Timesizing® Associates - HOMEPAGE
Downsizings, Oct. 16-31, 2002
[Commentary] ©2002 Phil Hyde, The Timesizing Wire, Box 117, Harvard Square, Cambridge MA 02238 USA (617) 623-8080
10/31/2002 6 downsizings, totaling 12,930 jobcuts, reported in national WSJ & NYT (not counting regional report of 94 job reductions according to "Etc. - LTX Corp. of Westwood MA," Globe wire services, Boston Globe, E2) -
10/30/2002 7 downsizings, totaling 2,089 jobcuts + unspecified, reported in WSJ & NYT -
- EDS says profit fell 59%, plans work-force cuts, by Elliot Spagat, WSJ, A3.
With some big contracts souring, and corporate spending dropping, Electronic Data Systems Corp. [E.D.S.] posted net income of $86m...compared with $212m...at year earlier..\.. The big computer-services company will cut its workforce of 138,000 by as much as 4%, or 5,500 people.... EDS said it would...cut its workforce between 3% and 4% over the next several quarters, including 800-1000 positions by year-end. It said...that it would transfer at least 1,500 jobs to save money.... Chairman and CEO Richard H. Brown said he and other executives won't get any bonuses this year....
[Giving up bonuses, though undoubtedly impressive to the top executives involved, provides nowhere near the level of income centrifugation the economy need for recovery. Only an adjustment in a high-frequency unit (such as workweek) of a pervasive dimension (such as time) can match that need, and only an automatic design will accomplish the adjustment in a timely fashion.]
In a low key, new E.D.S. chief [Michael H. Jordan] hopes to regain skeptics' trust, by Romero with Feder, NYT, C1 & C7.
...Rod Bourgeois, an analyst at Sanford Bernstein & Co...brought 20 large investors here for a visit early this month.... Morale in the company is definitely improving.... But morale would plunge again this summer when Mr. Jordan plans to announce the details of his cost-cutting and strategic plans. Thousands of employees are expected to be laid off - Mr. Bourgeois's estimate is 6,000 jobs, or 4% of the workforce - after [previous CEO Richard] Brown eliminated 5,500 positions last year....
[So the 2,000 we counted on 7/03/2002 #1 may have been included in this 5500.]
- Nortel chief says firm has adjusted to telecom realities, WSJ, B6.
...The Brampton, Ont., company..\..has cut more than 60,000 jobs and has 3,000 more to go to get to its target workforce size of 35,000..\..said the company's CEO, Frank Dunn, in an interview [in Hong Kong]....
- Corning Inc. to close three plants, by Dennis Berman, WSJ, B4.
...3 optical-fiber plants, marking a significant retreat from the business that was once considered the lucrative building block of the Internet age.... The Corning, NY, firm...also will lay off 2,200 employees, which will bring total employment to 23,500. At the company's peak in 2000, it employed 43,000....
- Boeing unit plans to eliminate up to 1,500 jobs, AP via NYT, C4.
Boeing's shared-services division, which handles computing, telecoms, building maintenance and other in-house jobs for the aerospace company, plans to cut 1,200 to 1,500 jobs in the next six months.... The cuts, which will come through layoffs, attrition and eliminating contract workers, amount to nearly 9% of the unit's workforce, said a spokeswoman, Barbara Murphy. Most employees of the unit, based in Bellevue, Wash., work in the Puget Sound region. The cuts come on top of 30,000 jobs that Boeing plans to eliminate by the end of this year [2002, see 9/19/2001 #1] because of reduced commercial jet production and the weak airline market.
- Consolidation of some assets to eliminate about 650 jobs, Dow Jones via WSJ, B2.
DuPont Co. plans to consolidate some of its coatings and color-technologies assets.... The Wilmington, Del., chemical company...employed about 79,000 workers at the end of 2001....
[See also earlier cuts by DuPont Textiles & Interiors unit announced on 4/30/2002 #1.]
- Lehman cuts 80 European jobs, by Erik Portanger, WSJ, C4.
...as part of a broader restructuring of its activities in the region.... People familiar with the situation said the latest round of layoffs mainly involves junior bankers.... The restructuring in Europe is aimed at streamlining the way Lehman deals with key clients, people close to the matter said. Lehman has created a small team of "relationship bankers" that will offer broad investment advice to executives at major corporate clients.\..
The changes by the unit of Lehman Brothers Holdings Inc., which were announced to staff Wednesday, are the latest sign that investment banks are positioning themselves for a continuation of the weak economic and market conditions that have weighed on earnings over the past 18 months.... [Unlike] Morgan Chase.., CSFB.., Citigroup.., Lehman, based in New York, has so far managed to avoid large-scale layoffs, having cut only about 300 jobs, or 2.3% of its workforce, in the past 12 months. About half the cuts have come from its European operations....
But a larger-than-expected decline in Q3 earnings has prompted speculation that deeper reductions might come soon. Lehman reported last month that net income in Q3 feel to $194m from $309m a year earlier, due to declining equity markets, the impact of rising defaults on credit markets and a record level of downgraded debt....
10/29/2002 2 downsizings, totaling 265 jobcuts + unspecified, reported in WSJ & NYT
- CIBC ends REIT research, by Ray A. Smith, WSJ, B6.
...The move comes roughly one week after the firm's parent company, Toronto-based Canadian Imperial Bank of Commerce [CIBC], announced it was slashing 240 jobs, mainly in the U.S., "as a result of the continued low level of business activity, particularly in investment banking" [ie: speculation banking], and another 470 jobs due to a planned realignment of operations and technology support for CIBC World Markets and its wealth-management business.
[Apparently CIBC's World Markets unit had only 4 people working for it (see story below, #6) but according to our present story it had 470 people supporting it in parent CIBC?!? Be that as it may, we have a total of 240+470= 710 jobs lost at parent CIBC.]
It also comes on the heels of J.P. Morgan Chase & Co. suspending analyst coverage of REITs
[= part of the bloodbath on 10/07/2002 #1?]
and FleetBoston Financial Corp.'s shutdown of its Robertson Stephens investment-bank unit, including its REIT research team....
[See 7/13/2002 #2. While we're at it, there's a similar story in the WSJ's next section, "CSFB lays off 20% of bankers," see below #4, which says, as an aside, -]
...Meanwhile, Citigroup Inc. is expected to lay off about 1,000 employees at its global corporate and investment bank, including about 200 investment bankers....
[and we caught that carnage earlier on this page way down on 10/25/2002 #5. Hooboy: CIBC (Canadian Imperial Bank of Commerce) here and in #6, CSFB (Credit Suisse First Boston) in #4 - this is the first time we've seen stories on both these confusable banking tetragrammata on the same day.]
- DaimlerChrysler's Freightliner truck unit will lay off 675 workers as orders drop, Dow Jones & staff via WSJ, B2.
...at plants in the U.S. and Canada, and it signaled further layoffs are on the way elsewhere. The Portland OR unit blamed the layoffs on a "significant decline" in orders for the biggest long-haul trucks, following new rules from the EPA that require big cuts in emissions from those rigs' diesel engines. New-truck orders throughout the industry spiked earlier this year as trucking fleets tried to stockpile new rigs before the rules took effect, but orders have cratered in recent weeks....
- Broadwing to cut 500 jobs as sales fall, Bloomberg via NYT, C8.
...A telephone company that is facing $1.2B in debt payments amid falling sales, will [also] defer a divident payment to conserve cash....
- CSFB lays off 20% of bankers, Dow Jones via WSJ, C5.
...Last week, CSFB [Credit Suisse First Boston] cut 20% of its stock-research staff, or about 100 people....
- Vail Resorts is eliminating 100 jobs to trim costs, Bloomberg via NYT, C4.
...Owner of the Vail, Breckinridge and Keystone ski resorts is cutting...jobs, including that of its president...Andy Daly...and the position would be eliminated..\..to save $10m a year. The company, based in Vail, Colo...is laying off 50 workers and is not filling 50 vacant positions, the CEO, Adam Aron, said in a conference call. The cuts represent less than 1% of the resort owner's workforce....
- CIBC ends REIT research, by Ray A. Smith, WSJ, B6.
CIBC World Markets Corp. has exited the real-estate investment trust [REIT] research business.... Along with..\..CIBC analyst Michael Mueller.., analyst Anthony Paolone, assoc. analyst Joshua Bederman and an admin. asst. were also terminated....
[Totalling 4 jobcuts.]
- A lack of money forces computer initiative to close, by John Schwartz, NYT, C8.
...Tomorrow, with nearly 1,000 community-based technology centers financed across the country, the national offices of PowerUp will close
[unspecified jobs lost]
and the centers \to\...will left to fend for - and finance - themselves..\.. When Stephen M. Case, then the chairman of America Online, and many other high-tech exectives announced an initiative called PowerUp less than three years ago, they said that their donated millions would help bridge the "digital divide" between rich and poor....
[This is a pretty dramatic example of the problem with relying on charity to perform vital economic functions - it's just too damn capricious. "When the going gets tough..." these wimps fold. Bush Sr. and his "1000 points of light" can stuff it. We need systemically guaranteed centrifugation, not mere charity. Timesizing-like programs can do that. Donations cannot. First they try to evade blame -]
Those familiar with the fizzle of the once-promising project say it is a disheartening side effect of the stock market slump.
[Then they do auxiliary damage control -]
A spokeswoman for PowerUp, Denise [or Demise?] Keyes, said, "It was never the intention for this to go on" indefinitely, and that the centers were always supposed to become self-sustaining. "This seems like a natural transition time," she said....
[Never mind that this is a time of record low charitable donations....]
(not counting net regional loss of 1,537 jobs according to "In Georgia, clues to a puzzling job market - Broad, uneven trend: As one city recovers, its neighbor doesn't," by Bernard Stamler, NYT, E1, which states, "Savannah...job gain: 3,430.... Augusta...job loss: 4,967" [photo captions],
and not counting "Coping with the spiral of stress that layoffs create," by Mary Duenwald, NYT, E3, which states, "The layoff leads to financial insecurity, which sets off depression; that in turn causes people to feel they have little control over events. Next comes hopelessness and ultimately, sleeplessness, headaches, chronically upset stomachs and fatigue. "People tend to think that the big psychological shock of job loss happens at the first moment," said Dr. [Richard] Price [of U.Mich.], who tracked 756 people for two years after they had lost their jobs. "But it's the cascade of events that is triggered by it that causes greater and more lasting harm.")
10/28/2002 2 downsizings, totaling 86 jobcuts + unspecified, reported in WSJ & NYT -
- Veeco Instruments posts loss and cuts jobs, Reuters via NYT, C5.
...A maker of semiconductor equipment yesterday reported a 36% drop in sales for the quarter, and said it had begun cutting 20% of its workforce to achieve a profit next year even without a revenue increase.... Veeco said its workforce would decline to 1,056 employees, after 265 jobs are cut by the end of the 1st quarter....
- In hazard suits, saving dusty jeans - New York Historical Society preserves store's 9/11 memorial, by Glenn Collins, NYT, C18.
...The store..\..Chelsea Jeans...opened a year and a half before 9/11 and was closed for 2 months after it..\.. The store's proprietor, David Cohen...had to destroy his inventory, which was coated with pulverized debris from the World Trade Center. But Mr. Cohen spent about $10,000 to seal a portion of the store that held $1,000 worth of merchandise. "I wanted it preserved just as it was, to freeze this moment in history," Mr. Cohen said. "I knew that no one would even remember how bad, how ugly, how sad 9/11 was."...
For a while after 9/11, Mr. Cohen's landlord, TLS Properties, a division of Riese Organization, reduced the monthly rent of $25,000 by a third,
[Oh thanks a million. Instead of 25 grand while he's lost all his merchandise and is closed to 2 months, he just has to pay $16K a month!]
but ultimately there were not enough customers to make a profit, Mr. Cohen...said.... Revenue plummeted 40% below the level before 9/11..\..
[Which is strange because -]
In the early months, there were lines out the Chelsea Jeans door at 196 Broadway, near the corner of Fulton Street..\.. No one will ever know how many people stepped into Chelsea Jeans after 9/11, gazed and meditated a bit, then moved on. Mr. Cohen calculated that hundreds of thousands visited, many of them clutching guidebooks billing the memorial as a Ground-Zero essential....
[Maybe they weren't in the mood for buying clothes.]
"The business never truly recovered," he said..\.. David Cohen, shuttered its doors on Saturday, a victim of hard times in Lower Manhattan..\..
[Unspecified jobs lost.]
Chelsea Jeans has served as a gripping shrine for hundreds of thousands of visitors from around the world..\.. The Chelsea Jeans memorial [is] a glassed-in collection of dust-covered, flag-bearing Ralph Lauren sweaters and Levi's jeans.... The Historical Society decided to save the entire memorial because it would help explain to people in the future "so viscerally what happened on 9/11"..\..said Amy Weinstein, a curator from the Historical Society, which has preserved a host of shrines and ground-zero memorabilia..\.. The removal was unprecedented.... The fragility of the layers of dust and the toxicity of the remnants posed problems. ...Said Chris Myers, a manager at Op-Tech Environmental Services, a hazardous waste cleanup company [from] Syracuse, "...This is the first time we've ever been asked to preserve toxic dust." Ms. Myers was supervising a crew of four [wearing] dust booties and respirators with exotic filters to remove toxic and organic particles \in\ moving the material. \It\ was painstakingly dismantled, and workers began moving it to the New York Historical Society.... Op Tech has donated its services.... Eventually, the recreated memorial - in an air-tight environment - will find its way into a future exhibition, "Unfinished Lives."...
10/26/2002 no downsizings reported in national WSJ & NYT, but 4 downsizings, totaling 160 jobcuts + unspecified, reported in regional Boston Herald, Boston Globe & Timesizing.com reader network -
- CNBC Asia Pacific to cut about 40 jobs, WSJ, B4.
HONG KONG - Business news channel [is] cutting...a little more than 20% of its total workforce in the region. The layoffs, announced Friday, come amid a continuing slump in advertising and are the latest in a series of jobcuts at the programmer that stretch back over the past year and a half. Staffing at the channel will drop to around 135 employees, down nearly 40% from a peak in mid-2001, when advertising in the region began to soften in line with a worldwide economic slowdown. Late last month, CNBC's Europe affiliate announced a 15% reduction in its workforce....
[We haven't caught any of these cuts so we'll catch'em now. If 135 is down nearly 40%, say 39%, therefore 135 is 100-39= 61% and 100% is 135/61x100= 221. Therefore the total cuts since mid-2001 are 221-135= 86 jobcuts. Plus the unspecified number of cuts that their Europe affiliate indulged in.]
- Equity-investment business to be cut over next few years, WSJ, C3.
...GE Equity is also expected to cut some jobs "in the near term," said..\..Peter Stack, a GE spokesman...who wouldn't identify how many.
Currently, GE Equity employs 135.
10/25/2002 6 downsizings, totaling 9,110 jobcuts, reported in (WSJ) Wall St Journal &/or (NYT) NY Times - the shrinkage of the consumer base roars on -
- Waltham MA firm cuts 80 jobs, by Donna Goddison, Boston Herald, 20.
...The 27% workforce cut will leave..\..StorageNetworks Inc...with about 215 jobs..\..as the...company moves from a focus on storage hosting to software....
- Velvet Drive folds up, c. 10/19/2002 New Bedford Standard Times via reader *Ken Ellis' email 10/26 1:48pm.
...New Bedford MA recently lost a little production facility when Velvet
Drive, a manufacturer of marine transmission for small boats folded up.... Eighty-something jobs were lost....
- John Hancock Financial Services' earnings hurt by stock drop, by Jon Chesto, Boston Herald, 21.
...A company spokesman said an unspecified number of additional jobcuts were made in the just-ended quarter, as financial markets continued to struggle....
- The end of the line - It was a wrenching family decision: Freedberg of Boston, a clothing firm since 1934, shutters its doors today, by Tina Cassidy, Boston Globe, C1.
[Unspecified jobs lost.]
10/24/2002 3 downsizings, totaling 769 jobcuts, reported in (WSJ) Wall St Journal &/or (NYT) NY Times (not including "TerraLycos lays off 174 workers in US," by D.C. Denison, Boston Globe, C3) -
- Cost-cutting ax is falling again at ABB, by Alison Langley, NYT, W1.
ZURICH...- Once again, Juergen Dormann is finding himself having to slash and burn.
[Unless these uncreative CEOs realize there's an alternative to slashing and burning, there's going to be no consumer base left to support most of them.]
Mr. Dormann's cost-cutting tactics were so sharp-edged at Hoechst, the German chemical and drug company he "led" for years [our quotes - ed.], that newspapers took to calling him a boardroom Rambo.
[Shades of destructive and negative "Chainsaw" Dunlap, who ruined almost every company he touched, especially Sunbeam.]
Now, as he tries to salvage ABB [Asea Brown Bovery], the faltering Swiss-Swedish heavy equipment maker, Mr. Dormann is again taking radical action:
[Check out all these supposed conservatives taking radical action.]
$800m in cuts, a whole division to be sold, the rest of the company to be shuffled and thousands more jobs to be eliminated.
[So, at least 2,000 more jobcuts.]
The plan by Mr. Dorkman [oops] Dormann, ABB's 3rd CEO in 5 years ["this year's model"], is his [braindead] response to the company's plunging fortunes this year. ..."In short, we have to cut costs," Mr. Dormann said. He wants to achieve that...with the company's 3rd reorganization in 4 years....
[Shades of Robert "Armanisoot" Palmer, who used to take DEC thru a reorg every month. They can't think of anything constructive to do so they turn destructive - immediate-term financial murder, longer-term financial suicide as consumer demand shrivels.]
He hopes for $800m in savings over the next 18 months, on top of the effort begun in 2001 to cut $500m and 13,100 jobs.
[We only caught 12,000 of these in-process jobcuts on 7/25/2001 #2, so we must now count 13100-12000= 1,100 more "old" jobcuts.]
Mr. Dormann...did not specify the number of new jobcuts, though he hinted that there would be thousands; more details...next month.... A Swiss labor union said today that it was worried that 18-20,000 could be lost under Mr. Dormann's plans....
[Not to mention the much more extensive consumer base dependent on those jobs. So far we're only justified in counting "thousands" of new jobcuts, ie: 1000 plural= 2,000. So our total cuts to count here is 2000+1100= 3,100 jobcuts. The 12000 7/25 cuts left the declining balance at 151,838. An additional 3100 cut would be 3100/151838= 2% of the total pre-these-cuts workforce. And the new declining workforce balance for self-immolating ABB is 151838-3100= 148,738 insecure souls quavering 'ere the next axe fall.]
- With profit down 71%, Duke Energy to cut 1,900 jobs, AP via NYT, C4.
...1,500 regular positions and 400 contract workers....
- Eastman Kodak plans further layoffs, posts higher net, by James Bandler, WSJ, B2.
...The Rochester NY photography leader reported net income of $334m..., up from $96m...in 3Q01..\.. Kodak CEO Daniel Carp said in a conference call with analysts that while he was pleased with the 3rd-quarter results reported yesterday - a year-over-year improvement...- more cost cuts were "the prudent thing to do." \So\ girding itself for expected weakness in 4th-quarter sales, [Kodak] will cut as many as 1,700 workers in another round of layoffs....
[Again, this is the worst kind of CEO - one that expects the worst despite being in profit, and his expectations become self-fulfilling prophecies because what he considers a "prudent" downsizing cuts his customers' customers and absolutely creates recession.]
Layoffs have become an almost routine part of business at Kodak.
[Shades of Robert Palmer as he destroyed DEC, and Albert Dunlap as he destroyed Sunbeam and the previous companies he CEO'ed. They can't think of anything positive to do (such as give everyone more free time) so they do something negative.]
The latest round will eliminate 1,300-1,700 positions, with around 1,000 of the cuts coming in the 4th quarter....
[It really is astonishing that these CEOs and the B-schools that trained them think that their kneejerk downsizing "strategy" has no cumulative impact on the economic environment. But with this many of them doing it, deeper and deeper recession is inevitable.]
The company said it would take $130-170m in charges to cover severance and other layoff costs, most coming in the fourth quarter.
[Timesizing instead of downsizing allows this kind of money to be put to much better uses.]
Kodak, which has pared its work force by more than 4% in 2001 to 75,100 workers [from 78,200? - it supposedly was at 78,400 on 9/20/2001 #2, and 4000 was deducted from that on 10/25/2001 #3 and 128 on 11/22/2001 #2, meaning by the end of 2001 they should have been down to 74,072], said the latest round of layoffs would save the company $200m annually, with half of the savings realized next year....
[assuming its markets will hold up, which they won't, because of the prevalence of this suicidal downsizing fad. (Taking the first set of figures, 78200-75100= 3100 cuts in 2001? We have definitely accounted for that undercounted figure.)]
- US Airways sees further trimming of its expenses, by Susan Carey, WSJ, A6.
...US Airways had losses of nearly $2B last year and of more than $517m in this year's first half.... Since 9/11, it has cut about 11,000 jobs, not including more than 2,000 more layoffs expected later this year.
[This rounded-down 2,000 figure must be the 642 cuts we counted on 10/08/2002 #3 plus the 1,400 cuts by December that they followed. Bottom line = we must now count those 1,400 jobcuts.]
- Citigroup seen cutting 1,000 jobs - Analysts cite weakness in mergers and offerings - A banking company where morale is already low, by Riva Atlas, NYT, C1.
...because of numerous investigations..\.. Citigroup is planning jobcuts in its investment banking and corporate banking businesses...according to executives who were briefed on the plans.... Analysts said the additional layoffs were not surprising given the continued weak demand for banking services like advice on mergers, as well as for offerings of stocks and bonds.
["Weak demand" would never happen if the following statement, stored in another part of conventional economists' partitioned brains, were true, "Human wants are unlimited." Never mind it's contradiction of the whole neo-classical revolution of marginalism of the 1870s and 80s, upon which all subsequent economics is based. Economists use the phrase "human wants are unlimited" to claim that therefore human employment is unlimited and so the idea that we have to divide up and share a limited amount of human employment is ridiculous, it's that stupid "lump of labor fallacy" that shorter-hours advocates are always committing. However, a "margin" is a limit, and the whole marginalist pricing theory of modern economics is based on the price at the limit. So modern economists have these two conflicting stories rattling around in their heads at the same time: there are limits, there aren't limits. They're the ridiculous ones. Clearly there ARE limits. Marginalism is right. The second taste of sugar isn't as good as the first, and the thirty-second is positively sickening. Wants are not unlimited. There are abstemious monks and there are simplicity and frugality movements with thousands of members. More than that, there are people with little or no spending power, whose supposedly unlimited wants are irrelevant. And if wants and therefore employment is unlimited, why is downsizing ever "necessary"? -]
The securities industry has eliminated more than 50,000 jobs in the last two years, more than 12% of its peak employment at the end of the stock market boom in 2000....
The layoffs at Citigroup will be broadly dispersed within the global corporate and investment bank, which has more than 55,000 worldwide employees, according to an official who was told of the plans.... The jobcuts will include more than 200 investment bankers who are to be laid off over the next few weeks, executives close to the company said.... These cuts will affect experts in corporate mergers and corporate finance and amount to 10-15% of the staff.
[Good, maybe some of these insulated encouragers of mergers, the frequent first step to downsizing, will now understand the stupidity and destructiveness of what they've been fueling - a death spiral in the economy, via layoffs and consumer unconfidence.]
The cuts among investment bankers "will be focused on the upper levels" in terms of seniority, one executive said.
A spokeswoman for Citigroup, Arda Nazerian, said the bank would "continue a process of targeted reductions throughout the organization that reflect the current market realities and an ongoing review of our business."...
[Ooo, that should be great for morale. Coup de grace.]
- Adobe Systems to dismiss 7.4% of work force, Bloomberg via NYT, C8.
...The maker of graphic-design software is dismissing about 260 employees...after 5 quarters of sales declines. The job cuts are taking place this week.... The company, which is based in San Jose CA, had about 3,500 employees before the reduction.
[We caught 250 of these babies on 10/17/2002 #4 below, so now we just have to count 260-250 = 10 jobcuts.]
10/23/2002 3 downsizings, totaling 2800 jobcuts + unspecified, reported in (WSJ) Wall St Journal &/or (NYT) NY Times (not counting industrywide badnews in "Many airline workers laid off after 9/11 are still unemployed," by Steven Greenhouse, NYT, A25) -
- Industrial tool maker to lay off more than 300, AP via NYT, C4.
...Kennametal will lay off 300 to 340 employees worldwide, or up to 2.4% of its workforce.... The company, which has 14,000 employees, will make the layoffs, which have already begun, because of uncertainty about the economy, the spokesman, Steve Halvonik, said....
- United Airlines amends cost-cut plan to try to get loan guarantee, by Edward Wong, NYT, C5.
...On Jan. 7, United will shut service in Caracas, Venezuela; Santiago, Chile; and Duesseldorf, Germany. Fifteen days later, it will close its station in Milan, Italy. The closings will result in the loss of
[So, a total of 69+110+46+4= 229 jobcuts that appear to be additional to the 1250 cuts mentioned in 10/22/2002 #2 below.]
- 69 jobs in Caracas,
- 110 in Santiago,
- 46 in Milan and
- 4 in Duesseldorf....
- Aquila, quitting energy trading, will cut 200 [more] jobs, AP via NYT, C4.
...by the end of the year...its CEO [Richard C. Green Jr.] says. With those cuts and others, the company said, it will have shed nearly 25% of its workforce by the end of the year.... Aquila began the year with about 7,300 employees. So far, 1,015 employees have been laid off and anaother 580 have left voluntarily of now work for new employers as part of properties that Aquila sold to raise money....
[These jobcuts are additional to those on 8/07/2002 #1.]
10/22/2002 5 downsizings, totaling 6,080 jobcuts + unspecified, reported in (WSJ) Wall St Journal &/or (NYT) NY Times -
- IBM will close unit in Hungary, WSJ, D2.
ARMONK, NY - International Business Machines Corp...will close its Hungarian hard-drive unit, IBM Storage Products KFT, because of low demand for the company's products.
[This is the constant litany of economic depression - "closed because of low demand for the company's products."]
The closure or IBM Storage in Szekesfehervar, in western Hungary, will result in the loss of 3,700 jobs. IBM has about 310,000 employees worldwide.
[3700 is slightly more than 1% of 310,000.]
The company's other Hungarian subsidiaries, IBM Service and IBM Global Services, will remain open.
[Note this other strange little version of the story in the first section with totally different figures -]
Worldwatch -...Europe/Africa/Mideast -...Briefly, by David Oyama, WSJ, A16.
International Business Machines [will] close its hard-disk-drive plant in Szekesfehervar, Hungary, cutting 2,100 jobs, part of a plan to trim 2,800 jobs worldwide, or about 1% of the company's workforce.
[As it happens, 2800 is slightly less than 1% of 310,000. So which version is right?
In line with our policy of taking the most conservative bad news - because the truth is already so bad it needs no exaggeration - we'll go with "2100 jobs lost in Szekesfehervar plus 700 jobs elsewhere around the world for a total of 2800," which still rounds off to 1% of their worldwide workforce.]
- 3700 jobs lost in Szekesfehervar, period?
- 2100 jobs lost in Szekesfehervar plus 700 jobs elsewhere around the world for a total of 2800? or
- 3700 jobs lost in Szekesfehervar plus 700 jobs elsewhere around the world for a total of 4400?
- Maxtor Corp. - Third-period loss narrowed amid 21% decline in revenue, Dow Jones via WSJ, A8.
...amid a decline in shipments. The Milpitas, Calif., disk-drive maker reported a net loss of $163.6m...compared with a net loss of $165.7m...a year earlier. The latest result included a $9.5m restructuring charge associated with a facility closure.
[Unspecified lost jobs. The only thing we already have on Maxtor in 2001-2002 is 1500 jobcuts on 6/22/2001 #1.]
Revenue dropped to $819.7m from $1.04B a year earlier.... The company released its results after regular [stock] trading ended....
- KLA-Tencor Corp. - Chip-equipment supplier sees FQ1 net fall 41% amid industry ills, WSJ, A9.
...on much weaker sales, as the semi-conductor industry continues to struggle.... The latest quarter's earnings included a $9m pretax gain from the sale of technology, offset by charges from consolidating facilities....
[Unspecified lost jobs.]
Revenue fell 25% to $375.5m from $502.8m..\.. KLA...San Jose, Calif...issued its results after regular trading ended.
10/20/2002 no downsizings reported in (WSJ) Wall St Journal &/or (NYT) NY Times (not counting yesterday's 11 cuts at Sullivan & Worcester LLP according to "Corrections," 10/19/2002 Boston Herald, 17) - just one bittersweet story -
- [Be patient - the downsizing is at the end -]
Getting a lean staff to do 'ghost work' of departed colleagues, by Carol Hymowitz, WSJ, B1.
Many executives face difficult challenges these days, managing the leaner, demoralized staffs that remain after layoffs and cost-cutting. They still have to get the same amount of work done despite the shrinking staff and resources.
[Why do they have to get the same amount of work done when the usual rationalization for layoffs is slower sales? And of course, they'd have to do none of this is they trimmed hours a bit for everyone and kept everyone employed, rather than trimming jobs completely for a few (and later a few more, and later a few more....).]
Inevitably, these bosses have to ask their employees to do not only their regular jobs but also the work of axed colleagues - and without additional pay.
[This is not inevitable if they trim hours, not jobs.]
Meanwhile, managers themselves are doing much more than their normal jobs. The result is that no one gets the training needed to do this "ghost work," or the jobs of departed colleagues, says Hamilton Beazley, a consultant and author of "Continuity Management: Preserving Corporate Knowledge adn Productivity when Employees Leave."
"The problem with ghost work is that employees not only have more work to do but aren't very efficient at it since they may not have the knowledge they need to do it well," he says.
[No kidding. Yet these chaos-spreading downsizing CEOs have the gall to talk about efficiency. What a joke!]
"That reduces productivity and can be demoralizing."
One way to cope is to encourage employees to share their expertise before they leave.
[Oh yeah? And what possible incentive would they have to do that?!]
Another is to put goals in priority and focus on the most important tasks.
[More likely, "and only get done the most important tasks."]
...Five of Pinnacle's senior executives are taking buyouts but only one, the CFO, will be replaced..\.. "We're already dancing as fast as we can, so coming in at 7 am instead of 7:30 isn't the solution...."
[But try to tell that to face-time oriented, crisis-generating CEOs.]
"The only option is to work smarter," says Armando Flores, exec. VP of corporate business services at Pinnacle West Capital, a Phoenix-based energy company [which] reduc[ed] staff by about 600 employees, or 8% [7/24/2002 #3], through voluntary layoffs and attrition.
[How do you "work smarter" when you're overtired? Better to trim hours and prioritize even more ruthlessly.]
...Employees usually have the best ideas about what work can be cut or simplified, says Karen Scussel, VP, HR, at Agilent Technologies, a Palo Alto CA maker of electronics products. The company has cut staff by about 8,000, or 20%, over the past 14 months....
[We caught half of these on 8/21/2001 #2, so we still need to count 4,000 jobcuts now. If 8000 is 20% (strange, when our previous article calls 4000 only 9%), then the whole workforce is 8000/20x100= 40,000 and this last 4000 is 4000/(40000-4000)= 11% of the remaining 36000 total.]
- United Airlines plans to cut $1.4B in operations and 1,250 jobs, by Edward Wong, NYT, C6.
UAL, the parent company of United...announce[d] that it planned to save $100m a year from streamlining that includes the loss of...jobs. That cut results from the closing of reservations centers, the elimination of a maintenance line and the conversion of five airport stations to cheaper regional jet service...along with a reduction in the flight schedule....
- United [is] shutting down one of its three Boeing 757 maintenance lines in Indianapolis. That will result in the [indefinite?] furlough of 250 mechanics.
[An indefinite furlough is the same as a layoff.]
- Another 160 mechanics will lose their jobs because of schedule reductions.
- On Jan. 4, UAL will close its reservations offices in San Francisco, Long Beach CA, and Indianapolis...lay[ing] off 686 workers. The company cited a 25% year-over-year drop in calls to its reservations line.
- On Jan. 7, UAL will switch from usng larger, mainline planes at 5 of its airports to using 50-seat regional jets, operated under United Express...result[ing] in the loss of about 150 jobs....
- TI swings to profit, plans to cut jobs, by Elliot Spagat, WSJ, B4.
DALLAS - Texas Instruments Inc., swung to a Q3 profit on strength in wireless-equipment sales, but the semiconductor maker said it might return to a loss in Q4 and would cut about 500 jobs from its workforce of about 35,200....
- Dynegy to lay off 14% of work force, Bloomberg via NYT, C2.
HOUSTON...- Dynegy Inc., which is abandoning its energy trading business, [will] lay off about 780 workers..., including an estimated 600 at its Houston headquarters. ...The layoffs will reduce the Houston-based company's workforce to about 4,600 total.... Some of the employees will continue to work through a transition period of up to five months as the company unwinds its trading operation, a Dynegy spokesman, John Sousa, said.
[We counted 450 of these cuts below on 10/17 #3, so we need now to count 780-450= 330 additional jobcuts. 780 is 17% of 4600, so the 4600 must be just the Houston workforce and there must be about 5,570 employees worldwide, of which that 780 is 14%. So the 330 cuts we're currently counting are 330/(5570-450)= 6% of the workforce as reduced by the 10/17 cuts.]
- Continental in accord with machinists, Bloomberg via NYT, C6.
HOUSTON...- Continental Airlines will give mechanics with 30 years or more of service $40,000 to retire by 2004 under the terms of a tentative contract reached with the workers' union. The Teamsters [Union] represents about 3,000 mechanics at the airline....
[Unspecified jobs lost.]
Continental and other airlines have sought to trim their workforces and reduce flights to adjust to a drop in air travel and revenue. Layoffs typically eliminate the lowest-paid workers at the bottom of seniority lists; incentives to retire help remove higher-paid senior workers....
10/18/2002 6 downsizings, totaling 14,170 jobcuts + unspecified, reported in (WSJ) Wall St Journal &/or (NYT) NY Times -
- Partying like it's 1999 - Wall Street layoffs create a late-night subculture that's having a blast on its severance pay, by Katherine Rosman, NYT, 9:1.
Enjoying the bust - Unemployed Wall Streeters...out with friends at Suite 16 [NYC nightclub]. Some call themselves the 405 Club - $405 being the amount of their weekly unemployment checks. [photo caption]
10/17/2002 6 downsizings, totaling 6,495 jobcuts + unspecified, reported in (WSJ) Wall St Journal &/or (NYT) NY Times (not counting "Duke Power to lay off hundreds," AP 10/15/02 17:18 EDT, and unspecified layoffs per "Axcess Inc. announces [indefinite] employee furloughs," Business Wire 10/16/2002 19:00 Eastern, both via AOLNews) -
- Profit for Southwest Air is industry rarity - Northwest, Continental, America West post losses as Delta cuts jobs, by McCartney & Trottman & Carey, WSJ, B4.
...Delta Air Lines [will] cut an additional 7,000 to 8,000 jobs. Including the latest reductions, the nation's 3rd-largest carrier will have cut 18,000 jobs, or 23% of its workforce, since 9/11 last year.
[Let's see, if 18000 is 23% of the total, the total is 18000/23x100= 78,260. But 10,000 have already been cut, so the current total is only 78260-10000= 68260. So the additional 8,000 cuts will be 8000/68260= 12% of the current total.]
A Delta spokesman said the staff cuts were a "financial imperative if we're going to survive for the long term."...
[No, the staff cuts are financial suicide for the long term. He's missed the imperative completely, which is hours cuts and maintained employment for all and maintained consumer demand from all.]
Delta Air Lines says half of 8,000 job cuts will be layoffs, AP via 1/10/2003 NYT, C3.
...The nation's 3rd-largest carrier [will] lay off about 4,000 employees who did not accept voluntary offers to leave the company.... About 3,900 employees have accepted voluntary severance packages and early retirement offers. The rest will be laid off [so specifically, 8000-3900= 4,100]. Most of the job reductions will be completed by May 1....
- Sun Microsystems posts loss, plans to reduce staff by 4,000, by Don Clark, WSJ, B6.
[This is the story we didn't count when it came out on 10/16/2002 but only in the Boston Globe. Today both the WSJ & the NYT are carrying it.]
...The Santa Clara, Calif., computer maker..\..announced a hefty fiscal first-quarter loss [$111m] and plans to cut...11% of its workforce, casting yet another cloud over gloomy Silicon Valley. [It] indicated that technology spending continued to deteriorate in the final weeks of the quarter, suggesting little relief from the lengthy slump Sun has been in for more than a year....
[How is tech spending going to do anything but deteriorate until tech companies quit downsizing employee-consumers and switch to timesizing?!]
The company moved more slowly than some others in Silicon Valley to trim its workforce, announcing a 3,900-employee reduction a year ago that constituted its first major layoffs ever [see 10/06/2001 #2 - "first ever" except for 300 on 8/01/2001 #5]. The latest cuts include a previously announced reduction of 1,000 employees [news to us - ed.], and are designed to take Sun's workforce from about 39,000 as of June 30 to about 35,000....
Some analysts have been pushing Sun to become more aggressive on cutting its staff....
[But then, some analysts are suicidal idiots.]
- Profit is posted for 3rd period; More job cuts are planned, Dow Jones via WSJ, B2.
Textron Inc...plans to cut an additional 2,000 jobs even as it reported a profit for the 3rd quarter.
[This is the worst kind of company strategy - the most 'successful' at starting the death spiral to recession, accelerating it if it's already started, and killing off any nascent recovery.]
The Providence RI industrial conglomerate...said the new jobcuts are designed to help meet restructuring goals and cope with a sluggish economy. They are in addition to cuts announced previously for an initiative to reorganize some divisions and sell off others. The combined reduction of 9,500 employees is about 16% or the workforce....
- Publication of Rosie will be discontinued, Dow Jones via WSJ, B4.
NEW YORK - Bertelsmann AG's Gruner+Jahr USA is shutting down the celebrity magazine.... "We have been forced to suspend publication...and as a result, will be eliminating approximately 120 positions," the NY publisher said.... The last issue...will be on newsstands Nov. 12.
- One more vestige of King Cotton fades out in Mississippi, by Peter Kilborn, NYT, A15.
PORT GIBSON, Miss...- The Port Gibson Oil Mill died in June. The steam whistle that once summoned all 50 workers at 7 every morning - and woke everyone else in town - is silent. The day-and-night din of machines crushing cottonseeds is gone, and with it the comforting odor of the seeds cooking....
The mill ran for 120 years, which townspeople say is longer than any other cotton-oil mill anywhere.... The Archer Daniels Midland Co. of Decatur, Ill., the agribusiness behemoth and the mill's owner for the past 11 years, closed it with 2 weeks' notice, then filed a request to demolish it. "There was overcapacity in the industry," said Larry Cunningham, senior VP at Archer Daniels. "The Pt. Gibson facility was less efficient, smaller, and older than other facilities...."
The town of 1,840 between Natches and Vicksburg, 8 miles east of the Mississippi, is fighting back....
- Net loss narrowed, as [$1.18B] charge hurt year-earlier third period, Dow Jones via WSJ, B2.
Broadcom Corp.'s...Pres. and CEO Henry Nicholas III \said\ the Irvine, Calif., communications-chip maker...will reduce expenses through job cuts, improved operating efficiencies and lowered capital expenditures....
[Unspecified jobs lost.]
- Honeywell International plans to slash more jobs, by Andy Pasztor, WSJ, A9.
...The maker of aerospace, automotive and industrial products..\..despite nearly 2 years of deep-cost cutting...will close more plants and eliminate thousands of additional jobs to cope with expected weak demand for aerospace and industrial products through 2003. Honeywell disclosed plans for further reductions at the same time it reported that it swung to a profit of $412m in Q3 from a year-earlier loss.
[The most economically destructive and irresponsible kind of job reductions = during profit. This is the kind that absolutely creates recession out of thin air, or if it's already there, deepens it. This is the recovery-killer.]
...The Morris Township, NJ, company..\..which had previously cut one of every six jobs at the company...expects to eliminate as many as 5,000 additional jobs, or nearly 5% of its current workforce. Chairman Dave Cote, who took over 9 months ago following a long period of internal turmoil and a failed merger with GE, made it clear that deeper reductions, including layoffs and moving certain manufacturing to lower-cost locations in other countries, will be among his primary tools to weather the hard times.... The latest results...included a huge 45% drop in sales of equipment for new commercial aircraft, as well as significant dips in sales of aviation spare parts across the board.... Yesterday, the company reported somewhat stronger cash flow than anticipated and more robust profit margins in its sprawling industrial-automation and control segment. But only its smallest division, specialty chemicals and materials, posted a jump in revenue....
[Our current arthritic corporate design, with rigid workweeks and no harnessing of the incidence of overtime to target and trigger cross-training and if necessary, hiring, cannot smoothly and automatically bring more human resources into the areas of jumping revenue. Phase Two of the Timesizing program, applied at the corporate level, changes all that.]
- Weyerhaeuser to cut 750 jobs at headquarters, AP via NYT, C4.
...through layoffs and attrition by the end of 2004. The cuts amount to 26% of the company's corporate staff of 2,850. The company employs about 58,000 people around the world. Most of the latest[-announced] cuts will come next year...although the finance and information-technology departments will be hit the hardest. Weyerhaeuser is based in Federal Way, Wash.
- Dynegy says it will exit the energy trading business, by Jonathan Glater, NYT, C5.
...and revamp its business as part of an effort to cope with declining prices, a junk credit rating and a stock price that has fallen more than 98% over the last year. ...Dynegy's decision to close its trading business, which employs about 450 people worldwide, calls into question the viability of the business, at least as it has been practiced by the company and its rivals, like Mirant, Aquila and El Paso, industry analysts said....
- Adobe to dismiss workers in 4th quarter, Bloomberg via NYT, C4.
...The world's biggest maker of graphic-design software will lay off..."in the neighborhood of 250" \according to\ Jay Vleeschhouwer, an analyst with Merrill Lynch..\..this quarter after a decline in sales.... The company laid off 246 workers, or 8% or its workforce, late last year as demand for software to design brochures and websites fell.
- Time Inc. is closing Sports Illustrated Women, by David Carr, NYT, C7.
...published 10 times a year. [It] ceased publication yesterday.... The 45 employees were notified yesterday that the December issue of the magazine, which had a circulation of 400,000, would be its last....
- Adverse market environment fueled third-quarter loss, Dow Jones via WSJ, C13.
Knight Trading Group Inc...has been paring back its operations. The company cut about 7% of its U.S. workforce in the 3rd quarter, following a 10% domestic staff reduction in the 2nd quarter.
[Unspecified jobs lost.]
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.
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