Timesizing® Associates - HOMEPAGE
Downsizings, Oct. 1-15, 2002
[Commentary] ©2002 Phil Hyde, The Timesizing Wire, Box 117, Harvard Square, Cambridge MA 02238 USA (617) 623-8080
10/15/2002 4 downsizings, totaling 462 jobcuts + unspecified, reported in (WSJ) Wall St Journal &/or (NYT) NY Times - "bloodbath in Mountain View" -
10/14/2002 2 downsizings, totaling 513 jobcuts, reported in (NYT) NY Times -
- Interactive-TV software maker is cutting about 47% of staff, Dow Jones via WSJ, A6.
OpenTV Corp...will cut 315 jobs...and close 8 regional offices as part of a restructuring plan to slash expenses. The move is part of OpenTV's effort to realize efficiencies related to its $101m acquisition of Wink Communications Inc., which was completed Oct. 7, as well as an effort to better position itself in light of current economic conditions in the cable and satellite industries. The Mountain View, Calif., maker of software for interactive TV expects to complete the restructuring by the end of the first quarter of 2003.... The company [already] cut 60 jobs when it closed [its] Naperville IL office.
[Agian the toxic takeover-downsizing connection. So we have a total of 315+60= 375 jobcuts. If 315 jobs is 47% of total staff, total staff is 670 and previous total staff was 670+60= 730. So the entire 375 cuts are 375/730= a 51% cut of then-total staff.]
- Companies cut costs where it hurts: employee pay, by Dunham & Maher, WSJ, B1.
...At PR agency Fleishman-Hillard Inc. in St. Louis, about 250 managers, or 10% of the staff, saw their pay reduced by a range of 3-10% on Oct. 1.... A Fleishman-Hillard spokesman says the company is taking the salary-cut situation "a quarter at a time."
[Alas, the Oct 1 paycut was not enough to avoid jobcuts -]
The company...also plans to cut about 60 of its 2,300 jobs....
- IntraBiotics to cut jobs after drug fails trial, Reuters via NYT, C5.
IntraBiotics Pharmaceuticals [will] cut 70% of its staff, or 27 jobs, to save money after a crucial product failed clinical studies. IntraBiotics, based in Mountain View CA [aims] to cut operating expenses to $1.5m a quarter in 2003 from the current $7.5m....
- Companies cut costs where it hurts: employee pay, by Dunham & Maher, WSJ, B1.
...Conductus Inc., a Sunnyvale, Calif., maker of superconductor wireless systems, is in its 3rd round of layoffs.
For its remaining 66 employees, it cut salaries by 15%, effective Oct. 1....
10/11/2002 3 downsizings, totaling 11,850 lost jobs, reported in (NYT) NY Times (not counting "Etc...- MicroFinancial Inc. [Waltham, Mass.] fired about 90 people," Globe staff & wire services, Boston Globe, F1) -
- Bank of America to cut 190 positions at slumping division, Dow Jones via WSJ, C12.
...its global investment-banking unit. After the latest round of jobcuts, Bank of America's investment-banking unit is expected to employ 7,050. The unit employed 7,500 in December and eliminated 600 jobs earlier this year. ...The unit continues to hire in certain parts of its business....
[We saw no announcement of that earlier cut this year so we must now count 190+600= 790 jobcuts. However, the net cuts are fewer because of the continued hiring, so our net this year is just 7500-7050= 450 net jobcuts, which is 450/7050= 6% of the total workforce of the unit. Note previous mention on 11/25-26/2001 #1.]
- Northwest Airlines Corp., WSJ, A7.
...told the Air Line Pilots Assoc. that it will furlough an additional 63 pilots in Feb. to match reduced flying levels next year, bringing the total number of pilots on furlough to 630.
[We are counting these as simple layoffs because one of the basic requirements for "furlough" is missing = a predefined length.]
Management also told pilots it is unlikely there will be any pilot recalls before the 4th quarter of 2003. Northwest had said that some pilot jobs would be part of 350 additional jobcuts announced Sept. 4 [see 9/05/2002 #1]....
10/11/2002 4 downsizings, totaling 1,082 lost jobs + unspecified, reported in (WSJ) Wall St Journal &/or (NYT) NY Times - American CEOs continue their drive into depression -
- Lucent Technologies to cut 10,000 jobs as its losses keep mounting, by Romero & Atlas, NYT, B1.
[Lucent's "march of folly" continues, with evermore downsizing instead of timesizing.]
...The largest maker of equipment for telephone companies announced plans yesterday to cut...additional...jobs...signaling that its problems are far from over. Lucent, which had more than 123,000 employees as recently as two years ago, expects to have a workforce of about 35,000 by the end of next year as it seeks to slow its depletion of cash....
So we're now talking an additional downsizing of 10000/(35000+10000)= 22% of current total headcount.]
Lucent said the jobcuts would take place in the U.S. and other countries. Lucent, which is based in Murray Hill, NJ, employs about 8,400 people in New Jersey.... Lucent['s] roots stretch back to 1856 when a corporate ancestor combined telegraph gear with electrical equipment.... Lucent, along with its large [equally stupid - ed.] Canadian competitor, Nortel Networks, has suffered from a steep decline in demand from telephone companies for its switches and other equipment. The telecom industry is going through its most severe pull-back in spending since the Great Depression....
[Funny they should mention.... But there are always lots of people (they were there even throughout the 1930s) who will never admit the sky is falling, so they never get below the superficial level of "solutions" - interest rate fiddling, jobs programs... - to the level we need to changing = the share of slowly shrinking human employment per person, i.e., the rigid length of the standard nationwide workweek.]
- Maytag to close a plant, cutting 1,600 jobs, Bloomberg via NYT, B4.
The appliance maker [will] close a refrigeration-parts plant in Galesburg, Il., eliminating...about 8% of its workforce. ...It plan[s] to start closing the plant next year and complete the shutdown by late 2004. Some salaried workers from the factory will be offered jobs at other Maytag locations.... The closing is part of a plan to cut expenses and to make refrigerators more cheaply and efficiently, Maytag said. Maytag, based in Newton, Iowa, also said it planned to open a new refrigeration plant in Reynosa, Mexico, by late next year.
[Fine, here's hoping you can sell them there too, because you're sure helping kill your own U.S. markets.]
- Crown Castle International, NYT, B4.
...Houston, an operator of wireless communications towers,...plan[s] to cut about 250 jobs, or about 13% of its workforce, and close some offices to pare annual expenses by $11-14m.
10/10/2002 7 downsizings, totaling 15,500 lost jobs, reported in (WSJ) Wall St Journal &/or (NYT) NY Times (not counting this article on case-by-case firings-for-cause, "Utility company fires 5 employees over pricing data," AP via NYT, C4, which states, "...Employees at the American Electric Power Co. were fired for providing inaccurate price information for use in indexes compiled and published by trade publications...", and also not counting the following industrywide story) -
- Job cuts will eliminate 14% of world-wide work force, WSJ, A8.
Battery maker Rayovac Corp. plans to cut 630 jobs...as it closes 3 plants and opens a $20m facility in Illinois as part of a restructuring plan.
[An expensive new facility in a depression? Dumb dumb dumb. And at the same time as it's fueling the depression with more downsizing instead of timesizing? Dinosauroidal.]
...Rayovac now employs 4,500 workers worldwide.... Rayovac said it is trying to eliminate the duplication of services created when it completed its $262m merger with the German consumer-battery business Varta AG.
[Again the toxic takeover-downsizing connection.]
- Vivendi Universal SA, WSJ, B2.
...The cash-strapped French conglomerate [will] cut 152 of 327 jobs at its Paris HQ and drastically scale back its New York operations from what is almost a 2nd HQ to a representative office. The NYC cuts could number close to 200, said a person close to the company....
[152+200= 352 total jobcuts. And why is a big conglomerate strapped for cash, you wonder?]
The announcement comes 2 wks after Vivendi's new mgmt...pledged to sell the "corporate regalia" amassed by [the old mgmt headed by] Jean-Marie Messier, [which includes] the lavish NYC apt Mr. Messier had Vivendi buy for him last yr, a large art collection and a fleet of business jets....
[Our quotes. Zo, day did not call dis littel sissyboy "Messy-er" for nussink. Guess Tyco's Dennis Kostlouzy wasn't the only one.]
- MeadWestvaco to revamp operations and cut 150 jobs, AP via NYT, C4.
...It w[ill] shut 8 paper sheeting machines next year at its mfg plant in Luke, Md. [which] are used to convert rolls of paper into sheets. The company, based in Stamford, Conn., also announced plans to expand sheeting capacity at its operations in Chillicothe, Ohio. That and other changes at Chillicothe are expected to require the addition of about 50 employees.
[So, 150 down and 50 up leaves us with net 100 jobcuts.]
The moves are intended to improve efficiency, the company said....
[Ah yes, short-term downsizing capitalism has this lethal bug - it can't seem to define a kind of efficiency that doesn't kill off its own consumer base.]
- American Electric Power plans to reduce its energy trading, AP via NYT, C4.
...The nation's largest power generator [will] reduce its trading and wholesale marketing operation. The news set off a gain of 20% in the company's share price.
[Still a lot of stupid "investors" out there! And get this -]
E. Linn Draper Jr., AEP's CEO, told analysts in a conference call that the company was reducing its exposure to speculative energy trading markets.
[What about its exposure to speculative stock trading markets?!!]
He did not offer a number or range on jobcuts....
- Mixed news on high-technology jobs, by Steve Lohr, NYT, C3.
...The American Electronics Assoc...report, based on an analysis of government statistics, shows that high-tech employment dropped by 450,000 jobs, or 8%, from the peak in Feb. and Mar. 2001 to June 2002...the most recent month tracked. Manufacturing jobs have been hardest hit during the slump. The category that has not shed jobs, even gaining slightly, is "software service," mostly programmers.
[This is part of the reason we're going into the Great Depression Revisited: The concentration of work, income and wealth makes possible sexy-but-dysfunctional investment distribution that creates bubbles = situations where production and supply far outstrip consumption and demand. The Timesizing.com program lays the groundwork for refunctionalizing investment in Phase 2 and Phase 3, where basic investment (in human capital) is automatically targeted, timed and sized by the actual incidence of overtime.]
- The 5.27m people in the high-tech sector represent less than 5% of the nation's workforce and high-tech output is less than 6% of the GDP.
- But technology looms large as a share of total private investment still over 50%.
10/09/2002 5 downsizings, totaling 19,025 lost jobs, reported in (WSJ) Wall St Journal &/or (NYT) NY Times (not counting "Prime time for cuts - Companies often trim staff during Q4, and outplacement firms report lots of corporate phone calls about layoff plans," pointer blowout (to B8), WSJ, B1) -
- Fiat wants to cut 20% of Italian work force, NYT, W1.
ROME -...Italy's largest private employer..\..struggling with slumping auto sales and a sinking stock price, [will] eliminate as many as 8,100 jobs, or more than a fifth [20%] of its Italian workforce, an unusually large downsizing in Italy. Fiat [will] ask the government for a "declaration of corporate crisis" at Fiat Auto, which would enable workers who are laid off to receive 80% of their salary for more than a year from the state welfare fund.
[Probably what will happen in the future is that corporate executives will be required to run down their personal bank accounts to maintain their employees before being allowed to even think of running down innocent taxpayers' accounts. Here's the Journal's version, which hypocritically highlights government -]
Fiat seeks Italian aid for big layoffs - The ball is in the court of Rome's free-market government, which is likely to be cautious, by Galloni & Boudette, WSJ, A6.
...The ball is essentially in the court of the center-right government of PM Silvio Berlusconi. It must decide whether to help Fiat bear the cost of 6,700 layoffs at Fiat Auto, some 900 more at the parent's parts businesses and another 500 job reductions through early retirement.
[So the NYT's 8100 = this 6700+900+500.]
What Fiat is asking for is similar to help it received from the government in 1993, when nearly 10,000 workers received 60% of their monthly wages while not working....
[Help ain't likely this time, considering yesterday's story -]
Fiat job cuts at car unit worry Italian officials - Problems are complicating GM's plan to buy rest of firm's auto business, by Galloni & Boudette, 10/09/2002 WSJ, A3.
[or NYT version -]
Italy: Job cut warning, AP via 10/09/2002 NYT, W1.
...Fiat, based in Turin, is considering laying off 4,000 workers in Milan and Sicily in addition to the 3,000 temporary layoffs already planned to stem losses at its core auto unit, Italian newspapers reported..\..Italy's government warned Fiat that the jobcuts...could have serious social consequences for the entire nation.... The industry minister, Antonio Marzano, said in a statement that Fiat "must seriously evaluate the problematic consequences of jobcuts."
[Sounds like Italy needs timesizing, not downsizing, before it starts on the Japan-U.S. style downward spiral. And maybe a test drive of that future policy whereby top executives get to run down their own personal bank accounts to save their company and their employees before impacting taxpayers.]
- Philips Electronics cuts parts unit - Dutch firm says action on division will lead to charge of $173m, by Dan Bilefsky, WSJ, B10.
...Europe's biggest consumer-electronics company...will dissolve its components division...as part of a shake-up aimed at streamlining its operations.
[Unfortunately this is also going to "streamline" something more useful, namely, its own markets and its customers' customers.]
...Jeremy Cohen, a Philips spokesman...said Philips planned to shed some jobs in the unit, which employs 13,500 people, though he declined to specify how many. People familiar with the situation said it was likely to be a few thousand....
[The minimum estimate based on the phrases "a few thousand" or "several thousand" is 3,000 jobcuts, since 2,000 would be "a couple of thousand" and 1,000 would be "a thousand."]
- Abbott Laboratories plans to close plants, cut 2,000 jobs, by Thomas Burton, WSJ, D3.
...The North Chicago, Ill., medical-products company..\..continuing to feel the effects of federal regulatory scrutiny of several drugs and laboratory-diagnostic products,...will...shut down manufacturing plants and warehouses.... Abbott, which paid $6.9B in March 2001 to buy Germany's Knoll Pharmaceuticals, also is cutting overlapping staff....
[Again, the toxic, diversity-bashing takeover-downsizing connection.]
- Combined AT&T and Comcast to cut 1,700 jobs, by Andrew Zipern, NYT, C3.
...or 30% of the workforce...at AT&T's cable unit based in Englewood, Colo., after the companies merge.... AT&T Broadband, which has about 40,000 employees nationwide, said the cuts were a result of redundancies. Comcast has about 38,000 employees, with 20,000 in the cable unit.
[Again the toxic takeover-downsizing connection whereby companies collectively kill their own consumer base. Mergers and acquisitions (= "takeovers") also cut the rainforest-like diversity of companies and corporate cultures in the economy, thereby restricting our choice of responses to crises and restricting our adaptibility and survivability.]
..\..The cuts, which were first announced to workers Tuesday in a memo, will mostly affect executive and management positions.
...The new AT&T Comcast, based in Philadelphia, would be the largest cable TV provider in the nation, with 22m subscribers.
[You might think this management downsizing constitutes a positive pruning out of topheavy deadwood, but in a human orchard, there's a way to do this without also downsizing the market for your own orchard's fruit - crosstraining or en-route retraining and reassignment, automatically targeted by overtime. Why put your system through the repeated costs and demoralization of firing +/- rehiring when you can simply crosstrain and retrain on an ongoing and supremely functional (ie: OT-targeted) basis? Human beings are the most versatile species there is, and it's time we made use of that versatility instead of denying it and blocking it.]
- The jobs of 675 employees will end once the deal closes.
- The remaining 1,025 workers will be laid off during the postmerger transition period.
[Oh gee gosh - thumpthumpthump on gorillachest with major effusions of testoterone!]
Shares in AT&T fell.... Comcast shares fell....
[Good. Maybe that'll wake a few of 'em up.]
- Weak ad revenue is causing Dow Jones to plan more job cuts, by Felicity Barringer, NYT, C9.
Dow Jones & Co., which has eliminated more than 1,000 jobs from a workforce of 8,000 over the last 2 years, will make a new round of layoffs in the coming months because advertising revenue at its leading newspaper, The Wall Street Journal, continues to lag even the modest expectations of the early months of 2002, senior executives said yesterday.
[Well, they themselves helped ad revenue to lag by cheering for downsizing and the kind of "efficiency" that cuts your customers and their customers = biting the hand that feeds.]
Both a senior executive who spoke on the condition of anonymity and another executive who spoke to members of The Journal's newsroom union said that companywide layoffs were expected. The number of jobcuts will be "nowhere near" the 550 eliminated in one round of cutbacks last year,
[so we'll estimate 400 jobcuts in this round]
and they will be distributed throughout the company's divisions based on their individual revenues, one senior executive said in an interview yesterday....
- Cummins Inc. - Consolidation will result in elimination of 200 jobs, Dow Jones via WSJ, D3.
...as it folds heavy-duty engine assembly and test operations into a modern assembly line at its Jamestown, NY, engine plant. The diesel-engine maker \based in\ Columbus, Ind...said the affected employees are at its Columbus engine plant. The cuts represent less than 1% of the company's 24,900 employees.... Cummins expects to complete the consolidation during the first quarter....
[Again the toxic takeover-downsizing connection.]
- WHX to close factories in New Jersey and England, Bloomberg via NYT, C4.
The WHX Corp., whose Wheeling-Pittsburgh steel unit filed for bankruptcy protection in 2000, said yesterday that its Handy & Harman business would sell a stainless-steel-wire plant in NJ and one in Britain, eliminating 100 jobs. The closings, in Willingboro NJ and Liversedge, England, will result in $7-8.5m in costs for Q3, and $4-4.5m in severance costs for Q4.... The company will keep open its plants in Cockneysville, Md., and Oriskany, NY. WHX, based in NYC, also said it would have an additional Q3 expense of $5m for excess inventory and "doubtful accounts" from telecom customers.
10/08/2002 8 downsizings, totaling 4,452 lost jobs, reported in (WSJ) Wall St Journal &/or (NYT) NY Times -
- Germany: Telecom job cuts, AP via NYT, W1.
Deutsche Telekom [is] cutting 15,500 more jobs as part of its drive to reduce costs, raising its planned overall cutbacks to about 50,000 or nearly 20% of its workforce, by the end of 2005.
[So if 50,000 is, say, 19% of its workforce, its workforce is about 263,000 and 15,500 is 6% of the total.]
The company, which previously announced 30,000 jobcuts at its main German fixed-line business, will cut 3,500 jobs at its T-Systems telecoms engineering unit and about 1,000 positions at its T-mobile cellphone business.
- G.E.'s aircraft engine division plans layoffs, AP via NYT, C4.
GE Aircraft Engines [will] eliminate 1,000 jobs this year and as many as 1,800 jobs next year because of a slump in the airline industry....
[For a total of 2,800 jobcuts.]
The first employees to lose their jobs will be notified starting next week. A spokesman, Rick Kennedy, said the company hoped that early retirements and voluntary departures would reduce the number of layoffs....
- Raytheon plans to lay off 500 employees, Bloomberg via NYT, C4.
...in Massachusetts and California to adjust for the loss of a satellite contract and to improve organization. HQ staff and engineers will be eliminated in Marlborough, Mass., and El Segundo, Calif., starting next month, a spokeswoman, Amy Hosmer, said. They account for less than 1% of the company's workforce of 77,500....
- Weyerhaeusaer to close a facility, WSJ, p. B3B.
...a 100-year-old Ontario, Canada, containerboard mill in December, [an] aging plant [which] was less efficient than newer facilities..\..which will affect 140 workers.
[Never mind that they and all the other downsizers and all the other companies are already experiencing new "efficient" (thinner) markets for their products.]
The forest-products company said the move will shave 100,000 tons of capacity off its manufacturing network.... The move also stems from its integration with Willamette Industries Inc., which Weyerhaeuser acquired this year for $6.11B. The mill represents just under 2% of the company's total containerboard capacity....
- Work force faces a 20% cut; A quarterly loss is expected, Dow Jones via WSJ, D2.
Inktomi Corp., Foster City, Calif...will cut...about 85 positions, in a move to better align its operating expenses with revenue. The Internet-infrastructure company also...expects to post...a net loss of $45m..\..on revenue of about $29m....
10/07/2002 1 downsizing, totaling 110 lost jobs, reported in (WSJ) Wall St Journal &/or (NYT) NY Times -
- Wall Street braces for deepest job cuts yet - Credit Suisse First Boston is set to reduce work force about 7%..., by Susanne Craig & Randall Smith, WSJ, C1.
Harry Truman once said it's a recession when your neighbor loses his job; it's a depression when you lose yours. By that measure, there soon will be many more depressed investment bankers and traders on Wall Street. The nation's securities firms - having already cut 32,287 employees, or 8.8% of their workforce since year-end 2000 - are bracing for their most significant rounds of jobcuts yet, as the bear market in stocks shows no signs of easing.
[And certainly these market-diminishing jobcuts, instead of market-neutral hours cuts for all, will deepen the bear market.]
In the latest move, Credit Suisse First Boston [CSFB] is readying a new round of cuts, to be announced imminently, of...about 1,700 employees, including investment bankers, traders and salespeople, according to people familiar with the firm. CSFB's parent, Zurich-based Credit Suisse Group, last week said its securities unit will report an operating loss for the 3rd quarter....
- Shell plans to cut nearly one-third of U.S. stations, by Alexei Barrionuevo, WSJ, A10.
Royal Dutch/Shell Group...will cut 30% of its U.S. gasoline stations by June 2004, or 6,000 stations, about double the number it had previously planned to reduce....
[Whoah, that should shrink the economy! This is gonna be The Big One, that you don't get out of without sharing the vanishing work, or World War III.]
In addition to employees who will lose jobs as stations close, Shell...will cut 11% of the staff of its 15,000-person U.S. oil-products operation by 2004 and cut its retail marketing workforce by 35%..\..
[So the only hard figure we have here is 11% of 15,000 which is 1,650 jobcuts, and then we have to imagine unspecified additional cuts from closed stations and retail marketing.]
The Anglo-Dutch oil concern said the more aggressive station reduction would increase its chances to improve profitability....
[Dream on. It will decrease its chances.]
The company points to its success in Los Angeles, where Shell already has cut back its station count by 27% and maintained its market share and sales volume..\..
[A fluke, or somebody's fiddling the figures.]
Shell, which bought part of Texaco Inc.'s interest last year in 2 refining and marketing ventures, has vowed to turn around its U.S. refining and marketing business, the lowest-performing part of its global portfolio.... The move comes as Shell is spending $680m to convert Texaco stations to Shell and to refurbish Shell stations.... Last year, Shell and Saudi Refining Inc. acquired Texaco's interests in about 22,000 gasoline stations, 8 refineries and 30,000 miles of pipelines for $2.1B and the assumption of $1.7B in debt and other liabilities. In doing so, Shell became the largest [and most indebted?] seller of gasoline in the country, with 14% of the gasoline market..\..
[So what, if they're not the most profitable and they're now downsizing. Again, the toxic takeover-downsizing connection.]
In the U.S., Shell has badly trailed chief competitors Exxon Mobil Corp., BP PLC and most other competitors in per-barrel profitability.... Shell plans to have [only] about 15,000 stations by June of 2004....
[Then, will they still be the largest?]
- US Airways plans to lay off 642 service workers, AP via NYT, C4.
...as it worked to cut its flight schedule 13%. The latest jobcuts, which will be confined to fleet and customer service areas, follow the airline's decision to lay off about 1,400 workers by December. An airline spokesperson, Tammy Lee, said...319 fleet service workers and 323 customer service employees would be laid off. The largest cuts will be at hubs in Pittsburgh, Philadelphia and Charlotte NC. In addition to cutting daily departures to 1,350 from 1,550 by the end fo the year, the airline is seeking to reduce its fleet 10%, or by 31 jets.
[Followup. The 1,400 must be the "unspecified" number of cuts mentioned on 8/22/2002 #2. We do not count them until 10/23/2002 #2.]
- Pechiney to cut 202 jobs, Bloomberg via NYT, C7.
PARIS...- The aluminum maker [will] cut...about 17% of the total workforce..\..at its unprofitable Ravenswood plant in WV by the end of the year at a cost of about $9m in Q4.... Pechiney reported an 88% decline in profits in Q2 because of lower metals prices. Aluminum in London has declined more than 4% this year.
- Crown Media Holdings to cut 130 jobs in money-saving move, Reuters via NYT, C4.
...The owner of the Hallmark cable TV network [plans] to cut...30% of its workforce, to cut costs....
- Two magazines are shut and Red Herring is sold, by Carr & Ives, NYT, C6.
...Upside magazine, a privately held publication in Silicon Valley...announced yesterday that [it's] shutting down.... The October issue of Upside, which was in production, will not be published. ...Anything related to the digital economy [has] been suffering.... Upside was founded in 1989 [and] was mailed free to 250,000 people. It was primarily aimed at technology executives.... Eriq Gardner, New York editor of Upside, is one of 75 people who lost their jobs yesterday....
- Two magazines are shut..., by Carr & Ives, NYT, C6.
Mutual Funds magazine, a personal finance magazine owned by AOL Time Warner...announced yesterday that [it's] shutting down.... The November issue of Mutual Funds, which is on newstands now, will be the last.... The publishing economy, hurt by declining newstand sales and disappearing ads, has been difficult for all consumer magazines over the last year.... At a time when many Americans are tossing their 401k notices into drawers without opening them...Mutual Funds, which had a circulation of 825,000, was fighting a difficult battle for consumer attention.... In an announcement, the company said it would try to place the 33 people who lost jobs at Mutual Funds at other Time Inc. magazines but that some would receive severance and assistance in finding another job....
- Focus shifts to two drugs as staff, spending are cut, Dow Jones via WSJ, D4.
Cell Pathways Inc. cut its staff 25% and reduced spending on certain programs as the drug maker shifts its focus to two drugs, which treat lung cancer and leukemia. The Horsham, Pa., company...reduced its workforce to 61 employees from 81 and reduced its planned expenditures in earlier-stage research and discovery....
[So, 81-61= 20 jobcuts.]
10/05/2002 1 downsizing, totaling 110 lost jobs, reported in (WSJ) Wall St Journal &/or (NYT) NY Times -
- JP Morgan layoffs could affect as many as 4,000 employees, by Jathon Sapsford, WSJ, A3.
...The product of a merger between J.P. Morgan & Co. adn Chase Manhattan Bank..\..smarting from a slew of dud loans to the telecom sector, is preparing a fresh round of layoffs in coming weeks...said people familiar with the situation.... Managers are only now drawing up lists of those who are likely to get the ax.... The jobcuts will affect highly paid bankers - including managers - in areas such as lending, underwriting and mergers and acquisitions, as well as staff in areas including marketing, communications and computer support.... Each division will lose as much as 25% of its staff.... The cuts are the latest sign of how the funk in the financial markets has taken its toll on the nation's lenders and investment banks.... J.P. Morgan...already has cut thousands of employees from its workforce during the past 2 years - some as a result of overlap from the merger, but many in the wake of the prolonged downturn in the financial markets.
[Again the toxic merger-downsizing connection. And the more they cut, the more they gotta cut. But they could instead just be cutting a few hours for the whole company and keeping everyone employed, instead of whole jobs for a few, and a few more, and a few more, and.... Is the alternative really that tough to understand? Too obvious? Not macho enough?]
10/04/2002 3 downsizings, totaling 2,308 lost jobs, reported in (WSJ) Wall St Journal &/or (NYT) NY Times (not counting "DEP assesses impact of staffing layoffs" [=oxymoron?], by David Arnold, Boston Globe, B2, which states, "As the state Dept. of Environmental Protection issued pink slips to 50 employees yesterday, officials grappled with the impact of the first major layoff in the agency's 26-year history.") -
- Dow Chemical Co., NYT, B4.
...Midland, Mich., a maker of chemical, plastic and agricultural products, [will] eliminate about 110 jobs, or about 3.6% of the workforce, at its Michigan operations plant as part of a cost-cutting plan.
10/03/2002 3 downsizings, totaling 319 lost jobs, reported in (WSJ) Wall St Journal &/or (NYT) NY Times -
- EMC Corp., WSJ, A8.
...citing weak demand for high-technology goods...will cut its workforce by 7% , or about 1,350 people.... The layoffs will be spread throughout..\..the data-storage vendor...and would reduce the workforce to about 17,000 employees. The company cut 5,110 jobs last year....
- Briefly, by David Oyama, WSJ, A10.
U.S. electric tool maker Black & Decker's British unit said it will cut 950 jobs, including 400 seasonal jobs, and transfer some operations to the Czech Republic, in a move aimed at competing with low-cost Asian goods.
- Forbes set to cease publication of ASAP, by David Carr, NYT, C6.
In what has become a familiar story, a magazine formed to cover the rise of the digital economy has been done in by its decline. The Forbes family, which owns Forbes magazine, announced today that it was closing Forbes ASAP, a magazine founded in 1992 to cover the digital economy....
[Hey, at least it survived 10 years.]
Monie Begley, spokeswoman for Forbes...said about 8 people will lose their jobs..\..
The closing of the magazine, which was one of the first to cover the Internet seriously, is yet another sign of stress at Forbes Inc.... Earlier this year, the company engaged in a rare round of layoffs and ceased matching the 401K contributions of employees. Forbes magazine, which led the business magazine category for much of the 1990s, has lost almost half its advertising pages in the last 2 years and has fallen to 3rd in ad pages behind Fortune and Business Week. In remarks in August, Steve Forbes, president and editor-in-chief, said that the company was responding to "a fall-off that hasn't been seen since the 30s."...
[Another parallel between today's non-recovery and the 1930s.]
For most of its 10-year life, Forbes ASAP was delivered 6 times a year, bundled with the regular Forbes magazine.
[So was it really a separate magazine or just an occasional supplement to the other mag?]
A year ago, it substituted 4 times/yr for Forbes, which is published twice a month....
10/02/2002 3 downsizings, totaling 875 lost jobs, reported in (WSJ) Wall St Journal &/or (NYT) NY Times -
- Storage Technology to cut jobs, WSJ, D4.
LOUISVILLE, Colo. - ...The storage-systems maker..\..plans to outsource certain development and manufacturing activities and expects to cut 200 jobs, or 3% or its workforce, by 2004. ...It will outsource development activities and the manufacturing for the StorageNet 6000 product at its facilities in Minneapolis and Toulouse, France.
- Bon-Ton Stores Inc., NYT, C6.
...York, Pa., an operator of department stores, [will] close a distribution center in York, on April 4 and cut about 70 jobs. Operations at the York center will be moved to Allentown, Pa.
- Nicholas-Applegate plans job cuts - Work force to be trimmed by 15%, once high-flying Global Tech Fund to close, by Aaron Lucchetti, WSJ, D9.
...the technology fund that in 1999 turned out one of the best 12-month performance records ever...494%.... The jobcuts will eliminate 49 employees out of the firm's 328, including 18 investment managers and analysts, as well as client service and sales personnel.... The cuts are the latest in what has become a recurring story in the mutual-fund industry....
10/01/2002 3 downsizings, totaling 2,795 lost jobs, reported in (WSJ) Wall St Journal &/or (NYT) NY Times (not counting human interest "Who's the new guy at dinner? It's dad; Laid-off fathers face tough job at home," by Jeffrey Zazlow, WSJ, D1, which states, "For those now underemployed or out of work in a dismal economy, time at home offers a chance to step up to the plate as parents" - pathetic when Americans can't get financially secure family time from timesizing, just financially anxious family time from downsizing) -
- Eaton Corp. - Dana parts unit to be bought, and U.S. plant will be closed, Dow Jones via WSJ, B10.
...The Cleveland industrial manufacturer..\..Eaton Corp...decided to close a North Carolina automotive-parts plant and move production to Mexico.... At the Eaton plant being closed in Mooresville, NC, about 330 workers will be laid off. The plant makes A/C and power-steering components for automakers. Eaton plans to move the equipment and production to its plant in Queretaro, Mexico, which makes fluid-power components and has excess space.
- Saks will cut as many as 295 jobs in consolidation, Bloomberg via NYT, C4.
...as it combines the HQ of its Younkers stores with the Carson Pirie Scott division offices as part of its cost-reduction measures. Saks will eliminate about 270 positions at the Younkers office in Des Moines and 25 jobs at a division furniture warehouse and distribution center in Green Bay, Wis. The company has about 56,000 employees.... The company...based in Birmingham, Ala..\..will complete the consolidation by Feb. 1, the end of its fiscal year....
[295 out of 56,000 is 0.5% of the total workforce.]
- Hamilton Sundstrand to lay off 250, Bloomberg via NYT, C3.
...A maker of aircraft equipment will...close two offices to save money amid a slump in travel demand. The company, which makes equipment for air-conditioners in addition to fuel-injection systems for planes, will shut operations in Hialeah, Fla., and Denver.... Hamilton Sundstrand, a unit of the United Technologies Corp., has about 17,000 workers worldwide....
The reduction is in addition to 1,500 jobs that were cut after 9/11 [10/17/2001 #1]....
- Fidelity Investments to lay off 1,695 employees - Market slump is blamed; Mutual-fund firm to spare money managers, analysts, by John Hechinger, WSJ, D7.
BOSTON - ...The nation's largest mutual-fund company..\..its business taking a hit in the stock-market tumble, [will] lay off...5% of its work force.... Overall, the company's employment will be down 12%, including attrition, after the latest jobcuts from a peak of 33,369 in Jan/2001. In 2001, Fidelity announced layoffs of 1,114, or about 3% of its workforce, mostly from its brokerage units, which had seen a sharp slowdown in trading. In the current round, about half the jobs eliminated will be in Boston, where the company is based, and suburban Marlborough, Mass..\..
Fidelity's assets under management, now $776B, have fallen 22% since their peak of $1T on Aug. 31, 2000, a drop that will slash the company's revenue and profit.... Because Fidelity, also known as FMR Corp., is closely held, it isn't under the same profit pressure as publicly traded companies, which have cut their staffs far more steeply. For instance,
- Merrill Lynch & Co., the U.S.'s largest brokerage firm, has cut about 17,400 people, roughly 25% of its staff, since the end of 2000 [see 7/25/2002 #1].
- Discount broker Charles Schwab Corp. expects layoffs to total 9,100, or about 35% of its staff, from its employment peak at the end of 2000....[last layoff on 9/18 #2].
- Cessna Aircraft to lay off 400 after buying out 400, AP via NYT, C4.
...It failed to get enough employees to accept voluntary buyouts. The company said in June [nothing in NYT then] that it hoped to cut its workforce by about 900 people, or 6.9% of its worldwide workforce of 13,000, through voluntary buyouts.
[So, a total or 400+400= 800 jobs actually lost.]
The cuts come as orders for the company's Citation business jet slow. Cessna said the layoffs would come in the next 30 days, on top of [the] other 400 jobcuts achieved through the voluntary separation package. The reductions will affect every class of worker, a spokeswoman said.
[But this is another company absolutely generating recession by cutting consumers in record profit -]
This has been a record year for Cessna, with 300 deliveries of the Citation. But the company expects that to fall to 250 deliveries in 2003, she said.
[In short, a combination of negativity and downsizing, instead of timesizing, is making this a self-fulfilling negative prophecy.]
Cessna, based in Wichita, Kan., is a division of Textron of Providence, RI.
- Electronics company to cut additional jobs in U.S., Bloomberg via NYT, C4.
The CTS Corp., a maker of electronic components and assemblies, plans to cut an additional 140 jobs and move more work to China to cut costs, it said yesterday. The transfer will take place by the 4th quarter of next year. Last month, CTS cut 160 jobs.
[No mention in NYT or WSJ, so now we count all 140+160= 300 jobcuts. CTS is run by another bunch of clowns who are going to act surprised as their American markets deteriorate, despite their participation in the transfer of jobs for American consumers to China.]
It employed 6000-6200 workers before the new job reductions.... CTS [is] based in Elkhart, Ind....
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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