Timesizing® Associates - HOMEPAGE

Downsizings, March, 2003
[Commentary] ©2003 Phil Hyde, The Timesizing Wire, Box 117, Harvard Square, Cambridge MA 02238 USA (617) 623-8080

3/29/2003   yet 4 more downsizings, totaling 208 lost jobs, + unspecified, mentioned in Wall St Journal & NY Times -

  1. Instinet Group, NYT, C4.
    ...New York, the largest electronic trader of Nasdaq stock market shares, [will] lay off 175 employees, about 12% of its full-time workforce....

  2. Toyota Motor plans to cut its board almost in half - An attempt to speed up decision-making, by Belson with Maynard, NYT, C3.
    TOKYO -...The largest market for Toyota is now the U.S., which contributes 80% of its profit. Yet all 58 of Toyota's board members have been Japanese....
    [58 directors?! This isn't a board of directors - it's a private-sector makework campaign!]
    Under the revised structure, the board will have 20-30 members [let's say 25], bringing it more in line with its competitors.
    [So 58-25= 33 jobcuts.]
    Honda has 36 directors.
    [Still too many.]
    Nissan Motor...cut its board by 2/3 in 1999 and will trim it again, to 7 members...in June....

  3. Cuts at airline, by John Shaw, NYT, C3.
    The Australian national carrier, Qantas, will cut flights to Asia and Europe by 20% on April 1 because the Iraq war and fears about a respiratory illness in Asia are reducing bookings....
    [Unspecified jobs lost.]

  4. Luxury train closes, by John Shaw, NYT, C3.
    A 5-star luxury train service that carried wealthy tourists to Australia's tropical resorts has closed as a result of international terrorism, its manager, Bruce White, said. He said that recent revenues of the service from Sydney to Barrier Reef are down 50% because affluent American and Japanese tourists, who were the main buyers of tickets that cost Aus.$4000-6000 (US$2400-3600) are not traveling. The service had been operated since 2000 by the Venice Simplon Orient Express unit of Orient-Express Hotels Ltd.
    [Unspecified jobs lost.]

3/28/2003   4 more downsizings, totaling 3,415 lost jobs, mentioned in Wall St Journal & NY Times (not counting industrywide "Airport screeners may face cuts," WSJ, A5, which states, "As many as 3,000 airport screeners could lose their jobs this spring as the government reassesses the size of the workforce that it brought to full strength only last November [presumably in view of the collapse of the airline industry].... By October 2004, the government [ie: Transportation Security Administration head James Loy] plans to have 48,000 screeners [down from 54,000] with reductions through attrition and other steps [ie: layoffs].") -
  1. Germany: Sale of bank stake, by Petra Kappl, NYT, W1.
    The German banking company HVB Group [will] cut another 2,000 jobs in addition to the 9,100 already announced \to\ help the balance sheet....
    [This 9100 may refer to the 9700 we counted way back on 10/26/2001 #2, so we'll just count the new ones.]

  2. Sony Music Entertainment to cut 1,000 jobs as part of a vast restructuring, by Jennifer Ordonez, WSJ, WSJ, B2.
    ...The company..\..will today begin laying off...approximately 10% of its worldwide workforce...under the new chairman and CEO, Andrew Lack....
    [Clearly Andrew lacks any really constructive strategy, for example, one that would not fuel his own and his customers' market tailspin, say, a strategy like corporate-level timesizing a la Nucor or Lincoln Electric.]
    He said the layoffs are an effort to "streamline" the company's bloated backroom functions - including sales, manufacturing and distribution....
    [They will also help streamline the company's "bloated" markets by continuing our economic tailspin. Funny how these guys never see any connection between their employees and their markets. It just never even enters their "high powered" little minds.]
    About 2/3 of the total jobs cut...will be outside of the U.S. and 1/3 will be jobs in the company's manufacturing division....

  3. 315 jobs lost as coffin maker is closed down in Syracuse, AP via NYT, A15.
    [What, there aren't enough people dying?!]
    After 131 years...the Marsellus Casket Co. will close over the next month.... The closing, announced [yester]day by Service Corporation International, [its] troubled parent, left workers stunned and local union and government officials angry. "We feel like we've been stabbed in the back," said Bob Tompkins, rep for SEIU Local 200....
    [All the more people to bury, and there are already such famous clients -]
    ...The company...does acknowledge..\..those buried in its coffins...include Harry Truman, Richard Nixon, and John F. Kennedy, Hubert Humphrey and Nelson Rockefeller, Vince Lombardi and Cardinal Terence Cooke....
    [Lordy, now where will all us social climbers go for a Last Box?]

  4. Weak 3rd-period results force wine promotions, cost cuts, Dow Jones via WSJ, B3.
    Robert Mondavi Corp. said that after maintaining wine prices in the face of tough competition, an anticipated poor fiscal Q3 performance is going to force the Oakville CA vintner to cut prices.
    [Strange, when all the jingos are boycotting the French.]
    The changes will likely come in the form of [product] promotions, and not across-the-board price cuts.
    {Wise, because easily dropped.]
    ...It also...plans to cut its workforce by 10%, or 100 employees, to lower operating expenses. ...The U.S. economy, an oversupply of grapes [should help a vintner!] and price competition have hurt its figures....

3/27/2003   4 downsizings, totaling 4,838 lost jobs, mentioned in Wall St Journal & NY Times -
  1. Royal Dutch/Shell Group, Dow Jones via WSJ, B3.
    ...The Anglo-Dutch Oil Co., Europe's largest..\..is targeting $500-800m in cost savings, including 4,300 jobcuts...or about 15% of the 28,600 worldwide employees of Shell's exploration and production business, said Walter van de Vijver, managing director of the business....
    [No pressures to restructure are cited. This is pure compulsive perfectionism based on the widespread suicidal disconnect in business schools' and business leaders' minds between "my workforce" and "my markets" via "my customers' markets." CEOs don't even consider the possibility that recessions are anything but an inexplicable act of God, let alone that they cause recessions by downsizing instead of timesizing, by chopping jobs instead of just trimming working hours for everyone and keeping all CEOs' customers employed and purchasing as usual.]

  2. Staff offered early retirement as publisher tries to cut costs, Dow Jones via WSJ, B3.
    NEW YORK - In a bid to cut costs at a difficult time for the publishing industry, Random House Inc. is offering...voluntary [early] retirement to full-time employees with 5 years of credited service who are 50 as of May 20. Those who agree will receive what the company described as "enhanced retirement benefits." It is believed that a few hundred of the company's estimated 3,000 employees in the U.S. are eligible to participate. Random House, a unit of Germany's Bertelsmann AG, is the country's largest publisher of general-interest books. [It's] a time when the weak economy and a lack of blockbuster hits has caused a slowdown in book-industry sales....
    [A couple of hundred would be 200. "A few hundred" has to be at least 300 jobs lost.]

  3. Phone directory publisher to cut 190 jobs, Bloomberg via NYT, C9.
    The R. H. Donnelley Corp., which publishes 260 telephone directories in 18 states, [will] close...a plant in Tennessee and combine...some operations in Kansas and New York. About 110 jobs will be cut as the company closes its plant in Blountsville, Tenn., and moves its operations to Raleigh, NC.... Another 80 jobs will be cut as Donnelley consolidates some corporate functions in Overland Park, Kan. and in Purchase NY... The transition at the Blountsville plant will take place over the next 6-9 months. The jobs cut in Kansas and New York will be in HR, finance, info tech, billing and credit collection and publishing services.

  4. Machinists' union sues United Airlines over layoffs, by Micheline Maynard, NYT, C6.
    The machinists' union filed suit yesterday...to block the layoffs of 1,148 mechanics at the Indianapolis maintenance base, contending that United had used the war in Iraq as an excuse for cutting its operations....
    [Counted 1100 on 3/22 #2 below, so all we need to count now are 1148-1100= 48 layoffs.]
    Accord at United on closing plant, Bloomberg via 4/4/2003 NYT, C4.
    United Airlines and its machinists resolved a dispute [yester]day over plans to close an aircraft maintenance center in Indianapolis by reaching agreements on severance pay and transferring workers. As a result, the International Association of Machinists, the biggest union at United, said it had dropped a lawsuit seeking to stop the closing.
    [But we assume United is still going through with the closing, and that means, whatever happens to the employees, all the jobs at that facility are going. How many are there?]
    The union represents 1,148 mechanics at the Indiana center,
    [aha, exactly the number of lost jobs we counted above]
    where 468 workers were to begin unpaid leave on March 25, and the rest on April 15.
    [So what will happen to them now?]
    Indianapolis workers will have the option of transferring to other centers across the U.S. based on seniority....

3/26/2003   1 downsizing, totaling 300 lost jobs, mentioned in Wall St Journal & NY Times (not counting industrywide "Left out of shrinking research pool, companies resort to buying coverage," by Susanne Craig, WSJ, C1, which states, "Wall Street research departments are being pared as firms struggle amid falling revenue and regulatory overhaul that no longer will allow them to pay for research with investment banking revenue.") -
3/22/2003   3 downsizings, totaling 8,370 lost jobs, mentioned in Wall St Journal & NY Times -
  1. Hawaiian files for bankruptcy amid layoffs in airline sector, by Micheline Maynard, NYT, C1.
    ...Northwest Airlines, the industry's 4th-biggest carrier, [will] cut its schedules by 12%, including domestic and international flights, and lay off 4,900 employees, citing a drop in bookings related to the war, Northwest's cuts equal 11% of its workforce of 44,000 people....

  2. Hawaiian files for bankruptcy amid layoffs in airline sector, by Micheline Maynard, NYT, C1.
    ...United Airlines, which itself filed for bankruptcy protection in December, [is] cutting its schedule by 8% because of a slump in bookings that preceded and accompanied the start of the war. Unions said United, the nation's 2nd-biggest airline...gave them notice yesterday that it was laying off 1,100 mechanics at its maintenance base in Indianapolis, and 2,300 flight attendants....
    [for a total of 1100+2300= 3,400 layoffs.]

  3. Micron Technology shares jump on sales report, Bloomberg via NYT, C14.
    BOISE, Idaho -...The world's 2nd-biggest maker of computer memory chips...has had losses in 9 consecutive quarters as lower demand for personal computers hampered sales. The company is cutting about 1,870 jobs and closing 2 businesses that build chips for communications gear.... The company, which is based here, said its 2nd-quarter loss widened to $619.2m...from $30.4m...a year earlier. Micron blamed inventory writedowns and the cost of laying off workers.
    [We counted 1800 of these on 2/19/2003 #2 and that means we just count 1870-1800= 70 jobcuts.]
    [Followup -]
    Better-than-expected quarter for Micron, Reuters via 6/11/2003 NYT C5.
    ...The No.2 maker of computer memory chips...which plans to close a Virginia plant, cut some product lines and trimmed its workforce but has not posted a profit in more than two years....

3/21/2003   8 downsizings, totaling 17,984 lost jobs, + unspecified, mentioned in Wall St Journal & NY Times
(not counting economywide "Jobless claims remain high," Bloomberg via NYT, C10, which states, "The number of workers seeking jobless benefits exceeded 400,000 for a 5th week and the index of leading indicators fell the most in February since September, 2 reports released today showed. Initial jobless claims totaled 421,000 in the week ended last Friday and 425,000 the previous week, the Labor Dept. said today.... The less-volatile 4-week average of claims rose to 424,750 from 421,000, the highest since the week ended May 4.") -
  1. More layoffs, closures follow posting of a narrower loss, Dow Jones via WSJ, B4.
    Solectron Corp. plans 12,000 additional layoffs and a new wave of factory closures after posting a slightly narrower fiscal Q2 net loss on lower costs.... For the quarter ended Feb. 28..\..the Milpitas CA outsourced-electronics manufacturer...reported a net loss of $110.8m...compared with a year-earlier net loss of $126m.... The latest quarter included pretax charges of $57m for restructuring and $76m for excess inventory....
    ["Excess inventory" = the hallmark of economic depression, which this big downsizing will deepen, unlike a small timesizing where everyone keeps his/her job and his/her consumer confidence and spending patterns.]
    Revenue dropped 5.3%....
    [From the Reuters version in the NYT, p. C4 we learn -]
    ...After the layoffs, Solectron's workforce will number about 62,000....
    [meaning that the present layoffs are 12000/(62000+12000)= 12000/74000= 16% of total workforce.]

  2. Carriers, already ailing, cut flights and say they may reduce jobs or pay - As bookings fall, airlines scramble to adjust schedules and trim costs, by Edward Wong, NYT, C5.
    ...Air Canada said yesterday it would cut 3,600 jobs by the end of the year....

  3. Textron to cut 1,200 workers at Cessna, citing falling sales, by William Bulkeley, WSJ, A2.
    ...in the latest sign of weakness in the business-jet market.... Cessna, which employs about 11,000 of Textron's 49,000 workers also plans an extended summer furlough for 6,000 workers at the Wichita, Kan., plant that makes business jets. Textron initially planned a one-week furlough but extended it to seven weeks, starting June 20, a company spokeswoman said. Textron CEO Lewis Campbell said in a news release that a worsening "economic and geopolitical situation" had hurt business-jet demand "much more severely than expected."...
    [Followup -]
    Two segments to be combined, resulting in 40 to 50 job cuts, Dow Jones via WSJ, A12.
    Textron Inc. will combine its industrial components and products segments, which will result in the elimination of...jobs. The Provident RI industrial conglomerate eliminated two segment president positions in the move...
    [Good. At least some of the downside of downsizing is reaching near the top.]
    The reductions are part of a plan to reduce staff by 10,000 since a restructuring program began two years ago. Textron, which has 49,000 workers [or had two years ago!], has made 8,000 of the cuts and expects to complete its restructuring at the end of the year.
    [We've already counted some 11,700 cuts for Textron starting with 3600 in 1b/2001, then 150 in 7a/2001, 1600 in 7b/2001, 2500 in 9b/2001, 800 in 10a/2002, 2000 in 10b/2002, and today's 1200.]

  4. Leader of troubled hospital stepping down after a year - 500 jobs cut in Mount Sinai reorganization - An institution grappling with blows to its finances and its reputation, by Kirk Johnson, NYT, A19.
    Barely a year after taking office on a pledge to restore the Mt. Sinai Medical Center to economic health, its CEO, Dr. Kenneth Berns, is leaving his post, and up to 500 healthcare workers will be laid off in a hospitalwide shake-up, administrators said yesterday. The jobcuts, which will take effect within the next few weeks, come on top of the loss of about 430 positions already cut over the last year, as the hospital - long one of the nation's premier teaching hospitals and an imposing presence on Manhattan's Upper East Side - has struggled with problems in its finances, its administration and its medical reputation....
    [We didn't catch any cuts from this firm last year so we now count 500+430= 930 jobcuts.]
    Mt. Sinai has more than 11,000 employees.... Reducing the staff [is] partly the result of rising costs from insurance, drugs and emergency preparedness, especially after 9/11/01....

  5. Smith & Nephew plans acquisition of Centerpulse, by Mijuk & Hagerty, WSJ, B2.
    ...The deal is expected to allow for £45m in annual cost savings by 2005, largely through streamlining of manufacturing and eliminating as many as 150 jobs.
    [Again the toxic takeover-downsizing connection.]

  6. Timken Co. to close plant in England, WSJ, B2.
    ...The maker of engineered bearings and specialty steels..\..plans to close its Darlington, England, roller-bearings plant in the next 8-12 months as part of a cost-cutting plan. [It] said the closing will affect 104 employees, or less than 1% of its worldwide workforce. ...The Darlington plant had high fixed costs and was unable to achieve an acceptable rate of return on investments, despite workforce reductions in the past 2 years....
    [Darlington was a terminus in the very first commercial railway in the world, the Stockton & Darlington Railway, whose steam locomotives were the personal charge of George Stevenson in the 1820s.]

  7. Japan: Retailer lowers forecast, by Ken Belson, NYT, W1.
    Japan's largest supermarket chain, the Ito-Yokado Co., a part-owner of the 7-11 convenience stores in Japan...last fiscal year...generated a smaller profit because of extra costs associated with closing unprofitable outlets
    [ergo unspecified jobcuts]
    and refurbishing others.

  8. Carriers, already ailing, cut flights and say they may reduce jobs or pay, by Edward Wong, NYT, C5.
    ...Singapore Airlines took a more sweeping approach, saying it will cut 65 flights a week from late March to May 31 to cities in the U.S., Europe, Asia and Africa....
    [Unspecified jobcuts.]
    [Followup -]
    Ailment's economic impact on Asia: flights, GDP forecasts cut - Exact appraisal premature; analyst invokes '97 crisis, Thailand invokes leprosy, 4/03/2003 WSJ, A13.
    ...Singapore Airlines...will cut 60 flights in coming weeks in response to a drop in demand it blamed on SARS and on the war in Iraq, marking its 2nd major schedule reduction in as many months and triggering new downgrades of earnings estimates by analysts....

3/20/2003   2 downsizings, totaling 1,340 lost jobs, mentioned in Wall St Journal & NY Times
(not counting -
  1. Airline to drop 1,200 jobs as part of cost-cutting program - Continental to save $500m a year - The latest cuts will bring the total to 5,500 since 9/11, by Edward Wong, NYT, C2.
    Continental Airlines [will] eliminate...jobs over the next several months as part of a broad cost-reduction plan that would try to cut expenses $500m a year. The cuts include 125 pilots, 500 reservations agents, 350 airport agents and 225 other workers. Excluding those, Continental has eliminated 4,300 jobs since 9/11/01. The company [will] try to make the current cuts first through buyouts, leaves of absence and attrition.... The company wants to eliminate all paper tickets by June 30, 2004, steer more customers to the airline's website to buy tickets, close some city ticket offices, renegotiate contracts with suppliers and reduce airport costs and landing fees.
    ..\..Gordon Bethune, Continental's CEO...also said the company was reducing its number of senior managers 25% this week. Its officer group will be reduced more than 15%.... On Tuesday, [the airline] announced reduced service starting April 6 from several airports in the U.S. to London, Paris and Tokyo. Mr. Bethune said this was because of low passenger demand, not because of the imminent onset of war.
    [And here's the Wall Street Journal's version, embedded in an attempt to join Cheney-Bush in making it look like it's always something else that's wrong with the economy rather than their externalization of effective demand and their treatment of the consumer base as an Act of God - in short, their neglect of demand management except in terms of advertising and promotion -]
    Companies curtail travel on war fears, by Trottman & Carey & Stringer, WSJ, A3.
    ...Continental Airlines...which already have 4,300 of its 48,000 employees on furlough, said the cuts were necessary to ensure survival in the worst sector downturn in aviation history....
    [Meaning that the present downsizing is 1200/48000= 2.5% of the total workforce.]

  2. Unit sells photoresist business to Eternal Chemical of Taiwan, Dow Jones via WSJ, A6.
    Shipley Co., Marlborough MA, sold its dry-film photoresist business [and] will close plants engaged in that process in North America and Europe [which] will result in about 140 layoffs, according to Shipley, a unit of Rohm & Haas Co....

3/19/2003   3 downsizings, totaling 2,082 lost jobs, + unspecified, mentioned in Wall St Journal & NY Times -
  1. BellSouth eliminating technician jobs, Bloomberg via NYT, C4.
    ...The large local-telephone company [will] eliminate 1,077 technician jobs to help reduce costs. ...The company might offer new positions to half the workers and lay off the rest. The jobs are surplus...and are about 1.4% of its workforce. BellSouth has cut 11,000 jobs in the last two years to help cope with a 14% decline in sales. Net income fell 45% last year as customers canceled service or switched to rivals....

  2. U.K. work force to be reduced amid delays in plane program, Dow Jones via WSJ, A7.
    BAE Systems PLC, one of Europe's largest defense contractors...plans to cut 1,005 jobs in its UK aircraft operations, mainly due to delays to a patrol-plane program. The bulk of the job losses stems from February's agreement with the UK Ministry of Defense to delay production of Nimrod maritime-patrol planes, following cost overruns in design and development. Other jobs will be cut because of the downturn in the civil-aviation market. BAE Systems, London, employs nearly 100,000 people worldwide, including at its joint ventures. Its UK plants at Chadderton, Prestwick, Warton and Woodford will be affected by the cutbacks. Most will occur this year. BAE Systems had said there would be job losses under a revised contract for the Nimrod program. The deal limits BAE Systems' exposure to losses....
    [So 1005 plus unspecified jobcuts.]

  3. Tenet Healthcare to sell or shut hospitals and cut jobs - A healthcare company regroups in response to scrutiny, by Andrew Pollack, NYT, C3.
    LOS ANGELES -...The nation's 2nd-largest hospital chain behind HCA \will\ sell, close or shrink 14 of its 114 hospitals and cut jobs and expenses to help cope with an expected decline in payments received from Medicare. [It] is facing several federal investigations, one of them involving pricing policies that the company that the company acknowledges led to unusually large payments from Medicare in certain cases. Under pressure, the company said it would change its practices, reducing its expected earnings for future years.
    The company, which is based in Santa Barbara CA, said the 14 hospitals it would sell or close are in 8 states.... The company also [will] reduce annual expenses by $100m by laying off employees not directly involved in patient care, selling 2 of its 3 corporate jets and obtaining discounts through greater centralization of its hiring of temporary nurses. In addition, Tenet [will] begin accounting as expenses the stock options granted to employees....
    Federal agencies are also investigating whether 2 doctors practicing at Tenet's Redding Medical Center in Northern California performed unnecessary heart procedures. One doctor has stopped practicing because his insurance expired, the other took a leave, and the hospital...will cut about 1/8 of its staff because business has declined....
    Tenet did not say how many jobs would be cut and how much in charges against earnings would result from the measures announced today....

3/18/2003   2 downsizings, totaling 3,900 lost jobs, mentioned in Wall St Journal & NY Times (not counting economy-level "Hong Kong: Unemployment rises," Bloomberg via AOLNews, NYT, W1, which states, "The seasonally adjusted jobless rate was 7.4%..\..a five-month high in February...up from 7.2% in January, the government said.") -
  1. Applied Materials cuts 2,000 jobs - Move signals producer of chip-making gear sees no recovery in sector, by Don Clark, WSJ, B5.
    ...or 14% of its staff.... The Santa Clara CA company has tried to keep pouring money into developing new equipment, despite dwindling demand from semiconductor makers and a series of previous belt-tightening moves.... Applied...the biggest maker of equipment used to make chips...in November announced plans to cut 1,750 positions, or about 11% of its workforce. [It] said its new cuts affect an additional 14% of its headcount....

  2. Gateway to cut workforce 17%, shut more stores in revamping, by Gary McWilliams, WSJ, B5.
    ...closing more than a quarter of its remaining retail stores..\..in its third restructuring in three years.... The home-PC maker [based in] Poway CA..\..will dismiss 1,900 of its 11,100 employees and shutter a further 76 of its 268 US retail stores to halt losses that have reached a cumulative $1.34B in the past 8 quarters....

3/17/2003   1 downsizing, totaling 100 lost jobs, mentioned in Wall St Journal & NY Times -
3/14/2003   1 downsizing, totaling 185 lost jobs, mentioned in Wall St Journal & NY Times
(not counting economywide -
  1. J. M. Smucker Co., Dow Jones via WSJ, B6.
    ...will close 3 plants and cut about 185 jobs, or 7% of its workforce as part of a plan to improve productivity, optimize production capacity and lower costs. The Orrville, Ohio, maker of jams, jellies, peanut butter and cooking oil...will close its plants in Watsonville CA, Woodburn OR, and West Fargo ND over the next 18 months....
    [185? We'll take that conservative, possibly white-washed figure, but then there's the rival's headline -]
    Smucker to close 3 plants and cut 335 jobs, Bloomberg via NYT, C4.

3/13/2003   3 downsizings, totaling 2,665 lost jobs, mentioned in Wall St Journal & NY Times -
  1. Philips will cut 1,600 jobs in U.S., Europe, by Dan Bilefsky, WSJ, B4.
    AMSTERDAM - ...including 520 jobs in San Antonio and 600 jobs in Albuquerque. The remaining 480 jobs will be cut from overlapping administrative offices in Europe and the U.S..\.. Philips Electronics NV today plans to shake up its semiconductor division...closing...chip factories in San Antonio and Albuquerque, reduc[ing] capacity at its factories by 20% and cut[ting] the annual division's R&D spending by 200m euros ($220.7m) to 960m euros..\..as part of a restructuring aimed at returning the division to profitability by Q4.... Scott McGregor, CEO of Philips Semiconductors, said the...plan was necessary to stem one of the worst semiconductor slumps in decades. ...The division...employs about 34,000 people....
    [1600/34000= a 5% downsizing.]

  2. Layoffs of 760 staff continue reshaping of work force, Dow Jones via WSJ, B3.
    Accenture Ltd. laid off about...1% of its workforce...primarily at U.S. locations and [among] mid to high-level employees..\.. The Hamilton, Bermuda, management and technology consulting company..., formerly known as Andersen Consulting, has about 76,000 employees worldwide..\.. Despite the reductions, Accenture continues to hire new employees and expects to end its fiscal year 2003 with a larger workforce than in 2002....
    ["Show us the figures."]

  3. Vivendi Universal SA, Dow Jones via WSJ, B3.
    Canal Plus Group, a pay-TV unit of Vivendi Universal SA, Paris...will lay off 305 employees from its workforce of 3,038, or 10% of its staff, as part of its restructuring. Of the jobcuts, 251 will be at Canal Plus Group's flagship French network, Canal Plus SA. The remaining 54 jobs will be cut at movie studio StudioCanal. Canal Plus...will outsource 138 additional jobs. The layoffs at Canal Plus are part of Vivendi's drive to reduce the TV unit's heavy debt load, cut its operating costs and restore it to profitability this year. Canal Plus has been unprofitable for 6 years.

3/12/2003   2 downsizings, totaling 3,663 lost jobs, mentioned in Wall St Journal & NY Times
(not counting overview "A [questionable] lesson in labor relations - How Ericsson worked 'with' [our quotes] union to tackle Europe's layoff taboo [ie: market-cut avoidance] - Swedish hardball," by David Pringle, WSJ, A16, which states, "With European worker productivity relatively low [only if miscalculated, see 'US/euro zone productivity gap not so big' on 8/09/2002 #1], the stage was set for jobcuts [only for the suicidal who overlooked the impact on domestic demand], but that is a tricky business on the Continent. Ericsson worked 'with' unions to pull it off. [blowout header]..\.. The Swedish maker of mobile-phone networks is nearly done with a cost-cutting program that has chopped its domestic workforce to about 30,000 from almost 45,000 in March 2001. Worldwide, Ericsson has cut headcount to less than 65,000 from a peak of 107,000 in early 2001.... 'Look, chums, we need to get some bodies out of the door in this environment or we are going out of business.' [No, your getting bodies out the door - and customers out of work - is leading directly to your going out of business in the longer run anyway, and the only sustainable strategy is timesizing, not downsizing.] French telecom-equipment maker Alcatel SA managed to cut its workforce to 77,000 from 110,000 in 2 years.... Nonetheless, layoffs in Europe tend to take longer and cost more than in North America. [Easier layoffs in America? That's why the American economy led the downturn!] The Murray Hill NJ[-based] Lucent...shed 54,000 staffers during the past 2 years at an average cost of about $78,000 each. Ericsson officials estimate it costs $120,000...in Sweden.... Last month, Ericsson said it was on track to cut its workforce below 60,000 by the end of 2000.... [How blind do you have to be not to notice the self-fueling death spiral in the downsizing 'strategy'?] ) -
  1. Japan: Airline cuts its outlook, by Ken Belson, NYT, W1.
    Hit by a downturn in global air travel, Japan Airlines System...will eliminate 20% more jobs than planned and reduce the number of planes in service. ...The world's 3rd-largest carrier...which was formed when Japan Airlines and Japan Air System merged, will cut 3,600 jobs by 2006.

  2. Honeywell International leaves Ireland, Bloomberg via NYT, C8.
    DUBLIN -...A leading maker of aircraft-cockpit electronics [will] move software production to India from Ireland to reduce costs. Honeywell will lay off 63 workers as part of the plan to close the Irish software unit.... Honeywell...based in Morristown NJ employs 800 people at 5 plants in Ireland. [Yester]day's "announcement is based on customers' concern about the higher costs in Ireland," the spokesman, Michael Bance, said.
    [Sayonara "Celtic tiger."]

3/11/2003   2 downsizings, totaling 700 lost jobs + unspecified, mentioned in Wall St Journal & NY Times -
  1. First-quarter loss is expected to widen, 700 jobs to be cut, Dow Jones via WSJ, A10.
    Boise Cascade Corp. announced a cost-cutting program that will reduce staffing by 3%.... The forest-products company based in Boise ID [will also] freeze salaries, restrict hiring and cut discretionary spending. The company employs about 24,000 people.... It cited [and worsened - ed.] the weak U.S. economy, higher pension and energy costs, and disruptions from winter weather.

  2. [something lethally wrong with current Short-Term Capitalism's vaunted incentives-]
    Novellus discloses chief's 2002 salary, Bloomberg via NYT, C10.
    Novellus Systems Inc., whose equipment builds circuits in semiconductors, paid its CEO, Richard S. Hill, $2.65m in 2002, when the company's shares fell 29%. Mr. Hill, who announced layoffs in October [first we've seen of them!] in response to declining sales, received $1.46m in restricted stock, $709,615 in salary and a $449,247 bonus, Novellus said in its proxy statement filed on Friday.
    [Unspecified jobs lost.]
    The package was more than triple what he received in 2001, when his pay was $723,310. Mr. Hill also received 300,000 stock options, a decline of less than 1% from 2001. Shares fell [3% on the news].
    [So this clown is getting 300% more in his pay package than the previous year, and only 1% less in stock options, while he led the company down 29%, plus the 3% decline on this news. Time to shift to Long-Term Capitalism, which replaces downsizing with timesizing and, with homeostatic employment balancing, starts a series of substantial levellings of the playing field.]

3/07/2003   3 downsizings, totaling 165 lost jobs + unspecified, mentioned in Wall Street Journal &/or NY Times (not counting economywide "Dow tumbles after release of report on jobless claims," AP via NYT, C7, which states "The Labor Dept. reported yesterday that new claims for unemployment benefits rose last week by a seasonally adjusted 12,000, to 430,000, their highest level of the year. It was the third week that layoffs increased.") -
  1. United Parcel cancels plans to lay off 100 pilots, Reuters via NYT, C4.
    [planned on 2/08-10/2003 #4 (oops, guess we're counting these babies twice), but they're still losing the jobs because -]
    ...enough pilots voluntarily agreed to quit or take leaves of absence. The company said last month that it might need to furlough about 4% of its [2,515] pilots because newer, more technologically advanced planes required only two crew members instead of three.
    [Just like diesel locomotives - no more need for the fireman to shovel the coal as on steam locomotives. So again we ask, where now those chronic technology-misunderstanders who say that "technology creates more jobs than it destroys"? We'd count these furloughs as timesizings except they lack a fixed length, which puts them in the indefinite layoff category.]
    UPS said it had expected to lay off 19 pilots by the end of March [but] 36 pilots offered to leave voluntarily or take a "leave of absence" [our quotes - ed.]; 56 others are on active military duty.
    [Aha, the temporary makework "benefits" of the Iraq Not-Yet-War are already making themselves felt. Now for Dubya to convert these into permanent "benefits," he has to arrange for most of these call-ups to be liquidated. If he can get enough Americans killed in this or subsequent wars to create a perceived labor shortage acute enough to raise across-the-board wages and benefits and centrifuge the turgidly concentrated spending power of the nation out to the people who actually spend it, he will trigger the famed "wartime boom." But if the last century is any indication, as pointed out in the 1980s by John Kenneth Galbraith in an op ed and this coming Sunday by Garry Trudeau in his Doonesbury strip, "Republicans only start nasty, little bully wars, picking exclusively on nations easily defeated.... Three-day wonders like Panama or Grenada, or a few weeks here and there fighting Muslims! You call those wars? Please! Democrat[s'] wars are robust, protracted affairs, involving big shakes of the dice and enormous sacrifices of blood and treasure - wars for the history books! ..\..Who led us into World War I? Democrats! WWII? Korea? Vietnam? Democrats! Who used the bomb in Japan? Democrats!"]

  2. eBay to close its Half.com website, by Nick Winfield, WSJ, B2.
    ...next year...closing an independent site for book, music and video sales that eBay once hoped would compete fiercely against Amazon.com Inc.
    [They want to "compete fiercely" against a company that had no profits whatsoever for its first 5-6 years? How stupid is that?!]
    Half.com's president, Josh Kopelman, said he plans to resign from the company next month to spend more time with his family
    [our italics - this phrase used to be sincere but is now getting to be bizspeak to cover "I flopped so I'm resigning under pressure."]
    and that Half.com's roughly 65 employees in the Philadelphia area will be offered jobs in other parts of eBay....
    [Nonetheless, 65 jobs lost.]

  3. National Semiconductor Corp., Dow Jones via WSJ, C10.
    ...reported a slightly smaller net loss for its fiscal third quarter as it took charges for a previously announced 5% workforce reduction.... The latest results included $17m in severance costs related to the workforce reduction \by\ the Santa Clara CA semiconductor maker....
    [Unspecified job loss.]

3/06/2003   5 downsizings, totaling 3,232 lost jobs + unspecified, mentioned in Wall Street Journal &/or NY Times (change of policy: the time demands of duplicate-exclusion research on our downsizing and bankruptcy pages are delaying website updates, stealing time from 'accentuating the positive' with more coverage and research on the timesizing news, discouraging wider plans such as, this week, the two lectures by #2 evolutionary biologist E.O. Wilson (consider our huge debt to #1 who was present at #2's first on Tues., finally getting the two background books started on the path to listing on Amazon.com and Bowker's Books in Print, refinancing our supposedly 2-family sardine-tin, and getting time to publicize and distribute the time trilogy, cooperate with colleague Terry Crystal in re-editing the time trilogy starting with Vol.III, to nurture our friendships with J.K. Galbraith, Carolyn Shaw Bell, Ernst Mayr, E.O. Wilson, Tony Schinella and Buddy Crovo - so we're going to drop the research and just existentially list the scary stuff that's in the Journal and the Times day by day, then get on with the good stuff) -
  1. Bombardier Inc., Dow Jones via WSJ, B6.
    ...will lay off 3,000 workers in its aerospace division...in Montreal, Toronto and Belfast [Ulster] over the next 12 months, representing about 10% of the unit's global workforce,...due to slumping sales of business jets [and] the global aviation industry's protracted downturn after 9/11/01.... Bombardier has 75,000 employees worldwide, including 30,000 in its aerospace division.
    [Followup -]
    Bombardier to cut 665 jobs in Toronto, Bloomberg via NYT, C2.
    ...of 2,000 jobs at a Toronto plant under a contract agreement that workers ratified Saturday, the Canadian Auto Workers union said.... Bombardier will cult abaout 325 production jobs and 340 office workers at the plant..\..the union president, Bujzz Hargrove, said..\.. Wages at the Downsview plant will rise about 7% over the 3-year life of the contract,
    [More suicidal assent to downsizing and total blank on timesizing for short-term sugar by labor, still selling their birthright for a mess of pottage. Buzz Hargrove should know better by now.]
    and the incentive to take early retirement will more than double.... Bombardier, based in Montreal, makes train cars and small commercial jets. It said earlier this month that it would eliminate 3,000 jobs at plants in Canada and Ireland over the next year as it slowed production to cope with falling aircraft orders....

  2. BMC Software Inc., NYT, C4.
    ...Houston, a maker of programs for managing mainframe and server computers, cut 232 jobs or 3.3% of its workforce. The company discountinued its Patrol Storage Manager program for servers.
    [That means the total workforce was 232/.033= 7,030 before the cuts, and 7030-232= 6,798 after, or more likely 7,032 before and 7032-232= 6,800 after.]

  3. Staples Inc., Dow Jones via WSJ, B6.
    ...The Framingham MA office-supplies retailer said net income for its fiscal Q4 jumped 76% from a year earlier, when the costs [$41.9m] of...store closings, inventory write-downs and asset impairments..\..took its toll on earnings....
    [Unspecified lost jobs.]

  4. Visteon Corp., NYT, C4.
    ...Dearborn, Mich., a maker of auto parts, [will] stop making seats for Ford Motor Co....and incur $225m in Q1 costs to end the unprofitable line of business....
    [Unspecified lost jobs.   Journal version -]
    Johnson Controls to take over automotive-seating business, Dow Jones via WSJ, B6.
    Visteon Corp...has been using a Chesterfield MI plant to provide seating systems to former parent company Ford.... Visteon said hourly employees from Chesterfield will be offered separation packages or placement at other Ford or Visteon facilities, primarily within southeastern Michigan. Salaried employees who aren't placed will get separation packages. A Visteon spokesman said the company has about 1,600 hourly employees at the plant and 150 salaried positions.

  5. Gateway plans to restructure, Bloomberg via NYT, C4.
    ...to save costs as the threat of war and the slow U.S. economy hurt demand industrywide for PC's and related equipment..\.. The personal computer [PC] maker...in 2001...pulled out of Asia and Europe and laid off half its workforce....
    [Unspecified lost jobs.]

3/05/2003   2 downsizings, totaling 4,085 lost jobs, cited in Wall Street Journal &/or NY Times
(not counting economywide "Out of options - A worker's quest for a job lands on a street corner - After sending 700 resumes and depleting his savings, Mr. Wilcox painted a sign - Down to their last $2,500," by Joseph Pereira, first in series "Left behind - Casualties of a changing job market," WSJ, front page, which states, "Stoically, Richard Wilcox stands at a busy street corner [in Canton MA] clutching a sign that reads: 'I NEED A JOB ... 36 YRS EXPER; INSUR/MNGMNT.' Included is his phone number. ...Says Mr. Wilcox, who has become a morning-commute fixture in this suburb of Boston for almost 3 months, '...Desperate times call for desperate measures.'") -
  1. Degussa AG - Net profit in 2002 fell 64% amid charges, lower revenue, Dow Jones via WSJ, B6.
    ...The German chemicals company...has eliminated about 2,800 jobs as part of a plan to cut 4,000 by 2004....

  2. OMM plans to cease operations, by Barnaby Feder, NYT, C7.
    ...on Friday. [The] leader in what was a promising market for communications switches made of rapidly adjustable arrays of microscopic mirrors...was originally called..\..Optical Micro-Machines [when it] was founded in 1997.... "It's a product geared to telecom, and telecom is in the tank," said Philip Chapman, pres. and CEO.... Mr. Chapman said...that all 85 employees would be laid off unless a buyer for the company emerges before Friday.

3/04/2003   4 downsizings, totaling 1,920 lost jobs, cited in Wall Street Journal &/or NY Times -
  1. A British company town in pain - Job cuts at the BAE Systems shipyard send the young away, by Alan Cowell, NYT, W1.
    When...Europe's biggest military contractor announced this month that it would lay off a fifth [20%] of its workforce here, the jobcuts looked like a familiar enough display of the "hire''em, fire'em" spirit that helps set British business apart from some of its more constrained counterparts in Continental Europe. But it also showed how history, geography and a solid infusion of political maneuvering have conspired to create a Jeckyll-and-Hyde economy in this country, where manufacturing has become the laggard and growth is driven by the service industry.... Some reports suggested that the announcement of the 700 jobcuts here and 300 more at Scottish yards was timed to coincide with the carrier negotiations....
    [So 700+300= 1,000 jobcuts total.]

  2. Celestica will close Oklahoma City plant, AP via NYT, C7.
    The sluggish economy and the lengthy downturn in the telecom industry are forcing Celestica Inc...which is based in Toronto, \to\ put...450 people out of work. [The] manufacture[r of] electronic products like printed circuit boards for large telecom equipment...plans to transfer the remaining work in Oklahoma City to other Celestica sites...Stephen Delaney, Celestica's president for operationss in the Americas said late last week. The...plant will close by November. The 40-year-old plant employed more than 9,500 people at its peak in the 1970s. Employees will be offered severance packages.... In July, Celestica announced it would cut 500 jobs, or half its workforce at the...plant by the end of 2002 [see 8/22/2002 #1]. Eliminating the...operation is part of a consolidation effort within the company....

  3. Weyerhaeuser stops making plywood at Alabama plant, Bloomberg via NYT, C4.
    ...The forest products giant [will] cut 250 jobs as it ended plywood production at a plant in Millport, Ala.... Weyerhaeuser, based in Federal Way, Wash., is ending plywood production at the plant because of a declining market for plywood panels and difficulty obtaining suitable logs. The lumber operation at Millport will continue, employing 80 workers....

  4. Opera war in Berlin: Melodrama in 3 acts, by Alan Riding, NYT, B1.
    ...Desperate to cut its own deficit, the city has decided to reduce the annual opera subsidy to $112.5m from $123m, eliminating 220 jobs, around 10% of the present opera workforce. To do this, it proposes uniting the 3 houses' costume and set workshops and shrinking their 3 dance companies into a single corps. Their orchestras, however, will lose only 18 players and their choruses just 5 singers....

3/01-3/2003   3 downsizings, totaling 291 lost jobs, cited in Wall Street Journal &/or NY Times
(not counting economywide "Why newer plants are most vulnerable," by Clare Ansberry, 3/3/2003 WSJ, A2, which states, "On average, over a 5-year period, more than 32% of US mfg plants, or 6% a year, are shuttered. When the economy is weak, there are more closings." And statewide, "Unemployment's impact on marriages - Coping with a partner who is jobless can put pressure on relationship, finances," by Joan Axelrod-Contrada, 3/02/2003 Boston Globe, H1, which states, "A report released last week by Andrew Sum and Neeta Fogg of the Center for Labor Market Studies at Northeastern University found that Massachusetts' long-term unemployed - those out of work for over 15 weeks - have quadrupled since the end of the economic expansion in 2000, rising from 0.49 to 2.10% of all eligible workers. Meanwhile, the percentage of those unemployed for more than 27 weeks, known as the "hardcore" unemployed, has increased fivefold, from 8,000 in 2000 to 38,000 in 2002, according to the report which is based on the US Census Bureau's current population survey data.") -
  1. 3/3 Job cuts total more than 200 with weak economy cited, Dow Jones via WSJ, B4.
    Hand-held computer maker Palm Inc., Milpitas CA...laid off more than 200 employees, or about 19% of its 1,170-person workforce. Marlene Somsak, a spokeswoman for the maker of personal digital assistants [PDAs], said the layoffs, which were completed Friday, were made companywide and reflect the economy [and] the computer industry, \which\ for the last 2 years...has been suffering from slack demand..\..
    [Now only passively "reflect the economy," but actively depress further - in contrast to trimming hours for all, not chopping jobs.]
    Palm began notifying employees...earlier in the quarter, with the majority leaving Thursday.... Earlier this month, Palm's software unit that is slated to be spun off, announced it would lay off 20% of its employees.... All told, Ms. Somsak said the layoffs in both groups account for about 250 employees....
    [As the Brits would say, for a small company, that's "some sack"!]

  2. 3/01 Red Herring magazine stops publishing, AP via NYT, B2.
    ...At its closing, Red Herring had a staff of 31 workers. In its heyday during 2000, Red Herring and its affiliates employed more than 300 workers....

  3. 3/01 Mattel to combine units and cut executive posts, AP via NYT, B4.
    ...The maker of Barbie and Hot Wheels [will] combine its girls and boys units and cut 10 executive positions, or about 5% of its managerial staff. ...The world's largest toymaker is consolidating the units into a global division...to eliminate duplication....

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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