Timesizing® Associates - HOMEPAGE
Downsizings, Dec. 1-15, 2001
[Commentary] ©2001 Phil Hyde, The Timesizing Wire, Box 117, Harvard Square, Cambridge MA 02238 USA (617) 623-8080
12/15/2001 8 downsizings, totaling 10,025 layoffs + unspecified, reported in NY Times (NYT) & Boston Globe (BG) -
12/14/2001 6 downsizings, totaling 8,529 layoffs + unspecified, reported in NY Times (NYT) & Boston Globe (BG) -
- Elimination of jobs and closing of plants set, Bloomberg via NYT, C3.
ITT Industries is eliminating 3,400 jobs, or 9% of its workforce, and closing 5 plants as demand for electronics from the telecommunications and aerospace industries declines. The company, which makes switches and connectors, said its Q4 profits would be reduced by $65m...because of the firings and closings.
[Then don't do it. Cut hours for all instead of cutting jobs for a few, and a few more, and a few more....]
ITT Industries has 38,000 employees and is based in White Plains NY. "We don't see a sharp recovery in 2002, or even a modest recovery," its CEO, Louis Giuliano, said on a conference call. "We don't see any real recovery until 2003."...
[And just how is that going to happen even in 2003, Mr. Giuliano, with geniuses like you disemploying thousands of members of our consumer base despite your being in profit? It's bad enough when those in loss are doing it.]
- Sweden: Electrolux cuts more jobs, by Suzanne Kapner, NYT, C3.
...The Swedish appliance maker [will] eliminate a further 2,800 jobs, making the total number of staff reductions this year 6,900, or 8% of its workforce....
[Well, these jobcuts will help ensure that the economy next year will not improve.]
Electrolux, the maker of Frigidaire refrigerators and Eureka vacuum cleaners, said it might cut more jobs next year if the economy did not improve.
[Brilliant! That will then help ensure that the economy will not improve in 2003. Do any of these morons realize that they are part of a group fad that has created a self-fueling firestorm that can completely destroy their markets?]
The company [will] take a 1.5B kronor ($142m) charge to account for the job reductions. The company said it expected to save 1.4B kronor by the end of 2003, after which it would save 940m kronor a year by operating with less staff.
[But after 2003, it will have to save even more per year to operate with less market - shrunk by its own and others' job reductions in the interim.]
Other appliance makers have struggled as consumers delay large purchases in the face of rising unemployment and an economic slowdown.
[i.e., in the face of many employers' job reductions, including their own -]
Moulinex SA of France was liquidated in October [announced on 9/08], and Maytag of the U.S. said last week that it would eliminate 200 jobs [unmentioned before, so counted below].
- Brazil: A large order for jets, Reuters via NYT, C3.
...Embraer...the world's 4th-largest aircraft maker and one of the 2 major manufacturers of regional commuter jets [the other being Bombardier of Montreal??]...in the aftermath of 9/11 [will] lay off 1,800 of its 12.700 workers because of delays in deliveries.
["Delays in deliveries" of what - parts?]
- BellSouth to eliminate 1,200 jobs, pointer digest (to C5), NYT, C1.
...1,200 more technical and clerical jobs....
- At Home prepares to shut, Bloomberg via BG, C1.
...The bankrupt provider of high-speed Internet access over cable lines..\..will cut 400 jobs, or about 31% of its workforce.... About 900 employees will remain to help At Home provide service to cable firms under contracts that were approved by a US bankruptcy judge this week. The Redwood City, Calif., company...will continue to reduce its workforce as it moves to[ward] its Feb. 28 closing.
- Sweden: Electrolux cuts more jobs, by Suzanne Kapner, NYT, C3.
...Maytag of the U.S. said last week that it would eliminate 200 jobs.
[Unmentioned before, so counted now].
- Japan: Consolidating to build ships, Bloomberg via NYT, C3.
The Hitachi Zosen Corp., a Japanese shipbuilder, and the NKK Corp., the steel maker [will] close one of their 6 shipyards and cut 200 jobs as they merge shipbuilding operations in Oct/2002. "China will emerge as the main competitor, replacing South Korea at the top of the shipbuilding industry," NKK's president, Yoichi Simogaichi, said. "We must take action while our profit is stable, because China's lower labor costs, at about 1/20th of our own, are a threat."...
[Thus our Ptolemaic, downsizing, "free" trade, short-term misunderstanding of capitalism reduces us all to the lowest common denominator and forces us either into the war of armageddon to deal with our massive, officially denied un- and under-employment or into Copernican, timesizing, fair trade, long-term capitalism.]
- PurchaseSoft cuts staff, Bloomberg via BG, C1.
...A Westborough MA procurement-software provider is firing about half its workforce of 50 to cut costs, and warning it may shut down if it can't find additional financing by Dec. 31. The 25 jobcuts are effective immediately and include employees in sales and marketing, customer support, administration, and R&D [keeping only] R&D staff it considers central to the development of its main products....
12/13/2001 5 more downsizings, totaling 10,648 layoffs, reported in NY Times (NYT) & Boston Globe (BG) -
- Aetna will cut 6,000 jobs, about a sixth of the work force, by Milt Freudenheim, NYT, C7.
...as it struggle[s] to regain profitability..\.. The troubled health insurance giant...said that 4,000 jobs would be eliminated outright and that 1,600 others would be left unfilled as they become vacant.
The 6,000 reduction comes on top of the elimination of 5,000 jobs, half through attrition, announced by Aetna last December....
[Today's Boston Globe's version of this story (p, D2) starts "Aetna Inc. will eliminate...about 16% of its workforce," so we'll forbear rounding 1/6 up to 17%.]
- Danaher says it will eliminate 1,100 jobs next year, Bloomberg via NYT, C4.
...Maker of Sears Craftsman tools and testing equipment will close 16 plants...to reduce expenses.... The jobcuts represent about 4.2% of the 24,000-employee workforce at the end of last year. Danaher...has cut 4,000 positions this year.
- Japan: Job cuts at chemical maker, Bloomberg via NYT, W1.
Showa Denko K.K., a...mfr of chemicals and aluminum products [will] cut 1,000 jobs in Jan. and reduce salaries as much as 15% to counter a drop in profit. ...Asia's biggest maker of ethyl acetate...used to make solvents [is] eliminating 7.5% of its global workforce....
- Stanley Furniture says it is eliminating 400 jobs, Bloomberg via NYT, C4.
...A maker of mid- to high-priced wood furniture \will\ lay off 13% of its workers as it move[s] more manufacturing to China to cut costs.
[And as we reapply tariffs to save our domestic jobs and markets, it will also have cut its markets. Brilliant.]
The company, [which] employs 3,100 people, \is closing\ its plant in West End, NC....
- Hong Kong: Online broker closes, Reuters via NYT, W1.
...2cube Securities [is] closing its operations and selling its 4,600 active customer accounts to the E*Trade Group of the U.S.... 2cube [will] lay off its 29 Hong Kong staff members when it cease[s] operations on Jan. 14.
- Boeing says it will keep the 717 but reduce production, AP via NYT, C4.
...A company spokesman confirmed that more jobcuts were needed because of the lowered production, with the scope and timing still to be determined....
[Unspecified job cuts.]
12/12/2001 5 downsizings, totaling 2,637 layoffs + unspecified, reported in NY Times (NYT) & Boston Globe (BG) -
- American Express will cut up to 6,500 from payroll, by Kenneth Gilpin, NYT, C4.
AmEx, which has laid off 7,700 employees this year, [plans] to eliminate an additional 5,500 to 6,500 jobs.... Half the jobcuts [will] be in the company's travel business, which has slumped deeply since 9/11 [46% in Oct. from year earlier and 38% in Nov.]. The remainder will be spread through the rest of the organization....
At the start of the year, about one-third of the more than 88,000 people who worked for AmEx were employed in its travel business [and] about one-third of the 7,700 positions that had already been eliminated were in [that] business.... With yesterday's cuts AmEx will have cut about 15% of its global workforce....
[These figures only work out neatly if use the lower figure, so, indulging the firm's cockeyed optimism, we'll go against our usual practice and use the 5,500 figure. 7700+5500 is indeed exactly 15% of 88,000, so the 5500 alone is 5500/(88000-7700)= 6.8% of the total workforce in its currently decremented size.
- Computer consultant giant in Europe to lose its chief, by Kerry Shaw, NYT, C1.
...Cap Gemini, Europe's largest computer services firm...also announced that because of worsening erosion of its revenue after 9/11, it will lay off 2,500 more workers, bringing the jobs cut so far this year to 5,400, or 9% of its former workforce....
- 1,700 to be fired, Bloomberg via BG, D2.
Calif.-based Applied Materials Inc...plans to fire...10% of its workforce, as the biggest semiconductor-equipment maker reduces costs during the industry's worst-ever sales slump....
- McGraw-Hill to cut 925 jobs in 3 divisions, Bloomberg via NYT, C4.
...The publisher of Business Week magazine and the owner of Standard & Poor's [S&P's] bond-rating service [will] cut about...5% of its workforce to reduce costs after ad sales slowed... about 575 jobs...in its education business and another 300...from the information and media operation. The financial services segment, which includes S&P's, will eliminate 50 jobs.
- E-publisher to close, AP via BG, D2.
...MightyWords Inc. whose founder helped inspire best-selling author Stephen King to write for the Internet, will close in Jan. - 23 employees will lose their jobs. Anyone with texts being distributed...will be referred to barnesandnoble.com, which owns about half the company.
12/11/2001 6 more downsizings, totaling 16,808 layoffs, reported in NY Times (NYT) & Boston Globe (BG) -
- Kroger to lay off 1,500 after 33% drop in earnings, AP via NYT, C4.
...The supermarket chain announced yesterday that it would cut...jobs after reporting that Q3 earnings had fallen 33% because because of the sluggish economy and one-time expenses....
- Kraft Foods to cut 1,000 jobs and close 3 plants in Asia, Bloomberg via NYT, C4.
...The maker of Miracle Whip [will] cut...less than 1% of its workforce as it closes...plants in Taiwan and China. The company, based in Northfield, Ill., will close a plant in Hangzhou, China, near Shanghai, that has been inactive for two years, and shut another in Shekou, China, on Dec. 16.... Kraft will also consolidate some operations of its plant in Tainan, Taiwan, at a plant in Cikarang, near Jakarta, Indonesia.... The closings are part of a plan to make operations in Asia more efficient....
- Etc...- The Providence Journal, Wire services via BG, F8.
...cut 92 jobs through a voluntary buyout program, said a spokesman for the newspaper's parent company, Dallas-based Belo Corp. The buyout was offered to about 167 staffers 55 and older.
- Only the latest blow to a staggered city printing industry, by Edward Wyatt, NYT, A27.
..."We are very grateful that all our people got out [from the WTC fallout]," said John Fitch...owner \of\ , Fitch Graphics, whose building at 130 Cedar St. was showered with debris from the Trade Center, including steel beams that crashed through the roof.... But even operating out of a secondary site on West 45th St., he has only been able to bring back about 25 of 70 employees because of a lack of business....
[Meaning 70-25= 45 jobcuts.]
- Only the latest blow to a staggered city printing industry, by Edward Wyatt, NYT, A27.
...Arthur Baron, whose father founded..\..Admiral Communications, a printing company four blocks south of the World Trade Center...said, "Now, we're doing less business with fewer employees. My gut feeling is that we're barely surviving right now."...
12/08/2001 6 downsizings, totaling 2,210 layoffs + unspecified, reported in NY Times (NYT) & Boston Globe (BG) -
- Britain: Cable television concern cuts jobs, by Suzanne Kapner, NYT, W1.
NTL [will] eliminate 2,000 jobs, bringing the total jobs cut this year to 8,800, nearly one-third of its workforce.
[First mention this year in NYT or BG, so we'll count them all.]
The company is also freezing pay for managers to cut costs, and is selling assets to reduce about $17.5B in debt....
[Probably debt from gratuitous takeovers.]
- Fiat auto chief resigns in midst of a revamping, by Danny Hakim, NYT, C4.
...The restructuring by Fiat, the world's 8th-largest automaker in terms of vehicles sold, reflects the continued struggles of the global auto industry as economic conditions worsen. Fiat will close or overhaul 18 plants and lay off 6,000 workers worldwide by 2004 as part of the moves....
- Delphi Automotive Systems will cut 1,400 more jobs, Bloomberg via NYT, C4.
...The maker of auto parts...based in Troy MI \will\ eliminate...jobs on top of 11,500 cuts announced in March [3/30 #1], as it reduces costs and as vehicle production slows....
[How about cutting to the chase - "as vehicle demand slows"?!]
Delphi's biggest customer, GM, its former parent, and other automakers expect consumers to buy fewer cars and trucks as no-interest loan offers end next month and the economy slows..\..
The job reductions will cost $150-200m.... The additional laid-off workers, representing less than 1% [0.7%] of the workforce of 198,000, will leave in March and April through voluntary retirements and buyouts, Alan Dawes, the company's CFO, said....
- Steel maker to close a shop and cut 5% of work force, Reuters via NYT, C4.
Allegheny Technologies [will] permanently close its Houston, Pa., stainless steel melt shop and cut up to 520 jobs or about 5% of its workforce by the end of the year to cut costs. The company...employs more than 11,000 people worldwide.... Allegheny said idling the Houston plant would mean the loss of 220 workers. An additional 300 jobs will be cut before the end of the year....
- Cleveland-Cliffs to close iron plant indefinitely, Bloomberg via NYT, C4.
...A leading provider of iron ore [will] indefinitely idle a Cliffs & Assocs. iron plant in Trinidad & Tobago because of low prices for its products [saying] the plant would reopen when conditions improved.
[So if there's only one plant, is it in Trinidad or Tobago? Our guess is Tobago, which isn't well-known enough to stand alone, or they'd just have said "Trinidad," which everyone has heard of.]
About 85 workers at the plant will be laid off.... The company, which is based in Cleveland, owns 82% of Cliffs & Assocs. The plant is expected to be idle for an extended period, because the outlook is not encouraging, the company said.
- Ford to close office focused on women, Bloomberg via NYT, C2.
DEARBORN, Mich...- Ford Motor will eliminate a 3-person office that helped look for ways to market vehicles to women, as the company restructures its North American business to reduce costs. The women's marketing and product office, which will close at the end of the year, was started 7 years ago. It has suggested adjustable pedals and interior lights designed not to wake up babies. It also influenced the development of a prototype minivan that included a washer, dryer and microwave oven....
Ford is nearing its first annual loss since 1992 and has lost $1.44B in the last 2 quarters....
12/07/2001 2 downsizings, totaling 1,800 layoffs, reported in NY Times (NYT) & Boston Globe (BG) -
- Sun Country Airlines to focus on chartered flights, AP via NYT, C4.
...which is how the carrier began. \It\ will lay off nearly all of its 900 employees. The spokeswoman, Tammy Lee, said some crew members will stay on for five charter flights today, but those are the final flights scheduled. Ms. Lee said David Banmiller, Sun Country's CEO, will be among six employees who will remain while the airline, based in Mendota Hts, Minn., searches for a buyer....
So, 900-6= 894 lost jobs.]
Sun Country received $8.2m in the 1st round of federal grants to help airlines stabilize after Sept. 11
[Good money for a lost cause.]
and had hoped for more than $16m by the end of the year. But it received less than $350k in the 2nd round....
[More good taxpayers' money after bad.]
- Lockheed to quit Telecom business and cut 650 jobs, AP via BG, C2.
...The Bethesda-based defense contractor said poor economic conditions in Latin America and an oversupply in the global telecomms market led it to shut down Lockheed Martin Global Telecommunications [LMGT]. The company will sell some...components of LMGT and absorb others into its remaining business units....
- In the failed mill's shadow, the workers despair - A socialist setback in China has a grim social cost, by Erik Eckholm, NYT, A4.
BAODING, China - For more than three decades after it was founded in 1958, the Baoding No. 1 Paper Mill seemed a model of Chinese socialism.... Today, the factory is dismantled, its workers, onetime "masters of the nation," are mostly destitute and feel betrayed.... But millions of middle-aged and older workers in state enterprises...have been left feeling castoff and afraid. They include many in Baoding, an aging industrial city of a million or so about 80 miles southwest of Beijing where failed state industries and unemployment have proliferated.
In a chilling reflection of a community in despair, three elderly male retirees have committed suicide in the last three years, despondent because they became such a burden on jobless children with families of their own to support, workers said....
The case of this mill is by no means an isolated one, and the government's promises of training and even minimal income support have not been kept. "I never imagined it would get this hard," said Chen Yinglan, 72, who wears the haunted look of someone whose world has fallen apart. Her husband worked for 40 years in state industries, proudly joining the Communist Party and rising to foreman at the Bauding paper mill. He died in 1994, when the plant's fate still seemed uncertain, but she has rarely received the pension she is due. Last year, she said, she got a total of $6 a month to live on, and this year she has not received a penny.
Like most of the former mill employees and their spouses, she lives in the increasingly decrepit company apartment blocks. She shares her room with two cats and spends her days rummaging through garbage for sellable materials. Adding to her grief, her oldest son, laid off from the same mill, died in 1999, perhaps from heart disease. The ailment was never diagnosed, she says; he had no money to see a doctor even as he began to feel sick. Her other two children have been laid off from other state enterprises, and they too have rarely received the stipends they are legally owed....
[Guess China, like Russia, has gone from Second-World ("Control Economies") to Third-World, despite the selective news we hear of the Internet entrepreneurs around Beijing.]
The paper mill was still doing a good business when it was closed in 1992 to halt pollution of a nearby lake. The national government provided $3.3m for upgrading but that money disappeared, former managers say, and the mill's 1,036 employees, including 400 retirees, were left with nothing....
[So, 1036-400= 636 lost jobs.]
- CNN will cancel 3 shows and cut 30 jobs, Bloomberg via NYT, C2.
The Cable News Network...CNN, a division of AOL Time Warner, will cancel the weekday shows "Burden of Proof" [host: Roger Cossack] and "NewsSite" [Joie Chen] and the weekend show "Showbiz This Week" [Bill Tush].... About 10 on-air staff members [including] the hosts of the three shows..\..and 20 other jobs will be eliminated....
Earlier this year, CNN eliminated about 400 jobs [1/18 #4], or 9% of its staff, in a reorg of its news operations. CNN, which is based in Atlanta, has struggled in the last year as its audience ratings have at times lagged those of rivals like Fox News.
- Avon Products to take $90m in charges for job cuts, Reuters via NYT, C4.
...The large direct seller of beauty products [will] post up to $90m in charges in Q4 and might take more as it speeds up cost-cutting.... Most of the charges will be related to severance payments. The company declined to specify how many jobs would be cut.... The market in Latin America, which accounts for about a third of Avon's business, has been worse than expected..\..
[So maybe way too much was "expected."]
But the company said it still expected to meet Q4 earnings and sales targets, helped by strong sales in the U.S....
[Company doin' OK, downsizes anyway? This company is yet another recession trigger.]
- Charles Schwab will close its online venture in Japan, by Ken Belson, NYT, C3.
[Unspecified lost jobs.]
TOKYO...- The venture, Charles Schwab Tokio Marine Securities...start[ed] in April 2000, just in time for technology stocks to melt down and the new-share market to dry up. Since then, Japan's economy has skidded into a recession and Japanese retail investors are even more reluctant than usual to buy equities. The online venture managed to gather just 9,000 accounts; some of those who still remain will be sent to a rival, DLJ Direct SFG Securities, a joint venture of Credit Suisse and Sumitomo Bank. The Schwab venture lost $29.8m in the year ended March 31, 2001....
Schwab joins the growing list of foreigners to pull out of Japan's moribund market.
All three had been among the foreign players who bet that Japan's stock market would recover sharply after collapsing in 1998. At first they were right, as stock prices revived in 1999, but the gains were swiftly erased when American stocks swooned last year and pessimism spread abroad.
- Last month, Morgan Stanley Dean Witter closed its only consumer branch here, which had been open less than a year.
- Societe Generale of France also said recently that it would shut its online operations here, and
- Merrill Lynch is pruning its retail network.
The Schwab venture came late to an online brokerage market cluttered with dozens of companies. Earlier entrants like Matsui Securities and Monex Securities established brand names and cornered parts of the market, including day traders....
Japanese retail customers...now execute half their trades online, analysts said.... Kristine Li, who follows Japan's brokerage industry for Lehman Brothers in Tokyo...estimates that Matsui, Monex, DLJ Direct...and E*Trade Japan control 60% of the online trading market here, with another 15% going to online arms of the country's three largest conventional brokers, Nomura, Nikko, and Daiwa. A price war has driven commissions down 90% since they were deregulated in 1999.
12/06/2001 6 downsizings, totaling 6,776 layoffs, reported in NY Times (NYT) & Boston Globe (BG) -
- ING Groep cutting 1,600 jobs at its U.S. insurance division, by Suzanne Kapner, NYT, C3.
...The large Dutch financial services firm [will] cut 1,600 jobs or 15% of the workers at its U.S. insurance unit in an effort to bolster profit....
- Layoffs at India plant, NYT, C4.
Enron's troubled electric power project in India, the Dabhol Power Co., laid off all its nearly 200 remaining employees yesterday, saying it could not pay them....
12/05/2001 4 downsizings, totaling 8,182 layoffs, reported in NY Times (NYT) & Boston Globe (BG) -
- Ames Department Stores says it will close 54 stores around country, AP via NYT, C4.
...The stores will begin liquidation on Dec. 30 and are expected to close in Feb. or Mar. The decision is the 3rd round of store closings in recent months by the dept. store chain, which is based in Rocky Hill, Conn. Nearly 3,000 employees work at the stores that are to close.... Ames...confirmed that some would lose their jobs and others would be transferred.
[Nevertheless, those 3000 jobs are gone.]
- CNA Financial will begin 10% cut in work force, Reuters via NYT, C4.
...1,850 jobs...to reduce costs.... The jobcuts, mostly at its Chicago HQ, will reduce its workforce to about 16,500 overall. The reductions are the latest phase in a restructuring plan the company started 12 months ago....
[So this cut is 1850/(16500+1850)x100%= 10.1% of the previous total.]
- Chip maker cuts more jobs, by Simon Romero, NYT, C5.
...Agere Systems [is] cutting its workforce by another 950 jobs, bringing job reductions this year to nearly 7,000. The company, based in Allentown, Pa., is grappling with a slowdown in sales. Agere will have 11,300 employees after the cuts, which will largely take place at locations in NJ and Pa.
- Hong Kong: Layoffs at phone concern, by Mark Landler, NYT, W1.
Buffeted by a poor economy and fierce competition in its core long-distance phone business, Pacific Cathay CyberWorks laid off 506 people from its work force of 14,000....
- Springs Industries to close North Carolina plant, Bloomberg via NYT, C4.
...The maker of Springmaid and Wamsutta sheets will close a plant in Biscoe, NC, and eliminate 300 jobs to consolidate production in its fabric-weaving operations. Only a few of the workers will be eligible for transfers to other sites.... Springs has about 17,000 employees....
- CNF to shut Emery air cargo operation, Reuters via NYT, C4.
...its Emery Worldwide Airlines after a safety dispute with the government. [It will] roll 3 units into a new company to be called Menlo Worldwide. CNF [will] lay off 130 employees at Emery....
Etc...Osley & Whitney, Globe staff and wire services via BG, E8.
...a 50-year-old injection molding company in Westfield MA, has closed, putting 40 people out of work.
[We actually caught this bare downsizing back on 11/30 #5 but without the jobcuts figure. So now we count the jobcuts but not the downsizing.]
12/04/2001 5 downsizings, totaling 4,285 layoffs + unspecified, reported in NY Times (NYT) & Boston Globe (BG) -
- Phone giant in Britain to cut jobs, by Suzanne Kapner, NYT, W1.
LONDON...- Facing increased competition and heightened regulatory scrutiny, the BT Group, as British Telecommunications has been renamed, [will] eliminate 4,000 more jobs to cut costs. All the new jobcuts are from the BT Retail division, which supplies telephone service to 21m customers in Britain. They bring the total number eliminated in the unit to 13,000 jobs, or 19% of its workforce, as part of a plan begun in March 2000 to trim $1.2B in costs over three years.
[The only part of these 13,000 eliminated jobs we've seen in the NYT or BG is today's 4000 and 6000 on 7/20 #4. (We don't think they'd be counting the 2300 cuts from Concert, the BT-AT&T joint venture on 10/17 #3.) So we must now count today's 4000 plus a previous 13000-(4000+6000)= 3000, for a total of 7,000 jobcuts. And if 13,000 are 19% of the total workforce, then 7000 are 7000/(13000/19x100)x100%= 10.2%.]
BT has transformed itself in the last year from a company with global ambitions to one that is more focused on offering basic phone and Internet services in its home market....
[Good. A company that has come to its senses. A "shoemaker" who's decided to "stick to his last."]
- Ford cutback news shocks Edison, both town and plant - Anger wells up over the loss of 600 jobs that pay $22-27 an hour, by Ronald Smothers, NYT, A25.
[This may be part of the 5000 cuts announced back on 8/17, but that's kinda a long time ago.]
EDISON, NJ -..."These cuts will have a ripple effect on the local economy," the mayor [township mayor George Spadoro] said of the possiible loss of a shift and nearly 42% of the 1,424 workers.... The announcement of the cutbacks Monday was part of a package of companywide changes, including reduced health and retirement benefits for 45,000 salaried workers and the elimination of merit pay increases for top executives....
[Well, if that isn't a top-bracket designed class system conducive to deeper recession, we don't know what is. Top executives with six-figure salaries "lose increases," i.e., they lose nothing, and their unspendably concentrated income and wealth continues, while 45,000 actively spending consumers lose health benefits and retirement benefits - thus impairing even the inadequate level of spending that is still going on in this recession?! What a formula for economic failure. Unless America changes its culture from the angry and rather desperate graspingness of the top brackets - "ME, MY "SHARE" without limits, regardless of how little everybody else gets!" - America is going down for the count. The need is for the "old-fashioned" attitude of "nobless oblige" - or if not "noblesse," then at least "excesse oblige." And capricious charity whereby Bill Gates' foundation makes absolutely big, proportionately small, sporadic gifts to the richest universities in the world won't cut it. It requires a systemic income-centrifuging mechanism. It requires reinvestment in markets, in active consumer spending activity, on a COLOSSAL scale relative to anything we see today. (The closest was the steeply graduated tax rates of the war years.) It takes a realization on the part of the top brackets that there is no security in individual super-hoarding, only in systemwide well-being. And Square One, it takes systemic centrifugation of skills and employment, by some such program as Timesizing.]
- Buffalo to lay off teachers in attempt to meet deficit - Widespread jobcuts lead to demonstrations and campaigns for federal and state aid, by Winnie Hu, NYT, A24.
...The Buffalo school district is expected to lay off 557 of its 7,000 employees - including 433 teachers - this month in a desperate effort to reduce a $28m shortfall in its current budget.
[What a disgrace. America has among the lowest tax rates in the developed world, and yet, so great is the whining and pressure from the top brackets with their unspendable Black Hole of tightly compacted income, they are starving the future of the whole country and consigning their own children and grandchildren, if any, to lives of ever more, ever tighter security measures aka targets for violence. What Buffalo needs to do in the short run, obviously, is tax those who have the money in unspendable profusion, and if they move away, good riddance - activated regionwide resources is better than the never-activated fantasy of rescue from insulated and isolated hoarders.]
The widespread jobcuts in the state's second-largest school district have led to demonstrations by hundreds of students, parents and teachers in the past two weeks, and forced most of the 78 schools to increase class sizes and eliminate programs mid-year. "This is the worst disaster we've ever had in this school district," said Marion Canedo, the Buffalo superintendent....
[Which effectively means, in living memory - that is, since the Great Depression.]
- AOL consolidates digital books, pointer digest (to C3), NYT, C1.
The books division of AOL Time Warner [is] cutting back its expensive and high-profile line of digital books and laying off almost all of its 29 employees, citing a slump in sales of all books and especially digital ones.
[So estimate 25 jobcuts.]
12/02-03/2001 3 weekend downsizing reports, totaling 121 layoffs + unspecified lost jobs, cited in NY Times (NYT) & Boston Globe (BG) -
- Hobbled Enron tries to stay on its feet, by Oppel and Atlas, NYT, C1.
The Enron Corp. dismissed 4,000 employees and lined up $1.5B in financing yesterday to keep its main business on life support while it reorganizes in bankruptcy court.... Yesterday it dismissed about half of the 7,500 employees at its HQ in Houston and other sites scattered across the country.... The move follows 1,100 job cuts in Europe last week....
[And the Globe's version -]
Enron gets 1.5B in financing - Energy trader lays off 4,000, AP via BG, C2.
[includes the percentage -]
...or 20% of its workforce....
[Back to the NYT -]
Legal questions continue to multiply in what is already the largest bankruptcy in history and may well prove to be the most complex....
[In short, a feeding frenzy for lawyers -]
More than 100 lawyers overflowed the wooden benches in an overheated bankruptcy courtroom on the 5th floor of the Customs House..\..
[You have to wonder what's going to be paying the overpriced salaries of all these legal vultures when Enron is stiffing employees -]
As employees streamed out of Enron's gleaming 50-story office tower in downtown Houston, some said they were told to expect a mere $4,500 in severance, no matter how many years of service, and to file with the bankruptcy court in NYC if they wanted reimbursement for any unused vacation days.... Said Pedro Manriqe, a risk manager in the company's energy services division, "Upper management is not talking. No managing directors are around, and police are on every floor. It's so unreal."...
[Well, Pedro, let's see you manage that kind of risk. American CEO sleeze. Now you'd think the least we'd get out of this is a real whammy against the easy assumption that Deregulation Is Great, and that indeed would seem to be the burden of the article right below this one in the NYT -]
Collapse may reshape the battlefield of deregulation, by Kahn and Gerth, NYT, C1.
[But it's full of "but's" -]
The bankruptcy of Enron has Washington debating the way it oversees the $200B power industry.
But there is no consensus on erasing the legacy of deregulation that the company's political largess helped forge. Congressional leaders and top regulators are moving forward on what had been Enron's No. 1 objective [argh]: a push to reduce local control of electricity transmission lines so that energy merchants like the Enron Corp. can use them to transport and sell power. [which would really allow these cowboys to ream us all and leave us in the dark]
But the politics of [electric] power are shifting, and some of Enron's longstanding opponents - chief among them the Southern Co. of Atlanta, which owns many local power monopolies - see a fresh chance to slow deregulation, or even roll it back. [Enron is] one of the most precipitous business reversals in history. And some members of Congress say Enron's downfall, on the heels of California's energy meltdown early this year, proves that Washington must demand more disclosure from energy traders, holding them at least to the standards of Wall Street firms....
[Oh wouldn't that be great! (cough cough cough cough cough...)].
- Etc...Creo Products Inc., Wire services via BG, C6.
...will fire or lay off [what's the diff?] as many as 120 employees when it moves its Billerica MA-based Iris Graphics unit to Vancouver. A spokeswoman didn't know how many employees would be offered jobs in Vancouver.
[Or whether it would matter since they'd not only have to change sides of the continent but nations as well.]
- MCSI Inc., NYT, C4.
...Dayton, Ohio, a maker and integrator of computer, audiovisual and broadcast equipment [will] eliminate more than 100 jobs and sell its Canadian computer products business to focus on its integration services....
- Polaroid unit, by Jeffrey Krasner, BG, C6.
...Polaroid CEO Gary DiCamillo, in a memo to employees, said 65 employees engaged in film manufacturing in Waltham MA would be laid off Feb. 1. He said he will seek [bankruptcy] court approval for four week's severance pay and one month of medical benefits for workers terminated in 2002.
[Oh that'll really last'em to their next job!]
- Etc...Nexiq Technologies Inc., Wire services via BG, C6.
relocated its corporate HQ to Sterling Heights, Mich., from Manchester, NH.
[Unspecified jobs up in the air.]
12/01/2001 11 downsizings, totaling 3,984 lost jobs + unspecified, reported in NYT & BG -
- 12/03 2 magazines on Asia hit hard times, pointer digest (to C8), NYT, C1.
AOL Time Warner said last week that it would close Asiaweek, dismissing most of its 85 employees....
[We had a mention of Asiaweek in 11/29 #6 along with two other magazines, but no separate count of its own downsizing and no specific job loss figure.]
- 12/03 2 magazines on Asia hit hard times, pointer digest (to C8), NYT, C1.
...Dow Jones & Co. recently merged the staffs of Far Eastern Economic Review and The Asian Wall Street Journal, resulting in the loss of about 36 jobs.
- 12/02 Falling enrollment prompts Catholic college to close, by Stephen Frothingham, BG, C8.
MANCHESTER, N.H. - Notre Dame College, a small Catholic liberal arts school in operation for 51 years, is closing at the end of this school year, college officials announced Thursday.... In 1993, the college had about 1,350 students. ...[Today] enrollment is about 1,100....
[Unspecified lost jobs. Followup - "N.H. school falls victim to a new era - Notre Dame College closing after 52 years," by Lois Shea, 4/28/2002 BG, H1, which stated "Many Notre Dame staff and faculty already are gone - laid off Jan.31."]
- Kimberly-Clark to close 5 plants and cut work force, Bloomberg via NYT, C4.
...The maker of Kleenex tissues and Huggies diapers will...eliminate 1,400 jobs, or about 2% of its workforce, as competitors reduce prices....
- Enron fires 1,100 in UK, Globe staff and wire reports via BG, C1.
...the first of thousands of anticipated jobcuts by the energy trader....
- Kraft Foods plans changes in Latin America operations, Reuters via NYT, C4.
...clos[ing] two plants...and consolidat[ing] other operations..., laying off 540 workers as it continues to integrate the recently acquired Nabisco....
[Again the toxic takeover-downsizing connection.]
- Midway Airlines to receive about $10m in bailout, AP via NYT, C4.
...Midway laid off 2,400 workers when it ceased flying Sept. 12....
[At last we get the figure. We've only counted 1900 of these so far [see 9/22 #5], so now we count the remaining 2400-1900= 500 jobcuts.]
- Morgan to freeze salaries, Bloomberg via BG, C1.
Morgan Stanley Dean Witter & Co...is firing at least 150 workers in investment banking after laying off 1,500 earlier this year.
- Gerber Scientific Inc., NYT, C4.
...South Windsor, Conn...plan[s] to cut about 150 jobs in the fiscal Q3 in response to a decline in sales.
- Etc. - The Providence Journal, Globe staff and wire reports via BG, C1.
...will eliminate 90 jobs through a voluntary buyout program....
- Avici Systems cuts 40 more jobs, Bloomberg via BG, C1.
...A Billerica MA maker of equipment that routes data traffic trimmed...12% of its workforce, as customers cut spending on telecomms gear....
- Whitney Museum cuts its staff and budget, by Celestine Bohlen, NYT, A1.
NYC - The Whitney Museum of American Art announced a package of layoff and budget cuts yesterday intended to pull the 70-year-old museum through a financial crisis that was largely precipitated by a sudden and drastic drop in out-of-town visitors.... The layofffs...total...12 full-time and two part-time employees, out of a staff of 210 people....
[For a grand total of 14 jobcuts.]
- Emerson Electric is planning to close 10 factories, Bloomberg via NYT, C4.
...and lay off an unspecified number of workers in the next few years....
- Last rough ride for Whalom Park, bvy Anthony Flint, BG, B1.
LUNENBURG, Mass...- Today the Whip, the Tumble Bug, and the Flying Comet roller coaster are idle, and the entire amusement park, first opened in 1893, is headed for the auction block in a foreclosure scheduled for Thursday....
[Unspecified lost jobs.]
Click here for downsizing stories in -
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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