Timesizing® Associates - HOMEPAGE

Downsizings, August 16-31, 2002
[Commentary] ©2002 Phil Hyde, The Timesizing Wire, Box 117, Harvard Square, Cambridge MA 02238 USA (617) 623-8080


8/31/2002   3 downsizings, totaling 520 lost jobs + unspecified, reported in (NYT) NY Times &/or (WSJ) Wall St Journal -

  1. Truckmaker set to lay off 500, Bloomberg via NYT, B3.
    Paccar...said this week it would lay off as many as 500 workers at a Tennessee heavy-truck factory. It cited tougher federal emissions rules for a decline in demand.... Trucking companies have stocked up on vehicles with engines that [only] meet current rules because of concerns about cost and reliability of the new engines..\.. Paccar's Peterbilt unit will indefinitely idle about 2/3 of the 750 workers at the Madison plant on Nov. 1, the manager, Joe Scattergood, said. The factory will cut production of the trucks to 12 daily from 36, Mr. Scattergood said.
    [Joe would be "scattering" more "good" if he cut 2/3 of the workweek for all, not entire jobs for a few, and a few more, and a few more....]
    The move comes after 2 rivals, Navistar and DaimlerChrysler's Detroit Diesel unit, announced layoffs beginning Oct-Nov. as diesel-engine and truck orders decline.... Industrywide, North American heavy-truck orders increased 61% this year through July from July 2001 as trucking companies moved up vehicle orders, analysts said.

  2. Mexico: Investment bank cuts back, Bloomberg via NYT, B2.
    Dresdner Kleinwort Wasserstein, the investment banking unit of Allianz, will shut its foreign-exchange, government debt and equity trading business in Mexico and lay off 20 executives to reduce costs. The move is part of a strategy to scale back trading in markets like Latin America where the bank has had trouble competing with larger rivals, said Roberto Mena, a spokesman for Dresdner. The bank aims to build up underwriting and M&A work, he said. Allianz bought Dresdner Bank last year for $20B and is seeking to return it to profitability.
    [Again, the lethal takeover-downsizing slide.]

  3. Raytheon to reorganize several divisions and cut jobs, Bloomberg via NYT, B4.
    ...The military contractor [that scrounged taxcuts to maintain job numbers in Mass. and hasn't] said yesterday that it would split its military and air-traffic work into 7 businesses. Raytheon, which is based in Lexington, Mass., will eliminate jobs after the reorg, a spokesman, David Polk, said. The company will not know the number of jobs affected for a month, he said [500 - see 10/09/2002 #3]. The businesses include -
8/30/2002   2 downsizings, totaling 300 lost jobs + unspecified, reported in (NYT) NY Times &/or (WSJ) Wall St Journal (not counting massive job loss generating 14% rise in economywide unemployment according to "Destitution seen for Palestinians," NYT, A9, which states, "A large majority [i]s 'scrambling to survive' on less than $2 a day and despair [i]s fueling ever greater extremism.... Unemployment in the last 3 months has risen from 36% to roughly half the workforce.") -
  1. Japan: Refiner cuts jobs, by Ken Belson, NYT, W1.
    The Japanese subsidiary of the Exxon Mobil Corp. plans to eliminate 300 jobs, or 7.3% of its workforce, by next June. The refiner, TonenGeneral Sekiyu KK, will spend 11.1 billion yen ($94m) to pay workers to retire early. TonenGeneral lost 1.3B yen in the first 6 months of the year as sales fell 15%.

  2. Kendle International, NYT, C3.
    ...Cincinnati, a provider of clinical research and development services for drug companies, [will] consolidate 3 NJ offices, in Ft Lee, Princeton and Cranford, into one office in Cranford, and cut about 1% of its workforce.
    [Unspecified jobcuts.]

8/29/2002   1 downsizing, totaling 12,200 lost jobs, reported in (NYT) NY Times &/or (WSJ) Wall St Journal - 8/28/2002   4 downsizings, totaling 7,950 lost jobs, reported in (NYT) NY Times &/or (WSJ) Wall St Journal -
  1. Nortel Networks plans to cut another 7,000 jobs, Bloomberg via NYT, C3.
    ...by the end of the year...because of the decline in spending on equipment by U.S. companies.... The big [Brampton ONT-based] maker of phone gear will reduce its workforce [17%] to 35,000, compared with a previous goal of 42,000 by the end of September, said a spokeswoman, Tina Warren.... Sales are falling because some operators like Global Crossing have sought bankruptcy protection while survivors including Sprint are cutting spending to preserve cash....

  2. Stora Enso Oyj...to take [80m-euro] write-down, Bloomberg via NYT, C4.
    ...The world's biggest paper producer will...close mills...because of mounting losses. To combat the worse advertising slump in a decade, the company will also cut 500 jobs, or 7.9% of its workforce in North America, and close 4 pulp and paper mills in the region. The North American unit has lost more than $130m since it was created when the Finnish company bought Consolidated Papers for $4.9B in 2000....
    [Again the toxic takeover-downsizing connection.]

  3. Computer Sciences plans to cut 450 jobs, Bloomberg via NYT, C4.
    ...in its group that manages computers for banks and insurers as demand in those industries slows. The move will reduce the staff of the division, based in Austin TX, by about 10%, a spokesman, Mike Dickerson, said..\.. The 3rd-largest U.S. computer services company...whose customers include JP Morgan Chase, began cutting jobs June 1 and will finish Sept. 6, he said.
    [No American company is "finished" cutting jobs except the two that cut hours instead - Nucor Steel and Lincoln Electric. The jobcuts of all the rest will "force" them to keep cutting, because each time, they're cutting their customers' customers as well. It ain't pretty to watch a big economy full of unimaginative CEOs commit suicide on all our behalf.]
    The company cut 2,000 jobs last year to save money
    [And that too was going to be the "finish" of their jobcuts.]
    and recently asked 60,000 workers to volunteer to take six months of leave with 20% of their pay.
    [Oops, looks like Computer Sciences CEO has got a little imagination after all, and has started a kludgy form of timesizing to avoid downsizing. Lordy, it's pure luck that we stumble across some of these vital factoids, cuz until the media wises up on this central strategy, it's going to bury them with nary a headline to alert us.]

  4. Bethlehem Steel Corp., NYT, C4.
    ...Bethlehem PA, the US's 3rd-largest steel maker [will] take a $2.5m charge in Q3 for worker benefits after permanently closing a steel-pipe plant in Steelton PA. The company will try to sell the plant.
    [Unspecified jobcuts.]

8/27/2002   3 downsizings, totaling 674 lost jobs, reported in (NYT) NY Times &/or (WSJ) Wall St Journal -
  1. Louisiana Pacific to lay off workers, Bloomberg via NYT, C12.
    ...The biggest maker of oriented-strand board...a less expensive substitute for plywood made by gluing and compressing wood chips..\..told Texas regulators that it would lay off 462 employees at a Texas lumber mill as part of an agreement to swap plants with a rival, the Georgia-Pacific Corp.... The planned firings at the mill, which is in Cleveland, Tex., were disclosed in a required Aug. 6 filing to the state government and confirmed by a Louisiana-Pacific spokesman, David Dugan. The workers must be dismissed "because it's not a sale, it's an asset exchange," Mr. Dugan said..\..
    [That's no explanation. On the face of it, an asset exchange would seem to require dismissals less than a sale.]
    Some, or all,of the workers, however, will be kept on under Georgia-Pacific, that company said. "Right now, there are no plans" to run the plant with fewer workers, said Robin Keegan [it's the Dugan & Keegan Show!], a spokeswoman for Georgia-Pacific, which is based in Atlanta and is the 2nd-biggest paper and lumber maker. "We'll evaluate that when the facility becomes ours."...
    [So 462 employees get to take a flying leap into thin air, so great is their employers' care and concern for them in labor-glutted America.]
    Louisiana-Pacific, which is based in Portland, Ore...will get one plant and Georgia-Pacific four plants in the transaction.... The companies expect the swap to be completed next month. Louisiana-Pacific is exiting the plywood business to cut costs and to concentrate on making oriented-strand board....

  2. Alkermes, drug maker, cuts its staff by 23%, Bloomberg via NYT, C4.
    ...Make[r of] long-acting drugs laid off 122 people...after federal regulators rejected a schizophrenia treatment [Risperdal Consta] last month that it had developed with Johnson & Johnson. Cutting its workforce to 419 employees...will save the company, based in Cambridge, Mass., $20-25m in fiscal 2003, before revamping expenses, and $40-45m in 2004....

  3. Weyerhaeuser to cut 90 jobs at Pennsylvania mill, Bloomberg via NYT, C4.
    The Weyerhaeuser Co. [will] permanently close a 70-year-old papermaking machine at its Johnsonburg, Pa., fine paper mill...as it continues to integrate Willamette Industries into its operations.
    [Again, the toxic takeover-downsizing connection.]
    Two other paper machines at the Johnsonburg site are not affected. Weyerhaeuser, which is based in Federal Way, Wash., said the closing was effective immediately.... The company has closed several other sites this year..\.. About 30 of the jobs cut had already been eliminated through attrition....

8/26/2002   2 downsizings, totaling 5,013 lost jobs, reported in (NYT) NY Times &/or (WSJ) Wall St Journal -
  1. Lucent official says technology firm may cut 10% of jobs, WSJ, B5.
    MURRAY HILL, N.J. - Lucent Technologies Inc. is likely to lay off an additional 10% of its workforce, according to a person familiar with the plans. Beset by bankruptcies and financial woes at its customers, Lucent's headcount is expected to be about 40,000 by 2003. The company has about 50,000 workers, and it has announced plans to dismiss 5,000 employees by year end.
    [Leaving 45,000 at year end. This is what we heard on 7/24/2002 #1, whether the number of layoffs that brought it there was 5,000, 7,000 or 8,000. So basically now, we're hearing about an additional 5,000 cuts or 11% by 2003 that will take the headcount down from 45,000 to 40,000.]
    At the peak of the telecom boom in 2000, Lucent employed 155,000 people. Lucent is coming off a brutal fiscal 3rd quarter, as orders for its equipment and services didn't meet [even] reduced expectations....

  2. Asia/Pacific -...SCMP Group, WSJ, A8.
    SCMP Group's South China Morning Post, one of Hong Kong's major English-language newspapers [just how many does it still have, anyway??], said Friday it cut 4% of its editorial staff and doesn't rule out more jobcuts. A newspaper spokeswoman said 13 editorial positions were eliminated. The move comes just two weeks after the newspaper's editor, Thomas Abraham, resigned and a deputy editor, Robin Bowman, was fired.

8/24/2002   10 downsizings, totaling 8,225 lost jobs + unspecified, reported in (NYT) NY Times &/or (WSJ) Wall St Journal (not counting "Positive attitude eases downsizing experience," by Ellen Martin, UPS via Arizona Republic, HO4 - sounds one step away from blaming the victim) -
  1. Swiss bonanza for bankers fades in flurry of cutbacks, by Elizabeth Olson, NYT, B3.
    ...Though many of the eliminated jobs are in Switzerland, the banks are also cutting back overseas. The country's two giants...have both announced layoffs at investment banking units in the U.S.., Credit Suisse First Boston (4,500 jobs)....

  2. Navistar may lay off more than 2,000 workers, Reuters via NYT, B4.
    The truck maker...said yesterday that as many as 2,050 workers, or almost 15% of its U.S. workforce, could lose their jobs as it retools plants.... Navistar...based in Warrenville IL..\..has been overhauling its mfg operations for several years to reduce costs.... The cuts include up to 800 jobs at a Springfield OH medium-duty plant, 650 jobs at a Springfield body plant that is being shut and up to 600 jobs at an Indianapolis engine plant.
    [Follow-on]
    Navistar to cut 750 to 800 jobs at Ohio plant, AP via 8/27/2002 NYT, C4.
    International Truck & Engine [ITE]...is a division of the Navistar International Corp., based in Chicago..\.. ITE said Friday that the ending of heavy-truck production at its plant in Springfield, Ohio, would result in the loss of 750 to 800 jobs. An ITE spokesman, Kyle Rose, said most of the job cuts, which amount to nearly one-quarter of the plant's work force, will occur on Sept. 6. The rest will come in the following weeks.... About 3,000 people work at ITE's Springfield operations.

  3. Swiss bonanza for bankers fades..., by Elizabeth Olson, NYT, B3.
    ...UBS, which has been doing relatively well this year despite the rockiness of the markets, has shed 455 jobs in Switzerland this year....

  4. Swiss bonanza for bankers fades..., by Elizabeth Olson, NYT, B3.
    ...Though many of the eliminated jobs are in Switzerland, the banks are also cutting back overseas. The country's two giants...have both announced layoffs at investment banking units in the U.S.., [UBS] Paine Webber (400 jobs)....

  5. Swiss bonanza for bankers fades..., by Elizabeth Olson, NYT, B3.
    ...Another leading Geneva bank, the closely held Union Bancaire Privee, said last week that it was eliminating 350 jobs, on top of the 100 it announced last year....

  6. Swiss bonanza for bankers fades..., by Elizabeth Olson, NYT, B3.
    ...Earlier in the week, it was LODH in Geneva swinging the axe. LODH, created by the recent merger of the venerable Lombard Odier and Darier Hentsch banks, said it would eliminate 300 jobs, 15% of the total, over the next two years, and would not rule out further cuts. More than two-thirds of the lost jobs will be...in Geneva....

  7. Swiss bonanza for bankers fades..., by Elizabeth Olson, NYT, B3.
    ...Bank Sarazin in Basel said [yester]day that it had cut 3% of its staff and would cut another 4%, or 100 jobs in all, by the end of the year....

  8. Swiss bonanza for bankers fades..., by Elizabeth Olson, NYT, B3.
    ...Last week, a Zurich boutique bank, PBS Private Band Switzerland, said it had let half its staff of 70 [so, 35] go....

  9. Kellogg, NYT, B4.
    ...Battle Creek MI, the cereal maker, will lay off or relocate about 70 employees from Keebler Foods as part of efforts to fold Keebler into its operations.
    [Again the toxic takeover-downsizing connection. Let's estimate 50/50 layoff/relocate, so 35 layoffs. Kellog sure isn't the company it was back in 1930 when it was the first American firm to voluntarity cut to a 30-hour workweek in the Great Depression, "to create jobs for 800 heads of family." (Ben Hunnicutt, "Kellogg's Six-Hour Day.")]

  10. Swiss bonanza for bankers fades..., by Elizabeth Olson, NYT, B3.
    ...Earlier in the month, the Zurich-based Julius Baer, another century-old institution, announced unspecified reductions in its 2,400-strong workforce....

8/23/2002   2 downsizings, totaling 143 lost jobs + unspecified, reported in (NYT) NY Times &/or (WSJ) Wall St Journal -
  1. Riverstone Networks to lay off 30% of work force, Bloomberg via NYT, C2.
    ...A maker of Internet equipment whose shares have dropped 93% this year [plans] to lay off...143 people, as fiscal Q2 sales plunge.... Riverside currently has 477 employees, said a spokeswoman, Tracy Pina. Riverside's sales have eroded as telephone and Internet companies spend less on equipment.... Excluding $5m in expenses to lay off employees and close plants, and amortization costs, it expects a loss of 18 cents to 24 cents.

  2. Washington Wire -...Treasury adjusts, by John Harwood, WSJ, A4.
    ...its overseas presence in response to Latin America's woes. O'Neill's department shifts an economic attache post to Argentina from Mexico. Treasury attache jobs had been cut in budget squeezes over the past decade.
    [Unspecified jobcuts hitherto unnoted.]

8/22/2002   1 general story & 3 downsizings, totaling 6,000 lost jobs + unspecified, reported in (NYT) NY Times &/or (WSJ) Wall St Journal -
  1. Celestica to eliminate workers as demand slumps, Bloomberg via NYT, C4.
    ...A Canadian maker of electronics [will] dismiss 750 workers in Britain and Ireland because of lower demand. Celestica...based in Toronto, will shed 500 jobs out of 1,250 at a factory in Kidsgrove, England. It will also dismiss 250 people out of 500 in Dublin. Celestica, which makes products for IBM and HP, said last month it would cut as many as 6,000 jobs as it reduces production to cope with a slump in demand for its products.
    [Presumably the 6000 includes the current 500+250 jobcuts, and since we did not see the 6000 announcement last month, we'll count them now.]

  2. US Airways has plans to shrink mainline jet operations further - Layoffs will be one result of the downsizing needed to help liquidity, revenue, by Susan Carey, WSJ, D6.
    US Airways Group Inc...based in Arlington, Va..\..which filed for bankruptcy-court protection earlier this month, told employees it plans to shrink its mainline jet operations further, which will lead to unspecified numbers of layoffs...on top of the 23% cut in capacity after 9/11...in order to improve liquidity, lower costs and improve revenue..\.. David Siegel, the company's CEO...in a message to employees...indicated that US Airways will work with employees to minimize the impact of the reductions. The carrier currently has about 36,000 employees, down 11,000 from a year ago when it operated 422 jets. The majority of the 11,000 were furloughed after the terrorist attacks....
    [Guess these weren't really (temporary) furloughs but (permanent) jobcuts. The WSJ tries to soften the current blow -]
    Some of the workers who will lose their jobs may be able to find opportunities at the company's newly created Mid-Atlantic Airways, a wholly owned company affiliate that is designated to handle a planned expansion in regional jet flights, he said....
    [The long-term damage to the economy doesn't stop at this new round of unspecified jobcuts -]
    So far, most of US Airways unions have tentativelyl agreed to large pay cuts stretching out for six years....
    [Lower wages, lower spending, lower consumer demand, more bias toward recession.]

  3. i2 Technologies says it is expanding restructuring plan, Dow Jones via WSJ, B8.
    DALLAS -...The latest restructuring plans, disclosed in documents filed with the SEC last week, aim to reduce operating expenses to about $116m..\..in a bid to stem losses.... That will require more job cuts than initially planned, analysts said. An i2 spokeswoman said layoff plans still are being finalized....
    [Unspecified jobcuts.]
    i2, whose supply-chain softwaree is used to manage factories and store inventoriies, is suffering from slack demand and a shift to smaller-sized deals....

8/21/2002   4 downsizings, totaling 4,130 lost jobs, reported in (NYT) NY Times &/or (WSJ) Wall St Journal -
  1. Cingular Wireless to lay off 7% of its work force, by Jesse Drucker & Robert Frank, WSJ, B3.
    ...The country's 2nd-largest wireless carrier..\..will eliminate between 2,500 and 3,000 jobs,..because of sales efficiencies it has developed since the [Atlanta-based] company was formed 2 years ago from 11 different brands..\.. "The industry is growing, but it's not growing at the previous pace," said Bob Shaner, the president of Cingular's wireless operations. He said the headcount reduction is the most severe in the company's 2-year history....
    [Doncha love the way these clowns comment detachedly on the damage they themselves have caused, as if the events are some kind of Act of God - when all along they could have trimmed hours, set up crosstraining, and kept everyone working.]

  2. Loss narrows, revenue soars: work force is reduced 30%, WSJ, B3.
    Key Tronic Corp. reported a fiscal 4th-quarter loss of $3.2m, or 33 cents a share, narrower than a loss of $4.8m, or 50 cents a share, for the year-earlier quarter. The electronic-equiipment manufacturer...has reduced its worforce by...700 manufacturing employees in Juarez, Mexiico, to cut operating expenses and break even next year. ...The legal cost resulting from a trade-secrets lawsuit has been a significant financial drain over the past year....

  3. 300 workers are laid off at Caterpillar factories, Bloomberg via NYT, C6.
    ...The world's largest maker of earth-moving equipment..\..which has had falling profit in 11 of the last 16 quarters, has laid off...workers because sales of generators and mining equipment have fallen. ...Q2 net income fell 26% to $200m..\.. Caterpillar, based in Peoria, Ill., has about 71,600 employees.

  4. Cendant to cut 300 hotels in franchise system, Bloomberg via NYT, C6.
    ...The biggest franchiser of hotels [will] increase the number of poorly performing hotels it planned to cut from its system in an effort to increase consumer satisfaction. Cendant will also cut 130 jobs or 15% or the positions in its lodging division. Cendant, based in New York, owns the Days Inn, Howard Johnson and other hotel chains. It will shed as many as 300 hotels from its franchise system, or up to 40,000 rooms. Overall, the company has 547,303 rooms. Cendant...leases it[s] brand names to hotel owners and operators for a fee in return for marketing services.

8/20/2002   4 downsizings, totaling 990 lost jobs, reported in (NYT) NY Times &/or (WSJ) Wall St Journal (not counting "Job support group flags," by Kemba Dunham, WSJ, B8, which says, "At this week's meeting of CalaPro Group [in Ft. Lauderdale, Fla.,] Evis Cartagena and her fellow laid-off employees from Nortel Networks Corp.'s nearby Sunrise plant will hear a group alumnus...tell how he found a job.... While around 90 people are registered for the group online through Yahoo, only about 15 people typically show up for the Friday morning [10 am] meetings."} -
  1. Kmart Corp., Dow Jones via WSJ, A8.
    ...The discount retailer, which filed for Chapter 11...in Jan..\., will eliminate 400 positions at its corporate HQ in Troy, Mich., and an additional 50 jobs nationwide [that provide corporate support - NYT] as part of a plan to cut costs. The 450 corporate-related jobs will be cut immediately. In addition, Kmart will eliminate about 100 open positions, and it will begin phasing out 130 contract positions....
    {So, a total of 450+100+130= 680 lost jobs that are not store-related, but remember -]
    Kmart announced in the spring that it planned to close 283 stores and cut 22,000 jobs. Kmart stores and distribution centers won't be affected by these latest jobcuts.

  2. Tyson Foods to close hog farm in a revamping, AP via NYT, C4.
    ...The meat processing giant plans to start closing its company-owned and leased hog farms this week and end contracts with 132 contract hog producers in Arkansas and eastern Oklahoma. The company, which is based in Springdale, Ark., said 159 farms would be affected. The move to revamp the live swine division will result in about 200 jobcuts.... Competing companies have pork processing operations closer to packing facilities, avoiding higher transportation costs for both finished hogs and grain, Tyson said.

  3. Electroglas, NYT, C4.
    ...San Jose, Calif., a maker of semiconductor testing equipment, added 45 jobs at its plant in Singapore and cut 130 jobs in San Jose.
    [Giving us a net job loss of 130-45= 85 jobcuts.]

  4. Commonfund toughs out a rough year - Layoffs, high-profile departures and fund closings worry some..., by Forelle & Golden, WSJ, C1.
    ...In May, Commonfund laid off about 11% of its staff to cut costs, leaving it with a staff of about 200..\..
    [Let's see, if 200 is 100-11% of the total, the total was 200/89x100= 225 and the number of layoffs was 25. And since we never heard a word of this in May, we'll count it now.]
    A nonprofit money manager founded in 1971, Commonfund...of Wilton, Conn..\..is the 800-pound gorilla of an obscure corner of the institutional-investment world, managing $30B in endowment and tuition funds for small to midsize colleges and other nonprofit organizations.... The firm pools money from its investors and for a fee hires a variety of outside companies to manage it. For example, Commonfund's Core Equity Fund uses 5 managers to pick stocks with different strategies.... It allows a school to purchase a diversified basket of assets for its endowment without having to vet and monitor dozens of managers, a difficult task for a school with little internal staff.
    [How difficult is it to phone up Vanguard and put 50% in money markets and 50% in Treasuries?]

8/19/2002   2 downsizings, totaling 350 lost jobs + unspecified, reported in (NYT) NY Times &/or (WSJ) Wall St Journal (not counting over 500,000 employees who have been laid off industrywide according to "As it deepens, telecom bust is taking a heavy human toll," by Rebecca Blumenstein, WSJ, A1) -
  1. Steelmaker files for Chapter 11, closes 2 plants, cuts 200 jobs, WSJ, B4.
    Cold Metal Products Inc. filed for bankruptcy protection Friday, closing two of its plants and eliminating nearly 200 jobs. The Youngstown, Ohio, steelmaker said the filing became necessary because of high retiree healthcare and pension costs, unprofitable businesses and low sales prices for its products.... Plants in Youngstown and Indianapolis were shut down Friday. Cold Metal operates plants in Ottawa OH, Roseville MI, Hamilton ONT, and Montreal QUE. The bankruptcy filing covers only the company's US assets.
    [We caught the bankruptcy aspect from the Saturday NYT, 8/17/2002 #2.]

  2. UBS energy-trading business may shed staff, by Kranhold & Barrionuevo, WSJ, A6.
    UBS Warburg's energy-trading business, plagued by an industry downturn and federal investigations since the unit was acquired from Enron Corp. in January, is expected to lay off this week as much as a quarter of its more than 600 employees, according to people familiar with the matter....
    [¼ of 600= 150 jobcuts or 25% of the total workforce.]
    [Followup]
    UBS Warburg to cut jobs at energy-trading unit, AP via 8/21/2002 NYT, C6.
    The Swiss investment bank [is] cutting 130 jobs or 25% of the workforce, at its energy-trading arm in Houston, acquired from Enron in January.
    [Again the vrille-fueling takeover-downsizing connection.]
    UBS Warburg said the move was necessary to cut costs in reponse to lower trading volumes after Enron's collapse last year....
    [Or "necessary" because the top execs are too boring and unimaginative to think of an alternative, such as trimming hours a bit for everyone, instead of chopping jobs completely for a few, and a few more, and a few more....]
    Most of the jobs being cut are in technology and operations, not at the senior level.
    [The usual B.S.   The economy shrinks because those shrinking it feel no pain. No pain, no feedback. No feedback, no sustainability let alone solid growth.]

8/17/2002   5 downsizings, totaling 755 lost jobs + unspecified, reported in (NYT) NY Times &/or (WSJ) Wall St Journal -
  1. Scientific-Atlanta to lay off 400 employees, Bloomberg via NYT, B4.
    ...One of the largest makers of consoles used by cable TV subscribers [will] cut about...6% of its workforce to reduce costs as demand from customers remains slack....
    [Thus adding a little more slack to the demand environment.]
    Most of the reductions are effective immediately, although some will occur over the next several months.... The positions being eliminated are from every part of the business....
    [Thus assuring that insecurity and demoralization will hit every part of the business, and star employees will send out their resumes and start leaving from every part of the business - thus doing maximum damage to the business. This would all be avoided simply by cutting 6% of their workweek, prorating pay&benefits for the whole company, and getting a lot of overtime-targeted crosstraining and retraining going.]

  2. Switzerland: Banker's profit falls, by Elizabeth Olson, NYT, W1.
    Julius Baer Holding of Switzerland reported a 14% drop in first-half profits, and [will] cut costs, including layoffs of several hundred of its 2,300 employees.
    [Let's peg this conservatively at 300 jobcuts.]
    ...The largest publicly traded Swiss bank...caters to wealthy clients, those worth at least a million Swiss francs ($670,000).
    [How can you lose money toadying to the rich, who are relatively unaffected by downturns?]
    ..\..The cutbacks come on top of a 6% staff reduction over the last year at the 112-year-old family-controlled Zurich bank....
    [A century-old family-controlled bank should by now have learned the kind of mutual loyalty with employees that timesizing, not downsizing, makes possible.]

  3. Planar Systems cutting 55 jobs in Oregon and Wisconsin, Reuters via NYT, B4.
    ...Make[r of] flat-panel displays for computers [is] cutting...35 of the jobs at Planar's Hillsboro, Ore., plant, which will be closed within the next 12 months. The other 20 positions are in its photonics business in Beaverton, Ore., and Lake Mills, Wis.   Planar is consolidating production of its electroluminescent display panels into a single factory in Espoo, Finland.

  4. 2 Valley electronics retailers shut down, by Glen Creno, Arizona Republic, D1.
    Two of the [Phoenix] Valley's big-name electronics and appliance retailers have closed under pressure from a sour economy and booming competition from national chains.
    Roy Edwards Warehouse, which once operated stores in Phoenix, Gilbert, and Scottsdale, selling TVs, audio gear and appliances, filed for Chapter 7 bankruptcy liquidation....
    [Unspecifed jobs lost.]

  5. 2 Valley electronics retailers shut down, by Glen Creno, Arizona Republic, D1.
    ...Buzz Jensen's Sound Advice filed for a Chapter 7 liquidation and closed stores in Phoenix and Scottsdale.
    [Unspecifed jobs lost.]
    Local home theater and appliance retailers have been under the gun since the economy went bad and consumers began spending more cautiously. They also face stepped-up competition from aggressive newcomers like Showcase Home Entertainment and Ultimate Electronics, chains with big marketing and pricing muscle....

8/16/2002   3 downsizings, totaling 2,100 lost jobs + unspecified, reported in (NYT) NY Times &/or (WSJ) Wall St Journal -
  1. Japan: Telecom equipment layoffs, by Ken Belson, NYT, W1.
    Fujistu Ltd. will eliminate 2,100 jobs in 4 locations in Japan and consider shutting one factory as it adjusts to the slump in demand for telecomms equipment. Fujitsu, Japan's largest maker of business computers, will offer early retirement packages to the affected employees, who make up 1.2% of the company's workforce.... The latest round of layoffs will hit factories that make printed circuit boards used in communications equipment..\..
    Last year Fujitsu but 17,000 jobs, mostly overseas.

  2. Net falls 39% to $11.8m; Workforce to be reduced 7%, WSJ, A6.
    Autodesk Inc.,, the San Rafael, Calif., software company, cited soft economic conditions for the decline....
    [Unspecified jobcuts.]

  3. GE Aircraft Engines, in slump, tells staff jobcuts are coming, Dow Jones via WSJ, A2.
    General Electric Co. is preparing to cut jobs at its aircraft-engine unit as it weathers the worst crisis for the aviation business in decades. ...Spokesman Rick Kennedy said...GE managers...likely will determine the size of the jobcuts during the next few months....
    [Unspecified jobcuts.]
    The news comes after the engines business cut 4,000 jobs worldwide following 9/11 (see 10/04/2001 #1). The Evendale OH business employs about 27,000 worldwide....


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July/2002.
June/2002.
May/2002.
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Jan. 1-15/2002.
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Dec. 1-15/2001.
Nov. 16-30/2001.
Nov. 1-15/2001.
Oct. 16-31/2001.
Oct. 1-15/2001.
Sep. 16-30/2001.
Sep. 1-15/2001.
Aug. 17-31/2001.
Aug. 1-16/2001.
July 16-31/2001.
July 1-15/2001.
June/2001.
May/2001.
Apr.16-30/2001.
Apr.1-15/2001.
Mar.16-31/2001.
Mar.1-15/2001.
Feb.16-28/2001.
Feb.1-15/2001.
Jan.16-31/2001.
Jan.1-15/2001.
Dec.16-31/2000.
Dec.1-15/2000.
Earlier Y2000 months accessible via links at bottom of Dec.1-15/2000 page.
Dec/1999.
Earlier 1999 months accessible via links at bottom of Dec/1999 page.
December/98.
Earlier months accessible via links at bottom of Dec/98 page.

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

Questions, comments, feedback? Phone 617-623-8080 (Boston) or email us.


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