February 26 – Weekly jobless claims at record 667,000 – Continued jobless at record 5.11 million – JPMorgan to cut 12,000 jobs – Republicans continue to reject additional aid for unemployed – Nissan cutting 1,400 in SP – Durable goods orders plunge – Cisco layoffs start with 250 – 40,000 jobs cut at UK town hall? – Xerox eyes more layoffs – Sales of new homes tumble to record low pace
He noted that weekly filings, adjusted for population growth, would have to exceed the 1 million mark in order to break the jobless claims reported from the mid-1970s and early 1980s.
Mike: I notice that this story seems to be fine with accounting for population growth to give a better picture of the job loss numbers. After all there are millions more in the workforce now than there were 30 years ago, but these same outlets don’t account for the change in unemployment reporting that occurred during the Clinton administration, which increases the unemployment rate. It would be nice if our trusted news organizations were a little more truthful in thier reporting.
- U.S. Initial Jobless Claims Rose 36,000 to 667,000 Last Week
- Orders for durable goods fell for a record sixth consecutive month – Bloomberg.com
- New-home sales tumble to record low pace in Jan.
- JPMorgan to cut 12,000 jobs related to WaMu deal
- 250 Bay Area Cisco Systems Employees Get Laid-Off
- Xerox eyes more layoffs
- GOP advocates rejecting unemployment aid
- Ohio basket company lays off almost 300
- Nissan to cut 1,400 jobs in Spain
- 40,000 jobs threatened as recession hits town halls in UK
- GKN to cut 2,400 more jobs
- British insurer RSA to cut 1,200 jobs
- TietoEnator to cut jobs as market weakens
- Carphone Warehouse to announce 400 job cuts
- Lend Lease slashes 2000 jobs and delays projects
- BASF to shrink in 2009, cut 1,500 jobs worldwide
- Microsoft/Google/IBM and other Rumors/News
General Economic News
US and some Canada Layoff News
* Apple’s annual shareholder meeting was dominated, as usual, by groups using the event as a soapbox for furthering their political agenda. Apple COO Tim Cook only answered a couple real questions from individuals, and the crowd sang out happy birthday to Steve Jobs, who was away on medical leave.
The hour long meeting was consumed by four largely symbolic shareholder proposals that failed to pass in a preliminary tally of votes, each of which was rallied against by Shelton Urlick, a staunch conservative who grew increasingly upset as he voiced his opinions on various measures.
* A chief executive has to work pretty hard to push his shares lower on a day when the market overall is surging.
Microsoft Corp. CEO Steve Ballmer managed that feat Tuesday: The software titan’s stock was the only one of the 30 issues in the Dow Jones industrial average to decline.
Microsoft slipped 4 cents to close at $17.17. It traded at midday at a new 11-year low of $16.36.
*The thousands of contractors who work at Microsoft through third-party agencies are facing pay cuts beginning Monday, as Microsoft continues to look for ways to cut costs.
Microsoft and its contracting agencies agreed to a 10 percent cut in the bill rate, impacting all temporary worker assignments. Several contract employees have said the reduction is being passed on to them in the form of a pay cut. One person said some agencies are seeking to pass deeper pay cuts onto their workers. Several contractors contacted The Seattle Times, asking for anonymity for fear that speaking out would jeopardize their jobs.
* Regardless of what Apple honchos said at today’s shareholder meeting, I have come to the sad conclusion that Steve Jobs will never return to the helm at Apple. This is another of those “I hope of am wrong, but . . .” posts that I hate to write. But, skipping the shareholder meeting is a more than subtle hint that Jobs won’t be back in the active role he’s enjoyed, if at all.
8:30 AM ET
The 5.2 percent drop was more than twice as large as projected and followed a 4.6 percent decrease the prior month, the Commerce Department said today in Washington. Comparable data began in 1992. Excluding transportation equipment, orders fell 2.5 percent.
8:30 AM ET
* Feb. 26 (Bloomberg) — First-time claims for U.S. unemployment benefits unexpectedly rose last week and total benefit rolls soared to a record high, a sign companies may keep shedding jobs as the recession worsens.
–First-time unemployment applications increased by 36,000 to 667,000, the highest since 1982, in the week that ended on Feb. 21 from a revised 631,000 the prior week, the Labor Department said today in Washington. The number of people staying on benefit rolls rose in the previous week by 114,000 to 5.112 million.
Job losses are crippling the consumer spending that makes up about 70 percent of the economy, threatening to prolong what may be the worst recession in the postwar era. President Barack Obama is counting on his $787 billion stimulus, to help stop the slide by creating 3.5 million jobs, and a separate plan to keep Americans struggling with mortgage costs from losing their homes.
Mike: I wonder if these Republicans still think that giving the unemployed a few extra bucks is still a bad idea? There’s a constant Republican cry to cut taxes on businesses, but when times are tough and these same businesses shed jobs by the millions, shouldn’t those that were left jobless by these companies get at least enough money to survive until the next job comes along? There is no better way to show how these Republicans think more of big business than they do of the struggling person looking for work.
* Jefferson City — Lt. Gov. Peter Kinder and Republican legislative leaders want Missouri to reject millions in federal stimulus dollars for increased unemployment insurance, saying the legislation would burden businesses with new taxes in future years.
10:00 AM ET
The Commerce Department reported Thursday that sales fell 10.2 percent to a seasonally adjusted annual rate of 309,000, the worst showing on records going back to 1963. It was a weaker showing than the pace of 330,000 that economists expected, and shattered the previous all-time monthly low set in September 1981.
Mike: For those of you who want to see the BLS ten-page PDF on the January Mass Layoff numbers, here you go (the link is a PDF).
* Employers took 2,227 mass layoff actions in January that resulted in the separation of 237,902 workers, seasonally adjusted, as measured by new filings for unemployment insurance benefits during the month, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Each action involved at least 50 persons from a single employer. The number of mass layoff events in January decreased by 48 from the prior month, while the number of associated initial claims increased by11,785. Over the year, the number of mass layoff events increased by 751, and the number of associated initial claims increased by 88,834. In January, 738 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 102,577 initial claims. Over the month, mass layoff events in manufacturing decreased by 133, and initial claims decreased by 2,825.
* On the heels of layoff announcements at area sawmills and other industries, the Clarke County Commission announced Tuesday that it will cut its 36- person road and bridge department by 15 employees.
* Guilford County has cut 35 positions, including 10 active employees, as it works to create a budget that doesn’t include a property tax increase.
* A lack of funding at the Huron County Sheriff’s Office has cost four corrections officers and a dispatcher their jobs.
* NEW YORK (AP) — JPMorgan Chase & Co. said Thursday it will eliminate about 12,000 jobs as it folds in the operations of Washington Mutual Inc.
According to slides on the company’s Web site from an investor day presentation, the New York bank expects about $2 billion in net savings to be achieved through the acquisition, the majority of which will be realized by the end of this year. This includes about $1.35 billion related to the job cuts, the bank said.
JPMorgan acquired the assets of Seattle-based WaMu, the largest bank ever to fail in U.S. history, at the end of September. Since JPMorgan took over operations of the bank through Feb. 13, WaMu deposits have increased by $500 million. This follows the withdrawal of $15 billion in deposits during the two weeks in September following the bankruptcy filing of Lehman Brothers Holdings Inc., which led to the bank’s failure.
* Cisco Systems Inc. (CSCO: News ) eliminated about 250 jobs at its San Jose, California, headquarters, according to reports.
The company has laid off a number of positions in the U.S. and abroad as part of its realignment and restructuring initiative that will chop $1 billion out of its operating budget throughout fiscal year 2009.
* Cisco Systems released 250 of its employees from its Milpitas office Wednesday in an effort to “realign and restructure” in order to avoid a larger-scale layoff, according to company executives.
* OWENSBORO, KY (WFIE) – According to a local official Toyotetsu is laying off 135 production workers, about a quarter of their workforce.
Employees that say they found out shortly after 1:00 Wednesday afternoon that beginning Thursday they no longer need come to work.
* YELLOWKNIFE – De Beers Canada is laying off workers and suspending work with contractors at its Northwest Territories Snap Lake diamond mine.
The company says 128 workers will be let go and another 90 contract employees could join the unemployment rolls.
* RAWLINS, Wyo. (AP) – Memorial Hospital of Carbon County has laid off seven workers in the past month.
* Sabic says it will have to lay off 100-to-125 employees at its Mt. Vernon facility.
via SABIC Layoffs.
* WITF already announced a round of layoffs and cutbacks this week following similar cuts in November, reductions that total $687,000. In this latest round, three people were laid off, a fourth position will not be filled, and senior staff members took a second pay cut.
* NORMAN, Okla. (AP) – The Norman Regional Health Care system plans to lay off nearly 200 employees this week amid declining revenue and lower patient volume, company officials said.
* AbitibiBowater announced late Tuesday it was temporarily laying off 650 employees from its Fort Frances mill. It was the company’s second round of layoffs at the mill within three months.
* However, those were temporary jobs. P&G often hires contract employees who work certain lengths of time at the plant.
* The company said it would cut 142 employees from its total workforce of of 2,845, as it realigns its strategic priorities, including expectations for reduced development, the company said in a U.S. Securities and Exchange Commission filing after the close of the market on Wednesday.
* Interface Inc. reported a deeper loss for 2008 and said it will cut another 290 employees.
The Atlanta-based modular carpet company (NASDAQ: IFSIA) had a net loss of $41 million and a loss per share of 67 cents. This compares with a net loss of $10.8 million and a loss per share of 18 cents in 2007.
* EL PASO, Texas — Fifty-eight jobs at Air Systems Components in Horizon City will be lost in early April, Lauren Macias-Cervantes of Workforce Solutions Upper Rio Grande said.
She also said that 55 jobs will be lost at Stored Value Solutions, a call center located at 20 Founders Lane.
* Keller said 20 to 30 jobs will be cut at the office on Breezewood in the Town of Vinland.
Keller blames a “terrible business climate” and said he won’t rule out the possibility of more cuts if the economy doesn’t get better.
* High-profile metro Phoenix mall developer Westcor laid off an unspecified number of Valley employees Wednesday as it hunkered down to weather the worst economic recession in decades.
The company declined to say how many jobs were cut, but the number is believed to be about 15 percent, or around 50, at its Phoenix headquarters.
* Chipmaker Spansion Inc. has informed the Texas Workforce Commission that it cut 163 jobs in Austin this week, roughly 14 percent of its workforce
* Elan Corp. said it will cut about 230 jobs — including 115 in South San Francisco — as it awaits the results of Phase III trials with its potential Alzheimer’s Disease drug bapineuzumab.
* Westamerica Bancorporation laid off 38 former County Bank employees Wednesday, beginning its downsizing of the failed Merced financial institution.
* Coyote Springs says they are laying off some construction workers because of the economy. A spokesman for the massive housing development 55 miles north of Las Vegas says they are doing some downsizing.
* The firm confirmed that 10 staff attorneys have been let go for economic reasons. As of Wednesday afternoon (25 February), there were 76 people listed on the firm’s website under the ‘staff attorney’ category, with some being referred to as senior staff attorneys.
* A financial services staffing firm has laid off 80 employees at its Hanover headquarters, part of 1,000 jobs the company cut nationwide.
Allegis Group, which recruits workers for accounting and finance, banking, human resources and sales and marketing firms, is the latest victim of a stagnant economy, said Neil Mann, the company’s executive vice president.
* The company said the newly announced job cuts, which include 49 workers and 36 open positions that won’t be filled, are in addition to the 150 positions it cut last summer in rebranding its higher-priced Limited Too stores to focus exclusively on its Justice chain. Tween runs 914 stores, 632 of which now display the Justice name. Before the company began the rebranding, it had nearly 600 Limited Too stores.
* TILBURY — The ArvinMeritor plant in Tilbury, which makes brakes for trucks, is shutting down. The Canadian Auto Workers union says it was informed yesterday morning of the decision to close June 3.
* Farmland Foods, Inc. has announced that it will shift spiral ham production to other facilities and close its New Riegel plant in April of this year.
The plant closure will affect approximately 230 hourly and salaried employees. The company will offer transfers to other facilities to some salaried employees.
via The Progressor Times.
* “When you’re in an economy that’s shedding millions of jobs, there’s not a lot of demand for incremental new copier capacity,” said Chris Whitmore, an analyst at Deutsche Bank AG. The slump also means more job cuts are likely at Xerox, he said. The company employed 57,100 people worldwide as of Dec. 31.
via Bloomberg.com: U.S..
* Pioneer Drilling Co (PDC.A) posted a quarterly loss, hurt by charges and weakness in its drilling and production services units, and said it would cut its workforce by 37 percent.
* SAN DIEGO — San Diego-based AMN Healthcare plans to eliminate nearly 190 positions in California and three other states, including about 40 jobs at the company’s Carmel Valley headquarters, it was reported Thursday.
* New media studio ManiaTV has laid off 15 of its 33 employees as the company preps itself for a sale, reports TheDeal.com.
* The Commmercial Appeal has laid off 18 more employees, effective March 12, according to industry sources. Sources also report another round of layoffs could come in June.
* Miami University, in an effort to cut $22 million from its budget, will lay off 73 employees at its Oxford and Middletown campuse
* NEWARK, Ohio (AP) — The Longaberger basket company is laying off 295 employees and reducing the wages of salaried workers, including the company president.
* Jeweler Finlay Enterprises (FNLY.OB), hurt by liquidity woes, is shutting its department store outlets over the near-term to concentrate on specialty jewelry stores, 40 of which it also earmarked for closure.
* MADRID (AFP) — Japanese automaker Nissan reached an agreement Wednesday with union officials at its plant in Barcelona to slash 1,400 jobs due to slumping global demand, Spanish media reported.
* FRANKFURT (ICIS news)–BASF will shrink in 2009 as the company faces up to a year of “unprecedented challenges,” its CEO said on Thursday as the German chemical giant reported heavy fourth quarter losses and announced at least 1,500 worldwide job cuts.
* At least 40,000 council jobs are expected to be lost this year, with two thirds of local authorities admitting that they are cutting posts to cope with the recession.
* LONDON: RSA Insurance Group PLC said Thursday that it plans to cut 1,200 jobs as it reported a 7 percent fall in its full-year profit.
* British insurer Legal & General Group (LGEN.L) is planning to cut between 250 and 450 jobs, or up to 5 percent of it workforce, in response in changing business demand, the BBC reported on Wednesday.
* RSA has revealed plans to cut 1,200 jobs in the UK by mid-2010, as part of a cost reduction strategy aimed at making savings of £70 million.
* GKN, the British car and aircraft parts maker, has warned that it will axe a futher 2,400 jobs this year as the collapse in demand for new cars intensifies.
The cuts come on top of 3,450 jobs axed last year, including 2,800 in the last three months of the year.
* HELSINKI, Feb 26 (Reuters) – Top Nordic IT services company TietoEnator (TIE1V.HE) plans to cut about 350 jobs in response to weakening demand, it said on Thursday.
* LONDON, Feb 26 (Reuters) – British independent mobile phone retailer Carphone Warehouse (CPW.L) is set to announce about 400 job losses on Thursday in a bid to cut costs and improve efficiency, The Guardian newspaper reported without citing sources.
* GLOBAL construction giant Lend Lease will cut 2000 jobs and sideline about $2 billion worth of projects globally to survive the worsening economic conditions after booking an interim after-tax loss of $596.4 million.
* Centrica, the British Gas owner, is set to create 1,500 new jobs ahead of plans to invest £15bn by 2020 to ramp up its presence in the ‘green energy’ market.
* Wal-Mart Stores Inc. will hire 400 workers in the Jacksonville area for its new super center on the Southside.
* The Massachusetts unemployment agency is hiring 60 workers to deal with growing demand for services amid widespread job losses.
Mike: More as the day develops……..…….