Timesizing® Associates - HOMEPAGE

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

12/31/2002   2 downsizings, totaling 500 jobcuts + unspecified, reported in WSJ & NYT -

  1. Hanover Compressor says it will trim 500 jobs, Bloomberg via NYT, C3.
    ...as it consolidates some manufacturing plants. \The\ provide[r of] equipment and services to the oil pipeline industry...is based in Houston....

  2. Tasty Baking, expecting a loss, will close thrift stores, Bloomberg via NYT, C3.
    ...The maker of Tastykake snack cakes...plan[s] to close its 12 remaining thrift stores....
    [Unspecified jobcuts.]

12/28/2002   3 downsizings, totaling 690 jobcuts, reported in WSJ & NYT
(not counting economywide "Congress battles on benefits as the unemployed worry - Impasse leaves thousands without a net - Coverage typical in previous downturns is still in dispute," by Fountain & Andrews, NYT, A11, which states, "For more than 750,000 Americans, federal unemployment benefits run out on Saturday" - Happy New Year from your wealthy "representatives") -
  1. Applied Biosystems Group says it will cut 9% of work force, Reuters via NYT, B4.
    ...The world's No. 1 maker of gene analyzing equipment,...based in Foster City, Calif. [will] cut 400 regular jobs and 100 contract and temporary positions..\..after delays in financing for research....
    [400+100= 500 jobcuts.]

  2. Sara Lee says it plans to close two bakeries, Reuters via NYT, B4.
    ...as it continue[s] to cut excess production to reduce costs. Production will end within 90 days at..\..the food and consumer products company['s] Eau Claire, Wis., bakery and within 60 days at the Huntsville, Ala., bakery, eliminating a total of 127 jobs.... The plants were among those acquired when Sara Lee bought a breadmaker, the EarthGrains Co., in August 2001. Since then, the company has closed 8 bakeries.
    [Again the toxic takeover-downsizing connection.]

  3. American Ecology set to close a plant, Bloomberg via NYT, B4.
    ...Hazardous-waste plant [operator] expects to lay off about 20% of its workforce....   63 jobs will be eliminated at the Oak Ridge, Tenn., plant, which reduces levels of radioactivity in waste from nuclear plants, hospitals and research institutions. The waste is then shipped to a competitor's plant in Utah for disposal.... The company employs about 300 people. ...American Ecology [what a misnomer!] is based in Boise.... A few employees will continue to work at the plant to remove waste stored there....

12/27/2002   2 downsizings, totaling 2,250 jobcuts + unspecified, reported in WSJ & NYT -
  1. Agilent sees big growth in Asia, targets region for R&D work, by Richard Borsuk, WSJ, B5.
    ...Agilent Technologies Inc...spun off from HP in 1999, has about 35,000 employees worldwide.\..Agilent has been reducing jobs to cut costs....
    [A rare spinoff-downsizing connection.]
    In its latest fiscal year, the company slashed 8,000 jobs [see 10/22/2002 #1] and it is in the process of cutting an additional 2,500..\.. CEO...Ned Barnholt, who also is chairman and president of the Palo Alto, Calif., test-and-measurement equipment maker [competes with Analog Devices?] said fewer than 10% of the total job losses are in Asia, with most of them in manufacturing. ...Research spending in Asia is "definitely on the upswing," Mr. Barnholt said. ...He expects the number of employees in India, where Agilent has a software-development center, to increase to between 400 and 500 "within a couple of years" f rom about 250 at present....
    [So they're going to hire 500-250= 250 people but fire another 2500, so their net is 2500-250= 2,250 jobcuts, which is 2250/35,000= 6% of the current total.]

  2. Recoton to use proceeds for debt, WSJ, B5.
    LAKE MARY, Fla. - ...The consumer-electronics company...in November...cut both its workforce and executive compensation by 10%, and moved to reduce selling, general and administrative expenses.
    [Unspecified jobcuts.]

12/26/2002   7 downsizings + unspecified more, totaling unspecified jobcuts, reported in WSJ & NYT -
  1. Hedge funds were battered as stocks skid - Record for closures in once-rich field, Bloomberg via NYT, C3.
    This year will be the worst for hedge-fund business in almost a decade as slumping stock markets dented performance and spurred a record number of closures, consultants and academics said this week....
    In the last 8 years, fewer than 4% of funds ceased providing returns to..\..Tremont Advisers Inc...a consulting and investing business. \However\ a fifth [20%] of the 1,797 hedge funds tracked by Tremont...at the start of 2002 stopped reporting their results by the end of October, and most of those funds shut, Tremont said.... The increase in liquidations corresponds with slowdown in new investments and deteriorating returns. The biggest funds to close include offerings from Lipper & Co. and Beacon Hill Asset Management of Summit, NJ....
    [Unspecified jobcuts.]
    The majority of closures have been small funds that did not raise sufficient money or generate enough fees..\..said Oliver Schupp, the president of CSFB/Tremont, a venture between the hedge fund consultant and the Credit Suisse Group....

  2. Hedge funds were battered as stocks skid - Record for closures in once-rich field, Bloomberg via NYT, C3.
    ...The biggest funds to close include offerings from Lipper & Co. and Beacon Hill Asset Management of Summit, NJ....
    [Unspecified jobcuts.]

  3. Hedge funds were battered as stocks skid - Record for closures in once-rich field, Bloomberg via NYT, C3.
    ...The $14m White Mountain European Fund Ltd. closed this month....
    [Unspecified jobcuts.]

  4. Hedge funds were battered as stocks skid - Record for closures in once-rich field, Bloomberg via NYT, C3.
    ...Henderson Global Investors Ltd., the Robeco Groep, Rourke Capital Management Ltd., and Bank Sarasin et Cie also shut funds that failed to attract enough investors....
    [Unspecified jobcuts.]

  5. Hedge funds were battered as stocks skid - Record for closures in once-rich field, Bloomberg via NYT, C3.
    ...Henderson Global Investors Ltd., the Robeco Groep, Rourke Capital Management Ltd., and Bank Sarasin et Cie also shut funds that failed to attract enough investors....
    [Unspecified jobcuts.]

  6. Hedge funds were battered as stocks skid - Record for closures in once-rich field, Bloomberg via NYT, C3.
    ...Henderson Global Investors Ltd., the Robeco Groep, Rourke Capital Management Ltd., and Bank Sarasin et Cie also shut funds that failed to attract enough investors....
    [Unspecified jobcuts.]

  7. Hedge funds were battered as stocks skid - Record for closures in once-rich field, Bloomberg via NYT, C3.
    ...Henderson Global Investors Ltd., the Robeco Groep, Rourke Capital Management Ltd., and Bank Sarasin et Cie also shut funds that failed to attract enough investors....
    [Unspecified jobcuts.]

12/24/2002   1 downsizing, totaling 400 jobcuts, reported in WSJ & NYT
(not counting 2 economywide stories:
  • "Applicant flood makes it tough to hire wisely," by Carlos Tejada, WSJ, B1 - {and to manage wisely} as if applicant drought makes it easy to hire wisely - which states, "8.5m Americans [are] looking for work...."
  • "If you're out of work, put doing a resume last on your list," by Carol Hymowitz, WSJ, B1, which states, "Lots of people are spending this holiday season contemplating how to start over. They have been laid off from companies downsizing in the recession, and they have to find new employment in one of the worst job markets in decades...."
    - notice how female and minority staffers at the Wall Street Journal project quite a different story from the prevailing drivel of happytalk at the Journal) -
    1. GM restructuring of Saab unit could run into union opposition, by Neal Boudette, WSJ, A2.
      ...In last year's Opel restructuring, GM originally aimed to close at least one of the unit's 8 auto plants and shed close to 10,000 workers. In the end, Opel kept all 8 plants and agreed to no forced layoffs. Some 2,000 jobs are being eliminated through attrition and early retirement....
      [We caught 1600 of these on 10/17/2001 #5 so now we just need to count 2000-1600= 400 more job losses. If 1600 cuts was 2.1% of Opel's workforce, then 2000 cuts is 2.6% and 400 is 0.5%.]
    12/20/2002   2 downsizings, totaling 2,675 jobcuts, reported in WSJ & NYT -
    1. Verizon Communications laying off 2,400 in New York, AP via NYT, C13.
      ...effective immediately, because of competition...from traditional, cellular and cable modem services and the poor health of the telecom industry..\..and a slumping economy.... The cuts...will affect mostly installation and service technicians.... A union spokesman, Bob Master...said the company told union officials that about 1,100 of the jobcuts would be made at operations upstate, north and west of Westchester County....

    2. Duke Energy says it will lay off 275 as it consolidates, Bloomberg via NYT, C4.
      ...as it shut[s] down energy-trading operations in Salt Lake City and Calgary, Alta., to cut costs. The company will spend about $15m on severance and other costs associated with consolidating trading operations to Houston, reducing profit in the current quarter.... The layoffs include 50 marketing and trading employees, adding to 75 positions cut earlier this year.
      [We'll suppose that these 75 were included in the 1500 counted on 10/25/2002 #2.]
      Other cuts include financial and administrative jobs that support trading. Duke is laying off 120 people in Houston, 80 in Salt Lake City, 50 in Calgary and 25 at other cities.
      [Waaait a minit. 50+(120+80+50+25)= 325 jobcuts, but if we assume the skill-based accounting is completely overlapped by the city-based accounting, we do get 275.]

    12/19/2002   3 downsizings, totaling 1,810 jobcuts + unspecified, reported in WSJ & NYT -
    1. Canada: Bell Canada Enterprises cuts 1,700 jobs, by Bernard Simon, NYT, W1.
      The communications and media group [will] cut...almost 4% of its workforce as it pursues a simplified structure and improved productivity....

    2. Alcoa Primary Metals to cut 110 smelter jobs, AP via NYT, C15.
      ...at its East Smelter plant in [Massena,] northern NY.... The cuts will include both hourly and salaried jobs. The plant has 550 workers. The aluminum company said union and management officials had worked out a plan to revamp work processes and job requirements to cut costs and improve profitability....

    3. ASML Holding will lay off 22% of work force, by Gregory Couch, NYT, C4.
      ...One of the world's largest manufacturers of semiconductor equipment [will] lay off 22% of its workforce worldwide, including employees at the Track subsidiary, based in San Jose, Calif. Track, formerly part of Silicon Valley Group, which ASML acquired last year, will be shut this month....
      [Again the lethal takeover-downsizing connection. Unspecified lost jobs.]
      Another division, Thermal, will be sold.... ASML said that it was forced to sell or shut divisions because of a continuing slump in the semiconductor industry.... Shares...fell....

    12/18/2002   2 downsizings, totaling 5,120 jobcuts, reported in WSJ & NYT -
    1. AB Electrolux to cut 6% of workers globally in a restructuring, Dow Jones via WSJ, C7.
      STOCKHOLM - ...The world's largest appliance maker plans to cut 5,091 of its 87,000 jobs, mostly outside Europe..\..under a restructuring program aimed at improving productivity and profitability of its maj\or-appliances and compressor operations.... About 86% of the cuts will take place in the major-appliances business, including 1,350 positions in North America and 2,665 in the rest of the world excluding Europe. Key measures include the closure of Electrolux's room air-conditioner plant in Edison, NJ, and the revamping of refrigerator production in China. In India, the company will consolidate operations, write down assets and restructure compressor operations....

    2. Sotheby's Holdings Inc. cuts staff, sells building, by Alexandra Peers, WSJ, A12.
      A year-end belt tightening...has prompted cutbacks in its online division, layoffs of some high-level employees and the sale of its Upper East Side HQ in NYC.... During the past 2 weeks, Sotheby's announced a series of layoffs at its NY operation. Those laid off include...a senior VP,...the company's worldwide head of marketing, and some employees from the company's online-auction venture with eBay Inc.... More layoffs are expected during Q1 at Sotheby's overseas operations [ie: London, see followup below].... Overall, the company has reduced staff 15% since 2000....
      [On 10/12/2001 #3, we learned that 14% of the workforce was 400. Therefore 100% of the workforce is 2857 and 15% is 429. We counted up to 400 cuts a year ago Oct. so we just need to count 429-400= 29 more cuts now. Sotheby's is another example of top executives killing the company -]
      ...Although the art market remains relatively strong and the company sold about $1.6B of art last year, costs have risen in several primary areas of the business.... One example...is the $9.5 million in "golden handcuffs" or "retention" packages 7 top execs have negotiated if they remain with the company through next year...on top of large pay packages Sotheby's gave to about a dozen of its top art experts when they were the target of talent raids by rival auction houses....
      [Followup -]
      Sotheby's Holdings Inc. - Wider loss is related to cost of closing Internet division, Dow Jones via 5/15/2003 WSJ, D4.
      ...Sotheby's results suffered from restructuring charges of $5.8m related to its decision late last year to halt sales of art on its website and to layoffs in the firm's London office.

    12/17/2002   8 downsizings, totaling 11,838 jobcuts + unspecified, reported in WSJ & NYT -
    1. Britain: Marconi plan advances, Dow Jones via NYT, W1.
      ...The British telecom equipment maker...revised its revamping plan to include deeper cost-cutting measures and improved payments to creditors.... Marconi will also cut the number of employees at its core business to 14,000 instead of the 15,000 in the original plan....
      [Assuming this is not a typo, all we have on Marconi so far this year is 1/16/2002 #1 wherein Marconi's target workforce was 25,000, not 15,000. Since this is the second jumpdown of this kind we've seen for Marconi. Assuming there was some error last time, we didn't count the first drop, so we're going to switch methods and count this one to limit our margin of error. So we've got 25k-15k= 10000 plus 15k-14k= 1000, total 11,000 jobcuts.   11k/25k= 44%.]

    2. Goodyear to lay off 460 workers at Tennessee plant, Bloomberg via NYT, C4.
      The Goodyear Tire & Rubber Co. will...scale back shifts at a Tennessee factory after its sales declined last month. The layoffs, covering 12% of the 3,800 employees at a plant in Union City, Tenn., will start Jan. 20....
      [Added info -]
      Goodyear Tire & Rubber Co., Dow Jones via 3/20/2003 WSJ, A11.
      ...Goodyear Tire employs about 92,000 workers world-wide.
      [Followup -]
      Goodyear Tire & Rubber plans heavy cost cuts after it posted a record loss, by Timothy Aeppel, 4/4/2003 WSJ, A6.
      ...CEO Robert Keegan said previous moves - such as laying off 900 workers at a plant in Tennessee and 700 mostly white-collar workers at its base in Akron, Ohio, axing employer contributions to 401k retirement plans, and halting dividend payments - are just a "first phase" in the cost cutting.
      [This 900 figure is evidently a rounding of the current 460 layoff and September's 450 in Tennessee (9/26/2002 #3). We're going to assume the 700 figure is included in the 3,500 we counted on 2/09/2002 #1.]
      "We have to take our cost structure down and attack it in a way we historically haven't done in North America," he said....
      [Too bad he's also attacking his own best markets = his own employees, and his customers' customers. The crude narrow interests and near-sightedness of many of today's CEOs is still thinking, when they think of it at all, that the consumer base is infinite and that nothing "little them" can do to it will harm it. It's like fishermen, or polluters, think of the oceans - "Oh, they're infinite. Fish stocks will never give out. Pollutants will never build up." Or in the CEOs' case, "The consumer base will never give out." Ri-i-ight. Fasten your seatbelts for the Mother of All Depressions.]

    3. Staffing at life-insurance unit to be reduced to trim costs, Dow Jones via WSJ, C13.
      Mony Group Inc. will cut the workforce at its Mony Life Insurance Co. unit by 9% to reduce costs and improve the unit's profitability. Mony has a workforce of about 2,050 people....
      [9% of 2050 is 185 jobcuts.]

    4. MeadWestvaco expects to shut a plant, AP via NYT, C2.
      STAMFORD, Conn. -...The packaging group...for the media and entertainment, pharmaceutical, healthcare and consumer-products industries \is\ shutting a plant in Mississippi and moving closer to large customers.... The Greenville plant employs about 125 workers and is expected to close by the end of March....

    5. BSquare to slash payroll by 25%, WSJ, D2.
      BELLEVUE, Wash. -...The software company..\..plans to cut 68 workers...and trim R&D spending at its new hosted management service operation in an effort to return to profitability by 3Q03....

    6. ICT, a call center operator [for large companies], plans to cut jobs, Bloomberg via NYT, C4.
      The ICT Group...plan[s] to lay off workers and expect[s] a Q4 loss.... It will close some call centers in the U.S. and Europe, moving operations to places with lower labor costs like the Philippines.... Stock in ICT, which is based in Newtown, Pa., fell....
      [Unspecified higher-paying jobs cut with associated consumer-market damage, instead of simply hourscuts and minimum jobs&market deterioration.]

    7. FAO Inc. to close stores, raise cash as net loss more than doubles, by Lisa Bannon, WSJ, B7.
      ...The company, which owns FAO Schwarz, Zany Brany and Right Start stores..\..facing slower than expected holiday sales and a liquidity crunch, plans to close some stores and raise additional funds in January.... CEO Jerry Welch...wouldn't be specific about how many stores the company plans to close....
      [Unspecified jobcuts.]
      Toy retailer [FAO Inc.] to close 70 Zany Brainy stores, AP via 12/25/2002 NYT, C5.

    8. Popular bookshop to close Jan. 10 on Upper East Side [of NYC] - In an area of rising rents, another kind of store ['a retail store'] will move into the space, by Dinita Smith, NYT, A33.
      The Madison Avenue Bookshop, the cramped little bookstore that for nearly 30 years has been a literary destination for the carriage trade and for affluent writers of the Upper East Side, will close on Jan. 10, its owner and manager, Perry Haberman, said yesterday. [He] would not say why he was closing the store.... The shop...between 69th and 70th Streets, is the latest in a long list of independent bookstores that have closed in recent years, many driven out by high rent and the high costs of doing business. ...The Madison Avenue neighborhood between 57th and 63rd Streets has the fastest-rising retail rents in the U.S., a recent study by Cushman & Wakefield, the real estate company, found..\..
      [Yeah, but...]
      Mr. Haberman...is also the landlord of the 5-storey building that houses the store....
      [Go figger. Well, OK, here's the figgerin'. Haberman got tired, bored and greedy, regardless of the trust placed in him by his benefactor -]
      The...Bookshop was founded in 1973 by Arthur Lehman Loeb, a member of the Loeb-Rhodes family. Mr Loeb and his siblings inherited an estate of some $200m after the deaths of their parents, John Langeloth Loeb Sr. and Frances Lehman Loeb. In 2000, Mr. Loeb gave Mr. Haberman the building and the store and retired. "Of course I'm unhappy," Mr. Loeb, 70, said of the store's closing....
      [Let this be a lesson to you rich folks - get it in the contract, if you want the cute little bookstore to stay open forever! Unspecified jobcuts.]

    12/14/2002   1 downsizing, totaling 400 jobcuts, reported in WSJ & NYT
    (not counting regional story, "As post-boom dust settles, the South grimly downsizes," by David Halbfinger, NYT 12/16/2002, front page, which states, "Across the South, the economic landscape has turned upside down. Atlanta...is hurting most: 61,800 jobs were lost in the 12 months that ended in Oct. - more than in any other city in the country, according to the federal Dept. of Labor.... Even North Carolina's powerhouse area, Raleigh-Durham...has seen its unemployment rate double this year.... In Louisiana...anxieties about a conflict with Iraq appear to have held up new investment - and job growth. But in Alabama, Mississippi and Arkansas - where foreign-owned factories are turning out luxury cars and food processors are churning out products less vulnerable to cyclical pressures - it is a different story. The economic pain has been less acute.... 'On the other hand, Alabama and Mississippi aren't exactly going like gangbusters, but they never really have'..\..said John Robertson, senior economist at the Federal Reserve Bank of Atlanta...." And the whole country is going down to Alabama and Mississippi's level because we're still downsizing more than we're upsizing, and the only intelligent alternative is to switch from downsizing to timesizing, from cutting jobs&markets and concentrating spending power, to cutting hours and spreading the work and spending power.) - 12/13/2002   2 downsizings, totaling 950 jobcuts, reported in WSJ & NYT -
    1. Delphi plans to lay off 750 workers at Ohio plants, Bloomberg via NYT, C4.
      ...at three factories near Dayton, Ohio, because it expects sales of components made at the [auto parts] plants to drop in 2003. The layoffs include 200 employees at a Vandalia, Ohio, plant that makes air bags and door panels, and 550 at two factories in Moraine, Ohio, that build air-conditioning compressors, a spokesman, Brad Jackson, said.

    2. Dana Corp. to close an Indiana plant and cut some jobs, Bloomberg via NYT, C4.
      ...an Indiana laundry that makes engine cylinder liners for heavy-duty trucks next year and eliminate most of the plant's 210 jobs to reduce costs.
      [So let's call it 200 jobcuts.]
      The foundry, in Richmond, Ind., is unprofitable and the company has not been able to find a buyer for it, a Dana spokesman, Gary Corrigan, said. The closing is in addition to Dana's plan announced in October 2001 to trim 11,250 positions.

    12/12/2002   3 downsizings, totaling 3,140 jobcuts, reported in WSJ & NYT
    (not counting economywide story, "The new mantra: Grim is good - Wall Street restructuring aces [Barry Ridings & Frank 'Terry' Savage] thrive amid the gloom; Pair at Lazard ride on a boom," by Mitchell Pacelle & Robert Frank, WSJ, C1) -
    1. Sprint will cut another 2,100 jobs, AP via NYT, C5.
      ...or about 2.8% of its workforce, during the next year as it restructures operations, cuts costs and tries to return to profitability. ...The nation's 3rd-largest long-distance provider and the 4th-largest wireless provider [will] combine network, information technology and billing operations for several of its divisions as a way to save up to $145m a year. Sprint has laid off more than 15,000 employees since October 2001, and it expects to have a workforce of 72,000 after the latest cuts. About 1,000 of the new jobcuts reflect consolidation: 600 will be in network services, 300 in information techology and 150 in billing and accounts receivable. The other 1,100 cuts reflect an effort to cut costs: 450 will be in local telephone operations; 300 in global markets and 200 from the corporate center staff.

    2. Aetna cuts another 690 jobs after dropping customers, Bloomberg via NYT, C4.
      ...as it cuts costs to cope with reduced membership..\.. One of the largest health insurers in the country...has now announced 4,040 jobcuts this year, an Aetna spokesman, Fred Laberge, said. Jobcuts a year ago totaled 6,000.... The company said it needed fewer employees after it dropped 5m customers who were too expensive to insure.
      [Ergo Jimmy Tingle's maxim: you can only get health insurance if you don't need it, and vice versa.]
      Aetna will have 27,500 employees when all of the announced jobcuts are completed....

    3. Canadian paper company to cut newsprint capacity, Reuters via NYT, C4.
      Abitibi-Consolidated [will] idle a Texas newsprint mill indefinitely and convert its Alma, Que., newsprint mill to produce offset paper. ...About 350 jobs [will] be affected at the Sheldon, Tex., mill.... The company, based in Montreal [will] lose 187,000 tons of newsprint capacity in the conversion of the Alma plant and indefinitely idle an additional 520,000 tons of high-cost newsprint capacity in Texas....
      [According to an aside in 11/30-12/02/2002 #1 below, "Abitibi-Consolidated Inc...is Canada's biggest forestry company."]

    12/11/2002   8 downsizings, totaling 4,928 jobcuts + unspecified, reported in WSJ & NYT -
    1. Schlumberger to take charges, cut 3,300 jobs - Schlumberger plans to focus its Sema unit on consulting in its global energy business, by Alexei Barrionuevo, WSJ, A6.
      ...The NY and Paris-based oil-services company \will\ take $3.17B in charges, mostly related to a technology unit, and lay off...about 4% of its workforce worldwide. The charges...are the largest in [its] history. They come as it struggles with the fallout from the information-technology and telecoms sectors and a lack-luster market for oil services, its main business.... Schlumberger has about 80,000 workers worldwide....

    2. BearingPoint, a computer consultant, to cut 700 jobs, Bloomberg via NYT, C4.
      ...The computer-processing firm formerly known as KPMG Consulting [will] cut about...4% of its workforce, while overhauling its operations in Austria, Germany and Switzerland.... The units were acquired by the company...based in McLean, Va..\..in August.... BearingPoint GmbH will have about 2,100 employees after the jobcuts.

    3. Canada: Fuel technology jobcuts, by Bernard Simon, NYT, W1.
      Ballard Power Systems Inc., which is developing fuel cell technology for motor vehicle engines and power generation [will] cut 400 jobs or 28% of its workforce, as part of a revamping. The company, which has posted losses for 14 straight quarters, hopes the steps will help it break even by 2007. The company, based in Vancouver, BC, also [will] combine several divisions....

    4. AOL Time Warner Inc., WSJ, B4.
      ...America Online is expected to lay off about 300 people in the next few days as part of a cost-cutting program outlined at last week's investor presentation. The company said then it would cut costs at the 18,000-employee organization by a "9-figure number."

    5. ArQule, a drug discovery company, cuts 31% of its jobs, Bloomberg via NYT, C4.
      ArQule Inc...is closing operations...in Redwood City, Calif., and Cambridge, England..\..to help save as much as $12m a year. ArQule had 420 employees before the cuts, which affected 128 people, the CFO, David Hastings, said yesterday....

    6. Merrill lays off over 100 in investment banking, by Paul Beckett & Susanne Craig, WSJ, C5.
      [This takes their headcount down from 53,000 on 11/06/2002 #3 to 53000-100= 52,900.]
      NEW YORK - Wall Street's investment-banking outlook remains dim despite a recent rebound in the stock market.... Cutbacks already have plagued almost every Wall Street firm..\.. In the latest sign, Merrill Lynch & Co. late last week gave layoff notices.... News of further staff reductions, which affected positions from associates to managing directors, suggests that Merrill believes there is no immediate end in sight to the downturn in investment banking deals, especially in mergers and acquisitions [M&As], which has been in doldrums all of this year..\..
      [Thank God. M&As are just appetizers to downsizing the workforce, the consumer base, and the whole economy.]
      One person familiar with the matter added that some of the senior associates laid off were cut as part of Merrill's year-end review process rather than as a result of cost-cutting....
      [Well, they're not layoffs, they're firings for cause. Mass layoffs are bad. Individual firings for cause are good. They imply that management is actually articulating job descriptions and productivity standards - and enforcing them. In short, they're actually doing their job and managing .]
      The cuts also signal the determination of Stanley O'Neal, who became Merrill's CEO early last week, to slash costs and restructure the nation's largest brokerage firm....
      [He's there less than a week and already the SOB is generating distraction, confusion and depression? He deserves to lose his star players and guess what -]
      His aggressive moves, though, have prompted the departure of some senior executives....

    7. Charter Communications will trim work force, AP via NYT, C9.
      ...The nation's No. 3 cable TV company, with about 6.7m customers...controlled by Paul G. Allen, a co-founder of Microsoft..\..plans to streamline its operation in a move that will cost a number of workers their jobs [to be] determined...when 4th-quarter earnings results [a]re released in February..\..the company said yesterday....
      [Unspecified jobcuts.]
      After a 2-year buying spree, Charter hit hard times in 2002.... Noting that Charter has acquired 14 companies in the last 3 years, the CEO, Carl Vogel, called the restructuring a natural step in the consolidation process.
      [Again, the lethal takeover-downsizing connection.]
      Charter said it would consolidate operations into 5 geographically clustered divisions and make cuts at its suburban St. Louis corporate office.

    8. Layoffs in Yahoo broadcasting unit, AP via NYT, C9.
      Yahoo said yesterday that it had laid off an unspecified number of workers in its broadcasting services division as part of the company's financial makeover. [The] shake-up...affected offices in Dallas, Atlanta and London.... Yahoo ended September with 3,587 employees.... With online advertising in a slump, Yahoo has been trying to capitalize on the popularity of its website to sell more online services. At the same time, Yahoo has been pruning less profitable divisions and laying off employees to reduce expenses. Last year, Yahoo last year laid off 660 workers....
      [We counted 720 last year, 420 on 4/12/2001 #5 and 300 on 11/16/2001 #4.]

    12/10/2002   1 downsizing, totaling 130 jobcuts + unspecified, reported in WSJ & NYT
    (not counting "My career counselor, Mom," pointer summary {to B1}, WSJ, front page, which states, "In the toughest job market in memory [if your memory doesn't stretch back to the Great Depression - ed.], parents pitch in for their children as never before," and the target article, "The new headhunter: Dad - To get junior a job, parents tap Rolodexes, call friends; The $5,000 career counselor," by Kris Maher, WSJ, B1) - 12/07-09/2002   3 downsizings, totaling 1,820 jobcuts + unspecified, reported in WSJ & NYT
    (not counting 40,000 cuts economywide in Nov. according to "Jobless rate increases to 6%, revisiting an 8-year high...," by Greg Ip, 12/09 WSJ, A2) -
    1. 12/07 Cessna Aircraft plans to cut 1,500 more jobs, AP via NYT, B4.
      ...early next year because the aerospace industry has failed to rebound since 9/11/01. All of the layoffs will be at Cessna's factory in Wichita, Kan., which employs about 10,000 people, a company spokeswoman, Marilyn Richwine, said. Ms. Richwine said the layoffs would primarily be in the Citation jet business, where orders have slowed. Cessna, which employs 12,000 people worldwide, cut 800 jobs in October [10/01/2002 #2]. Cessna is a unit of Textron Inc, which is based in Providence, R.I.
      [So 1500 of 12000 is 12.5%.]

    2. 12/09 Facilities in California, Sweden are shut in move to cut costs, Dow Jones via WSJ, B5.
      Flextronics International Ltd.'s Multek unit closed its printed-circuit-board fabrication facilities in Irvine, Calif., and Kumla, Sweden.... Multek will consolidate its North American operations by closing the facility in Irvine and relocating its operations to Roseville, Minn., and Guadalajara, Mexico.   320 employees at the company's Irvine plant will be affected....
      [But unspecified in Sweden.]
      The company has 95,000 employees worldwide....

    3. 12/09 Music software firm's board agrees to dissolve company, Dow Jones via WSJ, B5.
      Liquid Audio Inc.'s board agreed to pursue the dissolution of the company while exploring the sale of its remaining assets. Liquid Audio, a Redwood City, Calif., maker of software that delivers music over the Internet,...will continue to operate while the board reviews "any and all alternatives for maximizing stockholder value."
      [And employees be damned, we presume. Unspecified job loss.]

    12/06/2002   1 downsizing, totaling 2,300 jobcuts + unspecified, reported in WSJ & NYT - 12/05/2002   5 downsizings, totaling 1905 jobcuts + unspecified, reported in WSJ & NYT
    (not counting these economywide stories -
    1. American Airlines plans to cut flight attendants, Reuters via NYT, C7.
      DALLAS...- [The nation's largest airline will] cut about 1,100 flight attendant jobs as it tries to save money by operating fewer flights. As American spokesman, Todd Burke, said that through Jan. 7, American would ask its flight attendants to volunteer to share jobs or take leaves of absence. "It would allow flight attendants to make some decisions during that time," Mr. Burke said. American will determine how many layoffs it needs after seeing how many people enroll in voluntary options.
      [Ah, are we now supposed to envision "mandatory options"?]
      The layoffs would begin Jan. 31, he said. American, a unit of AMR Corp., has about 21,000 active flight attendants, and those who may be involved in the layoff will receive notices sometime next week.
      [So 1100 is 11/21000x100%= 5% of the total number of stewardi/ae.]
      Mr. Burke said American had signed a one-time deal with the Assoc. of Professional Flight Attendants, the union representing flight attendants, that would cap the number of people it could lay off in this round at 400.
      [So presumably the other 1100-400= 700 flight attendant jobs targeted for cutting have to come from the famous "voluntary options."]

    2. R.J. Reynolds Tobacco Holdings to cut [635] jobs, AP via NYT, C5.
      ...The maker of Winston, Salem and Camel cigarettes..\..will cut about...8% of its workforce, and sell 2 nontobacco businesses to try to cut costs amid growing competition from lower-priced cigarette brands....
      [If they had any brains, they'd be focusing on their nontobacco businesses and moving out of no-future tobacco altogether.]
      The cutback program, which will involve laying off 520 workers and leaving 115 jobs unfilled when they become vacant, is expected to be completed by the middle of next year.... The company also...plan[s] to sell 2 units that specialize in packaging and botanical extraction.

    3. Dupont Photomasks to cut work force, Reuters via NYT, C4.
      ...A manufacturer of specialized tools used to make semiconductors [will] cut about 10% of its workforce, or about 170 jobs, and consolidate production into new operations. [The] make[r of] etched plates of quartz or glass used by semiconductor makers to transfer circuit patterns onto silicon wafers said most of the jobcuts would come in Europe, including 140 jobs in France and Germany.   30 jobs would be cut in its HQ in Round Rock, Tex. The company [will] take additional charges for severance payments to the European employees who lost their jobs. Those payments...have yet to be negotiated with the relevant [company] work councils [in Europe]....

    4. Foster Wheeler, NYT, C5.
      ...Hamilton, Bermuda, a builder of refineries and power plants, will close an unprofitable plant in Dansville, NY.
      [Unspecified lost jobs.]

    5. Cutter & Buck, NYT, C5.
      ...Seattle, [will] close its 14 unprofitable retail stores to focus on designing golf clothing and other sportswear.
      [Unspecified lost jobs.]

    12/04/2002   1 downsizing, totaling 300 jobcuts, reported in WSJ & NYT - 12/03/2002   2 downsizings, totaling 978 jobcuts, reported in WSJ & NYT
    (not counting "How to stay focused and more employable amid waves of layoffs," by Joann Lublin, WSJ, B1) -
    1. Holmes Group announces U.S. plant closings, Bloomberg via NYT, C5.
      ...The maker of Rival kitchen accessories and Crock-Pot cookers [will] lay off at least 800 workers as it closes all of its manufacturing operations in the U.S. by the end of January to expand in Asia. Holmes, a closely held company based in Milford, will close plants in Flowood, Miss.; Sweet Springs, Mo.; and Clinton, Mo.... It will also close a distribution center in Clinton with 80 workers and an administrative office in Kansas City, Mo., and the company plan...s to move a service center in Worcester, Mass., to an operation in Milford during the first half of next year....

    2. Cutback by J.C. Penney, Bloomberg via NYT, C9.
      ...The company, which also owns Eckerd drugstores \plans\ to close a catalog outlet store in Memphis and eliminate 178 jobs. The jobcuts will occur Jan. 25, and some of the employees will be placed in other Penney locations nearby, a spokesman, Quinton Crenshaw, said. Penney has 23 other outlets that sell overstocked merchandise from its catalogs, he said. "We didn't need the selling space because inventory is getting better positioned," Mr. Crenshaw said.
      [How's that again?]
      The company...based in Plano TX..\..has 250,000 employees, he said....

    11/30-12/02/2002   1 downsizing, totaling 200 jobcuts, reported in WSJ & NYT
    (not counting unspecified jobcuts according to "Shock sets in for Durango[-Georgia Corp.] workers, families - Uncertainty dominates lives with loss of jobs," by Gordon Jackson, Jacksonville FL Times-Union 12/02, front page,
    or economywide stories from USA, "Job security hits lowest point in decade, study says," AP via Jacksonville FL Times-Union, Bus.9, and from Germany, "Does Schroeder have political capital to reform economy? - Another German recession could infect the rest of the continent," by Mark Landler, 11/30 NYT, A3, which states, "Unemployment...stands at a 4-year high of about 4m people.") -

    Click here for downsizing stories in -
    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.
    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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