not counting "Boeing Co. - 500 layoffs announced; 750 more receive notices," Tribune news services via Chicago Tribune, 2-2) -
- 9/23 Avici Systems plant shutdown will lead to 75 layoffs, Bloomberg via Boston Metro, 09.
Hardware. A maker of equipment to direct Internet traffic will shut a plant in Massachusetts and fire...about 2.4% of its workforce, to reduce costs. The North Billerica-based company expects to save more than $6m a year.
- 9/22 Garfield Heights health center shuts its doors, by Tom Barnes, Pittsburgh Post-Gazette, C-6.
PITTSBURGH, Pa. - Garfield Heights residents are upset over the closing of a health center in their public housing community and plan to protest the move Tuesday. UPMC [University of Pennsylvania Medical Center?] St. Margaret opened the center two years ago at the Garfield Heights high-rise for senior citizens. It serves both the seniors and low-income residents of nearby row-houses, said Carol Collington, a member of the Garfield Heights Tenants Council and a Pittsburgh NAACP official.
Residents recently received a letter saying the clinic would close Friday. Collington said that was not sufficient notice.... Patients who are patients at the Garfield Heights clinic will be offered transportation to one of three other clinics nearby, Josefoski said.
[Unspecified lost jobs.]
9/20/2002 4 downsizings, totaling 928 lost jobs, reported in (WSJ) Wall St Journal &/or (NYT) NY Times
- France: 10,000 more layoffs at Alcatel, by John Tagliabue, NYT, B3.
The phone equipment maker [will] increase the number of layoffs at its factories by about 10,000 by the end of next year because of further weakening in demand for its products.... Alcatel and its rivals, including Ericsson of Sweden and Lucent Technologies, have suffered a sharp drop in demand for phone equipment as phone companies slash investment. Alcatel now expects to have 60,000 employees by the end of next year, compared with 130,000 at the end of 2000.
[So to get 60000 by the end of 2003 after slicing off 10000, it must have 70,000 now. So this 10000 cut is 10000/70000x100%= 14% of the current total workforce.]
- Ciena joins in the week's telecommunications cutbacks, Reuters via NYT, B4.
...An optical network equipment maker based in Linthicum, Md..\..the latest telecom equipment maker to be hit by customer spending cutbacks, [will] cut 450 jobs \or\ about 17% of its workforce.... Since Nov. 2001, Ciena has eliminated about 1,700 jobs, or 44% of its workforce.
[Well, of this 1700, we only caught 380 on 11/13/2001 #2, and 400 on 2/06/2002 #5, and 650 on 3/27/2002 #2, or a total of 1430, so we have now to count an additional 1700-1430= 270 cuts, giving us a total of 450+270= 720 jobcuts to count now.]
(not counting unspecified jobcuts according to "Christopher: Fairway Grill closes," by Hearne Christopher Jr, Kansas City Star, E6, which states, "Earlier this year Houston's stunned Overland Park diners by walking away from its wildly popular 95th and Metcalf eatery [in Kansas City MO]..\.. Fans of the once-popular restaurant Houston's [now] have yet another reason to grieve. Management slipped into town Sunday and shuttered the chain's second area eatery this year, the Fairway Grill.... 'It just wasn't making as much money as we wanted it to. We gave it 7 years and we tried everything.'" - except raising prices, evidently. Bad management strikes again.) -
9/19/2002 1 downsizing, costing unspecified lost jobs, reported in (WSJ) Wall St Journal & (NYT) New York Times (not counting "70 coal miners to be laid off," staff & wire reports via Albuquerque Journal, D3, which states "About 70 miners [19%] will be laid off from a McKinley County coal mine starting Jan. 1...when the company's annual contracts for supplying coal to electric generating plants in the Southwest will be renewed..\..the Pittsburg & Midway Mining Co. said. The mine, which now employs 370 people, will close one drag line, company spokesman Robert Johnson said. About 1/5 of those laid off will be from management, Johnson said. The company has said it plans to close its McKinley County mine, located about 25 miles northwest of Gallup NM, in 2008.") -
- Furniture maker says it will lay off 425 workers, Bloomberg via NYT, C4.
Furniture Brands International, the maker of the Broyhill, Lane and Thomasville lines, [will] close a plant in Thomasville, NC, because of sluggish demand. The plant employs 300 people and makes Thomasville bedroom and dining room furniture.... An additional 125 workers at support operations will lose their jobs. The cuts represent about 6.6% of the company's workforce. Furniture lines made at the NC plant will be produced at other plants or by contractors....
- Ford's Jaguar unit plans to cut 400 jobs in Britain, Bloomberg via NYT, C4.
Ford Motor's...luxury-car unit [is] offering early retirement incentives to cut...3.8% of its British workforce to reduce costs. The reductions will come mostly from managers and will be voluntary.... Ford intends to make the cuts by the end of the year from Jaguar's 3 assembly plants. Jaguar said earlier that it was [unrelatedly] reducing production in Sept. and Oct. at the Halewood factory in Liverpool, England, where the X-type is built.... Jaguar employs 10,600 workers in Britain.
- Los Angeles Archdiocese cuts jobs and units, by Barbara Whitaker, NYT, A18.
On the heels of dedicating its $189m cathedral complex, the Roman Catholic...archidiocese, which serves 5m Catholics and is the largest in the nation, is cutting at least 60 jobs at its HQ and eliminating or reducing several programs to balance its $42m operating budget \and\ close a $4.3m budget gap.... The archdiocese subsidizes the operations of the cathedral, and critics had predicted that it could lead to such cuts. But Cardinal Roger Mahony blamed primarily a decline in revenues from investments for the deficit....
- AmeriServ Financial to cut jobs and reduce its annual dividend, Reuters via NYT, C4.
...A financial holding company based in Johnstown, Pa., [will] cut 43 full-time jobs..\..9% of its workforce and reduce its annual dividend as part of a cost reduction program....
9/18/2002 4 downsizings, totaling 2,774 lost jobs, reported in (WSJ) Wall St Journal &/or (NYT) NY Times -
- General Magic Inc., Dow Jones via WSJ, D6.
...will discontinue operations and liquidate assets after the onetime high-profile technology concern couldn't secure additional financing. The Sunnyvale CA company, which went public in 1995, has struggled to find a niche. It started out as a developer of "electronic agents" that were intended to search computer networks for bargains and news and deliver the data to subscribers. But the rapid rise of the Web forced the company to shift gears. It then became a developer of voice-Internet systems.... Most of the company's employees will leave immediately, but a small team will remain to handle selling the company's assets and resolving its debts.
[Unspecified jobs lost. NYT version is -]
General Magic to shut its operations, by Laurie Flynn, NYT, C3.
9/17/2002 2 downsizings, totaling 1,700 lost jobs, reported in (WSJ) Wall St Journal &/or (NYT) NY Times -
- France: Telecom job cuts, by John Tagliabue, NYT, W1.
Europe's biggest manufacturer of phone equipment, Alcatel of France, [will] cut 1,050 jobs, or 2/3 of the workforce [67%] at its optical components affiliate, as sales plunge...because phone companies are spending less. Alcatel previously announced plans to cut about 43,000 jobs.
[See, for instance, 7/27/2001 #1].
- Schwab expects to cut work force by about 10%, by Gaston Ceron, WSJ. C5.
Charles Schwab expects to reduce its workforce by about 10% as the discount-brokerage company continues to feel the pinch of an uncertain trading environment. Schwab had 18,800 employees at the end of August, indicating it intends to lay off about 1,900 workers....
[Well the estimate on 8/07/2002 #2 was only 1000, so now we must count only 1900-1000= 900 jobcuts.]
Fidelity Investments to lay off 1,695 employees - Market slump is blamed; Mutual-fund firm to spare money managers, analysts, by John Hechinger, WSJ, D7.
...Discount broker Charles Schwab Corp. expects layoffs to total 9,100, or about 35% of its staff, from its employment peak at the end of 2000....
[More followup -]
Schwab announces cost cuts, [by Walsh & McGeehan,] 3/14/2003 WSJ, C3.
...But few firms have been hit [i.e., hit themselves] as hard as Schwab. It has almost 37% fewer employees now than at the end of 2000. That's a loss of 9,600 people, to 16,700 staffers....
- World Watch - The Americas -...Brazil carrier TAM to return planes, by David Oyama, WSJ, A17.
Faced with mounting losses,...TAM Linhas Aereas...will eliminate service to 9 midsize Brazilian cities and cut 12% of its available seats. The carrier will cut about 524 jobs, including those of 158 pilots and 300 flight attendants. TAM, one of Brazil's 2 largest airlines,...is making the cutbacks amid a sluggish local economy, foreign-exchange losses and toughter competition from discount carriers.
- Nokia to dismiss 300 in networks unit, Bloomberg via NYT, C4.
...The No. 1 mobile-phone maker [plans] to cut 300 jobs at its networks business, most of them in the unit that makes radio systems for police and fire departments. Nokia, which competes wiith companies like Motorola in selling radio systems, has found public institutions are delaying investments in new technology, a spokeswoman, Riitta Maard, said in an interview. In August [8/8/2002], Nokia said it would slash 5% of the workforce [we heard 9%] at its networks business after cutting it by 20% last year....
- WorldCom sets global layoffs, WSJ, B4.
...The workforce will be cut by..\..25% [or] 2,000-6,000....
[The NYT version is a little clearer on which end of this range is the 25% and how many we've counted before -]
WorldCom plans to cut 2,000 overseas jobs, by Simon Romero, NYT, C4.
...about a quarter of its workforce in Europe, Africa and the Middle East, as it proceeds with a restructuring effort. It filed for bankruptcy in July. About 1,550 of the jobcuts are in addition to the elimination of 17,000 positions that the company...based in Clinton, Miss..\..announced in June [6/27/2002], before its bankruptcy filing....
[So if 2000 is 25%, 2000x4= 8000 is 100%, and 1550 is 1550/8000x100%= 19% of the total.]
- Premcor to trim its rolls further, WSJ, A8.
OLD GREENWICH, Conn. - ...The refinery concern..\..plans to cut an added 20% of its salaried work force, citing concerns of financial viability. In October, [it] will lay off staff at refineries in Texas and Ohio, and early next year will make reductions at the St. Louis administrative office that already had cut a third of its 273 employees.
[This leaves us with a calculation and a decision as to what to base it on, but the NYT version lays it right out there -]
Premcor, an oil refiner, lays off 130 employees, Bloomberg via NYT, C4.
9/14/2002 2 downsizings, totaling 7,550 lost jobs, reported in (WSJ) Wall St Journal &/or (NYT) NY Times -
- [And one downsizing that we counted back on 9/05/2002 #7 without the specific numbers, so now we count only the jobcuts -]
Publicis consolidates some U.S. offices, by Bill Carter, NYT, C14.
The Publicis Groupe in Paris is consolidating some American operations of its Publicis agency, which will soon be working for a major new client, Allied Domecq. Publicis in the U.S., as the American operation is called, is closing the Chicago office, Publicis in Mid America [hooboy], and combining it with Publicis in New York [wouldn't cha know]. The merging of the offices...is taking place a week before Publicis is expected to complete the acquisition of the Bcom3 Group, which owns the largest agency in Chicago, Leo Burnett Worldwide.,,, Publicis in New York, which had 275 employees...will now have 300.... Of the 65 employees in Chicago, 25, all senior managers, are moving to New York. Of the remaining, 40, some will be laid off and some will seek jobs in Chicago at other Publicis or Bcom3 agencies.
[So, say 50% are adrift = 20 jobcuts.]
9/13/2002 3 downsizings, totaling 7,950 lost jobs, reported in (WSJ) Wall St Journal &/or (NYT) NY Times -
- Lucent plans to eliminate more positions - Sales outlook is weak; stock is at record low, by Simon Romero, NYT, B1.
...The nation's largest maker of communications equipment warned yesterday that it would continue to eliminate jobs as sales plunge, an indication of worsening problems in the telecom industry. A Lucent spokeswoman...said the company would elaborate on its plans on Oct. 23, when it discusses quarterly financial results. Analysts expect the company, which is based in Murray Hill NJ, to cut about 5,000-10,000 more jobs, leaving the workforce at 33,000-38,000 employees, down from a peak of more than 123,000 two years ago.... Large rivals like Nortel Networks of Canada and Alcatel of France are also struggling with a decline in sales....
[But we noted a downsizing of 5,000 on 8/26/2002 #1 that took their workforce down to 40,000, so all we need to count here are the 7,000 additional jobcuts that will take their headcount down to 33,000. So this downsizing amounts to (7000/40000)x100%= 17.5% of the total workforce.]
- Kwikset Corp., NYT, B4.
...Lake Forest, Calif., the world's leading manufacturer of residential lock systems, will close its Waynesboro, Ga., plant because of lagging sales. About 550 people will lose their jobs.
9/12/2002 3 downsizings, totaling 512 lost jobs + unspecified, reported in (NYT) NY Times &/or (WSJ) Wall St Journal -
- Bayer to cut work force further due to revamp, poor economy, by Vanessa Fuhrmans, WSJ, B4.
...another 4,700 jobs, about 4% of its workforce, over the next 3 years as it continues to reel from an economic slump and lagging drug sales.... The German drugs-and-chemicals maker had already planned to cut 10,300 jobs over the next 3 years. Many of the previously announced jobcuts targeted operations abroad. But in the latest round, 40%...will be eliminated on Bayer's home turf in Germany, where strong organized labor and worker-protection laws can make layoffs prohibitive. How the jobcuts will be taken will be negotiated with employee representatives over the next months.
Bayer employs 39,400 people in Germany, nearly 1/3 of its 124,000-strong global workforce....
- Japan: Fujitisu cuts jobs, AP via NYT, W1.
The Japanese electronics maker [will] cut 3,000 jobs, or about 1.8% of its global workforce at 2 domestic plants because of a slowdown in the telecomms market in the U.S. All the cuts will be carried out through a voluntary early retirement program, a Fujitsu spokeswoman, Naomi Ogawa, said. The latest cutbacks follow those announced in August, when the company said it would eliminate 2,100 jobs.
- Midwest Express lowers predictions; job cuts planned, AP via NYT, C4.
The holding company that operates Midwest Express Airlines [plans] to cut its workforce by as much as 250 jobs and adjust flight schedules.... Timothy Hoeksema, chairman and CEO, said increasing fuel prices, declining business fares and lower demand for business travel were among the reasons the company was projecting a bigger-than-expected loss after a profitable second quarter.
[So, another company in profit that is downsizing anyway, thus further dampening demand and clinching its gloomy projections.]
9/11/2002 3 downsizings, totaling 485 lost jobs + unspecified, reported in (NYT) NY Times &/or (WSJ) Wall St Journal -
- Jabil Circuit to close a plant, Bloomberg via NYT, C3.
...A maker of electronic products for brand-name companies will close a plant in Boise, Idaho, and dismiss its 500 workers amid a slump in demand from telecomm equipment makers. The factory...will close by the end of the year.... Work performed there will be moved to plants in Michigan and Florida.
- A loss for Performance Technologies, Bloomberg via NYT, C3.
...A maker of communications and networking equipment warned that it would have a Q3 loss and would cut another 7% of its workforce to trim expenses.... About 12 jobs will be affected, based on a filing with the SEC that said the company had about 168 employees as of Jan. 31.
- Leggett & Platt profit, Bloomberg via NYT, C4.
...A leading maker of furniture springs, wires and fabric...which is based in Carthage MO, has sold a Steele AL aluminum smelter and an aluminum tool plant in Oakdale MN. Leggett & Platt is in talks to divest itself of another plant and will close or idle 2 more, the company said....
9/10/2002 5 downsizings, totaling 1,048 lost jobs + unspecified, reported in (NYT) NY Times &/or (WSJ) Wall St Journal (not counting more than 359,000 travel industry jobs lost since 9/11 according to "Terrorist toll on travel industry," NYT, C10) -
- Phelps Dodge will cut 345 jobs and take a charge, Reuters via NYT, C3.
The copper producer...which is based in Phoenix, [will] temporarily close 2 wire and cable plants...a magnet wire plant in Laurinburg, NC, and a conductor operation in West Caldwell, NJ..\..and take other steps to cut costs. ...It [will] evaluate by the end of Q3 whether it would need to take an impairment charge as a result of temporarily closing the 2 plants....
[No explicit end date for the "temporary" closings? We categorize it as indefinite-permanent. What's an "impairment charge"?]
- Manufacturing is outsourced, prompting 140 jobs to be cut, Dow Jones via WSJ, B5.
Avanex Corp., of Fremont, Calif., plans to cut...about 1/3 of its workforce [33%]. The cuts come less than a month after the optical-parts maker's failed acquisition of Oplink Communications Inc., of San Jose, Calif.
[So there can be a lethal takeover-downsizing slide even if the takeover doesn't go through!]
Most of the cuts will be in manufacturing. Avanex...will outsource manufacturing operations and related engineering and infrastructure to China....
- Joint venture ends after a brief life, by Saul Hansell, NYT, C3.
The three largest agency companies are closing a media management agency that they had started with much fanfare only last year. The agency, Mediaport, was opened in NYC in April 2001 as the first joint venture of the Interpublic Group of Cos., the Omnicom Group, and the WPP Group....
[Unspecified lost jobs.]
9/9/2002 1 downsizing, totaling 15 lost jobs, reported in (NYT) NY Times &/or (WSJ) Wall St Journal -
- Sweden: Fiber optic cuts, Bloomberg via NYT, W1.
Telia will write down the value of assets at its fiber optic business and eliminate 400 jobs, or half the division's workforce, leading to about 9.5B kronor ($1.01B) of costs in Q3. The jobcuts, representing 2.4% of the 16,561 employees of Telia, will lead to costs of 3.5B kronor, mainly in Q3, the CEO, Anders Igel, said....
- World watch - Europe/Asia - ...Briefly, by David Oyama, WSJ, A10.
Interbrew [is] closing a Dutch brewery and reducing output at a British plant, leading to a 25m euro ($24.6m) writedown and the loss of about 400 jobs....
- Quantum to cut jobs, Bloomberg via NYT, C6.
...A maker of computer data-storage devices...based in Milpitas, Calif. \will\ reduce its workforce by 1,100 as its new CEO, Richard Belluzzo, sought to pare costs and return to profitability by March 2003. About 80% of the workers cut will be hired by Jabil Circuit Inc., which is taking over some Quantum manufacturing, a spokeswoman said....
[So 80% of 1100 is 880, so totally adrift are 1100-880= 220 employees.]
- Company lays off workers, shuffles senior management, Dow Jones via WSJ, D3.
Immune Responses Corp. laid off than half the workers at its HQ...under a plan to cut costs and narrow its focus to what it sees as its most promising product, an AIDS treatment. The Carlsbad, Calif., biopharmaceutical company said it laid off 28 of 42 workers at its HQ who were mainly involved with the development of the vaccine Remune....
- Warnaco Group seeks approval for plan to close stores, Bloomberg via NYT, C4.
...The maker of Calvin Klein jeans, Speedo swimsuits and Olga bras..\..is asking a federal bankruptcy judge...Richard Bohanon in Manhattan..\..to approve its plan to close 26 Calvin Klein outlet stores...in 13 states..\..and liquidate the inventory...,saying the stores are either unprofitable or "marginally performing"..\..
[Unspecified lost jobs.]
Warnaco...filed for Chapter 11 protection in June 2001 [see our catch on 9/07/2001], hurt by the slowing economy and heavy debt from acquisitions and licensing agreements.
[Again, the toxic takeover-downsizing connection, and, according to our previous story, bloated executive pay.]
The company, based in NYC, is selling assets in a bid to reorg and come out of bankruptcy....
9/06/2002 6 downsizings, totaling 8,210 lost jobs, reported in (NYT) NY Times &/or (WSJ) Wall St Journal -
- dRush Agency to be dissolved, by Stuart Elliott, NYT, C8.
An agency formed in 1999 by Deutsch in NYC and the rap impresario Russell Simmons, which specializes in campaigns aimed at younger and urban consumers, is closing, effective in 90 days...after a determination that "resources would be better used to support initiatives that represent higher growth potential." The agency currently works for one client, Allied Domecq, on the Courvoisier brandy and Tequila Sauza brands. Peter Drakoulias, a former Deutsch partner who was named president of dRush in June 2001, is leaving, and the estimated 10-15 other employees are being laid off.
9/05/2002 2 downsizings, totaling 1,125 lost jobs, reported in (NYT) NY Times &/or (WSJ) Wall St Journal (not counting "Betting on layoffs - Plans for derivatives tied to payroll data may draw anticapitalist jeers, but could be a step toward letting ordinary citizens hedge against falling home prices or inflation, says David Wessel," pointer blowout (to A2), WSJ, front page, as if any "ordinary citizens" are mixed up in derivatives and hedging) -
- Switzerland: Insurer cuts jobs, Bloomberg via NYT, W1.
Zurich Financial Services, Switzerland's biggest insurer, plans to cut 4,500 jobs, or 6% of its workforce...after posting its biggest loss ever. The $2.03B loss for the first half was in contrast to a profit of $861m for the period a year earlier....
- PCCW pares debt but posts loss, by Matt Pottinger, WSJ, B5.
...Over the past 18 months..\..Hong Kong's dominant telephone company...has staunched losses in its Internet operations, cut 1,800 jobs, or about 12% of its total workforce, and concentrated on paying down the debt left over from the deal that won Mr. Li control of the Hong Kong telephone company from Britain's Cable & Wireless PLC....
[We saw no earlier announcements of these cuts so we count them now, and again, it's the toxic takeover-downsizing connection.]
- Asia/Pacific -...Bank Bali to merge with four banks, by David Oyama, WSJ, A10.
The Indonesian Bank Restructurinng Agency [IBRA] said a plan to merge Bank Bali with four small local banks...Bank Universal, Bank Prima Express, Bank Artamedia, and Bank Patriot..\..will cost about 4.6 trillion rupiah ($518.6m). The move, which IBRA...hopes to complete this month, would make midsize Bank Bali one of Indonesia's 10 largest banks by assets.... IBRA will completely own the enlarged Bank Bali. The merged bank will have about 7,000 staff after about 950 jobs are cut at the 5 banks.
[And again, the toxic takeover-downsizing connection.]
- Tellabs warns of drop in sales, plans to cut jobs, by Dennis Berman, WSJ, B6.
Tellabs Inc...based in Lisle, Ill..\..citing plummeting demand for its telecomms gear, said 3rd-quarter sales would fall as much as 25% from 2nd-quarter levels and it would lay off 800 employees.... The...layoffs will be split evenly between domestic and international employees. Most of the international layoffs will come in Shannon, Ireland, where Tellabs will close a manufacturing plant..\.. The announcement showed the telecom-equipment industry remains in the severest crisis of its history.... "It's brutal out there," said Bank of America Securities analyst Christopher Crespi....
- Sonicblue lays off 25% of its employees, Bloomberg via NYT, C4.
...The money-losing maker of Rio digital audio players [is] cutting...100 people [including] Roger Hackett, senior VP for sales, and Andy Wolfe, the chief technology officer..\..and consolidating business units to improve its financial performance.... Sonicblue, which has posted net losses for 9 consecutive quarters, had 350 to 400 employees before the jobcuts, Mr. Smith said.
- State Street Research & Management, Boston, lays off 60 employees to trim costs, WSJ, C10.
...or about 11% of its workforce of 533.... Amid a bear market on Wall Street, State St spokeswoman Robyn Tice said the layoffs reflect the company's efforts to reduce the number of national and regional brokerage fims through which it offers asset-mgmt services. The layoffs involved sales and service personnel and not employees directly involved in asset mgmt....
9/04/2002 7 downsizings, totaling 2,333 lost jobs + unspecified, reported in (NYT) NY Times &/or (WSJ) Wall St Journal -
- Northwest Airlines to cut 1,000 jobs for slower period, AP via WSJ, D5.
...as the carrier shifts to a reduced flight schedule for the slower autumn season.
[For a total of 670+350= 1,020 jobs lost.]
- Northwest is laying off 670 temporary workers, who were called back during the heavy summer travel season.
[Sounds like they had been laid off before. Were they previously "permanent"? Probably. The NYT version, "Northwest Airlines will lay off 1,000 employees," by Edward Wong, NYT, C4, says, "670 had already been cut after 9/11 but were recalled for a 3-mon. summer contract that expired last Saturday."]
- An additional 350 jobs will be cut in October.
The employees affected include customer-service agents, airplane cleaners, baggage handlers and quality-service assistants. Some workers will be on unpaid leave,
[of specified length? - because if not, it counts as a regular indefinite layoff]
but the majority will be laid off, said Northwest spokeswoman Mary Beth Schubert. Northwest employs 46,000 people.
[So these layoffs represent 1020/46000x100%= 2% of the total workforce.]
2/3 of the jobcuts will come from the hubs in Minneapolis-St.Paul, Detroit and Memphis,... Ms. Schubert said, "In the past, we've usually had enough people to take voluntary leaves. But this year we didn't, so we had to do some furloughs."...
[A nice euphemism.]
People who take unpaid, voluntary leave retain their seniority and flying privileges, she said. They can elect to receive either medical and dental coverage or unemployment compensation.
[There's a nice dilemma too.]
- CryoLife lays off 105 workers..., by Martha Brannigan, WSJ, B2.
...or about a quarter of its staff, and revised downward its Q2 results to post a $5.5m net loss. The Kennesaw, Ga., company, which processes human tissue for surgical implants, also disclosed that its lender, Bank of America, has determined that the widespread recall of its tissues put Cryolife in noncompliance with loan covenants. Cryolife...also is under investigation by the SEC in connection with the tissue recall.... The jobcuts...span the company but especially affect tissue-processing technicians....
9/03/2002 4 downsizings, totaling 19,500 lost jobs + unspecified, reported in (NYT) NY Times &/or (WSJ) Wall St Journal -
- Amid cuts, postman sometimes rings late, by Rick Brooks, WSJ, B1.
...In the past year, the U.S. Postal Service [USPS] has eliminated more than 1,600 mail-delivery routes in cities across the country, assigning stops along those routes to other carriers.... Routes eliminated over the past year represent only about 1% of the country's 166,000 city delivery routes, which handle about 60% of the Postal Service's daily load of 687m pieces. (The rest are delivered by rural or highway-contract carriers or go into post-office boxes.) The cuts come despite the addition of 464,000 city addresses in the past year. The result is that the typical carrier is now making 504 delivery stops a day, up 2% from 2 years ago..\.. Much of the consolidation has happened in places where mail volume has been hit especially hard by the weak economy and the growth of electronic bill-payment systems and e-mail. ...Mail volume have fallen sharply, declining 3.8% for the 8 months that ended in May..\..
Routes are generally adjusted every 8 years or so to fit changing mail patterns. But the push is accelerating to eliminate routes that don't generate enough deliveries to keep carriers busy. Struggling to stem 3 years of red ink, the Postal Service, the world's largest mail system, [is reacting to] last year's $1.7B loss.... Scaling back postal routes is just one way the post office is quietly downsizing under Postmaster General John Potter, who began as a part-time clerk in 1978 and moved into the top job 15 months ago. Since then, almost 26,000 full-time postal jobs, or 3.3%, have been eliminated through attrition from a gargantuan full-time labor force that now stands at a 7-year low of 755,000....
[Well, back on 1/09/2002 #1 we counted all the layoffs up till then, which brought the total workforce down to 756,400. Now we only need to count the 756400-755000= 1,400 jobcuts since then, which constitute 1400/756400x100%= 0.2% of the total.]
U.S. Postal Service, 1/08/2003 WSJ, B2.
...reported a [$200m-]higher-than-expected profit of $1 billion for its fiscal Q1, boosted by an aggressive cost-cutting push that overcame weakness in 1st-class deliveries. While the weak economy kept revenue about $300m lower than postal officials had expected, continued belt-tightening efforts such as not replacing certain workers that retire or quit caused expenses to be about $500m less than planned....
- Job cuts at Boston University, AP via NYT, A14.
B.U. plans to cut 450 jobs, including 130 full-time faculty positions, to save $25m. The chancellor, John Silber, told deans and department heads that there would be no merit raises for faculty members in 2003, but he said the university would still be competitive in the salaries it offered to new staff members. A university spokesman told the Boston Globe that the cuts, which would affect aabout 6% of the university's employees, would be made largely through attrition over two years.
- Mexico: VW unit reaches accord, by Tim Weiner, NYT, W1.
Volkswagen and the union at its Mexico unit, the only plant producing the New Beetle, settled on a contract hours before a strike was set to start.... Demand for the auto has fallen, and hundreds of layoffs are planned in the coming year. The union represents more than 10,000 workers.
[Let's peg this at 300 jobcuts.]
- Parent of Janus Funds will reorganize its operations - Changes for a fund family that is among those hit hardest in the bear market, by Kenneth Gilpin, NYT, C4.
Stilwell Financial Inc., the parent of a group of companies involved in mutual funds, [plans] to merge its operations under the umbrella of its flagship Janus Capital Management unit.... Stilwell, which is based in Kansas City, Mo., will close its HQ there and cut as many as 140 jobs....
- Napster says it is likely to be liquidated - Judge blocks Bertelsmann's acquisition of Internet music service, by Matt Richtel, NYT, C2.
SAN FRANCISCO...- The CEO of Napster [Konrad Hilbers] said today that the company is headed for liquidation, and later resigned and laid off his staff.... Tonight, Mr. Hilber laid off 42 people, including himself, because there was no money to pay salaries, Napster said, leaving only 2 staff members to oversee the bankruptcy....
Napster...had previously filed for bankruptcy protection [6/04/2002 #2]....
- Kulicke & Soffa Industries Inc., NYT, C4.
...Willow Grove, Pa., a maker of semiconductor assembly equipment, [will] eliminate the position of president to trim costs. Alexander Oscilowski, the president, will leave the company, and E. Scott Kulicke, chairman, will take over his duties.
[For once, some of the pain reaches the top. One (1) jobcut.]
- Publicis's Levy sees trouble in hitting next year's targets - CEO notes 'difficult' time and is projecting layoffs after purchase of Bcom3, by Erin White, WSJ, B10.
Maurice Levy, CEO of Publicis Groupe, says it will be difficult to achieve the company's targeted operating profit margins next year and that layoffs are likely to result from the French advertising company's acquisition of US-based Bcom3 Group....
[Again the toxic takeover-downsizing connection. Unspecified jobcuts.]
9/02/2002 1 downsizing, totaling 6000 lost jobs, reported in (NYT) NY Times &/or (WSJ) Wall St Journal (&/or 1 regional newspaper)
- Consolidated Freightways to file for bankruptcy-court protection, Dow Jones via WSJ, A6.
...The Vancouver, Wash., trucking company, which has been struggling with its financing..\..in the latest corporate collapse is ending most operations immediately and will file for Chapter 11...as early as today, resulting in about 15,500 layoffs.... About 80% of those expected to lose their jobs will receive immediate termination notices, while the remaining management and supervisory employees will be phased out. All drivers and freight-terminal employees were told not to report to work today and all CF terminals are closed.
In a statement, the 73-year-old company said it was "unable to secure financing and to bridge the surety bond gap," and expected a second insurer would cancel coverage....
- IBM may cut about 4,000 jobs after Pricewaterhouse deal, by William Bulkeley [Bill Buckley's bulky brother?], WSJ, B7.
...as IBM Corp. completes its acquisition of PricewaterhouseCoopers LLC's consulting arm, according to people familiar with the matter. ...The Pricewaterhouse consulting group...has about 30,000 workers. ...IBM's 50,000-employee consulting arm, referred to internally as Business Innovation Services [may also contribute victims]. The deal is scheduled to be completed on about Sept. 30 and the layoffs, which would amount to about 5% of the combined units, are expected to occur during the 4th quarter.... Many of the layoffs are expected to be in the support-staff area, with IBM planning to retain people with direct client contacts....
[The usual BS. You've got to continue your client contacts now with no support. Another case of the toxic takeover-downsizing connection. And not counted in the 15,600 IBM jobcuts we noted on 8/14/2002.]
Layoffs create glut of [office] space in Boston area, by Susan Diesenhouse, NYT, C6.
...PricewaterhouseCoopers...recently sold parts of the company and trimmed staff to about 2,100 from 2,600, a 17% cut in its Boston jobs....
- Adelphia seeks to end 14 local carriers in bid to cut costs, Dow Jones via WSJ, B7.
COUDERSPORT, Pa. - Adelphia Communications Corp. is seeking permission to wind down 14 of its 17 competitive local-exchange carriers [CLECs] and to sell nearly all the related assets, according to a bankruptcy-court filing.
Adelphia said it will [only] keep its CLECs in Buffalo..., Richmond and Charlottesville, Va....
- Clothier to Everyman, Moe Ginsburg's is to close - Store specialized in inexpensive fashion - For 3 decades, a stop for bargain hunters and a politician or two, by Michael Wilson, NYT, A21.
...After 3 decades outfitting NYC bar mitzvahs and first job interviews and trial lawyers seeking a jury's trust, Moe Ginsburg Better Men's Clothing, the friendly uncle of fashion, is closing for good at the end of the month.
[Unspecified job losses.]
The store filed for Chapter 11 bankruptcy protection on May 1, 2001, hoping to emerge reorganized and revitalized this year. 9/11 hit hard, though, for a store that counted on Wall Street and tourist business.... 9/11 was the final blow, but the first came years ago, the day some middle manager somewhere...invented casual Friday..\.. The liquidation sale, first reported yesterday in The Daily News, is squeezed into one of its five floors on Fifth Avenue at 21st Street....
A-J Aronson, 17, dragged his father to Manhattan from Westchester to scoop up some suits. He recalled his first visit: "I remember the sales guy. I remember he walked in and said, "You're a 36," and sure enough, it was exactly the right size."...
A melee in an upstate city [Newburgh NY] is a sign of despair, NYT, A15. ...By the time officers arrived..\..on Aug. 25 at Broadway and Dubois Street...an estimated 150 to 200 people were battling with sticks, knives and bottles.... Few in this declining city on the west bank of the Hudson expressed surprise at the outbreak of violence.... Factories in the area have closed, with thousands of jobs lost. And as unemployment and crime have mounted, so has apathy among youths,..\..said Audrey Carey, a former mayor....
Carefree merchants find living uneasy, by Thomas Ropp, Arizona Republic, B5.
CAREFREE, Ariz. -...At least 20% of the businesses along Easy Street and in nearby Spanish Village have gone under....) -
- Guatemala to cut army 20%, bolster education, Republic news services via Arizona Republic, A28.
GUATEMALA CITY - President Alfonso Portillo announced plans Sunday to cut the size of Guatemala's armed forces by 20% and convert the extra military installations into schools.... The government will lay off 6,000 of the army's 30,000 soldiers.
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