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Downsizings, February 16-28/2001
[Commentary] ©2001 Phil Hyde, The Timesizing Wire, Box 117, Harvard Square, Cambridge MA 02238 USA (617) 623-8080


2/28/2001  3 downsizings cited in NY Times (NYT) & Boston Globe (BG), totaling 3,420 lost Canadian jobs + unspecified US (not counting February's 11,649 dotcom jobcuts in a monthly industrywide roundup according to "Dot-com job cuts fall [(9.4%) for first time since June]," NYT, C4 {the same blowout reports over 65,000 dotcom jobcuts overall since April}, or "Eddie Bauer cuts 200 jobs" in Redmond WA and its parent company, Spiegel Group, will also cut 40 jobs in its Hampton VA division, per AP-NY-02-27-01 1446EST via AOLNews via RadioTony) -

  1. JDS Uniphase set to trim 3,000 jobs; stock off 14%, Reuters via NYT, C4.
    OTTAWA...- Amid slowing demand and growing competition...the world's No.1 supplier of fiber optic components [will] cut...10% of its staff...mainly from [the] manufacturing of passive products that augment optical network capacity - like mirrors, glass and other parts used to direct beams of laser light....
    JDS...still plan[s] to hire employees for its high-growth businesses [but does] not have any hiring estimates....
    [This means that the total JDS workforce before these cuts was 30,000 and now they're down to 27,000.]
    JDS is the latest high-tech powerhouse to cut staff. Nortel Networks, the world's No.2 supplier of fiber optic systems equipment, will cut 10,000 jobs [12%] this year [see 2/16 below]. Lucent Technologies will also cut 10,000 jobs [9.4% - see 1/25]....
    [Too bad their management skills aren't high tech. If they were, they'd be cutting hours for the whole company and keeping their whole team together with continuous retraining and cross-training, instead of cutting their customers' customers and spurring recession.]

  2. Quebecor plans 420 layoffs at unit, Reuters via NYT, W1.
    The Canadian conglomerate [will] cut...nearly 50% of the work force at its Videotron Telecom unit, which is being hit by competition and the economic slowdown across North America....

  3. Cadmus Communications Group, NYT, C4.
    ...Richmond, Va., a publishing services company [will] close its logistics operations in Atlanta, taking an $8m pretax charge in its fiscal 3rd quarter.
    [Unspecified jobs lost.]

2/27/2001  7 downsizings cited in NY Times (NYT) & Boston Globe (BG), totaling 11,828 lost jobs worldwide + unspecified (not counting 650 early retirements at Texas Instruments according to "TI predicts revenues to drop 20 pct.," by Terry Wallace, AP-NY-02-26-01 1712EST via AOLNews, or 135 jobcuts (10%) at Disney Interactive according to Reuters 15:57 02-26-01 via AOLNews via RadioTony) -
  1. SCI Systems to cut 3,800 jobs and close plants, Bloomberg via NYT, C4.
    ...An electronics contract manufacturer...based in Huntsville, Ala. \plans\ to cut about...10% of its staff, and close an unspecified number of plants because sales growth has weakened.... The job cuts and plant closings will result in a charge of $40-60m for the present quarter.... [They] will be made through attrition and layoffs....

  2. Mitsubishi Motors maps plans to tighten operations, by Miki Tanikawa, NYT, C2.
    TOKYO...- The Mitsubishi Motors Corp. outlined a sweeping restructuring plan [yester]day that in some ways mirrors that of DaimlerChrysler, which owns about one-third of its stock.
    Mitsubishi, which has been reeling from sagging car sales as well as recalls and scandals, [will] eliminate 9,500 jobs, or 14% of its global work force, close one of its four car plants in Japan; and find ways to reduce spending on parts and supplies by 15%. The company's goal is to achieve a gross profit margin of 4.5% by 2003....
    [We counted 6000 of these cuts back on 2/23, so we'll just count 9500-6000= 3500 cuts now.]

  3. Mazda retirement plan, Reuters via NYT, W1.
    Mazda Motor...accepted 2,213 applications for its early retirement program, more than the 1,800 it had hoped for. Mazda Motor announced the early retirement plan in November; hoping to cut its work force by 1,800 by March. Mazda said it would incur an extraordinary loss of $293.5m in the year to March to pay for early retirement allowances.

  4. To trim costs, 3Com says it will eliminate 1,200 jobs - ...Falling profits and weak sales get the same, by Chris Gaither, NYT, C4.
    ...The struggling maker of computer networking equipment [will] eliminate 1,200 jobs as part of an effort to restore the company to profitability. The cutback...is part of an attempt to save more than $200m in operating costs this year.
    3Com, based in Santa Clara, Calif., [will] lay off 900 salaried employees, or nearly 10% of its 9,200-member work force. The company will also let go 300 of its 2,500 contract and temporary workers.... Brian Johnson, a 3Com spokesman, said across-the-board jobcuts would affect workers in the United States, Asia and Europe. Many of those employees got word of their dismissals [yester]day. 3Com was among the first networking companies to warn of 2001 layoffs, but several other industry leaders swung the ax first [such as] Nortel Networks and Lucent....

  5. Federal-Mogul to lay off 1,100 salaried workers, Bloomberg via NYT, C4.
    ...The world's largest maker of engine bearings and seals [will] lay off about 1,100, or 8.6%, of its salaried employees to reduce costs. The layoffs, which represent about 2.1% of the total work force, will be completed this year.... Federal-Mogul, based in Southfield, Mich., will take an unspecified charge for severance packages.... About 12,750 of the company's 51,400 employees are salaried.

  6. Revenio cuts jobs, by Beth Healy, BG, D11.
    Burlington MA-based...Internet marketing start-up confirmed it cut its staff by 15 people to 85 last week. ...The cuts were made across the company in an effort to "tighten our belt."...

  7. McKesson [HBOC] to cut work force and take a charge, Reuters via NYT, C4.
    ...A drug distribution and healthcare information technology company [will] post a restructuring charge and cut jobs....
    [No numbers, but from "McKesson HBOC dumps online unit," AP via BG, D2, we have the actual statement, "As part of the overhaul, McKesson will lay off an undetermined number of workers...."]

2/24/2001  1 downsizing cited in NY Times (NYT) & Boston Globe (BG), totaling 350 lost US jobs -
2/23/2001  6 downsizings cited in NY Times (NYT) & Boston Globe (BG), totaling 8,533 lost jobs globally -
  1. Mitsubishi [Motors] to cut 6,000 jobs, AP via BG, C2.
    ...10% of its work force [of] 65,000..\..trim its model lineup [by] about 10 of its 24 passenger car models and close a plant in Nagoya, central Japan..\..over 3 years in a massive restructuring....

  2. Qantas to cut jobs, by Becky Gaylord, NYT, C4.
    ...1/4 of its Australian-based executives and middle managers within the next 2 weeks and...5% of all staff over the next 6 months. The job cuts, totaling 1,470 come as the airline's earnings have been hurt by higher fuel costs, new regional competitors and a weak Australian dollar. The company's net profit for the first half-year, ending Dec. 31, slipped more than 1/5 from the same period a year earlier, despite a 13% rise in revenue.

  3. Polaroid says it will cut 11% of its [global] work force, Reuters via NYT, C4.
    ...about 950 jobs...in a restructuring plan reflecting a reduced demand for its traditional instant film. The restructuring is expected to be completed in the next 12 months and save the company about $60m a year. Polaroid expects to record...about $60m for severance costs....

  4. GTech [Holdings] to eliminate 80 jobs and take $4m charge, Reuters via NYT, C4.
    ...The world's No. 1 operator of lottery systems [is] cutting 80 jobs and revising earnings forecasts. The company, based in West Greenwich, RI, said the job cuts were part of an effort to trim $24-36m....

  5. Andersen Group, NYT, C4.
    ...New York, a diversified holding company, said that it would cut the work force at its J. M. Ney Co. unit, Bloomfield, Conn. which produces contacts used in automobile sensors, by 17% as it reorganized operations.
    [This involves "33 manufacturing and administrative positions at the company's factory in Bloomfield, Conn. info no thanks to NYT's omission of this vital factoid, but thanks to "Anderson Group cuts JM Ney unit workforce by 17%," Bloomberg News Feb/22/2001 16:15 ET via AOLNews.]

2/22/2001  6 downsizings cited in NY Times (NYT) & Boston Globe (BG), totaling 1,383 lost US & Colombian jobs
(not counting 70 jobcuts according to "Onkyo [America] cutting 16% of work force," AP-NY-02-21-01 1531EST via AOLNews via RadioTony, or 50 jobcuts (100%) according to "Destination Films lays off workers," AP-NY-02-21-01 0751EST via AOLNews via RadioTony) -
  1. They call it Tobacco Road - For Sing Sing guards, trailers are symbols, by Charlie LeDuff, NYT, A25.
    ...With the number of state prisoners dropping for the first time in 27 years...- a decrease of 2% - the state [of NY] has decided to cut $20m and 414 jobs from its prison security budget. Most of the cuts will be aimed at the medium-security prisons upstate that house nonviolent criminals and drug offenders....

  2. Verizon Wireless to cut 350 Woburn MA jobs, by Peter Howe, BG, C4.
    ...[and] shut down a customer-service call center and other operations in Woburn MA...because its lease expires there next year, and it did not believe it could easily get more space or hire enough workers to expand in Greater Boston..\.. The Woburn shutdown is part of what Verizon Wireless called a $100m nationwide expansion that will actually add jobs in several other parts of the country. People who face losing their jobs from the April 23 shutdown of the Unicorn Park site will have the chance to apply for openings in Woburn and nationally with Verizon Wireless and receive $5,000 in after-tax aid to relocate, the company said..... Jobs being cut include 250 in customer service and 100 in credit and finance operations.... The moves will cut Verizon Wireless's total presence in Massachusetts from 750 to 400 jobs.

  3. Motorola cutting 300 jobs, by David Barboza, NYT, C7.
    One of the world's biggest makers of cell phones and semiconductors [will] eliminate another 300 jobs from the division that makes cell phones and other communications devices. The company said the move was part of an effort to cut expenses at a time when demand for its products had weakened. A few weeks ago, the company said that it would eliminate 4,000 jobs [see 2/10/2001 below] in its semiconductor division and a month ago [see 1/16/2001] it said that it would close its only remaining domestic cell phone manufacturing plant, cutting 2,500 jobs.

  4. Gillette shuts plant, Bloomberg via BG, C9.
    ...The world's largest maker of razors plans to shut down its Colombian factory as it seeks to concentrate its Latin American businesses in Mexico and Brazil.... The decision means that about 200 workers at the Cali-based plant would lose their jobs.... The firm said it would pay severance packages exceeding regular payments or help workers secure other jobs.

  5. A technology magazine is reducing staff by 17%, by Alex Ruczynski, NYT, C7.
    In a move that signals the ever-deepening crisis in the sector of magazines that focus on technology and the Internet economy, Standard Media International, the parent company of The Industry Standard magazine, announced yesterday that [it] would cut its staff...of 400 employees [by] 69.... And for the first time, the editorial operations of the magazine were affected, with the forced departures of 18 editorial staff members. ...Standard Media...in January [asked] 36 staff members...to resign, although none were from the magazine's editorial division [see 1/09/2001]. At the time, the magazine's free weekly fresh-fruit breakfast and in-house massage service were also discontinued, staff members in New York said....

  6. Plant to be closed, Bloomberg via BG, C2.
    Micro Component Technology Inc. of St. Paul, Minn., a maker of testing equipment for the semiconductor industry, will cut about 50 jobs, or 18% of its work force, as it closes a factory in Marlborough, Mass., to consolidate manufacturing in St. Paul. Research and development, sales, and some other operations will continue in Massachusetts. The company expects to complete the moves by the end of the second quarter. Micro's shares fell....

2/21/2001  3 downsizings reported in NY Times (NYT) & Boston Globe (BG), totaling 990 lost N. American jobs
(not counting 1,000 jobcuts this spring at GM's Orion Lake MI vehicle assembly plant according to "GM to lay off some workers at Michigan plant," Reuters 15:42 02-20-01 via AOLNews via RadioTony, and not counting general story on e-biz downsizings, "Discarded dreams of dot-com rejects - Growing indignation results from recent brusque dismissals," by Jennifer Lee, NYT, C1) -
  1. Cuts set in Mexico, Bloomberg via BG, D9.
    SLI Inc...based in Canton MA..\..a maker of lamps and fiber-optic lighting systems...will fire 800 [62%] of its 1,300 workers at its magnetic ballast plant in Juarez, Mexico, because of the falling value of that business. SLJ...will shift production to electronic ballasts because they are more cost-effective and meet market demand....
    [Then why not shift the 800 workers too? - and if there are too many, cut hours a bit for everyone, instead of jobs completely for 800.]

  2. Imax cutting 13% of its jobs as orders slow, Bloomberg via NYT, C4.
    ...The maker of big-screen projection systems...is eliminating 130 jobs, about 13% of its workforce, to cut costs as orders from customers slow and earnings decline. Imax will consolidate its sound and projection systems manufacturing at its headquarters in Mississauga, Ont.... It scaled back operations at its plant in Birmingham, Ala., that makes sound equipment. ...Profit last year was less than expected...because bankruptcies at some big theater chains in the U.S. reduced demand for its products.... Imax shares fell....

  3. Hub firm fires 60, by Scott Nelson, BG, D9.
    Boston-based PrimeStreet Corp., which matches small businesses to lenders, laid off more than 2/3 of its employees and announced it is seeking a buyer [blaming] the economic slowdown and a resulting falloff in business.... Sixty of the company's 85 employees - all of the sales, marketing, and engineering staff - were let go.
    [Who's that leave - just the top execs?]
    The departing workers were given severance packages.

2/17/2001  yet 4 more downsizings reported in NY Times (NYT) & Boston Globe (BG), totaling 2,500 lost US & S.Korean jobs + unspecified
(not counting 350 (17.5%) lost Brisbane CA jobs at Future Network and 65 (15%) lost San Francisco jobs at Industry Standard, according to "Future Network lays off 350," by Michael Liedtke, AP-NY-02-16-01 1921EST via RadioTony, and not counting 8000 lost jobs as Norway cuts its military, according to "Norway: plan for smaller army," by Sarah Lyall, NYT, A7, and note also the flurry of articles about economywide downsizing in the US - for example, on the front of the NYT business section, "Dreary reports on layoffs and earnings afflict markets," afflict investor-speculators, that is, and "Consumer confidence is wild card in the nation's economy," which begins, "American consumers, shaken by a rash of layoff announcements and a weakening stock market, are losing confidence in the economy at the fastest pace since the last recession." Then on the front of the BG biz section, a blowout under "Sunday Business" says, "The once-buoyant US economy seems weary, the best evidence being a mounting slew of layoffs. But some economists ask if the slowdown the job cuts supposedly address is really that dire." Apparently these economists are incapable of recognizing that the job cuts don't "address" the slowdown, they cause it.) -
  1. Big job cut at Daewoo Motor prompts protests by workers, by Don Kirk, NYT, B2.
    ...The company, which was declared bankrupt and pushed into receivership by lenders in November..\..sent dismissal notices to 1,750 employees [(11%) yester]day, beginning a long-threatened downsizing. [It] is under pressure to restructure and shed workers so that it can be sold to GM and Fiat. Creditors want one-third of the company's 16,000 jobs to be eliminated. But attempts to negotiate an agreement with the union on cutbacks have repeatedly fallen apart, and the union has threatened a prolonged strike, which could kill any chance of a takeover by GM. Daewoo went ahead with the dismissals after rejecting a proposal that unneeded workers be given four months of paid leave or be allowed to work part time....
    [It's always unclear in these situations whether the targeted employees are really "unneeded" in the manufacturing process or they just don't fit the latest scheme of money-lending outsiders to get their money back.]

  2. Volvo plans to cut 400 more jobs in North America, Bloomberg via NYT, B3.
    ...The heavy-truck maker [plans] to cut [from] truck operations and reduce production again as...January sales fell 20% [to] 1,244 units in North America in January.... Volvo cut 1,000 temporary workers in North America and scaled back production in the first half of 2000. It cut production three times in 2000 as North American demand fell.

  3. Corning plans to accelerate spending controls, Reuters via NYT, B3.
    The glass and fiber optics maker [will] accelerate spending controls to meet its earnings targets after the telecommunications equipment maker Nortel Networks Inc. - a key customer as well as a competitor - warned of slower growth.... Corning has already cut 350 temporary jobs and [will] evaluate the need for more reductions.

  4. Covad Communications [Group] to close 60 more offices, Bloomberg via NYT, B3.
    ...A provider of fast Internet service over telephone lines [will] shut 60 more offices as it review[s] its accounts.... Covad sales for 2000 may not reach its expectations because Internet providers, some of which have filed for bankruptcy, cannot pay their bills....

2/16/2001  4 more downsizings reported in NY Times (NYT) & Boston Globe (BG), totaling 8,730 lost Can., UK & US jobs (without mentioning 4% of a company's workforce to be laid off in Wash. state per "AT&T Broadband to lay off 450," AP-NY-02-15-01 1936EST via AOLNews via RadioTony) -
  1. Nortel [Networks] slashes '01 forecasts, boosts cuts - 6,000 more jobs to be eliminated, AP via BG, F2.
    ...on top of the 4,000 job cuts announced last month [see 1/12/2001]. 6,000 positions have [actually] already been eliminated.... Officials \of\ Brampton, Ont.-based Nortel, the world's top supplier of optical gear for telephone and data networks that make up the Internet...would only say they were trying to minimize the number of layoffs by not replacing workers who retire or quit. Investors were swift to punish Nortel' stock, which tumbled...26% to $22.02 in after-hours trading, wiping out a quarter of the company's market value.... With yesterday's dire update, Nortel joins a growing number of major technolgoy companies such as Cisco Systems that are saying business conditions are turning even weaker than expected in the United States.
    [It would be more accurate to say that Nortel joins a growing number of major technology companies that are making business conditions even weaker than expected by downsizing instead of timesizing.]
    Dell Computer Corp. announced 1700 layoffs yesterday...on the heels of [10,000] cuts at Lucent Technologies [1/25]; 10,000 at Verizon; 9,370 at Motorola; and 3,000 at Gateway....

  2. Sun Life cuts British jobs, AP via NYT, W1.
    Sun Life Financial Services of Canada Inc. [will] cut 1,700 jobs in Britain because of disappointing sales in the country. The cuts represent 85% of its jobs in Britain.

  3. Alltel says it will cut 1,000 jobs to reduce expenses, Bloomberg via NYT, C4.
    ...A provider of wireless, local and long-distance telephone services [will] cut...3.7% of its work force as part of a plan to reduce expenses.... The company, based in Little Rock, Ark., said the job cuts would be accomplished partly through early retirements....

  4. Hill Holiday confirms Boston layoffs - Up to 30 positions estimated to be cut, by Chris Reidy, BG, F3.
    ...the first cuts in nearly a decade. ...The second-largest ad agency in New England...employs roughly 770 people, including aboaut 500 in Boston....

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