Timesizing® Associates - HOMEPAGE

Downsizings, Aug. 1-16, 2001
[Commentary] ©2001 Phil Hyde, The Timesizing Wire, Box 117, Harvard Square, Cambridge MA 02238 USA (617) 623-8080

8/16/2001  record-breaking 13 downsizings reported today in NY Times (NYT) & Boston Globe (BG), matching our one-day record, and totaling 11,805 jobcuts + unspecified (not counting "Corning cable unit cuts another 900 jobs," Reuters 18:07 08-15-01 via AOLNews via RadioTony) -

  1. AOL Time Warner expected to cut more jobs, Bloomberg via NYT, C4.
    AOL Time Warner Inc., the biggest media and Internet company, signaled that it would cut more jobs in the third and fourth quarters after eliminating 6,200 positions this year, according to a regulator filing....
    [This is essentially the same story as 8/14's "More AOL layoffs possible" in NYT and "AOL will cut 1,000 jobs at online unit" in BG, below. However, we are now given a higher figure of 6,200 for total layoffs in the first and second quarters of this year. We have so far counted only the "2,400 jobs cut in January" mentioned on 8/14. So now we'll count 6200-2400= 3,800 jobcuts in the first half (Q1 & Q2). Note that so far we have counted only 1000 future jobcuts - that were mentioned on 8/14.]

  2. Motorola to trim two chip lines, workers, AP via BG, E4.
    Motorola Inc. announced plans yesterday to phase out two semiconductor manufacturing lines in [Mesa,] Arizona, continuing its consolidation and adding more job cuts to the sweeping reductions already made. The move comes with worldwide semiconductor sales off sharply and Motorola on the slide from the world's fourth-biggest chipmaker a year ago to number seven....
    The undetermined reductions will be on top of 30,000 job cuts to be completed by year's end, shrinking a work force that stood at 147,000 at the end of last year..\.. The Schaumberg, Ill.-based company, which already has announced 30,000 job cuts this year - 20% of its work force - said the action continues its policy of shutting down older plants and investing more heavily in advanced technology.
    [So much for John Stuart Mill's silly notion that "technology creates more jobs than it destroys." We summarized and counted 22,000 of these 30,000 previously announced cuts on 4/11, #3. That left an additional 8,000 uncounted as of 4/11. However, we counted an additional 4600 (600 on 5/17 and 4000 on 7/13) since then, leaving us now having counted a total of only 22,000 (by 4/11) + 4,600 (by 7/13) = 26,600. That means we must now count the remaining 30,000-26,600= 3,400 jobcuts or 2.3% of the total workforce of 147,000 as of Dec. 31.]

  3. New York schools chief to cut 1,500 jobs and increase local autonomy - Announcing changes that are expected to save $300m over three years, Bloomberg via NYT, C4.
    New York City's schools chancellor, Harold O. Levy, announced a sweeping reorganization of the Board of Education staff yesterday, a plan that would eliminate more than 1,500 administrative jobs over three years and give far more autonomy to local school superintendents to make their own decisions about how to spend their money....
    A cut of 1,226 jobs, or 39% [of a total of 3,144?] in the administrative staff at board headquarters over three years would be the single largest percentage reduction in the Board of Education's history.... In addition, 300 administrative jobs are to be eliminated at community school district headquarters, including those of some administrators who will be moved back into the classroom as teachers..\..
    As recently as 1994, the board's central administration had 5,407 employees;...
    [Apparently quite a parking lot for political-patronage jobs.]
    ...after the [1,226] new reductions are completed, that number will drop below 2,000.... "Today we begin an effort to change a culture," Mr. Levy said....

  4. Opel plan includes 350,000 fewer cars, Bloomberg via NYT, C4.
    The loss-plagued German subsidiary of General Motors, Adam Opel AG, unveiled a broad turnaround plan today that called for reducing production by about 15%.... The plan is the first comprehensive strategy laid out by Opel's first German CEO, Carl-Peter Forster. Mr. Forster, an engineer and former production chief at Bayerische Motoren Werke [BMW], was recruited this spring after Opel reported a loss of more than $400m for 2000....
    Mr. Forster...described GM's "tense" situation in Europe.... The market share in Germany of Opel, which GM acquired before World War II, has slid from 17% in the early 1990's to 12% today, a share that probably would be lower if not for aggressive price discounts..\.. "We were in a downward spiral that had to be broken," Mr. Forster said....
    Opel employs 42,000 workers at 13 locations in Europe, and its headquarters are in Ruesselsheim, just outside Frankfurt. Mr. Forster made it clear that more than 1,000 jobs would be eliminated [and] Opel...will try to farm out more work to suppliers, overhaul its dealer network and spend more money on marketing and promotion to improve Opel's image, now dogged by a reputation for dullness and mediocre quality.... Opel has been hammered by Volkswagen, the European leader in smaller and midprice cars....

  5. Switzerland: Job cuts at chemical maker, Bloomberg via NYT, C4.
    A leading maker of specialty chemicals, Clariant AG, will cut 1,000 more jobs and close factories after a write-down of an acquisition [of BTP of Britain] led to a loss in the first half of $774m. The latest jobcuts bring the total to 2,000 or 6% of the company's workforce....
    [Again the lethal takeover-to-destabilization slide, aka the takeover-downsizing connection. We put the total cuts now at 2,300 since on 3/21, #2 we counted 1,300 Clariant cuts. If 2000 is 6% of total workforce, the present 1000 cuts are 3%.]

  6. Egghead files for Chapter 11, Bloomberg via NYT, C4.
    Egghead.com, a computer retailer, filed today for bankruptcy protection after laying off two thirds of its workforce and agreeing to sell its assets to closely held Fry's Electronics, court records said.... The company...dismissed 200 employees [of its total workforce of 300].... Egghead.com cut 77 jobs in March and 178 in April.
    [We heard nothing about the April jobcuts and we left uncounted the 3/06 AP report, so we now get to count 77+178+200= all 455 jobcuts mentioned at last in the NY Times. We estimate the total pre-3/06 workforce at 300+178+77= 555 employees, making the 455 cuts a downsizing of 82% of that total.]

  7. Schwab plans to cut jobs because of slow trading, Bloomberg via NYT, C4.
    The Charles Schwab Corp., the nation's leading discount and online brokerage company said yesterday that its...daily average of..\.. commission trades fell by...43% last month from July 2000 and that weak stock market conditions would lead to more jobcuts.... The company began 2001 with about 26,700 employees and had about 22,400 at the end of June....
    [Meaning a loss of 4,300 jobs. We only heard about 3,900 so far (7/18, #5), so now we'll count the additional 4300-3900= 400 jobcuts. The 7/18 story said that the 3900 cuts were 15% of the total workforce, so 400 are going to be 1.5% of the total.]
    Several revamping initiatives that will be announced in Sept. and Oct. [will] include..\..the jobcuts [and] cuts in technology and advertising spending.
    [There's a switch - cuts in technology spending!]

  8. CSK Auto will close 36 stores and cut 120 jobs, Reuters via NYT, C4.
    The [Phoenix-based] autoparts and accessories retailer [will] close 36 stores and cut 120 corporate jobs (0.8%) in a restructuring aimed at increasing profits and reducing debt.... CSK Auto...has a total workforce of 14,786....

  9. China: Internet job cuts, Bloomberg via NYT, C4.
    The operator of a Chinese Internet portal, Sina.com, [will] cut 15% of its workforce after reporting a 6% drop in quarterly revenue but a narrower loss. ...The company [will] cut 80 jobs by the end of September....

  10. Commerce Group to consolidate units, Dow Jones, BG, E8.
    ...An underwriter of property and casualty insurance plans to consolidate several functions from its Columbus, Ohio-based ACIC unit to its Webster, Mass.-based Commerce Insurance Co. unit. ...The move will reduce staff by about 40 positions (2.5%).... The company has a total of 1,600 employees. ...Shares fell....

  11. Y. & R. ad unit lays off 10 workers, by Courtney Kane, NYT, C5.
    The New York office of Young & Rubicam Advertising, part of the Y&R unit of the WPP Group said yesterday that it had laid off...about 1.4% of its staff of 700..."in response to the softening economy"...at all levels at the agency.... Earlier in the year, Y&R New York had layoffs related to the loss of clients like KFC....
    [This could be a reference to their Cohn & Wolfe unit's layoffs on 4/18, #8. Otherwise we missed it.]

  12. Chinese censors shut journal critical of pro-business stance, by Erik Eckholm, NYT, A8.
    ...The closing in recent weeks of "Pursuit of Truth," was..\..President Jiang Zemin's...most open move yet against hardline Marxists, many of them elderly revolutionary veterans who question his plan to broaden a party that by its Constitution is the "vanguard of the working class."...
    [Unspecified jobs lost.]

  13. Financial problems force chain of computer camps to close, NYT, E5.
    ...ACE Computer Camp, an Atlanta-based company that ran 60 camps a year for some 8,000 campers ranging in age from 7 to 16, ceased operations last Friday.... ACE had been suffering from decreased enrollment, with 45% fewer campers in 2001 than in the previous year..\..
    Many campers ending their session were left unsupervised while counselors, confused by the sudden news, packed up and left.... Many ACE campers who been left in the lurch for the final weeks of camp were sent to a location run by Cybercamps, a rival operation in much healthier financial shape....
    [Unspecified jobs lost.]

8/15/2001  7 downsizings reported in NY Times (NYT) & Boston Globe (BG), totaling 1,416 jobcuts + unspecified (not counting "US Steel to shut Fairless Hills mills, cut 600 jobs" 13:33 and "Vivendi division Sierra On-Line cutting 245 people" 18:33, both Reuters 08-14-01 via AOLNews via RadioTony, and not counting "Lucent plans to lay off 900 workers at German plant," Bloomberg via 8/15/2001 NYT, C4, which we're assuming are part of the 20,000 impending Lucent layoffs we counted on 7/25 - similar to Lucent's French and Dutch layoffs not counted below on 8/09) -
  1. Midway Airlines file[d] for bankruptcy protection, AP via NYT, C4.
    ...yesterday, reduced its flight schedule and laid off 700 employees, half its work force, as it sought to preserve cash while it reorganizes to cope with a severe downturn in corporate travel...a "calamitous drop in business traffic" (Midway president Robert Ferguson), low fares, and high jet fuel prices. The airline [is] based in Morrisville, NC....

  2. Razorfish reports a loss, by Jayson Blair [=‘Times reporter who resigned leaves long trail of deception,’ 5/11/2003 NYT, A1], NYT, C6.
    ...Razorfish's new CEO, Jean-Phillippe Maheu...has closed the company's offices in Helsinki...and Milan, consolidated other offices and eliminated 600 jobs.

  3. Eastman Chemical to close Alabama plant with 75 jobs, Bloomberg via NYT, C4.
    ...The largest producer of plastics used in soda bottles [will] close a plant in Moundville, Ala., eliminating 75 jobs, as it continues to cut costs....

  4. Etc. - Peabody, Mass.-based PCD Inc., Globe wire services via BG, C9.
    ... plans to close its Wells-CTI plant in South Bend, Ind. & eliminate 41 positions....

  5. Reader's Digest [Assoc.] has loss after $60m in charges, Bloomberg via NYT, C4.
    ...The results included costs of $60m...for [unspecified] job cuts and write-downs....

  6. Money manager granted bail; told to close, Reuters via NYT, C14.
    ...Alan Bond...president of Albriond Capital Management..\..a prominent money manager charged with conspiracy to defraud clients was released from jail yesterday under a bail arrangement that bars him from working as an investment adviser and requires him to help close his firm....
    [unspecified jobcuts]

  7. OSI Pharmaceuticals to close 2 plants and consolidate, Bloomberg via NYT, C4.
    ...its plants in Tarrytown, NY, and Birmingham, England, early next year after OSI's recent agreement to buy a research lab from British Biotech [as] part of a plan to concentrate its research operations at two new sites, in Farmingdale NY and Oxford, England, by the end of 2002. Employees in Tarrytown and Birmingham will be offered jobs at the new sites...
    [These are pretty good distances in each case and we'll count them as unspecified layoffs, even though the company goes on to say -]
    ...and the company does not expect to cut any positions in move.

8/14/2001  5 downsizings reported in NY Times (NYT) & Boston Globe (BG), totaling 14,451 jobcuts -
  1. Tyco cuts 6,400 jobs over 9 months - 58 plants shut amid deals, more cuts loom, Bloomberg via BG, D6.
    Tyco International Ltd., which made more than $17B in acquisitions during the first nine months of its [2001] fiscal year...ended June 30..\..has eliminated about 6,400 jobs related to the [FY2001] deals and plans to cut 2,000 more positions related to the purchases. Tyco also shut 58 factories, offices and other facilities in the period [FY01] ended June 30, the company said in a US SEC filing.
    [Tyco is the corporate version of Chainsaw Dunlap, who has now been discredited and shown up for the "creative" accountant and company destroyer that he was. Tyco and its CEO Dennis Kozlowski will similarly be exposed as one of the great individual inducers of our current downturn. So far we have 6400+2000= 8400 jobcuts in the last 3/4 of Tyco's FY2001 from Sept/2000 to June/2001. We have already counted 600 of them (350 on 11/08, #1 and 250 on 2/08, #4) so we'll only count 8400-600= 7,800 jobcuts here.]
    Another 2,902 jobs from fiscal 2000 acquisitions were also cut, Tyco said.
    [We'll leave them out. We're already pushing the envelope on our count for 2001 by taking 3 months from 2000 just because they're in Tyco's fiscal year. Tyco's demonstration of market failure, alias their destruction of our economy, goes on and on...]
    CEO Dennis Kozlowski buys companies and reduces costs to immediately add profit to Tyco's main divisions: health care, telecomms, electronics, security and fire [insurance], and industrial valve businesses....
    [In short, they behave like the Borg in the recent Star Trek series - "Resistance is futile - You will be assimilated." And what a boring, brutal and unsustainable world Tyco is leading us to, with fewer and fewer 40-hour jobs and markets, and no thought of redefining "job" so that we can maintain our markets and avoid an economic death spiral.]
    As a result of purchases made so far this year [meaning probably fiscal 2001], the company has plans to eliminate 8,394 jobs and shut 225 facilities, the filing said.
    [This 8,394 is evidently the unrounded version of the 8400 figure mentioned above.]
    The company has 220,000 employees now, Tyco spokeswoman Maryanne Kane said....
    [That's 220,000 insecure people, and unreliable market units.]

  2. Profits lagging, Citigroup will eliminate 3,500 jobs, Bloomberg via BG, D6.
    ...as slumping financial markets bite into the largest US financial-services company's profit.... About 2,150 of the positions to be eliminated are in the U.S.... The cuts make up 1.4% of Citigroup's 242,000 employees at the end of 2000....
    So far in 2001, firing employees has cost the company almost $300m. The company took a $101m charge in the first quarter to cover the costs of firing 1,200 employees.
    [Conservatively estimated at only 400 on 4/4 #5. We'll count the extra 800 with the next round on 11/15/2001.]

  3. GenTek to chop 16% of work force, Bloomberg via BG, D9.
    ...A maker of communications equipment...plans to cut 1,700 jobs...as part of a plan to save $25m a year....

  4. More AOL layoffs possible, by Andrew Zipern, NYT, C9.
    AOL Time Warner stock fell yesterday on speculation that more layoffs were coming....
    [An indication that investors are smartening up.]
    The cuts would be the second major round of layoffs this year at the company, the world's largest Internet and media company.
    [The later-to-press Boston Globe came out with a figure on these future cuts in "AOL will cut 1,000 jobs at online unit," Washington Post via BG, D2. But there were previous cuts this year -]
    The company cut about 2,400 jobs in January....
    [We counted 2,000 of these January cuts on 1/24, #2 so we'll just count 2400-2000= 400 more of these previous cuts now. Add them to the 1000 future cuts and we'll now count a total of 1,400 AOL jobcuts. The Globe article also states, "The cutbacks...would represent nearly 7% of the 16,000-employee work force of America Online...which is based in Dulles, Va. The layoffs would affect just over 1% of AOL Time Warner's 90,000 world-wide employees.... The upcoming dismissals would mark the online division's biggest purge since April 1999, when it dismissed 1,300 workers after purchasing Netscape, a software firm, for $10B...."]

  5. Martin to shut San Francisco branch, by Allison Fass, NYT, C6.
    The Martin Agency in Richmond, Va., part of the Partnership unit of the Interpublic Group of Companies, is closing its San Francisco office.... Mr. Jarrett said that 5 of the agency's 11 employees would be laid off, and the other would be offered jobs in the New York and Richmond offices....
    [When we're talking about a move from one coast to the other, we'll count all 11 jobs as cut.]
    In February, the Martin office in Richmond laid off about 40 people, or about 10% of its staff.
    [This was not picked up by the NYT or the Globe so we'll count it now. That makes a total of 40+11= 51 jobcuts.]

8/11/2001  3 downsizings reported in NY Times (NYT) & Boston Globe (BG), totaling 784 (not counting 140 jobcuts per "Bridge [Information Systems] dismantles news operations" (AP) and unspecified cuts per "Kmart cuts more staff at BlueLight.com" (Reuters), both 8-10-2001 via AOLNews via RadioTony {congrats on his wedding today (8/11)!}, or 14,000 economy-wide jobs lost in July, according to "Canada: Jobs lost," by Bernard Simon, NYT, B3) -
  1. Rhythms NetConnections says it will end service, Reuters via NYT, B4.
    The high-speed Internet access company...based in Englewood, Ohio \will\ lay off 700 employees, or 75% of its work force.... Rhythms, a provider of digital subscriber line service over ordinary phone liness, filed for Chapter 11...in New York earlier this month, becoming the latest casualty in the battered telecomms market....
    [This is the only situation where downsizing instead of timesizing is justified. Here a timesizing of 75% would carry the corporate workweek down to 10 hours a week, probably below any minimum workweek that would be set by referendum in order to define under-employment.]

  2. Hologic plans to fire 80, Globe staff & wire reports, BG, E1.
    ...or 10% of its workforce as the maker of medical devices seeks to lower costs and reorganize operations.... The Bedford MA company..\..which makes the Sahara Clinical Bone Sonometer, has not posted a profit since its first quarter in 1998....

  3. Ex-chief will leave Archer-Daniels board as part of revamping of board, which will shrink by four members, NYT, B4.
8/10/2001  8 downsizings reported in NY Times (NYT) & Boston Globe (BG), totaling 7,265 + unspecified jobcuts (not counting "Truckmaker [Freightliner] eliminating 123 jobs," AP-NY-08-09-01 via AOLNews via RadioTony) -
  1. Germany: 1,800 cuts at Bayer and 15 plant closings, AP via NYT, W1.
  2. Belgian airline Sabena to cut 1,600 jobs (over 10%) and drop unprofitable flights to DC , Tokyo & elsewhere in final effort to avoid collapse, by Paul Meller, NYT, W1.
  3. Exide Technologies lowers earnings and trims 1,300 jobs (6.5%) worldwide, Bloomberg via NYT, C3.
  4. Sales at Gap and other specialty stores fell in July & Gap cut 1,300 jobs (10%), Bloomberg via NYT, C3.
  5. Iomega will cut 1,250 jobs (35%) and take a revamping charge, Reuters via NYT, C3.
  6. San Francisco office of McCann-Erickson Worldwide Advertising dismisses 15 employees, by Patricia Lauro, NYT, C2.
  7. Britain: Publisher's profit slips 30% as Reed Elsevier pays for acquisitions and reduces workforce, by Suzanne Kapner, NYT, W1.
  8. Internet cash company, Flooz.com, suspends its operations, by Jayson Blair [=‘Times reporter who resigned leaves long trail of deception,’ 5/11/2003 NYT, A1], NYT, C5.
    [NYT version finally tomorrow - "Flooz.com, online currency site, is shutting down," AP via 8/11/2001 NYT, B4.]

8/09/2001  4 downsizings reported in NY Times (NYT) & Boston Globe (BG), totaling 3,720 +?? jobcuts (not counting 412 layoffs according to "Mayfair Mills downsizing," AP-NY-08-08-01 via AOLNews via RadioTony; and not counting "Lucent Technologies plans to cut 550 jobs in France [and 900 jobs in Netherlands]," AP via 8/09/2001 NYT, C4, which we're assuming are part of the 20,000 impending Lucent layoffs we counted on 7/25) -
  1. Britain: Gas supplier cuts jobs, by Suzanne Kapner, NYT, W1.
    The British industrial gas supplier Boc Group [will] cut 1,500 jobs in the face of declining sales, especially to the semiconductor industry. The layoffs were announced as the company reported almost no growth in third-quarter profit. ...Stock up....

  2. Mutual insurer cuts 1,370 jobs, most in Texas, Bloomberg via NYT, C4.
    United Services Automobile Assoc., a mutual insurance and financial services company, plans to cut...almost 6% of its workforce. The cuts are the result of a company review, which was prompted by a drop in sales at life insurance, investment management and financial services businesses.... About 85% of the layoffs will be at the headquarters in San Antonio....

  3. Gateway is closing its European headquarters, AP via NYT, C4.
    The computer maker [will] close its European headquarters in Dublin and lay off 850 employees. Gateway will cease operations in Ireland and Britain after a 30-day consultation period with representatives of workers, said Mike Maloney, manager of Gateway's Irish operations. The closing and layoffs are to be completed by early next year. It was not clear whether Gateway also planned to lay off workers in Britain....
    [We'll count this more conservative and less hesitant NYT version but there is this later-to-press BG version -]
    Gateway may exit foreign markets - Also mulling cut in manufacturing, Bloomberg via BG, C4.
    SAN DIEGO - Gateway Inc. is considering pulling out of European and Asian markets...
    [So much for globalization.]
    ...reducing in-house manufacturing and ending build-to-order personal-computer options for consumers, steps aimed at returning to profitability.
    Exiting those markets, which generated $1.36B in sales last year, could result in the firing of the second-biggest direct PC seller's 2,500 overseas workers, founder, chairman and CEO Ted Waitt said.... Gateway employs 13% of its 20,000 workers, and gets 14% of sales, outside the United States....
    [So the 850 layoffs are 850/20,000= 4.3% of the total workforce.]

  4. Southeastern bank Union Planters moves to lift profit, Reuters via NYT, C4.
    The southeastern regional bank...Union Planters Corp...based in Memphis \will\ sell branches, consolidate back-office work and streamline management in an effort to improve profit.... Consolidation of back-office work, cost-control steps and technology investments are expected to save $40-45m a year.
    [Unspecified jobcuts.]

8/8/2001  3 downsizings reported in NY Times (NYT) & Boston Globe (BG), totaling 5,135 jobcuts -
  1. Japan: Bank cutbacks, by Miki Tanikawa, NYT, W1.
    One of Japan's four leading banking groups, Sumitomo Mitsui, [will] eliminate 600 more jobs and close 80 additional branches to cut costs as the economy deteriorates. The cuts are in addition to plans it announced in December to reduce its workforce by 4,300 and shut 100 branches. Sumitomo needs to conserve cash to finance huge expected writeoffs of nonperforming loans.
    [Neither NYT nor BG covered the 4300 layoff in December, which probably wouldn't have been carried out till this year, so we'll now count 4300+600= 4,900 total layoffs.]

  2. Innoveda fires 25% of work force, Bloomberg via BG, D7.
    ...[A maker of] software used for designing electronics fired about 140 workers...as part of an effort to earn a profit as customers scale back their purchases.... Marlborough MA-based..\..Innoveda fired employees who work at each of its approximately two dozen offices around the world.... The step comes less than a month after Innoveda reported a loss of $6.7m...in the quarter ended June 30 as sales declined from the previous three months amid weaker demand from telecommunications-equipment makers. ...Shares fell....

  3. Bcom3 agencies merge and plan layoffs, by Bernard Stamler, NYT, C6.
    ...The Bcom3 Group in Chicago...is merging two agencies that specialize in digital communications and advertising, Giant Step in Chicago and Novo in San Francisco. ...The merged agency will cut about 30% of its staff. The new agency, called Novo, will have 222 employees....
    [That means the total before the cuts was 317 and the number of cuts was 95.]

8/07/2001  2 downsizings reported in NY Times (NYT) & Boston Globe (BG), totaling only 73 jobcuts -
  1. Gensym to cut 40% of work force, Bloomberg via BG, F7.
    ...[A maker of] software used in manufacturing and supply management will fire 40% [65] of its staff in an effort to return to profitability. The company also fired 60 workers, or 27% of its workforce, in January [1/05, #10] to trim costs by $10m a year. Gensym...delayed the announcement so it [could] complete accounting procedures related to the closing of offices in Europe.... Shares were unchanged....

  2. Mullen dismisses more staff members, by Courtney Kane, NYT, C7.
    Mullen in Wenham, Mass., part of the Partnership unit of the Interpublic Group of Companies...laid off 13 employees [3.8%] from its staff of 341 in Wenham.... In June [6/22, #4], the Mullen Winston-Salem office, Mullen/LHC, dismissed about 30 people.

8/04/2001  5 downsizings reported in NY Times (NYT) & Boston Globe (BG), totaling 2,381 jobcuts + unspecified (not counting "Philips [Electronics NV] lays off 180 in Brazil as lights go off," Reuters 3 Aug 2001 via AOLNews via RadioTony - refering to sales of light bulbs dropping during the first two months of government-enforced electricity rationing. This may be part of Philips' planned 4000 cut we logged below on 7/18.) -
  1. Mosler Inc., NYT, B4.
    ...Hamilton, Ohio, a closely held provider of security systems and services [will] dismiss all of its 1,800 employees [100%], stop conducting business and begin liquidating assets.

  2. Metricom to sell its assets and end wireless service - Most of the employees will be laid off, by Chris Gaither, NYT, B2.
    ...The wireless Internet company...one month after filing for Chapter 11 [7/03]...plan[s] to shut down its wireless networks in each of its 17 service regions on Aug. 8..\..signaling the end of its flagship service, Ricochet.... The company, based in San Jose, Calif., also said it had laid off 282 employees in preparation for the assets sale on Aug. 16. The company said in June [6/27, "not counting" §] that it would reduce its workforce by 23%, leaving 451 employees worldwide. ...Employment numbers had not changed substantially before Thursday's round of layoffs, which could be as large as 63% of the workforce....
    [We picked up the 23% (139 jobs) only from Reuters on 6/27, so we need to count them now that NYT has finally condescended to mention them. So before June's layoffs, Metricom had 451+139= 590 total workforce, making the overall figure of 139+282= 421 jobcuts a slice amounting to 421/590x100%= 71% of their pre-June workforce.]
    Metricom, founded in 1985, began offering wireless hi-speed internet access in 199.... Nearly 35,000 customers used [it, while] another 16,700 customers subscribed to Metricom's slower wireless internet connection....
    Roberta Wiggins, director of wireless mobile communications research for the Yankee Group, said Metricom...suffered from a muddled business model [that] relied on third-party sellers who had less of a stake in its success....

  3. Etc... Uniplast Films, Globe wire services via BG, E1.
    ...is closing its Palmer plant Sept. 28, putting 100 people out of work. The 44-year-old manufacturer of plastic packaging films was bought July 18 by Pliant Corp. of Schaumburg, Ill....

  4. Lack of advertising forces Theglobe.com to shut web sites, by Jayson Blair [=‘Times reporter who resigned leaves long trail of deception,’ 5/11/2003 NYT, A1], NYT, B2.
    ...The closings will cost 60 employees their jobs - about half [49%] its workforce - and all but bring to an end one of the most closely watched Internet companies in Silicon Alley in Manhattan. The company...which never reported a profit \but\ whose meteoric rise in its first day of trading helped fuel the frenzy for IPOs from Internet companies, announced yesterday that it planned to shut most of its Web operations...by Aug. 15...includ[ing] www.theglobe.com and www.webjump.com..\.. Chuck Peck, the CEO...said...the company's troubles could be attributed to an online advertising market that "remains severely depressed, and there are few signs of a rebound in the near-term."...
    On Nov. 12, 1998...Theglobe was the first rising dot-com to go public in the aftermath of the stock downturn that followed the Asian economic crisis. The stock's rise \from opening\ at $4.50 a share [to] closing at $63.50..\..that day...was influenced in part by the story of its youthful founders, Todd Krizelman and Stephan Paternot, friends who started the company together in a Cornell University dormitory room and then became overnight millionaires at age 24. They put their first website online in April 1995 after they raised $15,000 from family and friends to buy equipment....
    The company's stock rose less than a cent, to 13.5 cents, yesterday.
    ["49%" from Reuters version, "Theglobe.com, sparked dot-com mania, to close site," by Eric Auchard, Reuters 17:56 08-03-01 via AOLNews.]

  5. Casual Male seeks OK to shut 81 of 662 stores, by Chris Reidy, BG, E1.
    Doing business in bankruptcy protection since a liquidity crisis force it to file for Chapter 11 in May [5/19], Casual Male Corp. of Canton MA proposes to close...clothing stores...as part of a reorganization effort to regain its financial health. In chains aiming at different price ranges, the company mostly sells clothing to big men who need special sizes. Under a proposal that requires Bankruptcy Court approval, the company aims to close 43 of its roughly 110 high-price Repp stores [and] 33 stores in its biggest chain, the midprice Casual Male Big & Tall, as well as five of its low-price B&T Factory Stores....
    [unspecified jobcuts]

8/03/2001  7 downsizings reported in NY Times (NYT) & Boston Globe (BG), totaling 297 jobcuts -
  1. France: Bank profit falls, by John Tagliabue, NYT, W1.
    France's third-largest bank, Societe Generale, became the latest to report a lower profit because of the slowing economy and lagging securities markets.... Daniel Bouton, the chairman, pledged measures to control costs, including the elimination of about 170 jobs in investment banking.
    [Ah, the standard reaction of stupid CEOs - respond to a crisis of lagging markets by disemploying people and guaranteeing that markets will lag further. What should they be doing? Trimming hours a little for all instead of trimming jobs completely for a few, and a few more, and a few more....]

  2. NetZero cutting staff, free services, AP via BG, C2.
    ...One of the few remaining providers of free Internet access is...selling a subsidiary and reducing its fee service to save money.... Westlake Village, Calif.-based NetZero..\..has eliminated 66 positions and will reduce the number of free hours available to basic service customers from 40 to 10 a month, effective Oct. 1. ...Shares rose....

  3. Agency layoffs and a closing - E.g. Arnold Worldwide, by Allison Fass, NYT, C4.
    ...in Boston is laying off about 30 employees, or about 2.7% of its 1,100 employees in the United States, at offices in McLean VA, San Francisco, and St. Louis and at regional field offices....

  4. Agency layoffs... E.g., Arnold Ingalls Moranville, by Allison Fass, NYT, C4.
    ...in San Francisco laid off about 12 of its 75 employees in January....
    [but unreported then in NYT or BG.]

  5. Agency layoffs... E.g., TBWA/Chiat/Day's NYC office, by Allison Fass, NYT, C4.
    ...is laying off 8 from its staff of 216.... In May 5/25, #6, the TBWA/Chiat/Day New York office laid off 17 of its 233 employees. The agency has laid off about 10.7% of its staff....
    [That checks. With its staff now down to 208 and only 89.3% of its staff left, its original staff was 208/89.3x100= 232.9=233.]

  6. Agency layoffs and a closing - I.e., Robaire & Hogshead, by Allison Fass, NYT, C4.
    ...in Calif. is being closed after 3½ years [over] philosophical differences, [affecting] 8 employees....

  7. Philippines: Exodus of brokers, Bloomberg via NYT, W1.
    ...Citigroup's brokerage unit, which employs three, will close at the end of August....

8/02/2001  8 more downsizings reported in NY Times (NYT) & Boston Globe (BG), totaling 11,665 jobcuts + unspecified -
  1. Air Canada sets [mgmt] pay cuts and another 4,000 layoffs, by Bernard Simon, NYT, W1.
    ...in an austerity plan to counter slack demand and stiff fare competition.... About 1,800 of the 4,000 layoffs announced [yester]day will take effect in November, the rest in 2002. They are in addition to 3,500 jobs that Air Canada said in December would be eliminated through voluntary buyouts and attrition.
    Management will take pay cuts of 5% for executives and 3.5% for others..\..
    The airline, based in Montreal, reported a loss of $70m.... Robert Milton, Air Canada's CEO, said high fuel prices and a plunge in business travel, the most profitable part of its business, had eroded results.... Speaking of the industry as a whole, Mr. Milton said, "the revenue drop in May was steep and without precedent."...
    After buying Canadian Airlines International [nee Canadian Pacific Airlines, cf. CPR and CP Hotels; see our 12/06/1999] last year, Air Canada controlled 80% of the domestic market...
    [Where was anti-trust???]
    ...but low-cost regional carriers have begun to eat into its share. Air Canada plans to start its own discount carrier by year's end. ...Stock fell....

  2. ADC Telecommunications plans to cut 2,500 more jobs, AP via NYT, C4.
    ...and close some facilities...reflecting continued weakness in spending on equipment and services for broadband communications networks.... The jobcuts are in addition to 7,000 positions eliminated since last November [counted on 3/29, #1 along with 1000 part-time job cuts] by..\..the telecom equipment supplier...which is based in Minnetonka, Minn.
    [In March the 4000 fulltime-job cuts brought their workforce down from 21000 to 17000. So the present 2500 cuts are 2500/17000x100%= 14.7% of their current pre-cut workforce.]

  3. SPX to eliminate about 7% of its jobs and close plants, AP via NYT, C4.
    The industrial products and technical systems maker [plans] to eliminate about 2,000 jobs...and close 49 manufacturing, sales and administrative facilities within the next year. ...The moves were part of cost-cutting measures related to its May 24 acquisition of United Dominion Industries [see our 3/13, #2], an industrial products and systems maker based in Charlotte, NC.
    [Again the toxic takeover-downsizing connection.]
    Only employees and facilities that were part of United Dominion would be affected by the cuts....
    [So they bought a rival to destroy it. Where was anti-trust? This kind of anti-diversity, anti-domestic demand behavior will eventually guarantee a total ban on takeovers throughout the world, though it may take several centuries.]
    The plans were disclosed as the company reported its Q2 earnings declined to $13.4m...from $48.5m...a year earlier.

  4. Global Crossing to cut jobs as loss widens, Bloomberg via NYT, C5.
    The Bermuda-based telecom company [will] cut...15% of its workforce.... The company [will] eliminate more than 2,000 cuts and combine offices and other real estate to reduce expenses $160-170m a year. It will have 11,400 employees after the cuts....

  5. Pricewaterhouse Consulting is planning further layoffs, by Jonathan Glater, NYT, C5.
    ...One of the world's big accounting and consulting firms..\..warned employees of another round of layoffs yesterday, primarily in its U.S. offices, affecting as many as 800 people, or 5% of its consultants and support staff. The move by PricewaterhouseCoopers...is an effort to cut costs in response to sharply declining demand by clients for consulting services.... This is its second round of layoffs - the first one in the spring affected about 1,000 employees [see our 4/12, #3]....
    [We only counted 875 then, so now we'll count the remaining 125 to make up the previous 1,000 as well as the present 800, giving us a total now of 800+125= 925 jobcuts. There's some confusion on the 800 figure because according to "Consulting alert: More consultants axed at PricewaterhouseCoopers," Business Wire 3 Aug 2001 via AOLNews via RadioTony, the figure is "750 additional jobcuts in North America and India by the end of October, Consulting Alert says, [which] would amount to about 5% of the firm's consulting staff in those areas."]

  6. Avid [Technology] cutting jobs, Bloomberg via BG, C9.
    ...A maker of software used to edit digital audio and video [is] cutting 140 jobs, or 8.2% of its workforce, as part of a plan to save $11m a year. Half of the positions being eliminated are in Tewksbury where Avid is based.... The company plans to take a charge of about $8m in Q3 related to the cuts and closing offices. ...Share rose...before the announcement.

  7. FiberMark to shut Fitchburg plant, Bloomberg via BG, C9.
    ...A maker of fiber-based materials for filters and graphic-arts supplies will close a plant in Fitchburg [Mass.] trimming 100 jobs and shifting production to New Jersey by the end of 2001.... Brattleboro, Vt.-based FiberMark..\..which has 2,000 employees worldwide, reversed its decision to close a plant in New Jersey, and will offer a "small number" of Massachusetts employees jobs at two plants in New Jersey.... Shares fell....

  8. Japan: Bank restructuring, AP via NYT, W1.
    Under increasing pressure to improve profits, Daiwa Bank plans to eliminate one-fourth of its workforce over four years, close branch offices and solidify ties with smaller regional banks.
    [No figure given for jobcuts or total workforce.]
    Daiwa, the only major bank not to join one of Japan's megabank mergers, has been hurt by mounting losses caused by the global stock downturn and a switch to new accounting rules, and has struggled to eliminate bad loans....

8/01/2001  8 downsizings reported in NY Times (NYT) & Boston Globe (BG), totaling 6,546 jobcuts -
  1. Japan: Losses and layoffs, by Miki Tanikawa, NYT, W1.
    ...A...Japanese electonics maker, NEC, [will] eliminate 4,000 jobs, more than half of them in Japan, by next March, and...close and consolidate plants to cut costs. The plan is NEC's second announced reorganization in three months.
    [Hmm, sounds like "DEC syndrome," except that under Robert "Armani Suit" Palmer, Digital Equipment Corp. got reorgs up to one a month/ three in three months, not just two. But DEC and NEC are virtually running neck-to-neck for the constant reorg title. Motto - "Never mind productivity, just REORG!" - Walking-wounded races start at 2:30 in the cafeteria.]

  2. Boeing plans to move 1,100 jobs from [Southern] California, AP via NYT, C4.
    ...in its international space station and shuttle divisions...to Texas and Florida in an effort to cut costs and locate workers closer to customers...by Nov. 1..\..
    [Well, it might be different at Boeing, but usually when we see a "move" of this distance and magnitude, it equates to a firing-hiring.]
    The relocation of Boeing employees, about 1,000 from a site in Huntington Beach and another 100 from a Canoga Park plant is intended to cut costs through consolidation..\..
    The move comes as NASA tries to curtail an estimated $4B in overruns connected with the space station project. The agency also trimmed space shuttle upgrades to save money....

  3. Nordson cites slower orders in cutting positions, AP via NYT, C4.
    ...[The maker of] machinery for various manufacturers [will] eliminate 450 jobs, or about 10% of its workforce...by Nov. 1..\..because of a slow pace in job orders. ...About 90% of the jobcuts will come from company operations in North America. The company is planning to combine its container systems and liquid systems businesses in Amherst, Ohio.

  4. Struggling consultants join forces, Bloomberg via NYT, C8.
    ...IXL followed [Scient's April layoff lead] in May with a cut of 300 employees, or 23%.

  5. Sun Microsystems to cut 300 jobs, Reuters via BG, C2.
    ...by June 2002. While Sun continues to add jobs in key areas, those hires will be more than offset by redeployment-related layoffs and normal attrition.
    [Ah, with redeployment you don't get layoffs. But here's "redeployment" a la Sun's sunshiny corporate speak -]
    This week, Sun embarked on a "redeployment" effort [our quotes] in which as many as 2% of its $3,600 employees - or up to 872 workers - could be asked to find new jobs within the company or to leave with a severance package....

  6. Engelhard will eliminate jobs and take a charge, Bloomberg via NYT, C4.
    ...A maker of catalysts that reduce emissions from vehicles and industrial processes [will] cut 200 jobs [mostly] in Georgia..\..as part of a plan to increase its petroleum-refining catalyst business.... The company, which is based in Iselin, NJ...will consolidate its kaolin operations in Georgia that make products for the paper industry and its petroleum-refining catalyst plant in Savannah, Ga.

  7. NaviSite to fire 126..., Bloomberg via BG, C6.
    ...or about one-fourth of its workforce, to cut costs. ...Seven of its 13 vice presidents quit.... Andover MA-based NaviSite..\..which hosts Websites for companies, had 562 employees as of April 30.... Shares were unchanged....

  8. Etc... Peabody-based Analogic Corp., Globe staff & wire services via BG, C6.
    ...which makes fetal monitors and electronic parts for magnetic resonance imaging systems, is firing 70 workers, or 4% of its employees, after business declined. Most of those cut are recently hired workers....

Click here for downsizing stories in -
July 16-31/2001.
July 1-15/2001.
prior to Sept. 30/98.

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