January 28 – Starbucks spills 6700 jobs – SAP cuts 3000 – Avery labels 3600 unemployed – Another 1600 at GM on unemployment – Boeing to chop 10,000 total, not just 4500 – DuPont to release 8000 contractors – STMicroelectronics sheds 4500 – Jabil minus 3000 – Allstate hands 1000 pink slips – AOL disconnects 700 – Celestica cuts 590
Mike: Good day to all. The news at the start of the day is gloomy for many who have lost jobs at SAP, DuPont, Molex and other locations. But if you have money in the stock market, you can be thankful this morning as it appears that there is great optimism for the upcoming US stimulus vote. I’m not sure why the excitement, but it’s a bit of good news for a change.
Mike; If anyone knows of layoffs that I haven’t posted, feel free to drop me a note and I’ll make sure they are recognized.
- Microsoft and IBM Rumors/News
General Economic News
US and some Canada Layoff News
* IBM has cut as many as 4000 positions in the US as it scales back due to the current economic climate.
The company is reluctant to release any specific numbers, as roles in hardware, software and sales jobs are axed, according to a report by the Associated Press.
* ESSEX JUNCTION — At Five Corners Variety in Essex Junction, down the road from IBM’s microelectronics plant, Heidi Clark said she worried the company’s latest round of layoffs would hurt the liquor store’s business.
“It all trickles down,” said Clark, an employee at the store. “If people can’t find jobs locally, they don’t shop here.”
Granted, each round of layoffs usually brings a day of good business to the store. One man bought a bottle Tuesday to celebrate keeping his job at IBM, Clark said.
“He said, ‘Either way, I was going to stop in here today,'” Clark said.
* ROCHESTER, MN (KTTC-TV) — KTTC has confirmed that significant numbers of layoffs have happened at the Rochester IBM plant. The “resource actions” had been scheduled by the computer firm for days, and had been the source of anxiety for many workers whose personnel reviews had been set for this week.
An inside source tells the NewsCenter the number is around 800, or about 18 percent of the workforce. Most of the cuts happened in the Systems and Technology Group. The Rochester Chamber of Commerce says about 4,400 people work inside the sprawling IBM complex along U.S. 52 in northwest Rochester.
More on IBM:
7:00 AM ET
The Mortgage Bankers Association’s purchase applications index fell 2.9 percent to 294.3 in the holiday shortened week of Jan. 23. The refinance index dropped 48 percent to 3,373.9. These numbers bounce around quite a bit especially in shortened weeks. The most interesting numbers in the report are mortgage rates led by the 30-year fixed rate which remains stubbornly above 5 percent, at an average 5.22 percent for a 2 basis point decline in the week.
2:15 PM ET
Specifically, the Fed said it is “prepared” to buy longer-term Treasury securities if the circumstances warrant such action. At its December meeting, the Fed said it was merely evaluating that option. Such a move could help drive down mortgage rates and provide help to the stricken housing market, economists said.
* Jan. 28 (Bloomberg) — Eastman Kodak Co., fresh from a $3.4 billion, four-year restructuring that cut its workforce in half, may announce a second shake-up amid a continuing drop in sales.
“To see any sort of meaningful turnaround, they have to get costs way more in line with their peers,” Standard & Poor’s equity analyst Erik Kolb said in an interview. “That means cutting jobs, cutting anything wherever they can.”
* John Thain is Hilariously Unacceptable
There is something hilariously ballsy about Merrill Lynch CEO John Thain trying to excuse spending $1 million to redecorate his office (including the now infamous $87k rug) by saying “It was over a year ago,” as if in 2007-2008 no one had an inkling that our markets were about to melt and therefore it was totally acceptable to spend more money than most people make in a lifetime on a room where you spend less than 25% of your time in.
* WASHINGTON – Massive deficits could force the post office to cut out one day of mail delivery, the postmaster general told Congress on Wednesday, in asking lawmakers to lift the requirement that the agency deliver mail six days a week.
If the change happens, that doesn’t necessarily mean an end to Saturday mail delivery. Previous post office studies have looked at the possibility of skipping some other day when mail flow is light, such as Tuesday.
* All Fayette County school custodians, secretaries and office staff will have to take two unpaid days off before June 30 to offset a projected deficit.
The Fayette County school board on Tuesday unanimously approved the two-day mandatory furloughs, including a request for administrators to take voluntary furloughs.
* The combination of a nationwide recession and a state budget deadlock is forcing the county of Ventura to eliminate the equivalent of 71 full-time positions, bringing the total number of jobs cut in the past few months to more than 120.
* RIDGEFIELD — Eight town employees were laid off Tuesday due to “declining revenues,” said First Selectman Rudy Marconi.
* (Rochester, N.Y.) – The Rochester City School District reports that its budget deficit has grown by $7 million to $61 million in just one month and is now projecting about 500 job cuts.
* Ada County eliminated 16 development services staff Tuesday, furthering a cut in the agency over the past 10 months from 41 employees to 20.
* Missouri Gov. Jay Nixon proposed cutting 1,300 state jobs during his State of the State address Tuesday night.
* The New Jersey Turnpike Authority will cut 80 positions in 2009 and maintain a hiring and promotional freeze, according to the operating budget approved this morning by the agency’s board of commissioners.
* FRANKFURT, Germany (AP) — Software maker SAP AG said Wednesday it would cut 3,000 jobs worldwide to cut costs as its 2008 net profit fell 2 percent, weighed by a difficult year-end when the financial crisis deepened.
* But a troubling and unpredictable economic climate means that SAP, like many other companies inside and outside of high tech, will continue tightening its belt. SAP said Wednesday that it plans to trim its worldwide workforce by about 3,000 positions by the end of 2009, from 51,500 down to 48,500 jobs.
SAP said that the job cuts, at least some of which it expects to come through attrition, will lead to annual savings of 300 million to 350 million euros starting in 2010.
* The company lowered its full-year earnings estimate for 2009 to $2 to $2.50 a share, down from its previous guidance of $2.25 to $2.75 a share. It also announced that it would cut 8,000 contractors from its work force.
* Jan. 27 (Bloomberg) — Avery Dennison Corp., the world’s largest label maker, said it will eliminate about 10 percent of its workforce, or about 3,600 jobs, after reporting its first sales decline in 12 quarters.
The cuts will cost about $120 million, most of which will be booked in 2009, the Pasadena, California-based company said today in a statement. The sticker-maker said it will save $150 million annually over the next two years once the cuts are implemented.
* Tuesday, Avery Dennison Corporation (AVY: News ), reported a drop in profit for the fourth quarter as net sales came down more than 11% during the three-month period. Additionally, the company also revealed restructuring actions to reduce its global workforce by 10%.
* DEXTER — McNeilus Trucking and Manufacturing is planning to close its Dexter plant with nearly 30 employees.
* WILKES-BARRE — Intermetro Industries Corp. announced Tuesday the layoff of 20 employees, bringing the total number of jobs lost since November to 88.
Approximately 70 of the laid-off employees are hourly production workers, said Emily Umbright, spokeswoman for Emerson Electric Co., which owns Intermetro.
* Up to 150 employees could face layoffs at the Auto Truck Transport terminal in Cleveland — a direct result of the job reductions and production cutbacks at Freightliner.
The Auto Truck Transport layoffs will take effect March 16. The terminal at 320 Bear Poplar Road near Freightliner employs mostly drivers and shop workers.
* The newspaper industry’s deep-rooted problems combined with recessionary pressures have led the Athens Banner-Herald to eliminate 15 full-time employees.
* The restructuring moves will reduce 2,500 jobs in the March quarter, the company said in a conference call, in addition to 5,600 layoffs in the December quarter and an expansion of the 1,200 job cuts announced earlier this month.
* INDIANAPOLIS Add the Indianapolis Colts to the growing list of job-cutting sports companies.
The team announced its decision Tuesday in a two-sentence statement, but declined to say how many jobs were cut. The Indianapolis Star reported the number is about 25.
* Lexmark International will cut or transfer nearly 160 jobs at its Lexington headquarters as part of its fifth restructuring or work-force reduction in five years.
* Black & Decker has laid off 33 hourly employees from its North Jackson location.
Employees were laid off on Monday and Tuesday of this week, said Carmen Simeon, manager of Human Resources in Jackson.
* DECKERVILLE, Mich. — Dott Manufacturing in Huron County will be closing its doors in the next 60 days.
The Deckerville plant makes car emblems and plans to lay off nearly 160 people.
* A cookware supplier is closing its city store, with the loss of four jobs.
– ProCook, which supplies both top brand and its own ProCook brand cookware and electrical appliances for the kitchen, is closing 18 of its stores nationwide, including its Norwich shop in Chapelfield shopping centre
* Around 90 employees at Liberty Homes’ Statesville facility have been notified that the home manufacturer has decided to make their temporary layoffs permanent.
“Everybody is kind of sad,” Phil Cummings, plant manager, said. “Some people are getting laid off with almost 25 years of service.”
* The parent company of the Capital newspaper in Annapolis said Tuesday it is trimming 111 jobs in response to declining advertising revenue and a weak economy.
* Honda Motor Co. Ltd. on Tuesday disclosed its fourth North American production cut in three months, part of a continued effort to align its vehicle inventory with slumping consumer demand.
The automaker, which recently opened a plant in Greensburg, Ind., said it will cut 29,000 vehicles from its plan at all North American plants for the remainder of its fiscal year, which ends March 31. That reduction includes 14,000 fewer cars and light trucks assembled at Honda’s Marysville and East Liberty, Ohio, plants.
Spokesman Ron Lietzke said the cuts will be accomplished by a mix of reduced daily output and temporarily idled assembly lines.
* STAFFORD — Warren Corp. has laid off roughly a third of the employees at its woolen and fabric mill, according to a state Labor Department official…………
The 57 workers were given information on how to file for unemployment, as well as how to access employment services, such as the CTWorks offices and related services, Steffens said.
* Intel Corp. may cut up to 500 manufacturing jobs in Chandler as part of workforce reductions, the computer chipmaker announced last week.
Spokeswoman Dawn Jones said managers notified Intel’s Arizona workforce on Tuesday that the previously announced cuts would affect manufacturing plants at the company’s Ocotillo campus.
* Boeing Co.said Wednesday it plans to slash about 10,000 jobs across its businesses, compared to a prior announcement of 4,500 job cuts from its commercial airplane unit.
* Boeing which posted a loss in the fourth quarter, said Thursday it will reduce its workforce by 6% or 10,000 positions.
CEO Jim McNerney, speaking on a fourth-quarter earnings conference call, said the positions will be eliminated “through a combination of attrition, retirements and reductions. Fundamentally, this is a solid company with a strong growing core business. “[But] the global economy continues to weaken and is adversely affecting air traffic growth and financing.”
* BOWLING GREEN, Ky. — A southern Kentucky car-parts manufacturer says it will lay off 90 workers next week.
Harman/Becker Automotive Systems in Franklin blames the layoffs on the ailing economy and the effect it has had on the automotive industry.
* Let the penny pinching commence! Merrill Lynch’s training program took a hit yesterday as many of its trainees were shown the door.
A Merrill Lynch spokesperson confirmed the layoffs, but could not provide details about the number of trainees let go. In general, trainees who had been generating revenue for fewer than 24 months and did not meet certain production thresholds were told to take a hike.
via Merrill Cuts Trainees .
* S4Carlisle Publishing Services Inc. laid off 10 employees at its West End office Tuesday in what a company spokeswoman called a “company reorganization.”
* Auto Truck Transport of Rowan County will begin laying off some 100 employees in mid-March, according to a filing with the N.C. Department of Commerce.
* Tellabs Inc. has laid off 25 percent of the workforce at its Petaluma optical networking unit as it struggles with flagging demand from telecommunications providers.
Despite a drop in sales, Tellabs reported higher quarterly profits Tuesday, largely because of the company-wide cutbacks announced last October.
* GREENVILLE (AP) — Two eastern North Carolina newspapers say declining business conditions will force them to eliminate a total of 28 jobs.
The Daily Reflector of Greenville said it will eliminate 23 positions across its 232-member staff, except for the circulation department. The Rocky Mount Telegram said it would eliminate five positions on its staff of 49 people.
* The moves come as GM and Chrysler are racing to get concessions from labor and other stakeholders as required under the terms of the $17.4 billion federal rescue of the two companies.
The 1,600 UAW workers in GM’s jobs bank will be placed on layoff and must apply for unemployment. Between a mixture of unemployment and company pay, they will then receive about 72% of their normal compensation, GM spokesman Tony Sapienza said.
* In further signs that the deepening recession is having a major impact on Jewish universities and institutions, two major seminaries here announced tuition freezes and budget cuts, the city’s largest Jewish cultural institution laid off nearly 10 percent of its staff and Brandeis University is taking the highly unusual step of selling off its prized contemporary art collection.
“This is one of the more challenging moments in recent history,” Jewish Theological Seminary Chancellor Arnold Eisen told The Jewish Week.
* General Shale Brick announced today that they will be laying off 50 people this Friday.
We first told you about this news story July 19. The layoffs from General Shale’s Johnson City plant were originally slated to occur Sept. 15, but the company was able to hold on to the employees until this week.
* Analogic Corp. of Peabody said that it will reduce its worldwide workforce by 9 percent, or 140 jobs, including 128 in Massachusetts, as part of a plan to cut costs by $9.6 million per year.
* The American Civil Liberties Union, impacted by the unfolding economic crisis, laid off ten percent of its national workforce this week. Thirty-six staffers lost their jobs, including five in the Washington, D.C. legislative office, a source familiar with the firings told the Huffington Post.
* NEW YORK, Jan 28 (Reuters) – AOL will cut about 700 jobs, or 10 percent of its workforce, as the Internet services and media company struggles with an advertising downturn and recession, according to an internal memo circulated to employees on Wednesday.
* AOL will cut up to 10 percent of its work force, or about 700 people, freeze some raises and consolidate its remaining operations centers.
CEO Randy Falco outlined the cuts in a memo to employees Wednesday afternoon. Falco also said the company was reviewing its international operations.
* Hubbell Lighting in Christiansburg has let go of more workers.
A member of the local union for the company says 26 hourly employees were permanently laid off this month because of lack of demand for industrial lighting.
* West Liberty Foods announced this week it is not immuned to the recession. The processing plant announced Thursday, Jan. 15, 2009, it will be laying off approximately 75 workers from the West Liberty plant, effective Monday, Feb. 9, 2009.
* Starbucks said Wednesday that it would slash 6,700 jobs and close an additional 300 stores — including 200 in the U.S. — as the Seattle-based company continues to struggle during the recession.
* Starbucks will cut 6,000 positions in stores worldwide over the next eight months, and will eliminate about 700 non-store workers by mid-February.
The immediate cuts will include about 350 people at its headquarters.
* NEW YORK, Jan 28 (Reuters) – The Reader’s Digest Association Inc is cutting about 8 percent of its staff as it tries to strengthen itself against the world financial crisis………….
The company employs about 3,500 people, spokesman William Adler said, making the cuts equal to about 280 jobs. The cuts will include layoffs and leaving some positions unfilled, he said.
* Through layoffs and reduced hiring, Norfolk Southern Corp. has cut 758 train and service jobs since April, and 100 additional workers will lose their jobs over the next month, said Stephen Tobias, the company’s vice chairman and chief operating officer, during a conference call with analysts today.
* Sepracor Inc., known for its Lunesta sleeping pill and Xopenex asthma medicine, is slashing 530 jobs, or 20 percent of its work force.
The Marlboro company announced the layoffs after the market closed, along with its fourth-quarter and full-year financial results and outlook for 2009.
* Revel Entertainment laid off 400 workers today and said it would stop interior work on the one new casino project in Atlantic City that hadn’t yet fallen victim to the economic crisis and the credit crunch.
* Celestica will close plant in Arden Hills, cut 590 jobs
Citing reduced demand for its products, the Toronto-based company will eliminate 440 full-time jobs and 150 contract jobs in Arden Hills.
* OMAHA, Neb. — First National Bank of Nebraska plans to eliminate 350 jobs across its operation, but most of the layoffs will be made in Omaha where the bank is based.
* Jan 28 (Reuters) – Underwear maker Hanesbrands Inc (HBI.N) posted a higher-than-expected fourth-quarter profit, helped by cost-reduction efforts and higher domestic product prices, and said it would cut 310 jobs.
* Jan. 28 (Bloomberg) — Allstate Corp., the largest publicly traded U.S. home and auto insurer, will cut 1,000 jobs after the falling value of investments caused the company’s first annual loss as a public firm. Shares dropped 11 percent in extended trading.
* In a Form 8-K, Skyworks Solutions (Nasdaq: SWKS) today committed to a restructuring plan to realign its costs given current business conditions. The Plan reduces global headcount by approximately 4%, or 150 employees, primarily affecting RF transceiver development.
* In response to the on-going global economic slowdown and resulting changes in demand requirements from customers, Jabil (NYSE: JBL) plans to cut its manufacturing capacity in certain geographies and to shrink its worldwide workforce of 85,000 by approximately 3,000. Jabil said the restructuring will appropriately align its manufacturing sites with the Company’s current customer demand outlook and increase operational efficiencies. Approximately ten global plant sites will be impacted, and approximately ten percent of the headcount reductions will take place in the United States.
* Athletic-clothing retailer Pacific Sunwear of California Inc (PSUN.O) said it cut 57 jobs and slashed its capital expenditure budget as part of its cost-cutting measures to combat the weak economy.
* Saint Clare’s Hospital has announced a financial restructuring to reduce costs and improve productivity that will include 180 job cuts, including 100 people to be laid off today, hospital officials said this afternoon.
* WEST DES MOINES, Iowa – FBL Financial Inc. has announced that it is cutting more than 70 jobs from its home office in West Des Moines.
* Workers at the General Motors Corp. Tonawanda engine plant have learned the impact on them of the recently announced production cutbacks at GM’s U.S. assembly plants.
The plant disclosed today that 65 additional hourly employees will be placed on indefinite layoff as of Jan. 30.
* Citrix Systems plans to eliminate 10 percent of its global staff to reduce operating expenses as the recession hurts demand for networking software.
* “We are talking 3,000 jobs across the country,” Dragos Parvan, spokesman at a local employment agency branch, told Realiatea TV.
* TOKYO—Panasonic Corp. said Wednesday it will cut 560 jobs in Asia due to the closure of two plants in the region, while declining to confirm a report saying the Japanese electronics giant will likely suffer its first net loss in six years.
* LONDON (Reuters) – London water utility Thames Water on Wednesday said it was cutting up to 300 jobs to cope with soaring borrowing costs and lower revenues.
* Swiss firm Barry Callebaut, the world’s largest chocolate maker, is to cut around 100 jobs at its production site in Dijon, France.
* Itella, a state-owned enterprise previously known as Finland Post, said in a statement Wednesday it would start a round of statutory cooperation procedure talks with the aim of cutting about 85 jobs.
via NewsRoom Finland.
* May cut up to 100 jobs, not ruling out forced redundancies
* SAN JOSE, Calif. — Amid a loss and a poor outlook, STMicroelectronics Inc. outlined a major cost-cutting effort in 2009, including a plan to shed 4,500 jobs.
* LONDON (Reuters) – Aerospace and automotive engineer GKN added to gloom in the jobs market by announcing a further 1,400 layoffs on Wednesday and plans for more cuts for 2009.
* Shop Direct has this lunchtime told staff that it is to close its Crosby call centre and reduce staff numbers elsewhere.
The home retail group, which used to trade as Littlewoods, will shed 900 posts across its Merseyside operations.
* Business software maker Parametric Technology Corp (PMTC.O) said it would cut about 250 jobs in the wake of a sharp drop in license revenue as deals dry up in a weakening economy.
* Serious Food Ltd in Llantrisant, which employs 420 people, entered into a consultation with 200 employees over a redundancy programme in November.
* Those looking for work may want to help the government gather information for the 2010 Census.
The U.S. Census Bureau is seeking temporary part- or full-time workers who can be relied upon to compile information about area residents, either by traveling door-to-door or through phone work. The pay: between $11 and $15 per hour — or closer to $20 an hour if you become a supervisor.
* LANSING — The state will hire an additional 276 workers — more than double the current staff– to handle an avalanche of unemployment claims, and beef up Internet capacity to speed up the filing process and ease the crunch on the overwhelmed system, Gov. Jennifer Granholm announced Wednesday.
Mike: The large layoffs announcements waitedfor the afternoon to arrive. Tens of thousands again lost their livlihoods, but the stimulus package came closer to being approved, which hopefully leads to some robust job creation. Let’s end this hectic day with a couple of laughs. Till tomorrow ………….