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Downsizings, Aug.1-15, 2003
[Commentary] ©2003 Phil Hyde, The Timesizing Wire, Box 117, Harvard Square, Cambridge MA 02238 USA (617) 623-8080


8/15/2003   3 downsizings, totaling 6,825 jobcuts, reported in Wall St Journal & NY Times
(not counting economywide "Recovery without jobs? No way," 5 letters to editor, NYT, A28, and citywide "New York City slows its losses, holding jobless rate steady [at 8.1%!]", by Janny Scott, NYT, C11 ) -

  1. Dresdner Bank...finishing cutting 11,000...another reduction of 4,700 positions by 2005....
    Germany: Insurer posts profit, NYT, W1.

  2. Skandinaviska Enskilda Banken AB...has cut 1,850 jobs (9%) since June 2001...now has 18,145 full-time employees
    Swedish bank's net rises 3.8% despite 4.4% revenue decline, WSJ, B6.

  3. BearingPoint Inc...cutting between 250 and 275
    Net rose in latest quarter; Earlier results are restated, WSJ, B7.

8/14/2003   1 downsizing, totaling 600 jobcuts, reported in Wall St Journal & NY Times
(not counting historical "Burlington [Greensboro NC] for investor seeking a test," NYT, C4, whose photo caption states, "Burlington Industries employment has shrunk to 7600 from 33000 [=25,400 jobs lost] over past 30 years." ) -
  1. Tyson Foods...600 jobs lost..\..to close a poulty processing plant in Berlin MD,
    Tyson will take $10 million charge for plant closing, NYT, C4.
8/13/2003   1 economywide story & 6 counted downsizings, totaling 4,544 jobcuts + unspecified, reported in Wall St Journal & NY Times
(not counting economy-wide -
  1. Advertising - Interpublic posts a quarterly loss and says it expects more costly moves to get expenses in line, by Stuart Elliott, NYT, C5 (//WSJ, B3).
    ...Since the end of last year, the number of employees across the Interpublic empire has declined to 44,500 from 46,900, including the elimination of 1,450 positions in Q2.
    [46900-44500= 2400 cuts, but we caught 56 cuts on 5/20/2003 #3 so all we count now are 2400-56= 2,344 jobcuts, or 2344/(44500+2344)= 2344/46844= 5% of previous total.]
    More layoffs are to take place in Q3 and Q4....

  2. Entergy to trim work force with retirement offer, Bloomberg via NYT, C4.
    ...Own[er of] utility companies [based in New Orleans will] try to cut 1,000 jobs, or more than 6% of its workforce by offering voluntary retirement packages to employees. The majority of jobcuts will come in Entergy's nuclear-power operations....

  3. Energy company posts a loss for second quarter, cuts jobs, Dow Jones via WSJ, D7.
    Reliant Resources Inc...eliminating 650 jobs, including temporary and contract workers and open positions that won't be filled [out of total] 5,600 people....

  4. Dendrite International will cut 300 jobs and close 10 plants, Bloomberg via NYT, C2.
    ...software [for] drug makers...as a result of its acquisition in May of Synavant....[Again the lethal takeover-downsizing connection.]

  5. Schwab to lay off some workers and close offices, Bloomberg via NYT, C4 (//WSJ, C10).
    Charles Schwab & Co., the discount broker...based in San Francisco \is\ laying off about 250 employees and closing about 20 branch offices.... Schwab has already cut about 9,000 jobs and closed 23 branches since 2001 to save money as 3 years of declining markets cut revenue...

  6. German offshoot of Nasdaq plans to end operations, WSJ News Roundup, D10.
    FRANKFURT - Nasdaq Deutschland...will cease operations Aug. 29, five months after it was launched....
    [Unspecified lost jobs.]

We've GOT to find a faster format for the negative so we can 'accentuate the positive' and get some revision time for the Grande Opus, so, experimenting...
  1. Interpublic ad agency...yuk, can't reduce that one
  2. Entergy...1000 cuts, NYT, C4, OR
    Entergy...1000 cuts,
    Entergy to trim work force with retirement offer, Bloomberg via NYT, C4.
  3. Reliant Resources Inc...650, Energy company posts a loss for second quarter, cuts jobs, WSJ, D7.
  4. Dendrite International will cut 300 jobs and close 10 plants, NYT, C2.
  5. Charles Schwab & Co...250, Schwab to lay off some workers and close offices, NYT, C4 (//WSJ, C10).
  6. Nasdaq Deutschland...unspecified, German offshoot of Nasdaq plans to end operations, WSJ, D10.
    Let's see how this works.
8/12/2003   2 general stories & 5 counted downsizings, totaling 1,542 jobcuts + unspecified, reported in Wall St Journal & NY Times
(uncounted, economy-wide:
  1. Avnet will lay off 500 workers, Bloomberg via NYT, C2.
    ...A computer-parts distributor will lay off about 500 workers, or 5% of its employees, by the end of the year because of slumping sales. After the cuts, Avnet will employ about 9,500, the CEO, Roy Vallee [any relation to Rudy?], said yesterday. The company has been cutting costs and jobs since it had 7 consecutive quarterly losses, beginning in 2001. Avnet returned to a profit because its workforce has been cut from 15,500 in 2000, Mr. Vallee said....

  2. AT&T Wireless Services Inc., WSJ, A8.
    ...recorded a $47m business-restructuring charge in Q2 related to workforce reductions, including cutting 1,500 employees, disclosing for the first time the size of a headcount reduction plan [resulting] from the company's plans to consolidate its operations in its main corporate HQ in Redmond WA as well as in northern NJ. In a 10Q filing with the SEC:, the cellphone operator said the majority of the reductions would be involuntary, and that roughly 1/3 would be the result of employees who decline to relocate....
    [Hey, there's a neat way to get rid of people, eh? 'Move it or lose it!' Well, we caught 1000 cuts (3%) on 7/02/2003 #2, so we now just need to count 1500-1000= 500 more jobcuts.]

  3. Second-period loss narrowed; Manufacturing plants are shut, Dow Jones via WSJ, D5.
    Warnaco Group Inc...closed manufacturing plants in California and Georgia, which employed a total of 427 people. The company, which has 12,700 workers, closed the plants to improve its operating flexibility and margins. Warnaco [also] operates plants outside the U.S.
    [Hint - more and more outside, less and less inside the U.S.]

  4. Cooper Tire & Rubber Co., NYT, C5.
    ...Findlay OH, a leading tiremaker, [will] close an automotive-plastics factory in Cleveland early next year and eliminate 115 jobs to reduce costs.

  5. [suspected downsizing -]
    Sysco Corp., Dow Jones via WSJ, D5.
    ...said net profit for its fiscal Q4 rose 18%, as it was able to raise prices in food and products while using technology to cut costs....
    [Here is your most destructive, including self-destructive, kind of corporation. Tremendous profits while "using technology to cut costs," which you bet your booties includes cutting employees (unspecified jobcuts) = consumers = the consumer base = effective domestic demand = downsizing, not timesizing. What this oh-so-clever CEO needs to ponder is the Ford-Reuther deadlock, - Ford: "Let's see you unionize these robots!" Reuther: "Let's see you sell them cars." So much for "technology creates more jobs than it destroys." Maybe that's true for the minority of technological innovations that are qualitative, but for the majority that are quantitative (efficiency related), it is false, and the problem is cumulative, and it's accumulating in our unemployment and welfare lines, our 'disabled' population (now up to 5.7m), our prisons (now 2.2m inmates), our streets (est. 600,000 homeless) and of course, in forced part-time, force- retired, and forced self-employed regardless of clients or lack thereof.]

8/8/2003   2 general stories & 3 counted downsizings, totaling 260 jobcuts + unspecified, reported in Wall St Journal & NY Times (not counting economy-wide:
  1. Newell Rubbermaid, NYT, C4.
    ...Freeport IL [will] lay off 170 employees who make drapery hardware for the company's Levolor-Kirsch Window Fashions division, and move some production lines to Mexico within 12-18 months.

  2. Steinway is closing a plant and laying off 90 workers, Bloomberg via NYT, C4.
    Steinway Musical Instruments [plans] to close a plant in Nogales AZ...as demand for band and orchestra instruments declines....

  3. Foster Wheeler reports seventh consecutive loss, Bloomberg via NYT, C4.
    ...The powerplant and refinery builder...has laid off workers and renegotiated loans to avoid a bankruptcy filing and rebuild credibility after former executives priced contracts too low, analysts have said.
    [Unspecified jobcuts.]

8/07/2003   1 general story & 3 counted downsizings, totaling 1,975 jobcuts, reported in Wall St Journal & NY Times (not counting economy-wide:
  1. Exelon planning to cut 1,900 positions by 2006, AP via NYT, C3.
    [Honestly, this is like watching a horror movie where none of the 'guests' has the sense to get out of the haunted house while they're still alive. (We just watched "House on Haunted Hill.") In this case, the 'guests' are the CEOs who keep making it worse by chopping jobs - and consumers - instead of just trimming hours a bit for all.]
    ...about 1,200 jobs this year...by November..\..and another 700 by 2006, reducing its workforce by 10%...a majority...from professional and management employees..\..on a cost-cutting plan, according to the Chicago-based company, which distributes electricity....

  2. AstroPower announces layoffs for 10% of work force, AP via NYT, C3.
    ...The maker of solar-power equipment...laid off about 55 workers, or 10% of its workforce to try to control costs. ...It now employs about 500 people....

  3. Mean machines, by Ann Grimes with Byron & Bulkeley & Tam, WSJ, B4.
    Score another for the technocrats. In newsrooms at TV stations across the country, machines are replacing people [and markets!] - and station owners couldn't be more pleased [until their market-starved advertisers pull out].
    Most TV newsrooms need at least 6 people to operate video switchers, audio mixers, videotape machines and other equipment associated wit getting news on the air. But a video system dubbed PVTV being offered by ParkerVision Inc. slashes that number to 1 or 2. The Jacksonville FL company says 50 stations nationwide are using the system.
    It's a mean machine. Bray Cary, president and CEO of West Virginia Media Holdings LLC, says one of his stations, CBS affiliate WTRF in Wheeling WV cut its staff to 16 from 36 after installing the system, which went on air in February. He expectst to recoup the $500,000 he spent on PVTV at the station in less than 3 years.
    [...if his advertisers hold out that long. That's 36-16= 20 jobcuts. But wait one little minute - isn't "technology" supposed to "create more jobs than it destroys"? -]
    Jeff Parker, CEO of ParkerVision [OK, here's the party line -] says PVTV might reduce production jobs, but it frees up money for more news-gathering positions.
    [Did Bray Cary mention putting any money into news-gathering positions?? He's just busy paying off the halfa mil he blew on PV (pervert?) TV.]
    "If you look at it rationally [translation: from the short-sighted CEO point of view], companies producing live news should embrace PVTV," he said.
    But Robert Gessler, president of the WTRF union, doesn't like PVTV. Some think technology can run itself, he says, "but you still need the people behind it."
    [Doesn't like it but talks like he does. Well, Bob, apparently that only takes 16 of the old 36 full-complement at WTRF. That's only 44%. What's the union gonna do for the other 56%? We suggest you quit contradicting yourself, wake up and start fighting for worksharing on a station-by-station level.]

8/05/2003   2 general stories & 2 counted downsizings, totaling 1,791 jobcuts, reported in Wall St Journal & NY Times (not counting economy-wide:
  1. Work force will be reduced as two businesses combined, Dow Jones via WSJ, C12.
    Lincoln National Corp. plans to cut as much as 17% of its workforce as the company moves to combine its life and annuities businesses into a single operation. The Philadelphia insurer...plans to...eliminate between 800 and 1,000 jobs. Lincoln National, which employs about 5,800 people, has already cut about 200 of those positions [for] cost savings...greater efficiencies and effectiveness....

  2. Underwear maker to close Texas plant, Bloomberg via NYT, C4.
    Fruit of the Loom Inc...based in Bowling Green KY..\..will close a plant in Harlingen TX that employs 791 workers because of competition with imports from Asia.... Berkshire Hathaway bought the company last year for $835m as it reorganized under bankruptcy protection....

8/02-04/2003   2 general stories & 1 counted downsizing, totaling 325 jobcuts, reported in Wall St Journal & NY Times (not counting economy-wide:
  1. 8/02 Tellabs to close plant and lay off 325 workers, Bloomberg via NYT, B4.
    ...A maker of fiber optic network equipment \will\ close a plant in Bolingbrook IL and send the manufacturing work to the Sanmina-SCI Corp. ...Customers...have cut spending on networks....
8/01/2003   5 downsizings, totaling 6,760 jobcuts + unspecified, reported in Wall St Journal & NY Times - we have the impression that downsizings are bubbling up again, but we have to dig deeper to find them, e.g., only one (#3) of our 5 downsizings today mention workforce reduction in its headline
(not counting economywide "It's the economy that most worries voters," by Jackie Calmes, WSJ, A4, which states, "'The one number that should concern Bush,' say Journal/NBC pollster Robert Teeter, a Republican, and Peter Hart, a Democrat, '...is the 41% who cite unemployment as the principal economic issue' - dwarfing those who cite issues such as taxes and energy prices.... Just a third of Americans - of all regions, ages, income groups - say Bush's taxcuts have helped. The poll of 1,007 adults July 26-28 has a margin of error of 3.1%.") -
  1. Comcast has cash-flow gains as loss for quarter narrows, by Geraldine Fabrikant, NYT, C2.
    ...In a conference call yesterday, Comcast's president, Stephen Burke, said the company had cut 7,000 jobs, mainly related to the AT&T Broadband acquisition, up from the 5,000 it had previously announced....
    [We've only caught 1700 previously (10/10/2002 #4), leaving us with 7000-1700= 5,300 jobcuts to count here. Again the toxic takeover-downsizing-marketshrink connection.]

  2. Pep Boys to shut 33 stores, Reuters via NYT, C5.
    The auto parts retailer Pep Boys - Manny, Moe & Jack [sounds more like the 3 Stooges] - said yesterday it would...cut 700 store jobs and eliminate 160 management positions to try to bolster profits....
    [for a total of 860 jobcuts.]

  3. [serious recovery-blocking in process -]
    Net rises 25% to $302m; Work force will be reduced, Dow Jones via WSJ, B6.
    Anadarko Petroleum Corp. [will] cut 400 jobs and close 2 field offices as part of a move to save $100m in annual costs...and leave the company with about 3,400 full-time employees....
    [So this is a downsizing of 400\(3400+400)= 10.5% of total FT workforce.]

  4. Gartner profit declines, Bloomberg via NYT, C5.
    ...An IT consultant and researcher...based in Stamford CT has reduced its workforce by 200 since January, leaving it with 3,700 employees.

  5. Cuts in electronics unit aim for savings of $453.7m, Dow Jones via WSJ, B6.
    ...Amsterdam-based..\..Philips Electronics NV...Europe's biggest consumer-electronics company, [will] slash costs..\..at its struggling consumer-electronics division...by reducing the number of warehouses it uses for distribution and by streamlining its IT and[?] production. But the company's failure to give any details about possible jobcuts or restructuring costs generated doubts about how it would generate the savings....
    [Unspecified jobcuts.]


Click here for downsizing stories in -
July/2003.
Jun.17-30/2003.
Jun.3-16/2003.
May/2003 (+Jun.1-2).
Apr.16-30/2003.
Apr.1-15/2003.
March/2003.
Feb.16-28/2003.
Feb.1-15/2003.
Jan.16-31/2003.
Jan.1-15/2003.
Dec/2002.
Nov.16-29/2002.
Nov.1-15/2002.
Oct.16-31/2002.
Oct.1-15/2002.
Sept/2002.
Aug.16-31/2002.
Aug.1-15/2002.
July/2002.
June/2002.
May/2002.
Apr/2002.
Mar/2002.
Feb/2002.
Jan. 16-31/2002.
Jan. 1-15/2002.
Dec. 16-31/2001.
Earlier 2001 downsizings accessible via links at bottom of Dec.16-31/2001 page.
Dec.16-31/2000.
Earlier Y2000 downsizings accessible via links at bottom of Dec.16-31/2000 page.
Dec/1999.
Earlier 1999 months accessible via links at bottom of Dec/1999 page.
December/98.
Earlier months accessible via links at bottom of Dec/98 page.

For more details, our laypersons' guide to our great economic future Timesizing, Not Downsizing is available at bookstores in Harvard Square, Cambridge, Mass. or from *Amazon.com online.

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