Posted tagged ‘Layoffs’

GM Cuts 10,000 Jobs

February 10, 2009

Will the job cuts ever end in the US?

General Motors  is planning to slash another 10,000 salaried jobs this year, saying the cuts are unavoidable with a government restructuring deadline looming and industrywide sales in one of the worst downturns in history.

From the Associated Press:

The Detroit-based automaker said Tuesday it will reduce its total number of white-collar workers by 14 percent to 63,000. About 3,400, or 12 percent, of GM’s 29,500 salaried U.S. jobs will be eliminated.

Most of the company’s remaining salaried employees will have their wages cut.

In its plan to Congress submitted late last year, GM said it would have to reduce both salaried and hourly positions so that the company could become viable long-term. The company plans to reduce its total U.S. work force from 96,537 people in 2008 to between 65,000 and 75,000 in 2012, but did not specify how many of the surviving jobs will be salaried or hourly.

GM Chief Executive Rick Wagoner, who was meeting with congressional leaders in Washington about global warming legislation, said Tuesday’s announcement is “indicative of the kind of things we need to do to get this viability plan in shape and respond to these tough market conditions.”

GM has dramatically downsized both its salaried and hourly work forces in recent years as the U.S. auto market has shrunk from an annual sales rate of around 16 million vehicles to 13.2 million last year.

Since 2000, GM’s salaried work force has shrunk by 33 percent from its 2000 high of 44,000 people. At the same time, the number of hourly workers has plunged by more than half — to about 63,700 people at the end of last year from 133,000 in 2000.

Most of the cuts announced Tuesday are expected to take place by May 1. GM said the cuts will vary by global regions depending on staffing levels and market conditions.

The company’s statement said there would be no buyout or early retirement packages as GM had offered in the past, but laid-off employees will get severance pay, benefit contributions and other assistance.

Macy’s to Eliminate 7,000 Jobs

February 2, 2009

Macy’s announced Monday that it will cut 7,000 jobs and slash its dividend as the department store chain looks to lower expenses and preserve cash amid a severe pullback in consumer spending.

From the Associated Press:

Cincinnati-based Macy’s said the job cuts, which include some unfilled jobs, will come at offices, stores and other locations. The company currently employs about 180,000 people.

Macy’s had already announced last month that it would close 11 stores, affecting 960 employees, after retailers suffered through the worst holiday season in decades.

Macy’s said it expects the latest job cuts and other actions to lower its selling, general and administrative expenses by about $400 million annually starting in 2010.

The company also slashed its quarterly dividend to 5 cents from 13.25 cents. The dividend will be paid on April 1 to shareholders of record March 13.

Department stores have been especially hard-hit by the poor economy as shoppers turn to discount stores. Last month, department store chain Gottschalks Inc. put itself up for sale and said it had filed to reorganize in a Chapter 11 bankruptcy. Neiman Marcus Group Inc. said it was cutting about 375 jobs.

Macy’s also announced plans Monday to roll out its strategy to localize merchandising to specific markets on a national scale. It began testing the strategy in 20 regional markets last spring.

As part of the restructuring, the company will begin eliminating its Macy’s division structure and integrating all functions into a single organization. Macy’s central buying, merchandise planning, stores senior management and marketing functions will be located primarily in New York.

NEC to Cut 20,000 Jobs

January 30, 2009

Japanese electronics giant NEC  said today that it will cut 20,000 workers worldwide as it tries to stanch widening losses from semiconductors and other businesses that have been hard hit by competition and the global economic slump.

From the Associated Press:

NEC’s net loss for October-December swelled to 130 billion yen ($1.46 billion) from 5.2 billion yen a year earlier, it said Friday. Tokyo-based NEC said it would sink into the red for the full year through March as well.

The company hopes the job cuts, which will be split equally between Japan and overseas, will help save 80 billion yen over the next two years.

As Japanese electronics makers struggled to stay afloat in a shrinking market, a Japanese newspaper reported Friday that NEC was in talks with Toshiba Corp. to seek a possible chip alliance.

The Nikkei business daily said the talks focused on the possibility of Toshiba spinning off its system chip operations and incorporating them with NEC Electronics Corp., a semiconductor unit owned by NEC.

NEC declined to confirm the report, saying it was not based on an official company announcement.

Target Announces Layoffs

January 28, 2009

It seems that no one is safe anymore as Target has announced that they will eliminate more than 1,000 jobs.

From BizJournals.com:

Target Corp. announced Tuesday that it will slash 1,000 jobs at its downtown Minneapolis headquarters, laying off 600 workers and eliminating 400 open positions. The cuts represent about 9 percent of its downtown work force.

Affected employees will continue to receive their full pay and benefits through April 1, at which time they will receive severance packages based on how long they have been with the company. As part of those packages, Target will provide 12 months of continued Target health care benefits, in addition to 12 months COBRA benefits, and outplacement support to assist them in transitioning to their next position.

Target also will close its Little Rock, Ark., distribution center later this year. The facility employs about 500 workers. They will be offered positions at other Target distribution centers or will receive severance packages similar to those received by the headquarters employees.

Google Announces Job Cuts

January 15, 2009

Google has announced that the company is closing three engineering offices and cutting approximately 100 recruiters from its work force as the recession dampens hiring at the company.

From Associated Press:

“Given the state of the economy, we recognized that we needed fewer people focused on hiring,” Laszlo Bock, a Google vice president, wrote in a blog posting late Wednesday announcing the layoffs.

In a separate post, Google said it would close its engineering offices in Austin, Texas, Trondheim, Norway and Lulea, Sweden, a step the company said would affect 70 workers.

“Our strong desire is to keep as many of these 70 engineering employees at Google as possible,” wrote Google’s vice president for engineering and research, Alan Eustace.

“Our long-term goal is not to trim the number of people we have working on engineering projects or reduce our global presence, but create a smaller number of more effective engineering sites,” he added.

The cuts follow news last week of a government filing from Google showing a significant cutback in temporary employees aimed at trimming costs. The company acknowledged in November that it would be looking to reduce contract workers while retaining full-time employees. Google hasn’t said how many positions it plans to eliminate.

Bank of America To Cut Up To 35,000 Jobs

December 11, 2008

Bank of America has announced that it expects to cut 30,000 to 35,000 jobs over the next three years.

From the Associated Press:

The final number could be even higher, analysts say. Charlotte, North Carolina-based Bank of America said it hasn’t yet completed its analysis for eliminating positions, and won’t until early next year. The company and Merrill have about 308,000 employees in total, and the cuts will affect workers from both companies and all types of businesses.

Bank of America is considered one of the country’s healthier banks, and its decision to slash so many jobs illustrates the breadth of the layoffs hitting the United States. The nation lost more than half a million jobs in November alone, and economists expect many more to come.

Bank of America’s action is a particularly hard blow for Charlotte — which is also home to the beleaguered Wachovia Corp., a once strong bank that is now being acquired by Wells Fargo & Co. in what amounts to a fire sale. Just three months ago, when the Merrill Lynch deal was announced, Charlotte was dubbed Wall Street South; now, the banking center is being hit as hard as Wall Street and other towns across America, where people go to work in the morning unsure if they will still have a job that night.

Thursday’s announcement of job cuts at Bank of America was hardly unexpected, considering the merger and the wave of job losses seen in the banking industry and in other sectors over the past few months. Bank of America and Merrill Lynch have already eliminated thousands of investment banking jobs over the past year, as have other banks, in an effort to lower costs as they face increasing defaults in mortgages, credit card debt and other loans.

Yahoo To Layoff Up to 1,500 Workers

October 22, 2008

Times are tough all over right now. Even some of the Silicon Valley’s giants are not immune to a struggling economy. Battered by plunging profits and a rough economic outlook, Yahoo announced yesterday that it will layoff at least 10% of its staff,  amounting to up to 1,500 jobs. I guess none of them will be buying the new Android phone today.

From the New York Times:

Yahoo said Tuesday that it would lay off at least 10 percent of its 15,000 workers as it tries to bring down its expenses. It said reduced marketing budgets had taken a bite out of its online advertising business, sending its net income for the third quarter tumbling by 64 percent.

The company also lowered its revenue projections for the remainder of the year and said it was too early to make forecasts for 2009.

The results come as strategic moves that Yahoo has been considering, including a search advertising partnership with its rival Google and a merger with Time Warner’s AOL unit, have gotten bogged down, leaving the company with few options but to cut expenses, analysts said.

“They just have to batten down the hatches, lighten the load and ride this thing out,” said Jeffrey Lindsay, an analyst with Sanford C. Bernstein & Company.

“Hopefully,” he added, “they will make it to the other side with their cash intact, presumably as a smaller and more efficient organization.”

From CNNMoney:

Yahoo had 15,200 employees at the end of the third quarter. The much-anticipated round of layoffs comes on the heels of another 1,000 job cuts in late January.

“We have been disciplined about balancing investments with cost management all year, and have now set in motion initiatives to reduce costs and enhance productivity,” said Yahoo co-founder and CEO Jerry Yang in a written statement.

“The steps we are taking this quarter should deliver both near-term benefits to operating cash flow, and substantially enhance the nimbleness and flexibility with which we compete over the long term,” he added.

In a conference call after the results were announced, Yang said the company was working to reduce costs in other ways than just slashing jobs, including relocating offices and consolidating real estate. “We are identifying ways we can operate more efficiently,” he said.

From USA Today:

The Silicon Valley company announced the latest round of cuts against a backdrop of poor third-quarter results and a grim economic forecast. The company’s profit tumbled 64%, to $54 million, or 4 cents per share, from $151 million, or 11 cents per share, in the same quarter a year ago.

It is Yahoo’s second significant round of layoffs this year. In January, the troubled Internet giant laid off 1,000 workers, but the cuts have done little to assuage investor confidence.


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