Jobs Cut Blog

Nearly Half Of MySpace Employees To Be Layoff

2011-01-04T20:29:00.000-08:00

Once a social networking behemoth, News Corp.-owned MySpace's rapid descent up against competition like Facebook and Twitter may soon lead to mass layoffs.

The Wall Street Journal, itself operated by a division of News Corp., reported today that MySpace is preparing "a dramatic downsizing of its business." Someone familiar with the matter told WSJ that a third to a half of its 1,100 employees could be let go and another source said the layoffs could be officially announced as soon as this month.

Rumblings of MySpace layoffs were first reported by All Things Digital, also News Corp.-operated, on New Year's Eve, just days ago.

Home to more than 80 million visitors per month in the summer of 2007, its audience has dwindled to under 40 million visitors per month in the past year, according to Quantcast.

In an effort to stay relevant, MySpace has aggressively sought to rebrand itself as an entertainment hub and deepened its relationship with Facebook with a stronger integration between the sites last month. The MySpace logo was redesigned in October, when the site also underwent a significant redesign.

In an earnings call in October, Chief Operating Officer Chase Carey stated that MySpace's losses were not "acceptable or sustainable." Nearly the entire MySpace staff had off the last week of December in an apparent cost-cutting measure, which the company denied, stating it was "an employee perk."

Nokia planning to cut 1,800 jobs

2010-10-21T07:08:00.000-07:00

Finnish mobile phone maker Nokia has said it is to cut 1,800 jobs.

It made the announcement as it reported a net profit of 529m euros ($741m; £471m) for the three months to September, after a loss of 559m euros a year ago.

Nokia, the biggest handset maker in the world, said it had sold 110 million handsets - 2% up from last year.

The company's new boss, Stephen Elop, said Nokia needed to review its place in the industry.

Mr Elop, formerly with Microsoft and the first non-Finn to lead the company, took charge last month,

He said the company was facing "a remarkably disruptive time" and needed to reassess its role.

Nokia warned its market share would shrink.

Sales of its smartphones, the fastest-growing section of the market, grew by 61% from a year ago to 26.5 million units, but the company is facing tough competition from Apple's iPhone and phones using Google's Android operating system.

WESTPAC jobs cut

2010-10-08T08:04:00.000-07:00

WESTPAC will cut thousands of head office and administration jobs over the next two years as it attempts to reduce costs and streamline the way it does business in its first big overhaul since the $12.1 billion acquisition of St George Bank.

Westpac's chief executive, Gail Kelly, has also raised the prospect that back-office jobs could be sent offshore. The bank is considering whether to scrap its self-imposed freeze on outsourcing, in place since the merger.

It is understood that 105 back-office roles were cut at St George over the past week, including some call centre positions at the former head office in Kogarah.

The banking sector faces substantial pressure on revenues with credit growth expected to remain weak over the next year, particularly as the recovery in business lending appears to have been pushed out.

Although Westpac is promising to ''significantly'' reduce the number of staff working in administration and head-office roles, Mrs Kelly pledged to keep redundancies to a minimum by using normal attrition to bring down overall numbers.

Sources close the bank say that the number of job losses is likely to be in the ''low thousands'', with many of the cuts at middle-management levels, while staff in branches will be spared.

Westpac, which employs nearly 37,000 people across its entire business, usually has an annual staff turnover of between 4500 and 5000 but these positions are usually refilled.

Mrs Kelly declined yesterday to give a target for job losses, saying there were ''a number of moving pieces'' to consider - particularly as the bank is planning an overhaul of technology.

''There will be more people to come on in technology and projects as those ramp up during the course of next year,'' she told an investor briefing.

''But the number of people in head office and support areas are reducing. They're reducing now and they'll reduce more over the course of next year.''

A review of a freeze on outsourcing will take place over the next year, she said.

However the number of frontline customer assistance roles among branch staff will be ''strengthened''.

While Westpac pledged to keep job losses to a minimum at the time of its 2008 acquisition of St George, unions remain fearful the bank could eventually look at making deeper savings from the merger.

''An organisation that is making as much profit as Westpac is at the moment has got absolutely no right or excuse to say that they're going to be shedding jobs,'' the Finance Sector Union national secretary, Leon Carter, said.

''They've got an obligation to keep all of their people employed; where there is job losses their first obligation is to re-deploy those people to other positions.''

The bank plans to spend $2 billion over the next five years aimed at an overhaul of its ageing technology, including moving to a single system across the myriad of brands operated by bank.

In doing so Westpac has promised the upgrade will give it a better snapshot of customers and faster service while boosting the bank's offerings across mobile phone and other online channels.

Westpac, which still uses decades-old technology for day-to-day operations, is attempting to lift its entire banking system to the newer platform known as Hogan and which is currently used by both St George and its sister brand Bank SA.

Technology remains one of the biggest expenses for banks and given additional cost and risks in rolling out new platforms, many are reluctant to tinker with systems that work reliably.

GE Antwerp cut 1,200 jobs with closure of their Opel plant

2010-10-05T01:55:00.000-07:00

General Motors Europe (GM) has said it will shut its Opel car assembly line in Antwerp, with the loss of 1,200 jobs.

The carmaker had intended to shut the Belgian factory earlier this year, then relented in the hope of finding a buyer by the end of September.

But the search for an investor has failed, and the plant will now close at the end of the year.

There have already been 1,400 job losses at the plant this year, and GM planned another 5,700 across Europe.

"The other job cuts are mostly at plants in Spain, the UK and Germany," an Opel spokesman told the BBC, adding that the cuts are nearly all implemented.

The Antwerp car plant, which was founded in 1924 and employed 7,000 at its peak, has become the first in Europe to fall victim to the global slump in demand since 2008.

Opel, which sells its cars under the Vauxhall badge in the UK, had set up a working group, including the Flemish regional government and factory worker representatives, in its failed attempt to find a buyer.

"Unfortunately, none of the potential investors was able to come forward with a sustainable business concept for the plant," said Opel in a statement.

The company said it is still open to outside buyers during the remaining months until closure at the end of this year, but is no longer actively searching.

The factory produced Astra convertible and estate cars for export outside Belgium.

Bouncing back
The factory closure and job cuts come just as GM Europe is about to recover from a sharp fall in sales.

Sales plummeted last year, partly because of a row with policy makers and trade unions over jobs in Europe, partly because of uncertainty about the Opel and Vauxhall brands' future, and partly because the global recession resulted in a sharp fall in car sales for the entire motor industry.

But now the situation is brighter, chief executive Nick Reilly told BBC News in an interview at the Paris motor show last Thursday.

"In every single market except Germany, our market share has increased this year," he said.

"We have all our agreements signed with our labour unions and we have funding in place so we are investing again.

"Before restructuring charges, we hope to make a profit next year, and certainly by 2012."

Kindl Klause pub offers free advice to long-term jobless

2010-09-19T18:18:00.000-07:00

A Berlin pub has set up an advice desk to help the long-term unemployed get back on their feet. Many regulars to the "Kindl Klause" in Berlin's southern Neu-Koelln district live off Germany's minimum jobless benefit, known as Hartz IV, so offering free advice on how to find work again seemed logical, the bar's boss Michael Hasucha said.

"About 98 percent of my clients are regulars and every fourth person in Neu-Koelln is on Hartz IV...so it made sense," he said. "As far as I know there's no other one like it."

The point is not to get drunk, he added. "Most people seeking advice just have a coffee or a cola then go," he said.

The desk, which operates between 2 p.m. and 5 p.m on Fridays, is run by two social workers who once stopped off at the bar after work and got into conversation with locals.

Cuba to cut 500,000 government workers

2010-09-13T10:43:00.000-07:00

Cuba says it will fire at least half a million state workers by mid-2011 and will free up private enterprise to help them find new work - radically remaking employment on the communist island.

The layoffs will start immediately and run through the first half of next year, according to an announcement Monday by the nearly 3 million-strong Cuban Workers Confederation - the only labor union the government tolerates.

To soften the blow, it said the government would authorize simultaneous increases in job opportunities in the non-state sector, allowing more Cubans to become self-employed, to form cooperatives run by employees rather than government bureaucrats and to increase private control of state land and infrastructure through long-term leases.

Obama to announce $50 billion infrastructure job plan

2010-09-06T06:44:00.000-07:00

President Barack Obama will announce on Monday a six-year plan to revamp the United States' road, railways and runways with a $50 billion up-front investment to jump-start job creation, the White House said.

The plan is one of several economic initiatives that Obama is due to unveil this week aimed at generating some desperately needed U.S. job growth and limiting predicted Democratic losses in November 2 congressional elections.

Struggling to persuade Americans that his economic policies are working, Obama will use appearances in Milwaukee and Cleveland this week to set the tone for the fall campaign.

The argument he will make on the trips and a rare White House news conference is this: Democratic policies have stopped the bleeding and produced some economic growth. Yes, more needs to be done, but Republicans would bring back ideas, he will argue, that propelled the country into the deepest recession in 70 years.

Obama is to make his case with a speech in Milwaukee to a labor rally on Monday, the Labor Day holiday that marks the informal start of the election campaign season.

The White House did not say how it proposed to pay for the infrastructure plan, but an official said one option under consideration was to close tax breaks for oil and gas companies.

The official said Obama was committed to working with Congress to fully pay for the plan.

Under the six-year plan, Obama is proposing to:

- Rebuild 150,000 miles of roads;

- Construct and maintain 4,000 miles of rail;

- Rehabilitate or reconstruct 150 miles of runway and modernize the air traffic control system and;

- Set up an infrastructure bank to leverage private, state and local capital to invest in projects.

The White House said the bank would end the existing system of spending on infrastructure projects that was based more on "geography and politics than demonstrated value."

Labor Secretary Hilda Solis told NBC's "Today" show that the infrastructure overhaul would "put people back to work immediately."

Obama's visit to Cleveland on Wednesday promises to be more substantive. It is the same city where the top Republican in the U.S. House of Representatives, John Boehner, recently urged the president to fire his economic team.

Administration officials said he will propose making permanent the business tax credits for research, which the White House projects will cost $100 billion over 10 years and would be paid for by ending some corporate tax breaks.

Other items that could also be talked about by Obama are a payroll tax holiday, extending tax cuts for the middle class and increasing money for clean energy.

STALLING RECOVERY?

The Obama administration is scrambling for solutions to a stubbornly high 9.6 percent unemployment rate and invigorate an economy whose recovery from the recession is in danger of stalling.

University of California economics professor Laura Tyson, a member of the president's economic advisory board, said targeted job policies such as a partial payroll tax holiday and permanent tax cuts for research and development should be priorities in the current environment.

"All of us here agree we need targeted policies for jobs and right now the deficit is not a major issue," Tyson told CBS's "Face the Nation" program on Sunday. "The major issue is a slow economy, lack of jobs ... we really need to get our priorities right and focus on targeted job creation."

The White House says patience will be required.

"It took years to create our economic problems, and it'll take more time than any of us would like to fully repair the damage," said White House communications director Dan Pfeiffer. "There are no silver bullets and anyone who is promising them is not being straight with the American people."

Democrats are facing an angry electorate that could end their one-party rule in Washington. Many experts believe Democrats could lose control of the House of Representatives on November 2 and perhaps even the Senate, which would make it harder for Obama to advance his domestic agenda on issues like climate legislation.

Somerset County Council slashes 1,500 jobs

2010-09-04T08:06:00.000-07:00

Union leaders warned today that plans by a county council to axe 1,500 jobs over the next three years because of cuts in Government funds will pile "misery" into a recession-hit region.

Unison said vital services will be hit because of cutbacks at Somerset County Council aimed at tackling a £75 million deficit.

Ken Maddock, leader of the Tory-controlled council, said the authority will have to cut back many of its services and make compulsory redundancies.

He said: "We will have to deal with losing 1,500 posts at this council over the next three years. We will have to stop almost all our major building projects, including a new school, children centre, and pedestrianisation scheme.

"We already have to look at cutting services including temporarily reducing some library opening times and closing one down.

"The national financial picture is bleak. We know that, like every other council in the country, we all face huge cuts in our funding from the coalition Government."

Unison general secretary Dave Prentis said: "Job losses on this scale will hit the people of Somerset hard, scaling back vital community services, and hitting spending power.

"Cutting most new building projects will only make the dole queues longer. The jobs market is tough enough. People will struggle to find work elsewhere.

"This council is obsessed with freezing council tax, and this has added to the deficit.

"This money could, and should, be used to save jobs and services, and support the region through the downturn."

Unison said today's announcement was the latest in a "long line" of job cuts in councils across the country in recent weeks, including 3,000 at Nottingham County Council, 1,400 in Lincolnshire and 500 in Bolton.

Mr Prentis said: "There is an alternative to the mantra of cuts. America is keeping up spending to boost recovery and stave off the dreaded double dip.

"Unison is committed to protecting jobs and services. The ideological choice to cut the deficit hard and fast is causing misery to hundreds of thousands of people who work in and rely on public services."

Unison pointed out that latest unemployment figures for the South West showed that 165,000 (6.1%) people were already out of work.

Mr Maddock said the council was working on an assumption that its main Government grant will be cut by between 25% and 40%, which meant it would have to reduce its spending.

The council's workforce stands at around 6,500 but this is expected to fall to around 5,000, said Mr Maddock.

He said: "We've already carried out a trawl for voluntary redundancies, with more than 1,000 people interested, and we are working through that process now.

"We've had a recruitment freeze in place for over a year that has delivered more than £1.5 million in savings to date.

"Sadly though, the scale of these cuts means that there will have to be some compulsory redundancies. We will try to keep these to a minimum but inevitably there will be pain as a result of the decisions we have to take."

The council also announced there would be no increase in council tax for a second year in 2011

US Economy Lost 54,000 Jobs in August

2010-09-03T07:48:00.000-07:00

US unemployment has jumped to 9.6 per cent in August, the Labor Department said on Friday, showing the recovering economy is still struggling to create jobs.

In a keenly awaited unemployment report, the department said the economy lost 54,000 jobs last month, a better figure than the 120,000 loss expected by economists.

The figures are seen as a crucial litmus test for the sputtering economic recovery and President Barack Obama's policies.

Economists had predicted the unemployment rate would rise to 9.6 per cent, one tenth of a percentage point above July levels, although much better than the 10.1 per cent posted in October.

The news was seen by Wall Street as moderately good news, but will throw up challenges for the White House and the Federal Reserve as they struggle to help the jobs market to its feet.

The White House has ruled out an "extraordinary" new economic stimulus plan to fire up the slowing recovery, but has said that Obama is scouting new ideas to boost jobs and growth.

Obama is expected to address the latest jobs figures later in the day, as he begins a heavy slate of economy-themed events, including travel to the hard-hit Midwest to highlight his economic recovery plans and the hosting of a major press conference next Friday.

But with many lawmakers fretting ahead of November's mid-term elections and public concern mounting over the forecast $US1.4 trillion ($A1.54 trillion) budget deficit, Obama's leeway is limited.

One bright spot in the August jobs report was the private sector's ability to create a much better than expected 67,000 jobs, although that was not enough to offset the government releasing around 114,000 temporary census workers.

Japan Airlines to cut 16,000 jobs

2010-08-31T06:44:00.000-07:00

Japan Airlines on Tuesday submitted its bankruptcy plans for approval, a proposal that includes slashing roughly one-third of its workforce.

The plan includes the loss of roughly 16,000 jobs; a 521.5 billion yen ($ 6.2 billion) debt waiver, mainly from financial institutions; and a 350 billion yen ($ 4.2 billion) investment in the airline by the state-backed Enterprise Turnaround Initiative Corp. of Japan.

The airline submitted the plan to the Japanese government and Tokyo district court for approval.

The airline -- one of Japan's largest-ever corporate failures -- proposes cutting 45 money-losing domestic and international routes from the end of September through the end of March 2011.

The company also will tackle drastic cost-cutting and retire aging planes.
The airline collapsed under a mountain of debt, accumulated by ballooning pensions and unprofitable flights.

It has chosen American Airlines as a U.S. partner and is focusing on trans-Pacific routes to boost revenue.

After overhauling itself and improving its balance sheet, the airline aims to go public again by the end of 2012. It hopes to return to profitability by the end of fiscal 2010, or March 2011.

Under the proposal, all current Japan Airlines shares would be reduced to zero values and new airline shares would be owned by the state-backed Enterprise Turnaround Initiative Corp.

The airline filed for bankruptcy on January 19 and delisted in February.

USA Today layoffs

2010-08-27T05:48:00.000-07:00

USA Today, United State's second largest newspaper, is making the most dramatic overhaul of its staff in its 28-year history as it de-emphasizes its print edition and ramps up its effort to reach more readers and advertisers on mobile devices.

The makeover outlined Thursday will result in about 130 layoffs this fall, USA Today Publisher Dave Hunke told The Associated Press. That translates into a 9 percent reduction in USA Today's work force of 1,500 employees. Hunke didn't specify which departments would be hardest hit.

The management shake-up affects both the newspaper's business operations and newsroom.

Like most newspapers, Gannett Co.'s USA Today has been cutting back in recent years to offset a steep drop in advertising that is depleting its main source of income. To compound the problem, fewer readers are paying for newspapers as free news proliferates on the Web.

Those challenges triggered the most dramatic reorganization since USA Today first hit the streets in 1982 with a then-unique blend of shorter stories surrounded by colorful graphics and pictures.

"This is pretty radical," Hunke said of the shake-up. "This gets us ready for our next quarter century."

In the first wave of change, USA Today, which is based in McLean, Va., will no longer have separate managing editors overseeing its News, Sports, Money and Life sections.

The newsroom instead will be broken up into a cluster of "content rings" each headed up by editors who will be appointed later this year. The newly created content group will be overseen by Susan Weiss, who had been managing editor of the Life section. As executive editor of content, Weiss will report to USA Today Editor John Hillkirk.

"We'll focus less on print ... and more on producing content for all platforms (Web, mobile, iPad and other digital formats)," according to a slide show presented Thursday to USA Today's staff. The AP obtained copy of the presentation.

In a move that may raise conflict-of-interest questions, Weiss will have a "collaborative relationship" with USA Today's newly appointed vice president of business development, Rudd Davis, according to one slide.

Davis, the founder of sports website BNQT.com, is being brought in to oversee new business opportunities and brand licensing among other things. BNQT, which focuses on sports such as skateboarding and skiing that appeal to younger audiences, was bought by Gannett in 2007.

Thursday's slide presentation also said USA Today's restructuring will "usher in a new way of doing business that aligns sales efforts with the content we produce."

In separate interviews, both Hunke and Hillkirk said the newspaper won't allow its need to generate more revenue interfere with its commitment to the First Amendment or investigative journalism.

"Under no circumstances do we ever compromise our integrity," Hunke said. "But I don't see any problem with finding out ways to build out strategies that work for advertisers. Frankly, if we do that, we will have a very prosperous future and we are going to stay in the journalism business."

Although USA Today still makes most of its money from its print edition, the reorganization revolves around smart phones and computer tablets such as Apple Inc.'s iPad, which are creating new ways to sell subscriptions and advertising.

"We have to go where the audience is," Hillkirk said. "If people are hitting the iPad like crazy, or the iPhone or other mobile devices, we've got to be there with the content they want, when they want it."

USA Today's circulation has been plunging in recent years, dropping to an average of 1.83 million during the six months ending in March. That's down from 2.3 million in 2007 when USA today reigned as the nation's largest newspaper. The Wall Street Journal now holds that position with a circulation of 2.09 million.

Besides its circulation, USA Today's advertising also has been falling. The newspaper sold 580 advertising pages in its most recent quarter ending in June. That's nearly a 50 percent drop from the 1,098 pages sold at the same time in 2006, before newspaper advertising began its steep slide.

USA Today's struggles are one reason why Gannett's stock price has plunged 78 percent in the past four years, going from about $55 at this time in 2006 to Thursday's closing price of $12.18.

Gannett doesn't break out USA Today's finances, but the newspaper is by far the largest of the more than 80 dailies the company owns.

The mobile push will be overseen by Steve Kurtz, who was appointed vice president of digital distribution. He had been director of digital information technology for USAToday.com.

Other new department heads are: Jeff Dionise, vice president of product development and design; and Heather Frank, vice president of vertical development.

USA Today thinks one of its biggest opportunities is sports, which will become "a business unto itself," Hunke said. The newly created USA Today Sports will be run by Ross Schaufelberger, a former CEO of BNQT Media Group.

The newspapers other content rings will consist of "Your Life," "Travel," "Breaking News," "Investigative," "National," "Washington/Economy," "World," Environment/Science," "Aviation," "Personal Finance," "Autos," "Entertainment" and "Tech."

72 percent of American worried their jobs

2010-08-25T17:04:00.000-07:00

More Americans now disapprove of President Barack Obama than approve of him as high unemployment and government spending scare voters ahead of November's congressional elections, a Reuters/Ipsos poll showed on Tuesday.

In the latest grim news for Obama's Democrats, 72 percent of people said they were very worried about joblessness and 67 percent were very concerned about government spending.

The unemployment rate of 9.5 percent and the huge budget deficit are dragging down the Democrats and eating away at Obama's popularity only 20 months after he took office on a wave of hope that he could turn around the economy.

Another bit of bad economic data arrived on Tuesday when the National Association of Realtors reported sales of existing homes plummeted in July to their slowest pace in 15 years.

Piling the pressure on Obama, the top Republican in the House of Representatives called on the administration's economic team to quit.

Obama's disapproval rating was 52 percent in Tuesday's poll, overtaking his approval rating for the first time in an Ipsos poll. Only 45 percent of people said they approved of the president's performance, down from 48 percent last month.

That number, coupled with a hearty 62 percent who think the country is going in the wrong direction, could spell trouble for Democrats, who control both chambers of Congress and the White House.

But amid the bad poll numbers, a non-partisan congressional body on Tuesday reported that the Democrats' massive 2009 stimulus package helped keep the economy afloat.

Vice President Joe Biden said the Congressional Budget Office report provided further evidence that the economic stimulus was "working to rescue the economy from eight years of failed economic policy."

House Republican leader John Boehner called for a fresh start on the economy. In a campaign-style speech, he urged Obama's top economic advisers to resign, saying, "It's time to put grown-ups in charge."

While Obama has two more years before facing voters in a presidential election, all 435 seats in the House are up for grabs, along with 37 Senate seats and 36 governorships in November's elections.

Typically in midterm elections -- when there is no presidential race -- the party in power in the White House suffers losses in Congress.

The Republicans are predicted to perhaps take control of the House and win a significant number of seats in the Senate.

Forty-six percent of registered U.S. voters would likely vote for Republican candidates in November and 45 pct for Democrats, according to the Reuters/Ipsos poll, which surveyed 1,063 adults and was conducted August 19-22.

The poll has a margin of error of 3 percentage points.

PATIENCE WITH OBAMA HAS 'VANISHED'

The country's deep worry about jobs, at a level not seen for decades on any single issue, could prompt voters to punish Democrats who have had control of Washington since early 2009.

"The economy is really catching up to Obama and his administration," said Ipsos pollster Cliff Young. "For a time, voters gave him the benefit of the doubt. He inherited a very dicey economic situation and they were willing to give him time," Young said. "Patience has ... basically vanished."

Three consecutive months of decline for Obama's approval rating is a definitive trend that could hurt Democratic candidates in November, despite progress in bringing about economic growth after a deep recession, Young said.

The Congressional Budget Office estimated that the emergency stimulus spending boosted the economy between 1.7 percent and 4.5 percent in the second quarter this year. CBO said the stimulus law of 2009 also created or saved 1.4 million to 3.3 million jobs in that quarter, lowering the national unemployment rate.

Republicans were being blamed more than Democrats for using partisan tactics to block progress, according to the survey.

Thirty-six percent said Republicans were to blame for political gridlock in Washington because of fighting between the parties, while 28 percent said it was the Democrats' fault. A total of 78 percent agreed that partisanship was stopping Washington from working effectively.

Ironically, those results came after the Democratic-controlled Congress racked up an unusual number of major legislative accomplishments, including healthcare reform and revamping the troubled financial industry.

When Congress returns in mid-September from a long summer recess, one of the top items on its agenda will be deciding whether to let tax cuts, enacted under former President George W. Bush, expire at the end of the year.

The Reuters/Ipsos poll provides lawmakers with little direction on which way to turn.

While 54 percent of those surveyed put a high priority on reducing the U.S. budget deficit, nearly half, 49 percent, said Bush's tax cuts should be extended for all Americans, a move that could lead to significant revenue losses over the long-term. That in turn could lead to even higher deficits, unless Congress and the White House can agree on deep domestic spending cuts that typically are hard for any political party to achieve.

NorSask Job Cut

2010-08-24T20:25:00.000-07:00

NorSask workers could see job cuts if the market doesn't change in their employer's favour. Layoff notices went out two weeks ago to twenty-seven of the company's forty workers.

The decision was made by management and the board of directors in light of grim market conditions.

"U.S. housing starts are usually around 1.8 to 2 million housing starts a year. They're down to less than half a million a year, and that's what's driving these whole markets," said NorSask president and general manager, Allen Brander

In addition the slump in the U.S., Brander said the marketplace at home isn't boding well for the business either. This week it was reported that Canadian housing sales dropped thirty per cent for the month of July.

While the current outlook may be negative, there's still uncertainty. Brander couldn't say how many workers, if any, would be laid off or when cuts would occur.

Union regulations dictate a notice for future layoffs must be distributed to employees, even though the decision isn't final.

For now, NorSask is planning to sit tight and watch.

"This market does change on a daily basis. We'll either ride this market out or we'll start producing again," said Brander.

Brander did guarantee that any layoffs will not mean a permanent closure of the mill. During the market's slump for the past four years, multiple cutbacks have occurred on a one and two shift basis.

The business arm of the Meadow Lake Tribal Council, which has owned NorSask since 1998, expressed its own concern for the current state of the business.

"We're very disappointed that the company is in a position where it has to issue layoffs, but it's not the company' fault. It's the state of the industry," said Ben Voss, CEO of the MLTC resource and development.

Cuts would also have an effect on members of the MLTC, who gain employment from harvesting activities in the region. In spite of the bleak conditions, Voss was still optimistic about the future of the MLTC. He hinted the organization is looking at other possibilities in forestry.

"We're working hard to try to find diversified forestry opportunities. So if we can continue to pursue those, that will add to the new business opportunities that can reduce our dependency on just one mill," said Voss.

While Voss couldn't say what those opportunities were, he was hopeful for a positive announcement to be made at a later date.

Barloworld Ltd to Cut More Jobs After Shedding 402 Staff

2009-05-12T22:46:00.000-07:00

Barloworld Ltd., the world’s largest forklift dealer, plans to cut more jobs in the U.K. after shedding 402 workers across its businesses since June last year to cope with falling sales amid the global recession.

“We haven’t seen any recovery in trading activity at this point in time” at Barloworld’s international operations, Chief Executive Officer Clive Thomson said in a telephone interview today. “We will hopefully start to see some sort of recovery in the latter part of this year and in 2010.”

The Johannesburg-based company was forced to reorganize business units after demand for earth-moving and construction equipment plummeted as recessions in the world’s largest economies cut sales. The CEO declined to say how many jobs were at risk in the U.K., adding that it would not be on the scale of cuts in Spain and Portugal, which bore the brunt of the workforce reductions.

Net income dropped 63 percent to 382 million rand in the six months ended March 31 from a year earlier, Barloworld said in a statement today. Sales slid 65 percent at its units in Spain and Portugal, which also accounted for most of a 114 million rand reorganization charge to cut its workforce.

Barloworld fell 10 cents, or 0.3 percent, to 36.90 rand in Johannesburg trading, giving the company a market value of 8.4 billion rand ($1 billion). The shares have dropped 12 percent this year.

Sales may begin to slow at its southern African unit, where operating profit for the Caterpillar-equipment division rose 37 percent to near an all-time record.

Ford announced cutting up to 850 jobs in UK

2009-05-06T06:18:00.000-07:00

More than 500 Ford workers at the Transit van factory in Hampshire have taken voluntary redundancy or retirement.

The plant in Swaythling, Southampton, starts a three-week shutdown on Tuesday after the workers' final day on Friday.

The manufacturer announced in February it was cutting up to 850 jobs across the UK by May, blaming "unprecedented" economic conditions.

A support scheme to get workers new jobs has been set up in Southampton.

Earnings cut

Five-hundred posts have been cut in Swaythling.

A further 350 job losses will be spread across the company's remaining UK sites in Basildon, Brentwood and Dunton in Essex, Daventry in Northamptonshire, Halewood on Merseyside and Bridgend in south Wales.

Most of the 1,000 workers at the Transit plant already face a cut in earnings after the two-shift working day was replaced with a single shift.

The total layoffs represent nearly 7% of Ford's UK workforce of 12,900 - with almost half of the Southampton factory's staff of 1,100 affected.

Microsoft Corp plan to cut 5,000 jobs by 2010

2009-05-06T06:15:00.000-07:00

Microsoft Corp said on Tuesday it is laying off more workers, almost completing its plan to cut 5,000 jobs by June 2010, and left the door open for yet more job cuts.

"As we move forward, we will continue to closely monitor the impact of the economic downturn on the company and if necessary, take further actions on our cost structure, including additional job eliminations," Microsoft chief executive Steve Ballmer said in an e-mail to employees on Tuesday.

In January, against a backdrop of falling computer sales and a U.S. recession, Microsoft announced a plan to cut 5,000 jobs, or about 5 percent of its 96,000 staff, over 18 months, in an attempt to save $1.5 billion a year.

Microsoft laid off some workers immediately in January and said on Tuesday that those cuts were "mostly but not all done."

Related posts:
* Microsoft Still On Track To Cut Another 3,600 Jobs

Jobs Cut Heat Map

2009-04-29T20:06:00.001-07:00

The severity of vanishing employment according to states.

Hotel and casino cuts fuel rising jobless rate

2009-04-26T03:52:00.000-07:00

The state’s jobless rate has nearly doubled in the past year.

From March 2008 to last March, Nevada’s unemployment rate jumped from 5.4 percent to 10.4 percent, a 92.6 percent increase. Month-over-month, the state’s unemployment rate increased 4 percent to 10.4 percent. Las Vegas’ jobless rate is also 10.4 percent.

Nevada’s jobless rate hasn’t been this high since March 1983 when it was decreasing from a recessionary peak of 10.7 percent in November and December 1982.

Over the past year jobs in the construction industry dropped 14.3 percent from 94,700 to 81,200, a loss of 13,500 jobs.

Other industries that took a year-over-year hit were information services, such as telecommunications (6.3 percent), financial services (5.2 percent), professional and business services, including employment services (8.9 percent), and leisure and hospitality (5.8 percent).

In the leisure and hospitality industries, the greatest job losses were in hotels and motels without casinos (14,000 jobs cut) and casino hotels and gaming (13,400 jobs).

“Leisure and hospitality, the state’s largest industry in terms of employment, is feeling the impacts of the ongoing economic recession on discretionary consumer spending,” said Bill Anderson, chief economist for Nevada’s Employment, Training and Rehabilitation Department. “Numerous recent headlines highlight the financial difficulties many, if not all, of the state’s gaming companies are facing. On an industrywide basis, leisure and hospitality jobs have trended down markedly as the economic downturn has unfolded.”

Professional and business services lost 10,200 jobs, primarily in the administrative and support services sector. However, the management of companies added 300 jobs, or a 2.2 percent increase.

Health care and social services was one of two industries that experienced job growth over the year, adding 3,600 jobs to the Las Vegas market, a 3.6 percent increase. Air transportation and warehousing added 400 jobs, a 6.8 percent increase over the year.

The federal government added 100 jobs in the past year, although state and local governments lost 500.

UNLV economics professor Alan Schlottmann said the problem with the unemployment rate is that it doesn’t include discouraged workers and people who are working fewer hours for economic reasons.

Although 14,000 people who dropped out of the job market, as the economy improves those workers are going to jump back into the workforce, he said.

“We know that there’s a significant amount of people who are employed, but are employed part time for economic reasons,” he said. “Which means, you’ve got to work through those people becoming full time again before you start adding new workers.”

The Labor Statistics Bureau estimated that nationally, 7.7 percent of workers have stopped trying or are working part time when they would prefer full time. Schlottmann estimated that Las Vegas is at 8 percent since the primary industries, gaming and hospitality, are service-oriented and, as such, are more conducive to cutting workers’ hours.

“The thing that’s frightening about that, is that a lot of those people, at least the part timers, are going to have to be absorbed before they (businesses) start hiring again,” he said. “Until those folks are working full time, nobody’s going to hire a full-time worker.”

Apple cuts 1,600 full-time equivalents

2009-04-26T03:44:00.000-07:00

Despite blowout second quarter results and excellent survey results Apple recently shed 1,600 full-time “equivalents” (from 15,600 to 14,000) at the end of Apple’s first fiscal quarter, according to a SEC filing.

While an 11 percent cut in “equivalents” is hardly dramatic in our current economic climate, it shows that even the mighty Apple isn’t 100 percent recession proof.

Oracle to Lay Off Thousands of Sun Workers?

2009-04-24T02:55:00.000-07:00

News reports indicate that Oracle might cut thousands of Sun Microsystems jobs after it finalizes its acquisition of the software and systems maker. Although Sun had already pledged to cut up to 6,000 of its 33,000 employees from its work force, some observers said the actual number of jobs cut could be much higher.

A San Jose Mercury News report indicates that once Oracle's $7.4 billion acquisition of Sun Microsystems is finalized some time this summer, Oracle is likely to cut thousands of positions among the Sun faithful.

However, the question remains how many and whether those cuts will simply be part of the layoffs Sun itself announced the company would make. Sun already has cut nearly 3,000 of the up to 6,000 jobs the company said it would be cutting in a November 2008 announcement. Sun cut about 1,300 jobs in January of this year, and confirmed that it would be cutting 1,500 more beginning the week of March 30. How many more will be required?

With Oracle at the helm, some observers say they believe many more cuts are in store for the software and system maker. Indeed, some say Oracle could cut upward of one-third to half of Sun's work force of 33,000 employees. That seems quite high. However, neither Oracle nor Sun is commenting on potential layoffs coming out of the acquisition. Yet, in an acquisition such as this one, cuts are inevitable as there will be duplication in many roles.

A Sun employee who requested anonymity characterized the mood among employees at Sun headquarters in Santa Clara, Calif., as one of "uncertainty," despite the hopeful memo Sun CEO Jonathan Schwartz sent to his troops.

According to the report in the Mercury News:

“'A lot of jobs will be cut,' said Cassatt Software CEO Bill Coleman, a Sun alumnus who also co-founded BEA Systems, which Oracle acquired last year for $8.5 billion.”

The report also said:

"'We do know from Oracle's past mergers that they have always made good on the commitments they made to the Street in terms of cost-cutting,' said Pacific Crest Securities analyst Brendan Barnicle. 'They come into their deals with a very good understanding of their potential to cut costs.'

"After swallowing PeopleSoft in January 2005 for $10.3 billion, Oracle cut about 5,000 jobs, or 9 percent of the combined work force at the time. After acquiring Siebel Systems in 2006 for $5.85 billion, Oracle slashed about 2,000 jobs, or about 3.5 percent of its global work force."

Meanwhile, as Sun employees await word on just what Oracle will do regarding headcount, many of them cannot help but wonder how the Sun work force would fare had IBM acquired the company. That is hard to say, as Big Blue is undergoing its own layoff situation. IBM has laid off nearly 10,000 employees in 2009, according to the Alliance@IBM, a union organization representing a group of IBM workers.

HSE proposes 1,000 job cuts

2009-04-24T02:51:00.000-07:00

The HSE is proposing to cut nearly 1,000 staff and redeploy 2,000 employees.

The proposals are outlined in a confidential circular issued today to top HSE managers and seen by RTÉ News.

The number of staff in the area of administration and management will be cut by 500.

2,000 staff in the National Hospitals Office and HSE corporate will be redeployed to community health services.

As a general rule, a new hospital consultant post will only be created when two junior doctor posts have been cut.

In addition to these measures, the HSE also wants to reduce the number of staff nurses by 700 and put limits on student nurse posts.

No extra payments will be made to HSE staff that are redeployed.

The meeting between health unions and the HSE has ended.

The Impact trade union said a further meeting is scheduled for next Monday and there will be no action on the circular between now and then.

The HSE says it will be working with the unions to discuss the issues contained in the draft circular.

The measures are being proposed by the HSE to stay within budget and to implement the Government's moratorium on recruitment and promotions in the public service.

The draft circular says that while there is no exemption for the health service from the moratorium, the aim is to maintain front line services where possible and to minimise the impact on patients.

The directive will also apply to all voluntary hospitals and agencies funded by the executive.

In future, recruitment of staff will only be considered on the basis of a 'one out - one in' system and decisions may be taken to suppress posts.

There is provision to fill a limited number of vacancies, or create new posts, in the areas of speech and language therapists, psychologists, social workers and emergency medical technicians.

Yahoo to cut 600 jobs after results drop

2009-04-24T02:48:00.000-07:00

Yahoo will lay off more than 600 workers after getting off to another bumpy start under a tough-talking new boss who has promised to engineer a long-awaited turnaround at one of the Internet's best-known franchises.

Neither the lackluster first-quarter results nor the job cuts announced yesterday came as a surprise. Yahoo earned $118 million in the first three months of the year, a 78 percent drop from a year earlier. Revenue fell 13 percent to $1.58 billion.

Analysts had predicted Yahoo's three-year slump would worsen during the first quarter, and hints about the job cuts leaked last week.

For Yahoo, it's the third round of layoffs in a little over a year, but the first since the Sunnyvale, Calif., company hired technology veteran Carol Bartz as chief executive in January.

Yahoo dumped about 1,000 jobs in February 2008 and another 1,500 or so late last year while co-founder Jerry Yang was still running the company. Yang stepped down, largely because he wasn't able to snap the company's financial funk during his 18-month tenure as CEO.

The misery worsened in the first quarter as skittish advertisers cut their Internet spending.

Related posts:
* Yahoo to cut hundreds of jobs

Volvo to cut more than 1,500 jobs as markets weigh

2009-04-24T02:46:00.000-07:00

World number two truck maker Volvo said on Wednesday it would cut a further 1,543 jobs at the group as it sought to adjust to plummeting demand across all its main markets.

Volvo said in a statement employees at its Volvo Trucks, Construction Equipment, Penta and Powertrain units would be affected by the lay-offs.

"As a result of the sharp decline on world markets for heavy vehicles, the Volvo Group is being forced to implement new personnel reductions within its Swedish operations," the company said in a statement.

Volvo shares were up sharply already ahead of the news amid broad gains in the Stockholm equity market. At 0938 GMT Volvo shares rose 8.8 percent to 53.75 crowns.

The job cuts announced on Wednesday come on top of the thousands of staff the company is already in the process of laying off in order to come to grips with the sharpest decline in heavy-duty truck markets in living memory.

A Volvo spokesman said the job cuts would reduce costs, but declined to give any specific figure for the savings.

T Rowe Price earnings drop, cuts 288 jobs

2009-04-24T02:29:00.000-07:00

T Rowe Price Group reported a 68 percent drop in first-quarter profit on Wednesday and announced its first sizable job cuts in eight years but also said it took in new money.

The company, which has been managing money in Baltimore for 72 years, reported $4.5 billion of inflows and distinguished itself from most rivals who are expected to report outflows.

Also T Rowe Price, which keeps a low profile by never holding analyst calls or giving market guidance, said it would save millions after laying off 5.5 percent of its workforce.
The job cuts are much smaller than rivals, signaling that T Rowe Price has managed its expenses carefully for years.

Investors reacted by pushing the company's share price up as much as 4 percent in early trading while stocks of other asset managers fell. In midmorning trading the share price was up 3 percent at $37.34 on the Nasdaq.

"We had inflows during the quarter and the industry had outflows," T Rowe Price chief executive officer and President James Kennedy said in an interview.

The turnaround came after the company had $2.4 billion in outflows in the fourth quarter and was fueled by the funds' solid performances compared with the benchmarks.

"If we can perform over time, we will attract customers. And that is happening already," Kennedy said, citing particular demand for T Rowe Price's target-date retirement funds which attracted virtually all first quarter mutual fund flows.

Client inflows however were not enough to offset lower market valuations that reduced assets under management by $12 billion to $268.8 billion. A year ago, the company managed $378.6 billion.

In the first quarter net income fell to $48.2 million, or 19 cents per share, from $151.50 million, or 55 cents, a year ago. The company took a $35.6 million noncash charge for marking down certain investments it held in its own mutual funds, which had suffered losses.

Without the charge, earnings would have been 27 cents, compared with the average analyst estimate of 19 cents per share, as compiled by Reuters Estimates.

Revenue declined to $384.5 million, from $559.1 million a year ago as investment advisory revenue fell about 35 percent in the quarter.

The company also cut its workforce by 5.5 percent, or 288 people, marking the first significant layoffs since 2001.

Expenses related to the layoffs will lower operating earnings by about $2.5 million in the second quarter, the company said. However, the job cuts will save the company about $17 million in the next four quarters and save the company's funds about $6 million in annualized expenses.

Layoffs at T Rowe Price were much smaller than at some competitors who laid off between 10 and 20 percent of their workforces.

Before the cuts, which include call-center employees but no portfolio managers, T Rowe Price employed 5,230 at the end of the first quarter.

DuPont lowers outlook, sets new job cuts

2009-04-22T00:10:00.000-07:00

The company has further restructuring plans that will be finalized in the second quarter. In December, the company said it would lay off 2,500 employees and 4,000 contractors.

New York: Chemical maker DuPont reported a 59% fall in quarterly profit, trimmed its full-year outlook and said it would cut more jobs as weak economic conditions continued to constrict demand.

The US chemicals industry has been hard hit in recent months by the recession that has shrunk sales of its products from the autos, construction and electronics industries.

The Wilmington, Delaware-based company, said it would seek $200 million in cost reductions, including cuts to contractor positions and work schedule reductions, and announced a 12.5% cut to its 2009 spending plans to $1.4 billion.

DuPont maintained its second-quarter dividend at 41 cents a share.

The company is planning further restructuring plans that will be finalized in the second quarter. In December, the company said it would lay off 2,500 employees and 4,000 contractors.
For the second quarter, DuPont expects revenue growth to be limited by continuing weak demand in non-agriculture markets and the negative impact of currency.

Harley-Davidson Inc. to cut up to 400 more jobs

2009-04-20T03:54:00.001-07:00

World famous motorcycle company, Harley-Davidson Inc. plans to eliminate up to 400 more blue-collar jobs in the next 21 months as the company shakes up its manufacturing.

Thursday's announcement came after Harley reported a 37% drop in first-quarter profit because of a sluggish motorcycle market, restructuring costs and a change in Wisconsin tax laws.

Harley's net income fell to $117.3 million, or 50 cents a share, from $187.6 million, or 79 cents, in the year-ago period. Revenue slipped to $1.29 billion from $1.31 billion.

A change in Wisconsin's tax law resulted in Harley-Davidson taking a $22.5 million charge against this quarter's earnings.

Harley's worldwide motorcycle sales declined 12% and U.S. sales declined nearly 10% from last year's first quarter.

The company expects 2009 to be an extremely challenging year, said Jim Ziemer, president and chief executive officer.

Between 50 and 80 of the job cuts will come from Harley's Milwaukee-area factories. Another 90 will come from its York, Pa., operations. The remainder will come from Harley facilities in Missouri and other locations.

Total job cuts at Harley-Davidson, including white-collar positions, are now expected to range between 1,400 and 1,500 over the next two years.

"Every reduction in the work force we look at very carefully," Ziemer said.

"We need to manage the business so that we are well positioned to grow when the economy turns around," he added.

In heavy trading, Harley shares closed Thursday at $18.11, up 98 cents, or 5.7%.

Harley is in the midst of a restructuring effort announced earlier this year.

In January, the company said it was cutting 1,100 factory and office jobs in 2009 and 2010, including hundreds of positions in Milwaukee.

Thursday, the company said further cuts were needed based on a deeper analysis of production requirements.

Labor union officials said they weren't surprised at the additional job reductions, which Wall Street investors often view as favorable when companies face hard times.

"Obviously, Harley is trying to reassure its investors that it's doing what needs to be done. But we are going to do everything possible to minimize that number of layoffs," said Frank Larkin, spokesman for the International Association of Machinists that represents Harley workers.

To ease the job losses, the union could seek things such as voluntary retirements and unpaid furloughs.

Discussions with the company begin immediately when there's a threat of layoffs, Larkin said.

Despite the weaker quarter, Harley said its rate of sales decline has slowed.

The company also outperformed the broader motorcycle industry and gained additional market share as its competitors experienced even bigger sales drops.

Harley's U.S. motorcycle sales fell 9.7% in the quarter, while industrywide sales of heavyweight bikes in the U.S. fell 22%.

Internationally, the company said its sales fell 17% from a year ago as the recession spread overseas.

The company, which has aggressively pushed sales outside the United States, saw a 17% sales decline in Europe, a 26% decline in Latin America and a 30% decline in Canada.

Nomura Holdings Inc. cuts 50 banking jobs outside Japan

2009-04-20T03:50:00.000-07:00

Nomura Holdings Inc. cut 50 investment banking jobs in Asia outside its home market as the recession crimps revenue from advising on stock sales and mergers, a company official said.

The reductions represent 2 percent of the brokerage's 2,500 employees in Asia outside Japan, the official said, asking not to be identified because there hasn't been an announcement.

Japan's largest brokerage is grappling with costs to integrate the operations of bankrupt Lehman Brothers Holdings Inc. it bought last year, leading to a record quarterly loss in the last three months of 2008. The worst financial crisis since the 1930s has also dampened initial public offerings and acquisitions, eroding investment banking revenue.

Tokyo-based Nomura acquired Lehman's Asian units after the New York-based firm went bankrupt in September, and took over 8,000 Lehman employees in October. Nomura's labor costs surged 73 percent in the quarter that ended Dec. 31, when it posted a record loss of ¥342.9 billion.

Nomura is eliminating more than 100 positions in Asia and at least 100 in Japan, two sources familiar with the situation said on Dec. 9. It also cut as many as 1,000 jobs in London, the brokerage said on Dec. 4.

Related Posts:
* UBS to cut 240 jobs in Asia-Pacific
* CIMB Bank to close 60 branches
* HSBC May Cut 1,200 U.K. Jobs
* Mitsubishi UFJ to cut 1,000 jobs

Toshiba set to cut 3,900 jobs

2009-04-20T03:42:00.000-07:00

Electronics giant Toshiba has announced that it expects to post deep losses for its current financial year, while reports suggest the company is about to cut as many as 3,900 employees.

The company said that it would be revising its annual forecast to post a loss of roughly 350bn Yen (£2.4bn). Among the factors cited for the revision was a change in tax charges that the company estimated at 85bn Yen (£600m).

The bad news for Toshiba was first forecast in January when the company posted a loss of 158bn Yen (£1.23bn) and forecast a yearly loss of 280bn Yen (£2.18bn).

Despite the overall worsening of the financial outlook, Toshiba noted that its television and memory device divisions were performing better than the company first forecast in January.

The good news, however, may be very short lived for Toshiba, According to reports from both the New York Times and Wall Street Journal, the company is set to shed some 3,900 jobs.

The cuts are reportedly going to affect temporary employees in Japan.

Toshiba's are the latest in a massive wave of cuts that have been hitting the IT industry over the past six months. Company's ranging from Yahoo to IBM, Microsoft and AMD have all had to cut jobs amid the ongoing economic crisis.

Related posts:
* Tyco Electronics Ltd to cut 20% of jobs
* Electrolux temporarily laid off employees

Sony-Ericsson to cut 2,000 more jobs

2009-04-20T03:33:00.000-07:00

Sony-Ericsson on Friday reported a first quarter loss of $387 million and will cut an another 2,000 jobs.

It is unclear how many of those cuts would come from the company’s North American headquarters in Research Triangle Park in North Carolina, where Sony Ericsson cut 450 of 750 workers last fall.

The mobile phone manufacturer officials did not immediately respond to a phone call seeking comment on how the new round of cuts would affect RTP.

Sony Ericsson saw its first quarter sales fall 35 percent, to 14.5 million units, from the same period a year ago. Sales totaled $2.25 billion, down 36 percent from the first quarter of 2008.

As a result of the losses, the company announced it would look to cut its operating expenses by $520 million and reduce its total work force by 2,000 people. Those cuts should be completed by mid-2010.

The latest round of cuts come nine months after Sony-Ericsson announced plans to shave $300 million in a round of cuts that dropped the ax on 2,000 jobs. Those cuts have already been completed.

“We are aligning our business to the new market reality with the aim of bringing the company back to profitability as quickly as possible,” company president Dick Komiyama said in a statement.

The company has continued to struggle in the cell-phone market. Sony-Ericsson estimated its market share fell about 2 percentage points to 6 percent overall.

The company also expects global cell-phone sales to fall about 10 percent from 2008, when almost 1.2 billion units were sold.

The handset maker is a joint venture between Japan’s Sony and Sweden’s Ericsson.

Related posts:
* Vodafone to cut hundreds of jobs
* Ciena Corp to Cut 200 Jobs

Yahoo to cut hundreds of jobs

2009-04-15T18:16:00.000-07:00

Yahoo Inc is preparing to lay off several hundred workers in the first round of cuts since Carol Bartz became chief executive in January, a source with knowledge of the situation told Reuters.

The layoffs could be announced next Tuesday, when Yahoo reports its first-quarter financial results, according to the source, who wished to remain anonymous because of the issue's sensitivity.

Yahoo's last round of layoffs was in December, under former CEO and co-founder Jerry Yang. The company, which is the No. 2 U.S. Internet search provider, finished 2008 with roughly 13,600 employees, down by more than 1,600 employees from the third quarter of 2008.

Yahoo declined to comment on the planned layoffs, first reported by the New York Times on Tuesday.

The cuts would come almost two months after Bartz implemented a broad internal management reorganization and as Yahoo explores partnerships to help revive its growth.

Air France Confirms Plan To Cut Up To 3,000 Jobs Through 2011

2009-04-15T18:13:00.000-07:00

Air France, part of the Air France-KLM group, confirmed Wednesday it has informed employees of a plan to eliminate between 2,500 and 3,000 jobs through March 2011 as part of a broader effort to reduce its overheads.

The French airline reduced its headcount by 2,400 in the financial year ended March 31, 2009 as it cut back on capacity faced with waning passenger and cargo traffic.

Air France-KlM said earlier this year it expects to report an operating loss of around EUR200 million for the 2008-2009 financial year and expects revenue to fall around 6% in the 2009-2010 financial year.

-By David Pearson, Dow Jones Newswires

Air France-KLM

Air France-KLM is an airline company founded in 2004 as a result of a merger between Air France and KLM. They are the largest airline company in Europe and the third largest airline company in the world. As of 2007 Air France and KLM still operate under their own names as subsidiaries of Air France-KLM.

Wal-Mart China to cut jobs in management layer

2009-04-15T18:05:00.000-07:00

Wal-Mart Stores Inc's China unit will eliminate one management layer of its stores in China to improve efficiency, affecting up to 1,400 people, the company said on Wednesday.

The U.S. retailer, which has 147 outlets in China and employs over 50,000, will offer affected employees the option to move to new stores or take other positions with lower salaries, said Jonathan Dong, a spokesman at Wal-Mart (China) Investment Co Ltd.

"As the market matures ... we have to adjust our productivity and efficiency," Dong told Reuters.

The reduction will affect 140 "super centres" as the layer of assistant managers or deputy mangers is eliminated. That will involve between 840 and 1,400 staff, the company said. (Reuters: Reporting by Fion Li; Editing by David Holmes)

Related posts:
* Amazon.com to lay off 45 workers
* Limited Predicts First-Quarter Loss, Cuts 400 Jobs
* Finlay Enterprises to exit department stores, cut jobs

Johnson & Johnson to cut 900 jobs, mostly in sales

2009-04-15T01:43:00.000-07:00

The bell tolls for more pharma sales reps. Johnson & Johnson is cutting 900 jobs at Ortho-McNeil-Janssen pharma unit, Reuters reports, or about 6 percent of its U.S. pharma workforce. Most of the positions going into that good night are sales-rep jobs.

The good news? They're not all layoffs; some of the cuts are happening via attrition. The company refused, however, to say just how many jobs were eliminated that way. Some of the laid-off workers were told last week; the rest, we assume, await their fates.

J&J is just the latest of many drugmakers to slice their workforces. The ranks of sales reps have been hit particularly hard as the industry dials back a huge expansion of its sales operations from the mid-90s to mid-00s. And like other drugmakers, J&J is suffering from an onslaught of generic competition as some of its biggest drugs go off patent.

Pilgrim's Pride to close Georgia plant, cut 280 jobs

2009-04-15T01:40:00.000-07:00

Bankrupt U.S. chicken producer Pilgrim's Pride Corp said on Monday it will close its Dalton, Georgia, chicken processing plant, a move that affects 280 employees, as it looks for ways to trim costs and become more efficient.

The Pittsburg, Texas-based company is operating under Chapter 11 bankruptcy protection and has been closing plants and consolidating operations. In February, the company said it expected to exit bankruptcy by late this year.

Pilgrim's plans to close the Dalton facility within 60 days and move production to another facility in Chattanooga, Tennessee. About 120 contract growers who supply birds to the Dalton plant will supply the company's Chattanooga plant or other facilities within about 90 days.

There will not be any disruption in supplying chicken to retail, food service and industrial customers as a result of the Dalton closing.

Pilgrim's Pride, once the largest U.S. chicken producer, was forced to seek bankruptcy protection in December after sustaining losses due to high feed costs, low meat prices, and large debt.

In March, the company sold its Farmerville, Louisiana, processing facility for $80 million to Foster Farms, a privately held California-based chicken producer.

Microsoft Still On Track To Cut Another 3,600 Jobs

2009-04-15T01:38:00.000-07:00

Any hope that Microsoft has turned the corner and won’t need to make those deep job cuts after all has been snuffed out.

Microsoft General Counsel Brad Smith said Monday that the company’s employment plans had not changed. In January, the company announced its first-ever mass layoff, cutting 1,400 employees and saying it would eliminate an additional 3,600 positions over the next 18 months. The company also said it would add 2,000 to 3,000 jobs in key areas, such as search. “There have been no changes to our outlook going forward,” Smith said.

IBM Set to Cut Thousands of Jobs in Western Europe

2009-04-15T01:06:00.000-07:00

IBM is reportedly planning to lay off thousands of workers in Britain, Germany and Ireland as part of a move to shift its workforce to countries with cheaper labor such as India and China.

According to reports, IBM is preparing to eliminate thousands of jobs in the United Kingdom and Germany as part of an effort to move more positions to less expensive markets such as Eastern Europe, India, China and South America.

IBM already has laid off nearly 10,000 workers this year in the U.S. and now, according to the Alliance@IBM, which has been monitoring the ongoing cuts, Big Blue is set to eliminate thousands of jobs in Britain, Germany and Ireland.

A report from The Observer, a British news outlet, said:

"We expect many job cuts in Ireland, Germany and the UK in the coming months," said Lee Conrad, national co-coordinator for http://www.endicottalliance.org/, an American advocacy group for IBM workers.

The job cuts come as IBM stands out as a shining star in the technology sector amid the recession. For its fourth quarter 2008, which ended Dec 31, 2008, IBM posted a profit of $4.4 billion, up 12 percent over the same period a year before. IBM is set to announce its financial results for the first quarter of 2009 on April 20. Moreover, the job cuts also come as IBM is vying for stimulus funds from the Obama administration.

Meanwhile, the Alliance@IBM organization also is calling on workers at HP and Sun Microsystems to organize. A call out on the Alliance@IBM web site said:

To EDS/HP and Sun Microsystems employees:

Tired of not being listened to by corporate management? Maybe it's time to organize your own "Alliance"

The Alliance@IBM is an IBM employee organization working to get collective bargaining rights with IBM.

ArvinMeritor has cut jobs to close two plants

2009-04-15T00:50:00.000-07:00

As part of a widespread and deep cost-cutting effort, ArvinMeritor Inc. laid off 250 people in February and March, including 100 at the company’s light vehicle business.

Most of those 100 job cuts came from the division’s headquarters in Southwest Detroit and the auto supplier’s global headquarters in Troy.

ArvinMeritor, which makes auto parts for both commercial and light vehicles, also plans to close two plants in Canada.

The cuts come as production has plummeted throughout the auto industry and as the supplier has reorganized its light vehicle division, preparing most of the segments of that division for sale. ArvinMeritor was unable to spin off or sell its light vehicle division as a whole in a tight credit market and instead decided to try to sell parts of it.

The job cuts, plant closures as well as other cost-saving measures, including salary cuts and the elimination of training programs, will add up to $430 million in annual savings for ArvinMeritor.

“The difficult conditions we continue to experience in our commercial and light vehicle markets has required us to take aggressive steps during the past six months to align our organization to the lower capacity levels," said ArvinMeritor CEO Chip McClure said in a statement.

Snow Park cutting 60 per cent of staff

2009-04-15T00:34:00.000-07:00

New Zealand's Snow Park is drastically scaling down this season, cutting 60 per cent of staff and shedding several major events.

General manager Sam Lee said rumours Snow Park, in the Cardrona Valley near Wanaka, would not open this season were false, but the business would be scaled back after visitor numbers dropped 30 per cent last season.

"There was some uncertainty for us about how things were going to pan out," he said.

"But with fuel prices and the dollar dropping ... we came up with a plan and everything else fell into place."

However, visitor numbers this season were expected to be similar to last year's low, possibly dropping a further 15 per cent.

"We're taking it back to 2004 or 2005."

Snow Park has lost two major events to Cardrona for the coming season, the Freeski Open and the Burton Open NZ.

But Lee said shedding the events were part of a new grassroots focus.

"It sort of grew a bit bigger than we were really. Economic times have made us take a hard look at ourselves."

Fewer staff would mean amalgamating several base services and scaling back the menu at the skifield lodge. All chairlifts and slope features would still be running, he said.

"We're looking at cutting back slightly depending on numbers. If it's busy we're just going to open up more features and if not we'll just service the demand that's there." in 2003, Snow Park has also made a couple of changes to ticketing, dropping season passes in favour of a cheaper club discount card. There will also be a dedicated club night, when members can ride free of charge.

Snow Park, which opened in 2003, is New Zealand's only dedicated freestyle terrain park. It is owned by the Lee family along with the adjacent cross-country ski area Snow Farm.

After receiving consent for a gondola from the Cardrona Valley floor to Snow Park last year, they are seeking investors to back a massive expansion in skiable terrain.

Talks with potential investors were continuing, but all the interest was coming from overseas, he said.

Sam Lee and his father and mother, John and Mary Lee, have developed a kaleidoscope of snow-based operations over the years.

The younger Lee has been in charge of building a restaurant and helped oversee the building of a 24-unit apartment complex that connects to the snow-boarding areas.

The family has run cross-country courses for both ski-skating and classic runs.

Perot Systems says it's cutting 30-40 jobs in Plano facility

2009-04-15T00:28:00.000-07:00

Plano-based Perot Systems Corp. said Friday it has cut 30 to 40 jobs in the Plano area. Perot Systems has about 23,000 employees worldwide. A spokesman noted that Perot Systems has hired about 600 workers in the U.S. in the past three months, with about one-third of those hires coming from inside the company, and has about 300 job openings in the U.S.

Some suggested that the number of laid off workers from US could be higher than 40 jobs.

Alcoa may slash output, lay off 275 workers

2009-04-15T00:15:00.000-07:00

Alcoa Inc., the largest U.S. aluminum producer, said Monday it will curtail production and lay off 275 workers at a smelter in Canada if employees there don't agree to a 15 percent pay cut.

Alcoa has been hit particularly hard by the global economic slowdown, which has hammered demand and prices for the lightweight metal used in products ranging from cars to soda cans. Last week, the company reported its second consecutive quarterly loss despite recent production cuts and plans to trim its global work force by 13 percent.

Negotiations are continuing between Pittsburgh-based Alcoa and a union that represents the roughly 1,000 workers at the smelter in Becancour, Quebec, said Alcoa spokesman Kevin Lowery. But Alcoa plans to cut the smelter's output by 136,000 metric tons, or 34 percent, and eliminate 275 positions if the workers don't agree to a 15 percent wage cut by April 30, he said.

Alcoa said in early March it wanted to reduce labor costs at the plant, which produces about 400,000 metric tons of aluminum annually, and other operations in Quebec, where Alcoa makes about a quarter of its total output. Alcoa owns 75 percent of the Becancour plant and rival Rio Tinto Alcan owns the rest.

"We've tried to reduce costs," Lowery said the company told representatives from the Quebec Labor Federation. "We haven't been able to get it to levels where we need to."

"To wind down production in a safe and efficient way, youhave to begin taking some steps, and people will begin seeing those steps shortly," he added.

Alcoa operates three smelters, a casting plant and a corporate office in Quebec, employing a total of about 3,600 people. The casting facility makes parts for helicopters, airplanes and missiles, among other products. Alcoa employed some 87,000 people in 35 countries at the end of 2008.

The aluminum maker has taken steps to cut costs and raise cash in recent months as it confronts the deteriorating world economy.

Shortly before reporting a quarterly loss in January — its first in six years — Alcoa announced plans to shed 13 percent of its global work force, sell four business units and substantially reduce production.

Alcoa took further steps in March, when it cut its dividend for the first time in more than two decades, unveiled plans to sell stock and debt, and pledged to slash costs by more than $2.4 billion annually.

Alcoa, which makes aluminum and uses it to manufacture products such as truck wheels and fighter jet parts, has announced cuts that would lower its total output by 20 percent. Other large aluminum companies, such as Moscow-based UC Rusal, have also announced cuts in a drive to balance the world's aluminum supply with shrinking demand.

Shares of Alcoa climbed 30 cents, or 3.4 percent, to close earlier at $9.15. That's well off the 52-week high of $44.77 that shares reached last May before the market meltdown.

Related posts:
* BHP Billiton Cuts 400 Jobs
* Samancor Chrome will lay off some 20 percent of its workforce
* Anglo Coal Australia announced cutting 650 mining jobs
* Vale Inco to cut 900 jobs
* Anglo American PLC will cut 11% work force
* 230 jobs cut at Questa mine

Deere to combine divisions, cut 200 jobs

2009-04-15T00:11:00.000-07:00

Deere & Co (DE.N) said it would combine its main worldwide agricultural equipment division with its smaller commercial and consumer equipment unit to reduce costs, starting on May 1.

Deere expects to take pretax charges of about $25 million, a sum that was not reflected in the company's February earnings forecast, in its fourth quarter ending on Oct. 31.

Deere's new worldwide agriculture and turf division will have two presidents, with responsibilities divided by product type and geography, the company said on Tuesday. Six U.S. sales branch offices will be reduced to two.

The current president of the commercial and consumer unit, James Field, will report to CEO Robert Lane in a new role as a senior vice president.

About 200 jobs will be lost through voluntary separations, the company said, adding that Tuesday's announcement would not affect its construction and forestry division or credit operation.

The company said last week that it would lay off 160 workers at a facility in Iowa, and in March it laid off 325 people from its construction and forestry division.

Earlier this year, its Brazilian subsidiary cut about 500 factory jobs, and Deere said last year it would close a plant in Ontario, eliminating 800 jobs.

In Deere's 2008 fiscal year, the agricultural equipment and commercial and consumer equipment divisions together accounted for more than $20 billion of Deere's $28.4 billion in sales.

Related posts:
* Feb 2009 - John Deere cuts 220 jobs

UBS to cut 240 jobs in Asia-Pacific

2009-04-14T23:07:00.000-07:00

Switzerland's biggest bank UBS said that 240 jobs will be cut from its wealth management division in the Asia-Pacific region as part of a cost reduction exercise.

Despite the job losses, the region remains important for the company, UBS said in a statement from its Singapore office.

"Asia Pacific remains a strategic priority for the group, and a region in which it will continue to invest," UBS said in the statement.

"However, in common with its competitors, the slowdown in the global economy and the ongoing challenging economic conditions, have prompted a renewed focus on the management of costs including, as a last resort, those related to staff."

The job cuts announced Tuesday represent less than three percent of the bank's total staff force in the region and under eight percent of its employees in the wealth management group, a UBS spokeswoman said.

She said the job cuts extend across all levels within the wealth management group.

The Swiss banking giant, among the worst hit by the global financial crisis, announced in March an upward revision in full-year loss for 2008 to 20.9 billion Swiss francs (18.35 billion US) from almost 19.7 billion initially.

Related posts:
* CIMB Bank to close 60 branches
* HSBC May Cut 1,200 U.K. Jobs
* Mitsubishi UFJ to cut 1,000 jobs
* M&T Bank Corp. will cut 521 jobs
* European Central Bank Cuts Rates to Record Low as Economy Sinks, Job Losses Mount

Hallmark Cards will cut as many as 750 workers

2009-04-14T22:54:00.000-07:00

Hallmark Cards Inc. plans to cut as many as 750 jobs during the next six months, prompted by the recession and falling consumer confidence.

The Kansas City-based greeting-card maker told employees Tuesday that it plans to trim 6 percent to 8 percent of its U.S.-based work force, excluding subsidiaries. That’s about 550 to 750 jobs out of the current 9,200 full-time employees. Probably 200 to 250 of those cuts will happen in the Kansas City area, company spokeswoman Julie O’Dell said in an interview Tuesday. Hallmark has 4,000 employees at its Kansas City headquarters.

“Reducing our work force by this many jobs is something we wish we did not have to do,” Hallmark CEO Donald Hall Jr. said in a Tuesday release. “These actions are all the more difficult and emotional because of the strong and personal culture we share at Hallmark. Despite all the steps we have taken to date to avoid eliminating additional jobs, the state of the economy and its impact on our business require us to take further action.”

The company said in January that it had frozen wages for this year in reaction to the struggling economy. On March 20, the company reported 2008 revenue of $4.3 billion, down 2 percent from the prior year, and the company expects continued pressure on earnings and revenue this year.

Hallmark is attempting to make up some of the cuts through a voluntary severance program for eligible, nonexempt employees in its operations division. About 350 to 450 jobs will be cut from that division’s seven locations, which cross five states, the release said.

Affected employees will receive severance and transition help.

Cuts will be targeted, not uniform to each division or department, the release said. Locations for the cuts will include Hallmark’s headquarters; manufacturing facilities in Lawrence, Leavenworth and Topeka; distribution centers in Liberty and Enfield, Conn.; fixture operations in Center, Texas, and Metamora, Ill.; and field sales operations.

Hallmark’s U.S.-based subsidiaries, which include DaySpring, Sunrise Greetings, William Arthur, Crayola and Crown Center, will not be affected.

Dell orders more job cuts at NC computer plant

2009-04-05T19:03:00.000-07:00

Dell Inc. has made a new round of job cuts at its desktop computer assembly plant in North Carolina, trimming 50 contract jobs, a newspaper reported Friday.

The Winston-Salem Journal reported that Dell made the cuts at its plant in Forsyth County. A company spokeswoman would not confirm the number, but said the cuts were part of a global work force reduction needed to stay competitive.

The Journal said Dell cut 150 full-time jobs at the plant last month and had cut 115 contract positions in November.

Dell opened the $115 million plant in 2005.

Company officials said the plant had about 1,150 employees in September. Winston-Salem Mayor Allen Joines said plant officials said there were 1,400 workers before the March cuts.

Under agreements from the state, city and county governments, Dell is eligible for up to $305 million worth of incentive payments depending on the size of its work force and its capital investment.

Winston-Salem and Forsyth County have so far paid Dell $22.2 million in incentives.

The incentives called for the company to have 1,700 employees by October 2010 and said the company will have to repay a percentage of the property tax breaks it received if it doesn't have enough employees by the deadline.

Related posts:
* Dell job losses for Limerick

CIMB Bank to close 60 branches

2009-04-05T18:55:00.000-07:00

Malaysia's second largest lender, CIMB Bank, will close nearly 60 surplus branches this year to save up to 60 million ringgit annually, local daily The Malaysian Reserve reported on Monday.

The bank has identified the 60 banks to be closed in August, the report quoted its head of consumer sales and distribution, Sulaiman Mohd Tahir as saying.

“CIMB can save in the region of 50 to 60 million ringgit from the closing of the branches from next year onwards. And when we close the branches, we will redeploy the people.

“The group may also see the possibility of new revenue to be generated by redeploying people to other areas which has value creation in terms of new business,” he said.

The network rationalisation was prompted by the merger between CIMB and Southern Bank in 2006. – Reuters

663,000 Jobs Lost in March; Total Tops 5 Million

2009-04-05T18:52:00.000-07:00

With 663,000 more jobs disappearing from the American economy last month, swelling the total number of jobs surrendered to the recession beyond five million, the government’s response to the downturn is being put to a strenuous test.

When drafting plans in January to spend roughly $800 billion to stimulate the deteriorating economy, the Obama administration operated on the assumption that the unemployment rate would reach 8.9 percent by the end of the year — without the extra federal spending. Three months into the year, the unemployment rate has already soared to 8.5 percent, from 7.6 percent, the highest level in more than a quarter-century.

Between January and March, more than two million jobs were lost, according to the Labor Department’s employment report, released Friday.

The severity and breadth of the job losses in March — which afflicted nearly every industry outside of health care — prompted economists to conclude that an agonizing plunge in employment prospects was still unfolding.

“It’s really just about as bad as can be imagined,” said Dean Baker, a director of the Center for Economic and Policy Research in Washington. “There’s just no way we’re anywhere near a bottom. We’ll be really lucky if we stop losing jobs by the end of the year.”

The pace of retrenchment has prompted talk that another wave of government stimulus spending may be needed to accompany the $787 billion already in the pipeline.

“We’re clearly looking at a worse downturn than they had been anticipating when they planned the stimulus,” said Mr. Baker, whose organization tends toward liberal policy prescriptions. “We’re going to need some more.”

But others — not least, decision-makers inside the Obama administration — deemed such talk premature. The dreadful jobs report landed among tentative signs of improvement in a few areas of the economy, with recent snippets of data lifting stock markets and sowing cautious hopes that the beginnings of a recovery might be taking shape.

After a miserable holiday season, retail sales appear to have stabilized. Auto sales, while extremely weak, improved slightly in February. Houses have been selling in markedly greater numbers in important markets like California and Florida, albeit at substantially reduced prices. Consumer spending appears to have leveled off after plummeting over the last three months of 2008.

“The downturn is still very intense, but it’s no longer intensifying,” said Mark Zandi, chief economist at Moody’s Economy.com.

The surge of government spending is just beginning to work its way through federal and state bureaucracies and is expected to support jobs in construction and related industries later this year.

“We’re attacking this in a very aggressive way,” the labor secretary, Hilda L. Solis, said Friday in an interview, arguing that it was too early to consider another round of stimulus spending. “We will revisit that once we expend all the money that we have accrued.”

For now, the same factors that have assailed the economy for more than a year remain in force, with tattered banks reluctant to lend, and even healthy households and businesses averse to borrowing and investing in the face of grave uncertainty.

The very perception that millions more will lose jobs and housing prices will fall have turned such outlooks into reality: As businesses scramble to cut costs and confront gloomy sales prospects, many are shrinking their work forces, removing more paychecks from the economy.

“There’s a lot of survival job-cutting going on throughout American business,” said Stuart G. Hoffman, chief economist at PNC Financial Group in Pittsburgh. “There won’t be any job growth at all this year. The economy is far, far from being out of the woods.”

Still, Mr. Hoffman is inclined to wait a few months and hope for improvement before calling for a new wave of stimulus spending.

“You don’t just double the dose if the patient doesn’t immediately improve,” he said.

The Treasury recently outlined plans for an expanded bank rescue aimed at lowering borrowing costs for businesses and households. The Federal Reserve has begun buying $300 billion worth of long-term Treasury bonds in an effort to drive down the interest rates on mortgages, auto loans and other forms of finance.

The panic that has ruled financial markets since last fall has abated considerably in recent weeks. The average interest rate on a 30-year, fixed-rate mortgage dropped to a record low of 4.61 percent last week, according to the Mortgage Bankers Association, from more than 6 percent a year ago. Banks are charging each other less to borrow money. Investors are tiptoeing back into the market for corporate bonds.

“Credit markets have improved across the board,” said Michael Darda, chief economist at the research and trading firm MKM Partners. “We’re not going to see it in the economy for a while, and we’re not going to see it in the labor market for an even longer time, but in the financial market, indicators are starting to move in the right direction.”

Manufacturing remains exceedingly weak around the world, a response to plummeting demand for goods. Still, an index tracked by JPMorgan Chase that gauges global production has climbed for three consecutive months.

In London, leaders of the world’s major economies left a summit meeting this week with promises to try to bolster global trade.

But economic recovery will require incomes to improve, giving Americans the spending power to consume, thus creating jobs that generate more wages — an upward spiral. For now, that dynamic is working in reverse: during the first three months of the year, wages and salaries shrank at a 4 percent annual rate, which is on pace to eliminate some $265 billion from the economy, according David A. Rosenberg, an economist at Merrill Lynch.

“This prevalent view that the recession is about to bottom out has somehow bypassed the most important part of the economy, which is jobs and income,” Mr. Rosenberg wrote in a note to clients.

Friday’s report catalogued the myriad ways in which American working people remained under assault. The number of unemployed people rose to 13.2 million in March. Those unemployed for longer than six months reached 3.2 million.

As the unemployment rate edged up to 8.5 percent, from 8.1 percent the previous month, the manufacturing sector again led the way down, shedding 161,000 jobs in March. Employment in construction declined by 126,000, and has fallen by 1.3 million since it peaked in January 2007. Professional and business services employment fell by 133,000.

In New Jersey, Henry Perez, 34, and his family are living in the basement of his sister’s house in Rochelle Park and struggling to find work. They are refugees of sorts from the real estate collapse in Las Vegas, where Mr. Perez once lived, investing heavily in housing.

He has more recently worked in online commerce and as a marketer at an office furniture company. But after being laid off at the end of last year, he has found nothing, even as he has sharply dropped his expectations, applying for jobs at restaurant chains.

“We’re just sitting here all day long looking for jobs on the computer, frustrated and scared as hell,” Mr. Perez said. “I’m looking for anything.”

The report reinforced the reality that the pains of the downturn were hardly confined to the jobless. Those working part time because they cannot find full-time work, or because their hours have been cut, climbed by 423,000 in March, reaching 9 million.

In the Atlanta suburbs, Meg Fisher, 46, has been looking for work since she lost her job as a legal secretary in February. Her husband’s hours at his pharmacy job were scaled back. Their previous annual income of about $79,000 has been sliced to $20,000.

Ms. Fisher is applying for food stamps, while seeking freelance work as a tailor.

“It’s not going to replace my salary,” she said. “It’s not even going to come close, but it’s better than sitting around.”

General Motors South Africa Will Cut 700 Jobs by June

2009-04-05T18:49:00.000-07:00

General Motors Corp.’s South African unit will cut 700 jobs by June after vehicle sales dropped by more than a third this year.

The company “hopes” no more job cuts will be needed, Denise van Huyssteen, General Motors South Africa’s spokeswoman, said in an interview today from Port Elizabeth.

The company began a reorganization of its business in May in response to slowing sales, which have dropped every month since April 2007. About 1,000 jobs were cut in 2008 as a result of the program. Interest rates were raised six times in the year through June 2008, which slashed consumer spending.

“Unfortunately the market deterioration has continued into 2009 to the point where we have no other option but to contemplate forced retrenchments,” Van Huyssteen said in an e- mailed statement. “This action will be taken as a measure of last resort.”

Related posts:
* GM will cut 20,000 more jobs
* Freightliner to Cut 500 More Jobs in NC
* Volkswagen AG Will Cut 16,500 Temporary Jobs Worldwide
* Chrysler 3,000 More Jobs Cut

Hong Kong’s Retail Sales Fall as Companies Cut Jobs

2009-04-03T09:36:00.000-07:00

Hong Kong’s retail sales fell for the first time in more than two years as consumer spending weakened in the face of the global financial crisis.

Retail sales by value dropped 12.6 percent in February from a year earlier to HK$19.9 billion ($2.6 billion), the government said today on its Web site, after gaining 7.4 percent in January. Economists surveyed by Bloomberg News expected a 2 percent drop.

Households in Hong Kong have been cutting back as asset prices fall and companies cut jobs and salaries. Weaker domestic consumption and exports will push the city toward its first full-year contraction since 1998, the government estimates.

“Going forward, company closures and layoffs look set to surge aggressively with almost across-the-board deterioration in business,” said Joanne Yim, chief economist at Hang Seng Bank Ltd. in Hong Kong. “Consumer confidence is likely to be hurt by a rising unemployment rate and falling household income.”

By volume, retail sales fell 13.8 percent in February from a year earlier after gaining 5.4 percent in January, the government said.

For the first two months, sales fell 2 percent from a year earlier by value and dropped 3.6 percent by volume.

February’s numbers might have been distorted by the timing of the Lunar New Year holiday, which was in January this year and in February in 2008. Chinese people buy new clothes and furniture and eat more food during the festival.

Hong Kong’s economy will probably shrink between 2 percent and 3 percent in 2009, after a 2.5 percent expansion last year, the government forecasts.

Share Slump

The unemployment rate in the city of 7 million people rose for a sixth straight month to 5 percent in the three months ended February, the highest level in 32 months. The key Hang Seng Index of shares has slumped 40 percent in the past year.

Tourism has also slowed. The number of visitor arrivals fell 8.1 percent in February from a year earlier, according to the Hong Kong Tourism Board, after rising 11 percent in January.

Rite Aid to cut 297 jobs

2009-04-03T09:31:00.000-07:00

Rite Aid will shut down its distribution center in Newnan, Ga., and cut 297 jobs by the end of September to “improve operational efficiency.”

The Camp Hill, Pa.-based drug store chain bought the Newnan facility in June 2007 when it acquired 1,800 Brooks Eckerd stores and six distribution centers. The company said at the time of the acquisition that once all of the Brooks Eckerd stores were integrated into Rite Aid, it would consolidate the distribution activities of its 14 distribution centers.

The 194 stores served by the Newnan distribution center will be served by other Rite Aid distribution centers.

Autodesk Inc would cut 750 jobs

2009-04-03T09:21:00.000-07:00

Autodesk Inc. named Mark J. Hawkins to the post of executive vice president and chief financial officer effective April 27 as the design-software company said it would cut more jobs, but didn't give any figures.

The company said it hopes to save an additional $100 million to $150 million a year on top of the $130 million it announced in January, when it said it would cut 750 jobs, or 10% of its work force. It also agreed in January to spin off its location services unit to private-equity firm Hale Capital Parters as it focuses on its core business.

Autodesk also said Thursday it would consolidate some facilities.

The company said it would announce details of the new cost-cutting plan next month. Autodesk also reiterated its fiscal first-quarter outlook Thursday.

Profits had been mounting at Autodesk, but the company swung to a loss in its most recent quarter on lower sales and margins as well as a goodwill write-down.

"We have not seen an improvement in global economic conditions," making further cost cuts necessary, said Chief Executive Carl Bass, who has been serving as interim financial chief since August, after financial chief Alfred Castino announced in May he would resign to spend more time with his family.

Bombardier to cut 3,000 jobs

2009-04-03T09:15:00.000-07:00

Canadian aerospace and transportation group Bombardier Inc. said Thursday that its fiscal fourth-quarter net profit rose 42% as it also announced plans to cut another 3,000 jobs amid falling demand for business aircraft.

The group said profit rose to $309 million, or 17 cents a share, from $218 million, or 12 cents a share, as revenue grew 3% to $5.43 billion. The result matched the consensus forecast. The firm said, however, that demand for business aircraft deteriorated rapidly in the second half of 2008 and it now expects deliveries of business aircraft in the current fiscal year to fall 25%.

The group said it's revising down all its business and regional jets production rates and will cut a further 10% of the workforce in the aerospace unit, or around 3,000 employees, at its facilities in Canada, the U.S., Mexico and Northern Ireland by the end of 2009

Aviva to Cut 1,100 Jobs at Norwich Union After Review

2009-04-03T09:01:00.000-07:00

Aviva Plc, the biggest U.K. insurer, will eliminate about 1,100 jobs at its Norwich Union life insurance unit after a cost review that was announced in 2007.

The cuts equal 3.9 percent of Aviva’s U.K. workforce and include 300 vacant positions. A further 590 contract spots will be closed in the next few months, the London-based company said in a statement. Job losses will mostly be in the English cities of Norwich and York, said spokeswomen Sue Winston.

“Our strategy over the last three years has seen us transform and simplify our business,” Chief Executive Officer Mark Hodges said in the statement. “This means that a reduction in the number of roles in the business is inevitable.”

Aviva is reducing products and cutting jobs in the U.K. to improve profit growth at its general insurance unit as the economy slows. The company has shifted jobs to India over the past five years to take advantage of a well-educated, English speaking and lower cost labor force.

Aviva, which sells insurance and investments through joint ventures with banks in continental Europe and Asia, in June announced plans to shed as many as 1,800 jobs over two years. Last month, the insurer said it had reduced costs by 340 million pounds since October 2007 and was on target to save 500 million pounds by 2010.

‘Constant Uncertainty’

The Unite trade union said it’s unacceptable for Aviva to slash jobs after deciding to maintain its shareholder dividend at 2007 levels. On March 5, the insurer posted a record loss after it wrote down the value of corporate bond holdings.

“Unite is angry that Aviva is repeating what appears to be an annual exercise of cutting thousands of staff,” Derek Simpson, the union’s joint general secretary, said today in an e-mailed statement. “The Aviva workforce is continuing to live under constant uncertainty about their future.”

Google Lay-offs 200 Employees

2009-03-31T05:49:00.000-07:00

Economic recession extends its arm to Google also. Yes… Google, an almighty company find it difficult to pay their employees the full salary. Hence it gives pink slip to 200 Googlers. I am sure its be a bad news.

Hitherto, low players are so hard hitted by this world-wide crisis. Now economic crisis hits the Google also. Although the company tried to hide this fact previously, now they have accepted this news. Google assures to help the employees who will be affected to find other employment within Google as well as give severance pays to them. This is a GOOD news for them.

Omid Kordestani, Senior VP, Global Sales and Business Development announced as follows:-

“So today we have informed Googlers that we plan to reduce the number of roles within our sales and marketing organizations by just under 200 globally. Making changes of this kind is never easy—and we recognize that the recession makes the timing even more difficult for the Googlers concerned. We did look at a number of different options but ultimately concluded that we had to restructure our organizations in order to improve our effectiveness and efficiency as a business. We will give each person time to try and find another position at Google, as well as outplacement support, and provide severance packages for those who leave the company. Finally, I would like to take this opportunity to thank everyone affected for all they have contributed to Google.”

Not so long ago, Google took some measures to cut down their expenses especially on man power (Google gave pink slip to Google engineers few weeks ago). This is the second time Google was affected by Economic crisis.

NEC Computers closing Asia-Pacific head quarters

2009-03-31T05:25:00.000-07:00

NEC Computers Asia Pacific Sdn Bhd is closing its Asia-Pacific headquarters in Bukit Tengah Industrial Estate, Penang, Malaysia.

Executive vice-president Bernard Saw said some 240 workers would be affected by the shutdown.

“We will initiate the shutdown process in May and the whole exercise should be completed before the year ends.

“After the shutdown, we will still maintain through our authorised service providers support for our laptop and personal computers (PC) users,” he told StarBiz.

Saw said demand for its products in Asia-Pacific was not large enough to support the group’s expansion plans.

“The facility in Penang is involved in manufacturing, research and development activities, providing logistic support, treasury and marketing activities.

“It ships out laptops and personal computers to South-East Asian countries, Hong Kong, Australia, New Zealand and India,” he said.

The reason to shut the Asia-Pacific headquarters followed a decision last week to withdraw from the PC markets in South and South-East Asia, Hong Kong, as well as Australia and New Zealand, due to adverse worldwide economic conditions.

“The Asia-Pacific PC market holds less potential for expansion, so NEC wants to focus on just the domestic market in Japan, where NEC holds a leading position.

“There will also be a cessation of new PC offerings in July,” Saw added.

Japan's unemployment highest in 3 years

2009-03-31T05:17:00.000-07:00

Japan's economy grew even sicker in February as the unemployment rate jumped to a three-year high and families sharply cut spending, underscoring the government's growing sense of urgency that it needs to mount a bigger defense.

The jobless rate in the world's second-largest economy rose to 4.4 percent - the highest level since January 2006, the government said Tuesday.

Meanwhile, household spending, a key measure of individual consumption, tumbled 3.5 percent from a year earlier.

The latest figures are among a slew of major indicators this week that so far have highlighted the ferocity of the global downturn.

Next up Wednesday is a key survey of business sentiment that may hit an all-time low.

Prime Minister Taro Aso is expected to unveil new stimulus measures during the upcoming Group of 20 summit in London, on top of about 12 trillion yen ($122 billion) in public spending announced last year.

Finance Minister Kaoru Yosano, who will also attend the G-20, has suggested that the government may need to spend up to 20 trillion yen in a new package but said Tuesday that the amount remains undecided, according to Kyodo news agency.

Japan, which has relied on foreign sales of its cars and gadgets to drive economic growth, now finds itself mired in its deepest recession since the end of World War II as the world's consumers slash spending.

Data last week showed that exports nearly halved in February, which led to sharply lower industrial production.

Factory output tumbled 9.4 percent in February from the previous month, the government said Monday, with especially steep cutbacks among makers of motor vehicles and general machinery.

The figure marks the fifth straight month of decline and follows January's record 10.2 percent plunge.

In response to the unprecedented collapse in global demand, major exporters including Toyota Motor Corp. and Sony Corp. have moved quickly to adjust by reducing shifts, suspending factory lines and slashing thousands of workers.

Their aggressive moves have suppressed inventory levels, which dropped 4.2 percent in February in the second straight month of decline.

That's at least some positive news for companies, but a troubling sign for families losing those jobs.

The number of unemployed surged 12.4 percent from the previous year to 330,000, the government said.

And the ratio of jobs to applicants dropped to 0.59, meaning there were 59 positions available for every 100 job seekers.

"In a sense, it is a zero-sum game with only one side able to 'win' in 2009," said Kyohei Morita, chief economist at Barclays Capital in Tokyo.

"Compared with past recessions, manufacturers are keeping their inventories under control. To avoid overproducing, however, they have had to avoid over-employing."

The Bank of Japan will follow Wednesday with the results of the closely watched "tankan" quarterly business survey.

The report, which polls 10,000 companies, will likely show that business confidence has plunged to its lowest-ever point. Economists also expect the tankan to show historic cuts in companies' capital investment plans.

"While the anticipated pace of deterioration and the level of the (tankan's main index) are breathtaking, these dramatic numbers are no longer surprising after the incredible fall in major economic indicators, including GDP" in the fourth quarter, said Masamichi Adachi, senior economist at JP Morgan in Tokyo.

Japan's gross domestic product shrank by an alarming 12.1 percent annual rate in the October-December quarter.

The contraction is the severest for Japan since the oil shock of 1974 and is double the pace of the decline in the U.S.

Still, some recent forecasts offer slivers of hope.

The Ministry of Economy, Trade and Industry predicts industrial production will rise 2.9 percent this month and climb 3.1 percent in April as the country's factories begin to stir.

Along with slimmer stockpiles, Japanese exporters are cautiously optimistic about the U.S. and China - their two biggest markets and the keys to an economic recovery.

Adachi also predicts that consumer spending may rebound in the near future despite a deteriorating labor market.

The government has begun distributing 2 trillion yen in cash handouts approved as part of Aso's revival plan, and lower highway tolls are expected to boost leisure spending, he said. - AP

Bosnia's jobless rate at 43 percent and rising

2009-03-29T06:17:00.000-07:00

If anyone ever stood a chance of escaping the global financial crisis, it might have been Almija Muminovic.

Ask her how much she's got stashed in one of those teetering banks, and she looks puzzled, then breaks into a toothless grin. "That's so far away from me," says Muminovic, whose life savings _ a few notes and coins - are stuffed beneath a mattress.

The 54-year-old widow, haggard after a life of hardship, ekes out an existence on a wind-swept hill overlooking Sarajevo. She had a milking cow, but had to sell it last month to make rent. Now she survives on a meager patch of vegetables and a $190 monthly pension.

Her struggle points up this harsh reality: When the global economy falters, there's really nowhere to hide. Least of all in Bosnia, where the unemployment rate - officially 43 percent and rising - is among Europe's highest.

Fourteen years after Bosnia's devastating 1992-95 war, the economy is still a wreck.

Experts warn that it could get even worse, especially this year and next, as the world recession hammers away at the former Yugoslav republic.

In a new report, the World Bank offers what it calls "a gloomy picture": rising joblessness, shrinking exports and a reduction in remittances - the cash that Bosnians living abroad send home.

Like other economies in transition, Bosnia's "is almost certain to experience a drastic reduction in the rate of growth," it predicts, with real GDP growth set to plunge by 70 percent or more this year.

Bosnia's misery is manifold, but its staggeringly high unemployment is grabbing the most attention. Officials say 6,500 people lost their jobs in the last two months alone.

Officials caution that the 43 percent jobless figure includes the so-called "gray economy," in which people are paid under the table. Take all those unofficial jobs out of the mix, and the true jobless rate is closer to 22 percent: still nearly three times the U.S. rate.

And in Bosnia, jobless benefits are as scarce as openings. People who lose their jobs get health insurance for the entire period they're out of work, but only $133 a month in unemployment benefits _ and that runs out after six months.

To be sure, there seem to be far more Bosnians working than the government data might suggest.

Wander the capital at 7 a.m., and you'll see streetcars stuffed with rush-hour commuters, boulevards jammed with Sarajevans driving new cars, and cafes packed with office workers jabbering on iPhones.

But in the countryside, there are heartbreaking scenes of abject poverty.

It's the kind of suffering that puts a human face on Bosnia's leading economic indicators and its bleak prospects, at least in the near term, for prosperity.

Earlier this month, in the northwestern town of Prijedor, Dusan Puzigaca, 57, and his 52-year-old wife, Nada, committed suicide. The letter the despondent couple left behind cited their joblessness and their inability to repay loans.

Financial trouble is a common reason for suicide, and there has been a spate of such deaths recently. But the way the Puzigacas took their lives belied the depths of their desperation: They drank large amounts of vinegar, police said, presumably because they couldn't afford sleeping pills.

"We have a small caste of people who live well, and an army of poor," said Perica Jelecevic, labor minister in the Muslim-Croat part of Bosnia. "Fourteen years after the war, we haven't really found a solution to this unemployment problem."

Most of the country's current economic dysfunction began with the war, part of the late strongman Slobodan Milosevic's bloody campaign to break apart ex-Yugoslavia.

The Dayton peace accords that ended the war carved up Bosnia into two fairly autonomous ethnic ministates: a republic run by Orthodox Christian Serbs, and a federation shared by Muslim Bosniaks and Roman Catholic Croats, both overseen by an international administrator.

From a business perspective, the arrangement has produced a bureaucracy from hell.

The government is a three-headed hydra, with a presidency that includes representatives from all three ethnic groups. Government agencies and local institutions frequently get bogged down in ethnic mistrust.

And because the gray economy has robbed the treasury of tax revenue, employers are saddled with astonishingly high costs for social security, health care and other taxes - levies that require companies to pay 68 percent more on top of each worker's take-home wages.

By far the worst wartime legacy is the carnage itself: an estimated 113,000 dead.

"It's a huge loss of human capital. You can't compensate for that," said Fikret Causevic, a professor of economics at the University of Sarajevo. Bosnia, he said, "has been in a depression since 1995."

A massive brain drain has also hampered postwar recovery. About 550,000 Bosnians - 15 percent of the total population of 3.6 million _ live abroad. They do pump a lot of cash back into the underground economy: Officials say remittances total 23 percent of GDP, and added up to roughly $2.4 billion in 2007.

As the global meltdown eliminates jobs in North America and Western Europe, where most Bosnian expatriates live and work, there's already anecdotal evidence suggesting that some are returning - jobless - to their homeland.

Despite the less-than-enticing environment, and membership in the EU at least a decade away, Bosnia has managed to attract some international investment, in part because foreign employers are exempt from some taxes for five years.

Arcelor Mittal, the world's largest steelmaker, employs about 3,000 people in the central town of Zenica, and automobile upholstery manufacturer ASA Prevent employs another 3,500.

But nationwide, the average monthly salary is still a paltry $450. That's not enough to nudge someone north of the poverty line in Bosnia, where prices for food, fuel and housing are fast approaching Western levels.

As if that's not bad enough, officials warn that wages are likely to fall as the economy slows.

"In the second half of this year, this global crisis will really hit us over the head," said Jelecevic, the labor minister.

Though few expect another armed conflict, it's possible if social unrest swells along with the ranks of the unemployed. "The economic crisis can turn into a political crisis ... even a war," Causevic warned. Muminovic, the widow who lost her cow, has already been through one of those. Yet even though she's reduced to bathing in a tub in her garden, she's a survivor.

"All I know is I have to survive because I have children," she said. "The best thing I can do is to spit in my hands and go to work. And plan and struggle. We have no choice."

FedEx to cut 1,000 jobs

2009-03-27T00:09:00.000-07:00

FedEx’s profits have nose-dived 75 percent from year-ago levels, prompting the company to slash 1,000 more jobs and cut $1 billion in expenses.

The Memphis-based express delivery giant on Thursday reported fiscal third-quarter earnings of 31 cents per share — significantly worse than the 48 cents per share analysts predicted.

Profits from FedEx’s Express, Ground, Freight and Services segments were $97 million on revenues of $8.1 billion for the three months ending Feb. 28, compared with $393 million, or $1.26 a share, on revenues of $9.44 billion a year earlier.

Company officials announced plans to cut $1 billion in annual expenses, including extending pay cuts to include foreign employees, where possible, and further reductions of personnel and work hours.

For full story, click here.

ThyssenKrupp to shed more than 3,000 jobs

2009-03-27T00:07:00.001-07:00

ThyssenKrupp plans to shed more than 3,000 jobs, a press report said on Friday, the first time a German industrial group would slash permanent posts as a result of the country's recession.

ThyssenKrupp, a steel maker and manufacturer of industrial goods, would cut 1.5 percent of its workforce as it struggles with falling demand for its products, the Financial Times said, without identifying its sources.

A spokesman for the group told AFP "it was not serious at the moment to speculate about figures."

Dell job losses for Limerick

2009-03-27T00:04:00.000-07:00

Dell can confirm that there will be job losses announced last week for its Irish bases in Limerick and Cherrywood, but cannot at this time give any numbers. RTE News is reporting that 230 jobs in total are to go: 130 in Cherrywood, Dublin and the remaining 100 in Limerick.

This news follows plans in January of this year to cut 1,900 jobs in Dell's Limerick plant, as its production unit was moved to Poland, leaving 1,000 non-manufacturing jobs behind.

Talks this morning with Dell employees in the EMEA region are the beginning of a 30-day consultation period, said a spokesperson for Dell, adding that the review of staffing levels follows the company's announcement in January 2009 of plans to reduce its cost base by US$4bn by January 2011.

While the initial 1,900 jobs will be axed starting from next month, with all affected employees having left by 2010, this would mean an extra 230 job losses added to this.

Almost one year ago, on 29 April 2008, Dell's Cherrywood plant in Dublin shed 250 permanent jobs as the company cited an "EMEA-wide re-organisation to improve competitive advantage and long-term profitability".

With last year's job losses, the recent 1,900 and now an extra 230 jobs to go from Limerick and Cherrywood combined, Dell's Irish workforce will have dropped from 4,500 in 2008 to 2,120 by 2010.

U.S. Postal Service to cut 1,400 jobs

2009-03-27T00:01:00.000-07:00

The U.S. Postal Service said on Friday it is closing six of its 80 district offices. In addition, administrative staff positions at district level nationwide are being reduced by 15 percent and nearly 150,000 employees nationwide being given opportunity to take an early retirement.

More than 1,400 mail processing supervisor and management positions are also being eliminated.

Qantas to cut 90 senior posts

2009-03-26T23:57:00.000-07:00

Qantas is to cut 90 senior management posts and introduce a salary freeze because of 'commercial challenges' posed by the global financial crisis.

Qantas chief executive Alan Joyce said the global slowdown was affecting the entire aviation industry and the airline was responding by removing "layers and layers of management".

"Starting today, we will be making some longer-term organisational changes to the management of the Qantas Group to develop a leaner, more fast-moving organisation," he said.

The job losses come on top of 1,500 positions Qantas announced it would scrap last July.

Joyce said Qantas had to act decisively in the face of the financial crisis and "our response must begin with those of us who lead the company".

He said executives who retained their jobs would have to take on new roles as the airline's management structure was comprehensively overhauled.

"These changes will mean fewer overheads and reduce the number of layers between those leading the business and those working with our customers, our aircraft and business partners," he said.

"But we are taking great care to retain the ability to deliver world class customer service and ensure safety is not compromised."

The move is Joyce's first major initiative since he was appointed as chief executive last November after five years running Qantas' budget offshoot Jetstar.

Arbitron Inc to cut 10% of jobs

2009-03-26T23:55:00.000-07:00

Arbitron Inc., the Columbia, Md., media- and marketing-research firm, said late on Tuesday that as part of a companywide cost-cutting plan, it would pare 10% of its full-time jobs.

The company expects a first-quarter charge of $8 million to $9 million for severance and benefits. The move, to be completed in the first quarter, should save $10 million a year beginning in 2010, Arbitron said. And the savings in 2009 should offset the first-quarter charge, the company said.

Meantime, the company affirmed its earnings estimates for 2009. Arbitron expects to earn $1.40 to $1.55 a share, up 3% to 14% from $1.36 in 2008. Revenue should rise 6% to 10% from 2008's $368.8 million.

Hospira Inc. will cut 10 percent of its work force

2009-03-26T23:52:00.000-07:00

Hospira Inc. said it will cut 10 percent of its work force in a move designed to save $110 million to $140 million a year.

Most of the jobs will be eliminated in the next 12 months, the Lake Forest-based maker of generic injectable drugs for hospitals said Tuesday. Hospira said it will take charges of $140 million to $160 million because of the action, with $90 million to $100 million booked this year.

Hospira also said it planned to simplify its product line, evaluate assets that detract from growth and condense its management structure.

"By reducing costs and improving efficiencies, we can free up more dollars to invest in profitable growth and shareholder returns," said Christopher B. Begley, the chief executive officer.

Hospira had 14,500 employees as of Dec. 31.

HSBC May Cut 1,200 U.K. Jobs

2009-03-26T23:47:00.000-07:00

The British division of HSBC PLC said Wednesday that it may lay off as many as 1,200 staff following a review of operations, although the Unite union claimed that 2,900 staff would be affected.

HSBC UK said the 1,200 cuts represent about 2% of its 58,000 employees in Britain and are being made in information technology, human resources and other support operations -- not in front-line branch staff. Some employees would be able to take other positions within the company, HSBC said.

However, Saba Mozakka, communications officer for the United union, said it had received "very clear information from HSBC that it is 2,900" employees who face redundancy. HSBC didn't deny this, but noted that only 1,200 workers were being told Wednesday that they would lose their jobs.

Related posts:
* HSBC to cut more than 6,000 U.S. jobs
* Mitsubishi UFJ to cut 1,000 jobs
* M&T Bank Corp. will cut 521 job s
* J.P. Morgan Chase expects to eliminate 14,000 jobs
* European Central Bank Cuts Rates to Record Low as Economy Sinks, Job Losses Mount

Amazon.com to lay off 45 workers

2009-03-26T23:38:00.000-07:00

Book and media dealer Amazon.com has decided to lay off 45 workers in Munster as part of a facility closure on May 25, the DWD reported, after receiving a letter from the company on Wednesday.

Korea Gas Corp to cut 305 jobs

2009-03-26T23:34:00.000-07:00

South Korea’s state-run Korea Gas Corp. (KOGAS) said Thursday that its board of directors has decided to cut 305 jobs all at once, amid stiff opposition from its labor union.

The jobs, accounting for 10.7 percent of KOGAS’ overall payroll, were scheduled to be phased out by 2012 according to the government’s plan.

Last December, the government announced it would slash 19,000 jobs in state-run corporations and institutions, including Korea Gas and the state-run electricity firm Korea Electric Power Corp., accounting for 13 percent of its combined workforce, over the next three to four years.

Unionized workers of KOGAS, however, are vehemently opposed to the decision, claiming that the company should not eliminate workers to propel its new projects, including Russia’s natural gas pipeline construction.

KOGAS is pushing to participate in the construction of a natural gas pipeline linking Sakhalin and Vladivostok, Russia.

Despite the decision by the board, the management and labor union reached a verbal agreement to review the job-cut plan.

On Wednesday, KEPCO’s board of directors sought to decide on its plan to cut 2,420 jobs — 11.1 percent of its 21,743-strong workforce — at a single swoop, but failed due to the labor union’s opposition.

BHP Billiton Cuts 400 Jobs

2009-03-26T23:21:00.000-07:00

The world's biggest miner, BHP Billiton, said on March 26 it would axe Australian jobs, while rival Rio Tinto shut down an iron ore smelter, in response to weakening world commodity demand.

Responding to union claims that up to 400 contract jobs would be lost in Queensland state, a spokeswoman said BHP believed metallurgical coal output for 2009 would be approximately 10%-15% below capacity. "We adjust our contract requirements to suit the level of activity of our business," Samantha Evans said. She would not confirm or deny the exact number of jobs cut.

BHP announced in January it would cut about 6,000 jobs worldwide in response to the global economic downturn, saying it expected to lose contractors as conditions deteriorated.

The mining union said 400 contractors had been told they would lose their jobs, some of whom had been working for BHP for 10 years. "We don't know whether this means some of the planned expansions are not going ahead, or if they are mining to a lesser extent," said Steve Pierce, of the Construction, Forestry, Mining and Energy Union.

The news came as rival Rio Tinto announced the temporary closure of an iron ore smelter in Western Australia, citing depressed pig iron prices and poor market outlook.

Related posts:
* Samancor Chrome will lay off some 20 percent of its workforce
* Anglo Coal Australia announced cutting 650 mining jobs
* Vale Inco to cut 900 jobs
* Anglo American PLC will cut 11% work force
* 230 jobs cut at Questa mine

Fairchild Semiconductor To Cut 200 Jobs

2009-03-26T22:33:00.000-07:00

Fairchild Semiconductor said Thursday it will close its wafer fabrication plant in Mountaintop, Penn. and one of its wafer fabs in Bucheon, South Korea.

San Jose-based Fairchild said the closures are part of its ongoing cost reduction strategy "and the need to align manufacturing capacity with end demand."

Most products currently made at the Pennsylvania site will be transferred to other internal sites, Fairchild said. The South Korea site will close its four-inch line and transfer associated manufacturing to its five and six-inch wafer fabs.

Fairchild expects to incur approximately $18 to $23 million of cash charges, primarily for severance and other costs associated with transfer activities beginning in the second quarter. The company will also take additional non-cash charges of approximately $25 to $30 million for impairments and accelerated depreciation over the course of the next six quarters.

About 200 jobs will be eliminated at the Pennsylvania site, Fairchild said.

Agilent Technologies Inc To Cut Another 2,700 Jobs

2009-03-26T21:22:00.000-07:00

Agilent Technologies Inc. shares gained after the company said it is eliminating another 2,700 jobs, its third round of cuts since December, as it tries to cope with huge drops in revenues.

Including 1,400 job cuts previously announced, the scientific instrument maker has now cut about 20% of its global work force and will now restructure two of its three units.

The stock was recently up 6.2% to $16.94, and is now up about 8.6% year-to-date. That is still 55% below the 52-week high of $38 last June as results have fallen sharply.

Agilent said the majority of the most recent restructuring would come at its electronic-measurement segment, a unit that makes specialized measuring instruments for the communications, software and other tech fields. Revenue at the segment has fallen to the lowest level in the company's 10-year history, down 30% from the prior year, Agilent said.

The company also pointed to its smaller semiconductor- and board-testing segment, where revenue is down 50% as volumes plunge 65%.

Agilent also announced it is suspending stock repurchases until the end of the fiscal year.

In December the company said it was cutting 500 full-time jobs and 300 temporary positions and followed that up by eliminating another 600 jobs in February.

IBM to lay off 5,000 workers

2009-03-25T19:05:00.000-07:00

IBM Corp. plans to lay off about 5,000 U.S. employees in a new round of job cuts, the Associated Press has learned.

The move reflects IBM's aggressiveness in shifting labor to lower-cost regions like India and keeping its profits aloft at a time when other technology companies' earnings are tumbling.

An IBM manager knowledgeable about the plans said the cuts will come from the services division and workers will be informed Thursday.

The person spoke on condition of anonymity Wednesday because he was not authorized to discuss the plan publicly.

The layoffs were reported earlier by The Wall Street Journal.

The cuts will affect about 4 percent of IBM's U.S.-based work force, which totaled 115,000 at the end of 2008.

In a sign of how quickly IBM is staffing up in emerging markets, last year IBM had nearly as many workers in Brazil, China, India and Russia - 113,000 - as it did in the U.S.

IBM now has about 400,000 employees worldwide.

Unlike many other tech companies that have recently announced layoffs, IBM has managed to become more profitable despite the recession.

IBM's cost-cutting, global footprint, and focus on services and software, which are often more lucrative than hardware, are key reasons why.

IBM's net income was up 18 percent last year to $12.3 billion.

In January, Armonk, N.Y.-based IBM cut thousands of U.S. jobs in sales, software and hardware.

IBM didn't give the precise number, saying it fell below an amount that would require disclosure.

Other tech companies are also doing big layoffs.

Hewlett-Packard Co. is slashing 24,600 positions, 8 percent of its 320,000-employee work force, in a three-year restructuring as part of its acquisition of Electronic Data Systems Corp.

HP paid $13.9 billion for EDS in a bid to compete better against IBM for technology-services contracts.

Microsoft Corp. said in January it was cutting 5,000 jobs, the first mass layoffs in the company's history, after profit in the latest quarter fell 11 percent to $4.17 billion - AP

More women needing cash go from jobless to topless

2009-03-24T08:53:00.000-07:00

As a bartender and trainer at a national restaurant chain, Rebecca Brown earned a couple thousand dollars in a really good week. Now, as a dancer at Chicago's Pink Monkey gentleman's club, she makes almost that much in one good night.

The tough job market is prompting a growing number of women across the country to dance in strip clubs, appear in adult movies or pose for magazines like Hustler.

Employers across the adult entertainment industry say they're seeing an influx of applications from women who, like Brown, are attracted by the promise of flexible schedules and fast cash. Many have college degrees and held white-collar jobs until the economy soured.

"You're seeing a lot more beautiful women who are eligible to do so many other things," said Gus Poulos, general manager of New York City's Sin City gentleman's club. He said he got 85 responses in just one day to a recent job posting on Craigslist.

The transition to the nightclub scene isn't always a smooth one — from learning to dance in five-inch heels to dealing with the jeers of some customers.

Mitsubishi UFJ to cut 1,000 jobs

2009-03-24T08:43:00.000-07:00

Mitsubishi UFJ Financial Group Inc. said Monday it will shutter dozens of branches and cut 1,000 jobs as part of continuing efforts to streamline operations since Japan's biggest bank was formed through a merger three years ago.

Its core unit, the Bank of Tokyo-Mitsubishi UFJ, will close 50 domestic branches, eliminate 200 ATM locations and reduce its payroll by 1,000 positions through natural attrition over the next three years, said company spokesman Takashi Miwa. It has already closed about 70 branches and now operates about 670 outlets.

The bank will also transfer another 1,000 employees from its headquarters in Tokyo to local branches. The combined moves will lower headcount at the bank's main office by a third, Miwa said.

The overall group has 78,000 employees

Daily Mail group to cut 1,000 jobs

2009-03-24T08:29:00.000-07:00

The Daily Mail and General Trust media group said Monday it would cut 1,000 jobs this year, over twice as many as previously forecast.

The job reductions, the latest blow to the ailing media sector, will hit its regional arm, although further cuts are planned "across all cost categories" at Associated Newspapers, owner of the Daily Mail and Mail on Sunday.

While the mass-market Daily Mail is its biggest brand, the group owns some 113 daily, weekly and free regional newspapers including The Leicester Mercury, the Bristol Evening Post and the Derby Telegraph.

The 1,000 job cuts, over twice as many as forecast in November, come as advertising revenues continue to collapse as advertisements increasingly go online.

In the first quarter of 2009, Associated Newspapers forecast a 24-percent decline in ad income on 2008.

Job advertising is being hit hard as unemployment rises. "Recruitment revenues are still decreasing and we expect them to be down 55 percent for the quarter," the company warned.

Media groups were already having to fundamentally restructure due to rapidly evolving technologies, even before the credit crunch and the economic downturn hit their bottom line from last year.

Related posts:
* Charlotte Observer to cut jobs
* News & Observer will cut 27 full-time jobs
* Northcliffe Media plans to cut up to 95 jobs
* San Francisco Chronicle threatening to cut 225 jobs
* Providence Journal To Cut 100 Jobs
* McClatchy to cut 1,600 jobs, salaries

Charlotte Observer to cut jobs

2009-03-24T08:24:00.000-07:00

The Charlotte Observer is eliminating almost 15 percent of its work force, including 30 newsroom positions, while reducing the pay of most remaining employees.

The newspaper also plans to cut the hours of some workers. If economic conditions don't improve, the McClatchy -owned paper said Monday that a one-week furlough will be imposed later this year.

Related posts:
* News & Observer will cut 27 full-time jobs
* Northcliffe Media plans to cut up to 95 jobs
* San Francisco Chronicle threatening to cut 225 jobs
* Providence Journal To Cut 100 Jobs

Bristow Group Inc to cut jobs, management salaries frozen

2009-03-24T08:14:00.000-07:00

Bristow Group Inc, which provides helicopter services to the offshore energy industry, said it would reduce work force by less than 10 percent, citing challenging market conditions.

The company said its European affiliate, Bristow Helicopter Group Limited, was starting consultations with trade union representatives and employees in Europe regarding proposed staffing reductions.

"Similar actions are expected in other business units as part of an overall plan to reduce work force by less than 10 percent to meet changing market conditions," Bristow said.

The company, which said capital expenditures were being carefully evaluated, has already made some staffing reductions in the U.S. Gulf of Mexico, West Africa and Australia.

Bristow also said management salaries had been frozen and staffing levels and compensation structures were being reviewed.

Shares of the company were trading up 4 percent at $22.89 on the New York Stock Exchange. Excluding Monday's gains, the stock is down as much as 62 percent since last May, when it touched the year high of $58.51.

Hanesbrands cuts jobs at service center in Martinsville

2009-03-24T05:14:00.000-07:00

Hanesbrands Inc. has cut its domestic work force again, this time eliminating 46 jobs at its service center in Martinsville, Va. The job cut was announced to employees on Friday.

The company, based in Winston-Salem, had about 300 employees in Martinsville before the job cut.

It is the second time this year that Hanesbrands has made a sizable job cut in a neighboring state.

In January, it said it was eliminating 310 jobs as part of closing a sock-knitting plant in Barnwell, S.C., by the end of April as part of its strategy of consolidating into fewer, larger plants outside of the United States. The Barnwell plant had 240,000 square feet.

By comparison, Hanesbrands opened in the fourth quarter a 450,000-square-foot plant in El Salvador, which will absorb most of the production from the Barnwell plant. It also is shifting some production and equipment to its sock-knitting plant in Mount Airy.

Since spinning off from Sara Lee Corp. in September 2006, Hanesbrands has closed, or is closing, at least 30 plants worldwide. That includes at least 10 in North Carolina.

FedEx Corp to cut more jobs

2009-03-21T06:37:00.000-07:00

FedEx Corp.'s profits dropped 75% in the third quarter, below even Wall Street's grim predictions for a company considered a bellwether of the national and global economy.

"I think people have been getting falsely optimistic about the economy," Edward Jones analyst Daniel L. Ortwerth said. "This is a dose of reality for all of us."

In announcing its quarterly earnings Thursday, the company said it plans to cut 1$ billion in expenses in the next year, mostly from its Express unit, which generates nearly two-thirds of the company's overall revenues. Revenue at the Express unit was off 18% for the quarter. Overall, the company saw a 5% drop in its total daily package volume for the quarter.

The expense cuts will be made in part to "secure the jobs of as many of our teammates as possible," said Federick W. Smith, the company's chairman and chief executive.

Company officials were reluctant to say whether they thought the air-freight industry had bottomed out, although they expressed optimism that the company's performance will improve as the year progresses.

Despite the cost-cutting plans, Alan B. Graf Jr., the company's chief financial officer, insisted that FedEx is "not reducing our service levels whatsoever."

The company didn't detail the amount of job cuts that would be part of the retrenchment. It will also reduce network capacity at its express and freight segments, cut back work hours and expand its compensation reductions to non-U.S. workers, where allowed.

FedEx's shares were last up 5.4% at $45.38. Shares had fallen in pre-market trading as the latest quarter's results were well short of analysts expectations and the company also projected profit this quarter below estimates. Through Wednesday, the stock has lost about one-third of its value this year.

The company has already reduced salaries and other compensation for U.S. employees, including a 20% cut for Smith. It also laid off 900 employees at its freight unit last month, or about 2.6% of the unit's work force.

Donald Broughton, an analyst with Avondale Partners, noted that FedEx's weak performance came even though the company gained market share in some of its units, including its domestic ground operations.

"It just highlights how weak the economy has become," Broughton said. He called FedEx's earnings "a warning salvo over everybody's bow that the economy's not just going to turn around on a dime here."

Looking ahead, FedEx projected fiscal fourth-quarter earnings of 45 cents to 70 cents. Analysts polled by Thomson Reuters expected 72 cents.

As prices recede, trucking and shipping companies are now faced with concerns about volume, which has struggled during the economic downturn as orders and sales slow across a broad range of industries.

Meanwhile, FedEx posted net income for the quarter ended Feb. 28 of $97 million, or 31 cents a share, down from $393 million, or $1.26 a share, a year earlier. Revenue decreased 14% to $8.14 billion, hurt by reduced fuel surcharges and lower shipment weights.

Analysts expected earnings of 46 cents on revenue of $8.65 billion.

The business was aided by the exiting of competitor DHL from the domestic U.S. market. DHL's departure enabled FedEx to pick up additional business, buoying what might otherwise have been an even worse quarter.

T. Michael Glenn, a spokesman for the company, said FedEx has "captured more than our fair share of DHL traffic," often at higher yields than DHL was getting.

New York City Health and Hospitals Corporation to Cut 400 Jobs

2009-03-21T06:28:00.000-07:00

Citing “unprecedented financial challenges,” the New York City Health and Hospitals Corporation announced on Thursday a plan to lay off 200 workers and eliminate another 200 positions through attrition, part of a move to close a $316 million budget gap. The announcement touched off outrage within District Council 37, the powerful municipal labor union that represents the workers.

City officials said the job cuts were unavoidable and blamed the situation on a refusal by state leaders to increase Medicaid reimbursements to the hospital system.

“It cost nearly $850 million to care for the 450,000 uninsured New York State residents without health insurance who relied on our services last year,” the corporation’s president, Alan D. Aviles, said in a statement. “The City of New York has contributed more than $500 million annually to support the cost of serving the uninsured, while the State contributes a mere $50 million.Now that the State has received nearly $10 billion of federal stimulus money intended to shore up the Medicaid program and the health-care safety net in these economically perilous times, we hope our state leaders will rethink the proposed cuts and support, rather than undermine, our public hospital system.”

Without action from Albany, Mr. Aviles said, the $316 million budget gap for the next fiscal year, which starts in July, could be as much as $300 million higher.

Caterpillar Inc To Cut 2,454 Jobs

2009-03-21T06:15:00.000-07:00

Construction and mining equipment maker Caterpillar Inc. has reportedly announced on Tuesday that it will lay off 2,454 workers in the states of Illinois, Indiana, and Georgia, citing the reduction in demand for its construction equipment. The company also reportedly said that the job cuts are likely to last another six months and warned that the situation has probably not hit bottom yet.

The Peoria, Illinois-based company, according to media reports, intends to cut 2,365 employees at five of its facilities in June this year, including another 911 in East Peoria that President Barack Obama visited recently. The closure of the Georgia facility will affect another 89.

The current job-cuts announced by the company comes in addition to the 2,110 layoffs of its production employees at its three Illinois manufacturing facilities, announced in January, as well as the 20,000 job cuts, revealed earlier when the fourth quarter results were announced.

The company has already offered in February a voluntary early retirement incentive package to approximately 2,000 production employees at various facilities in the U.S.

Earlier to that, the company also had said it would cut executive compensation for 2009 by up to 50%, compensation for senior managers by 5% to 35% and compensation for other management and support staff by up to 15%. The company also said it will suspend merit pay increases for management and support employees, and has instituted a hiring freeze.

In its fourth-quarter results, provided in January, the company had reported a 32% profit decline, as significantly higher Machinery and Engines operating costs and a sharp decline in profit related to Financial Products more than offset the improved price realization and favorable tax adjustment. Going forward, the company is expecting fiscal 2009 results to be below the 2008 results.

Caterpillar, like any other companies worldwide, is going through a lean period, hurt by declining demand in the wake of the financial meltdown that has clutched the global economy. The ripple effect from having less money to spend is affecting each and everyone as time passes.

CAT closed Tuesday's regular trading on NYSE at $26.83, up $0.41, or 1.55%, on a volume of 14.26 million shares.

MALAYSIA TO SHED 50,000 JOBS!

2009-03-18T08:02:00.000-07:00

PUTRAJAYA (Malaysia) - MALAYSIA has shed 26,000 jobs since the global financial crisis blew up in September and nearly twice as many workers could lose their jobs this year as struggling manufacturers cut output, a senior government official said. ‘It (unemployment) is going to be quite long and badly affected,’ Sheikh Yahya Sheikh Mohamed, deputy director of labour in Malaysia’s Human Resources Ministry, told Reuters in an interview.

Malaysia lost 33,000 jobs in 2008, the bulk of them in the last few months as the global crisis suddenly worsened and Asia’s key export markets in the West slipped into recession.

Some 40,000 to 50,000 more jobs are expected to be lost this year, Yahya said. But job cuts in the current downturn will not be as severe as during the 1997/98 Asia financial crisis, when Malaysia lost 84,000 jobs, he added. The figures do not include illegal workers in industries ranging from plantations to construction.

Deputy Prime Minister Najib Razak said last week Malaysia’s unemployment rate will rise to 4.5 per cent in 2009 from 3.7 per cent last year. This amounts to nearly 500,000 unemployed in 2009, based on the latest third-quarter labour figures. Fourth-quarter numbers have not yet been published.

The unemployment rate, however, is relatively better than some others in the region like the Philippines, where the unemployment rate stood at 7.7 per cent in January. Of the nearly 26,000 jobs lost in Malaysia since October, 85 per cent were in the manufacturing sector, Yahya said. — REUTERS

Flextronics International layoffs latest blow to Malaysia

2009-03-18T07:58:00.000-07:00

KUALA LUMPUR, March 4 - Malaysia, once viewed as one of the more secure economies in Asia, suffered a new blow on Wednesday as Flextronics International readied nearly 1,400 layoffs from a plant in the Southeast Asian country.

Demand for technology exports of the kind made by Flextronics, a contract manufacturer, has plunged due to the global economic slowdown and Malaysia has also been squeezed by countries with lower labour costs.

“The company reported that it was laying off the employees as it was ceasing operations at its facility in Shah Alam,” a spokeswoman for Malaysia’s Ministry of Human Resources told Reuters.

Companies laying off workers here need to inform the ministry and the spokeswoman said that Flextronics had notified it that it intends to lay off 1,382 workers from its assembly plant in Shah Alam, a suburb of the capital Kuala Lumpur.

Flextronics declined to comment. The Singapore-based company signalled in January it could cut jobs, hit by the global economic slowdown.

The planned layoffs come hard on the heels of redundancies in Malaysia at Western Digital , Intel Corp and Japanese electronics company Panasonic Corp.

Although Malaysia’s official unemployment rate is just 3.3 percent, the spate of layoffs and the prospect of more as exports plunge has rattled the government here as it readies a multibillion package of spending to stem the effect of declining demand for exports.

Electronics account for close on 40 percent of Malaysia’s exports, which are forecast to fall 24.8 percent in January from a year earlier, according to a Reuters poll released ahead of data due on Friday.

According to a ministry official, around 45,000 workers have been laid off in the electronics industry since the start of the year.

Malaysia’s economy is teetering on the brink of recession after data last week showed that the economy grew at is slowest pace in eight years in the fourth quarter, just 0.1 percent year-on-year.

In order to preserve Malaysia jobs, the government is toughening restrictions on hiring foreign labour, although an outright ban has not been imposed on the estimated 2 million legal migrant workers.

However kicking out legal and millions of illegal workers may not be the answer, economists say, as Malaysians would be unwilling to do low-paid jobs and do not have the skills needed for higher value-added industries.

“It’s one thing trying to just basically kick out foreign labour from the country, but another issue is do we have the incentives, do we have the right measures in place to attract higher value-added investment that would employ locals or have a preference for locals?” said Maybank Investment economist Suhaimi Ilias.

Hong Kong’s jobless rate rises to 5%, 3-year high

2009-03-18T07:53:00.000-07:00

HONG KONG - The Hong Kong government warned Tuesday the territory’s unemployment would keep rising as the latest jobless rate hit its highest in nearly three years.

Hong Kong’s unemployment rate rose to 5 percent for the December-February period _ up from 4.6 percent during the November-January period, according to the Census and Statistics Department.

Total number of people who were out of jobs during the period was 171,900, the department said.

The unemployment rate is at its highest since the February-April period in 2006, said Secretary for Labor and Welfare Matthew Cheung.

The official added the authorities expected Hong Kong’s unemployment rate to surge in the coming months as the territory is not immune to the impact of the global financial turmoil.

“Because of the global financial crisis and economic downtown, the labor demand remains weak,” Cheung told reporters.

Sectors that saw the biggest job losses during the three-month period include construction, transport, import or export trade, manufacturing and restaurants.

AIG under fire for handing out bonuses after its $173 billion government bailout

2009-03-17T19:44:00.000-07:00

American International Group Inc. (AIG), the insurer under fire for handing out bonuses after its $173 billion government bailout, budgeted $57 million in “retention” pay for employees who will be dismissed.

AIG disclosed the payments, part of a larger $1 billion program meant to retain staff, in a March 2 filing. The insurer was chastised yesterday by President Barack Obama for awarding $165 million to staff of the derivatives unit blamed for the firm’s near collapse, and New York Attorney General Andrew Cuomo said he’ll subpoena AIG to get details on those payments.

“Spending a billion dollars on retention payments while the company is on its deathbed is ludicrous, particularly when some of those payments are going to employees the company plans to terminate,” said Representative Elijah Cummings, a Maryland Democrat on the House Oversight and Government Reform Committee.

The disclosure on expenses for “employees expected to be terminated” may signal AIG is planning staff cuts after leaving total employment unchanged at 116,000 last year, according to regulatory filings. The U.S. saved the firm from bankruptcy in September, and the company posted the biggest quarterly loss in U.S. history in the three months ended Dec. 31.

“As part of restructuring the company, we will ultimately eliminate jobs that are, at the moment, critical to maintaining ongoing operations and winding down certain businesses,” said Christina Pretto, an AIG spokeswoman. “To have one of these positions obviously implies an uncertain future, and creates an incentive to leave the company. To retain such mission-critical people, we are making retention payments to them.”

The March 2 filing didn’t say how many employees will get portions of the $57 million.

Auto Unit, Lender

The world’s biggest financial companies have cut more than 280,000 jobs since the middle of 2007, according to data compiled by Bloomberg. The total includes about 1,000 cuts at AIG, which trimmed staff at its U.S. auto unit and consumer lender. The regulatory filing that lists 116,000 jobs companywide doesn’t specify which units added or cut staff, and Pretto declined to comment on the total number of workers.

AIG, which got an initial two-year loan for $85 billion in September, created retention programs designed to keep some staff in place through the end of 2009, according to regulatory filings. Under a revised package valued at $173 billion and announced this month, the insurer has five years to repay loans by divesting businesses, raising the possibility AIG will have to make more of the payments.

‘Double Down’

“To retain the same individuals for a period further in time, we might be paying out sums of money that are ‘double down’ on a bet that the company will be turned around,” said Frank Glassner, managing partner of Veritas Executive Compensation Consultants LLC.

The company planned to award about 4,600 of its managers and employees a total of about $1 billion, Bloomberg News reported in January, citing two people familiar with the situation. In addition to $450 million for employees in the financial products unit that sold credit-default swaps, AIG was to give about $470 million to staff of three other subsidiaries and $148 million to top executives, according to the people and company filings.

Of the $450 million for the financial products unit, the $165 million in retention pay was for 2008 and due to be paid by March 15, $55 million was paid in December and an additional $230 million was originally earmarked for 2009 retention payments. Chief Executive Officer Edward Liddy has said he wants to reduce the 2009 payments by at least 30 percent.

Cuomo’s Letter

AIG gave bonuses of $1 million or more to 73 people at the unit, including a top recipient who got $6.4 million, Cuomo said today in a letter to Representative Barney Frank, chairman of the House Financial Services Committee. The seven largest retention bonuses totaled more than $28 million, and 22 people got $2 million or more, according to the letter.

Cuomo said he received the contracts, agreed upon last year, under which AIG decided to make the payments. He said they “shockingly” contain a provision that required most individuals’ awards to be 100 percent of their 2007 bonuses -- “despite obvious signs that 2008 performance would be disastrous in comparison to the year before.”

Frank said today he is “troubled” that AIG wants to pay extra to keep employees at the unit.

“That leads me to question the judgment,” he said in Washington.

Related posts:
* Dutch Eureko to cut 2,500 jobs by 2011

Job cuts for Indonesians are inevitable

2009-03-17T18:41:00.000-07:00

Retrenchment of workers, including foreigners, is unavoidable in these trying economic times, Datuk Seri Abdullah Ahmad Badawi, the Prime Minister of Malaysia has told Indonesians.

The Prime Minister said that while Malaysia was taking necessary steps and measures to ensure that workers kept their job, retrenchments could still occur.

“If this happens, there will be foreigners working in Malaysia who will be retrenched, including Indonesians. I have explained this to President Susilo Bambang Yudhoyono that this is unavoidable, although we are trying our best to avoid retrenchments.

“But I do hope that the (Indonesian) media will not sensationalise this issue because retrenchment does not only happen to foreign workers but locals, too,” he said at a joint press conference with the Indonesian president after the two leaders held their annual consultation yesterday.

However, the Prime Minister said he did not foresee thousands of Indonesians having to return home due to being retrenched and would inform Jakarta should this happen so that it could prepare for the mass return of its citizens.

Retiring Rio Tinto CEO to receive $9.6 million bonus

2009-03-17T10:52:00.000-07:00

A MAIN architect of Rio Tinto's ill-fated Alcan acquisition is set to pocket about $15 million this year for his work integrating the two companies.

According to Rio's annual report, released yesterday, head of Rio Tinto Alcan Dick Evans - who will retire after the miner's annual meeting next month - is in line for a bonus of up to $US9.6 million ($A14.6 million) this year.

Mr Evans, one of only a handful of executives to receive a cash bonus last year, took home a $US1.35 million bonus on top of his $US1.5 million base salary in 2008.

Other executives, however, have had their cash bonuses deferred into shares that will vest at the end of 2011 following a dramatic fall in Rio's share price due to the withdrawal of BHP Billiton's $US66 billion hostile bid and collapsing commodities markets.

Rio chief executive Tom Albanese has seen a drop in his total take-home pay to $US4.9 million excluding long-term share awards compared with $US6.1 million in 2007.

The news comes as Rio cuts about 14,000 workers from its global operations - including Australian jobs - to help reduce its massive $US38.7 billion debt from the Alcan purchase.

And it coincides with a growing political and shareholder furore over Rio's proposed $US19.5 billion financial lifeline from Chinese government-owned Chinalco.

More news at Retiring chief up for fat bonus as miner plans 14,000 jobs cut

Related posts:
* Goodyear CEO took 50% pay cut to $10 million

News & Observer will cut 27 full-time jobs

2009-03-17T10:46:00.000-07:00

More job cuts were announced at newspapers around the country today, including at least 65 jobs at the Times Union in upstate New York and nearly 30 jobs at the News & Observer in North Carolina. Out west in Washington state, 45 jobs were cut at two McClatchy newspapers.

The Hearst-owned Times Union will cut 65 to 70 jobs and they have served notice to workers that they intend to cancel their union contract with employees on April 9. The contract expired in August and negotiations have continued, but now the contract will just be killed, the union said.

In Raleigh, News & Observer workers learned that the equivalent of 27 full-time jobs will be cut, 78 positions will be axed from their community papers (The Cary News and The Herald in Smithfield), and N&O workers who remain will have to take a week off without pay between May 1 and October 31. Remaining workers will also experience pay cuts, from 2.5 percent for lower-paid employees to 10 percent for higher paid staff.

In Washington state, both the Tacoma and Olympia newspapers announced layoffs today. The News Tribune in Tacoma cut the staff by 30, and the Olympian cut 15. Both papers are owned by McClatchy. Those who remain at the papers get pay cuts ranging from 5 to 10 percent.

Related posts:
* Northcliffe Media plans to cut up to 95 jobs
* San Francisco Chronicle threatening to cut 225 jobs
* Providence Journal To Cut 100 Jobs

More news at NPPA - Newspapers Cut Jobs In Raleigh, Albany, Tacoma, Olympia

Grayslake elementary schools cut 29 jobs

2009-03-17T10:38:00.000-07:00

Declining tax revenue caused by the recession was cited as the main reason for eliminating 29 positions at Grayslake Elementary District 46 for the 2009-10 academic year.

About 100 spectators - including parents and district employees - were at Meadowview School's library in Grayslake Monday night when board members approved staffing cuts recommended by Superintendent Ellen Correll.

Board members voted 6-1 in favor of the staffing reductions, with Mark Hannan as the lone dissenter.

District 46 officials have taken a number of measures to plug a budget deficit of at least $2.3 million for next school year. The staff reductions were part of an overall budget-reduction package tentatively pegged at $2.8 million.

More news at DailyHerald - 29 jobs cut at Grayslake elementary schools

Dutch Eureko to cut 2,500 jobs by 2011

2009-03-17T10:29:00.000-07:00

Dutch insurer Eureko said on Tuesday it would cut 2,500 jobs by 2011 in order to reduce its cost base by 300 million euros after confirming a net loss of 2.1 billion euros ($2.7 billion) over 2008.

"Eureko has had a very challenging year and 2009 will be anything but easy," the company said in a statement.

Eureko, which last month received a 1 billion euro capital injection from its shareholder Achmea Association and Rabobank, said it would focus on organic growth in both the Netherlands and Europe in 2009.

Eureko's total equity had declined 28 percent as of the end of 2008 to 7.5 billion euros. "The impact of deep falls in financial markets on the revaluation reserve, part of total equity, was 728 million euros," Eureko said.

Achmea owns 54.4 percent of Eureko while Rabobank has a 39.5 percent stake. ($1=.7737 Euro) (Reporting by Harro ten Wolde; Editing by Hans Peters)

Weyerhaeuser to close lumber mills and cut 307 jobs

2009-03-17T10:13:00.000-07:00

Weyerhaeuser Co. said Tuesday that it will close its lumber mills in Wright City, Okla., and Dallas, Ore., effective immediately. The shutdowns will affect approximately 307 employees. The company has closed 10 wood products manufacturing facilities this year and virtually all sites are experiencing reduced operations.

Kaiser Permanente to cut 275 local jobs

2009-03-17T10:10:00.000-07:00

More job cuts will be hitting the Bay Area as Kaiser Permanente restructures its information technology operations.

The Oakland-based health maintenance organization says it will eliminate 275 jobs locally as part of a nationwide move to have IBM Corp. manage some of its data centers.

Most of the local jobs eliminated will be in Walnut Creek and Napa. Some jobs will also be cut in Pleasanton.

The cuts come as Kaiser moves to eliminate 860 jobs nationwide in its information technology division.

Nokia To Cut 1,700 Jobs

2009-03-17T10:03:00.000-07:00

Nokia reported Tuesday that it will "streamline operations" including laying off 1,700 employees across several units and functions. In February 2009, Nokia announced the reduction of their sales job.

The company, whose 40% market share of wireless devices dominates global mobile handset markets, said the cuts will impact its Devices and Markets units in addition to its Corporate Development Office and support functions.

Like virtually all handset makers and service providers, Nokia has been hit by the global economic meltdown, which continues to accelerate. At its Capital Markets Day in Brooklyn in December, Nokia predicted its handset sales would be cut along with staff reductions. The Finland-based company's U.S. handset market share has wallowed in the single digits, making the United States an inviting target for growth. The company has indicated it will team up with AT&T and use Nokia's Symbian operating system to attempt to crack open the U.S. market.

With some 130,000 worldwide employees, Nokia is working to mitigate the cuts by offering temporary layoffs including short-term leaves without pay and sabbaticals. "Where applicable," the company stated, "Nokia will start consultations with employee representatives."

Market research firms have noted that weak global demand for handsets has cut device deliveries to the point where shipments are forecast to drop more than 10% this year and stage a feeble recovery in 2010. Last week Gartner said global shipments of mobile phones dropped 5% to 315 million devices in the fourth quarter.

Australian unemployment rises to 4-year high

2009-03-15T23:35:00.000-07:00

Unemployment in Australia rose to its highest level in nearly four years, official figures showed Thursday, in yet another sign of the global economic downturn.

The government's Australian Bureau of Statistics said the unemployment rate was 5.2 percent in February, up from 4.8 percent the previous month.

Total employment rose by 1,800 to 10.8 million, but full-time employment decreased by 53,800. Part-time employment was up 55,600.

Economists had forecast the jobless rate to rise to 5 percent and total employment to fall by around 20,000.

Prospects for employment remain gloomy, with the federal government predicting a jobless rate of 5.5 percent by June, and 7 percent by the same time next year.

The global downturn that began to bite last year has brought about a swift reversal of fortunes for Australia's economy, which has enjoyed 17 consecutive years of growth fueled by voracious demand for its mineral exports from China and elsewhere.

Debit Card become a burden when you are jobless

2009-03-14T09:27:00.000-07:00

If you're out of work like Steve Lippe, who was laid off from his job as a salesman in January, you know you already have problems. But looking at the fine print that came with his new unemployment debit card, he became livid.

"A $1.50 [fee] here, a $1.50 there," he said. "Forty cents for a balance inquiry. Fifty cents to have your card denied. Thirty-five cents to have your account accessed by telephone."

He was quoting fees listed in a brochure that goes out to every unemployed person in Pennsylvania who chooses to receive benefits via debit card. He was given the option when he filed for jobless payments: Wait 10 days for a check or get the card immediately. Like most of the 925,000 state residents who received unemployment benefits in February in Pennsylvania, he chose the debit card and only then, he says, did he learn about the fees.

"I was outraged by it," he told CNN. "I was very noisy about it. I just couldn't believe it. An outrage is just too weak a word. It's obscene."

According to the U.S. Department of Labor, 30 states offer direct deposit cards to the unemployed. Many of the nation's biggest banks have contracts with the individual states. JP Morgan Chase, for instance, has contracts with seven states and has pending deals with two others, according to Chase spokesman John T. Murray. About 10 states, the Labor Department says, pay by check only.

The National Consumer Law Center says fees range from 40 cents to a high of $3 per transaction, if the debit card is used at an out-of-network ATM. Most banks give jobless debit card users one free withdrawal per deposit period, which averages every other week in most states. But consumer advocates, including the Law Center, say the unemployed "should be able to obtain cash and perform basic functions with no fees."

A key Democratic member of the House Financial Services Committee, which oversees bank regulation and theTroubled Asset Relief Program (TARP), told CNN she agrees wholeheartedly.

"Fees should not be attached to unemployment benefits that the taxpayers are paying to help Americans," Rep. Carolyn Maloney, D-New York, told CNN. "Particularly, these fees should not be attached by banks that are getting TARP money and are being supported by taxpayer dollars."

CNN asked some of the major banks involved in the debit card program for a response. Spokesmen for JP Morgan Chase, Wachovia, Bank of America and Wells Fargo all directed us to the individual state governments for comment.

The acting secretary of labor and industry for Pennsylvania is Sandi Vito. Via e-mail, her staff invited CNN reporters to Allentown, Pennsylvania, where she was taking part at a public meeting at an elementary school. Afterward, she said, she would answer questions about the debit card fees.

Source: CNN - Another twist for the unemployed: Debit card fees

myhusbandneedsajob.com set up by wife to get job for her husband

2009-03-14T09:22:00.000-07:00

Robin Stearns, 28, watched her husband apply for jobs day in and day out. She watched him scour professional networking sites in an attempt to contact prospective employers.

No response.

Then an idea came to her: Why not make him stand out by starting a Web site devoted to helping him find a job? She used her tax refund to buy a MacBook, which came with a Web site building feature. A few days later, myhusbandneedsajob.com was born.

"I grew frustrated. He has been sending out resumes since he graduated but nothing has happened," the San Francisco, California, resident said. "He's such a great candidate, he would be an asset to any company."

Michael Stearns, 30, earned his master's in business administration from Georgetown University in Washington in May 2008. He says he is "basically looking to get into a corporate marketing environment" but is willing to try anything reasonable.

The site features a picture of Robin Stearns holding a sign begging for somebody to employ her husband. It also displays his resume and a profile interview and other features.

As the economy tumbles and unemployment rates soar, the jobless are using creativity to make themselves stand out. Paul Forster, co-founder and CEO of the job search site Indeed.com, urges candidates to employ measures that separate them from the masses rather than blanketing the job market with resumes.

Source: CNN - Wife to employers: Hire my husband, please

Carrefour Malaysia to phase out foreign workers

2009-03-14T04:04:00.000-07:00

Carrefour Malaysia will not renew the contracts of its foreign workers when they expire and will fill the vacancies with locals, its managing director Shafie Shamsuddin said today.

He said 350 workers from Indonesia and Bangladesh were now employed at the company's hypermarkets nationwide and the number would be reduced gradually when their contracts expired.

"In the past three months, we have employed 600 local workers and we plan to grow our business gradually," he said when launching the "Stretch Your Ringgit" campaign which focuses on the pegging of prices for essential products.

"We are planning to open up more outlets nationwide and are awaiting government approval," he said. Currently, Carrefour has 17 outlets with more than 4,000 workers.

Shafie said to support the government's second stimulus package plan and avert price increases on basic necessities, Carrefour had invested RM15 million to further cut back prices on 45 essential items with a guarantee of more savings and more value.

"The products were selected by customers based on a survey of their needs. They include cooking oil, detergent, baby diapers and fresh items such as fruits and vegetables," he added. — Bernama

More men in US are losing jobs

2009-03-14T00:25:00.000-07:00

When the American economy began to slow two years ago, it was women who were in more danger of losing jobs. Men, particularly those who were well educated and in the prime of their career, were more likely to remain employed.

That has now changed, with a vengeance. In the 12 months through February, the latest data available, unemployment rates for men rose at a faster rate than those for women, no matter what their education or age.

It has simply been harder for men to hold onto their jobs.

A year ago, in February 2008, men who had gone to college but did not earn a bachelor’s degree had an unemployment rate of 4.1 per cent, below the national rate of 4.5 per cent.

But by this February, the rate for that group had more than doubled to 8.9 per cent and was well above the national rate of 8.1 per cent.

For women with the same education, the rate a year ago was an identical 4.1 per cent. That figure has also risen, but only to 6.3 per cent.

The US Bureau of Labour Statistics, which calculates the figures based on a household survey, does not provide seasonal adjustments for the unemployment rates for those groups. As a result, comparing changes over periods of less than a year is subject to seasonal distortions.

The unemployment rates for college-educated men and women are still relatively low, but both are rising. Over the 12 months, the unemployment rate of men with college degrees rose to 4.1 per cent, from 2 per cent; the figure for educated women went from 2.1 per cent to 3.9 per cent.

Looking at worker ages also shows a disturbing picture for men in what has been the prime of their careers. Men aged 35 to 44, and those aged 45 to 54, had unemployment rates below the national average a year ago. Now their rates, of 8.5 per cent and 8.7 per cent, are above the national average. The comparable rates for women are 6.4 per cent and 5.7 per cent.

In February 2007, the national unemployment rate was 4.5 per cent, just a tick above the low for the cycle of 4.4 per cent, which was last reached in March 2007. The gain over the next year was a slow one, to 4.8 per cent, with women tending to do a little worse than men in terms of rising unemployment rates.

Overall, the unemployment rate for women of 25 and older was 6.2 per cent in February 2009, while that for men was 9 per cent. That difference, of 2.8 percentage points, was the largest since the Bureau of Labour Statistics began compiling the numbers in 1948.

Before this year, the largest difference for any month had been 1.9 percentage points, recorded in February 1983, during another severe recession. In January of this year, the difference was 2.3 percentage points.

Before the 1980s, recessions did not appear to hurt male workers more than female workers. But since then, employment downturns have generally been worse for men, at least in the later months.

The unemployment rate for men, who are more likely to have outside jobs, tends to rise during the cold weather months. So the fact that the February figures are particularly bad for men is partly due to seasonal factors.

But the recent trend is nonetheless clear. On a year-over-year basis, the relative performance of men became significantly worse in September, when the economy began to weaken drastically, and has stayed that way in every successive month. — NYT

Bulgari plans to cut jobs

2009-03-14T00:06:00.000-07:00

Famed Italian jeweler and luxury goods firm Bulgari plans to cut jobs, close stores and pare down its collections in the wake of a disastrous 45% drop in profits.

The company, which was founded in 1884, has seen its watch business suffer badly in the economic downturn, with sales plunging 10.6%, Vogue UK reports. Accessories dropped 1.5% and jewelery, the company's core business, dropped 2.5%.

On the plus side, perfume sales have increased by 12%, perhaps an indication that consumers see fragrance as a relatively affordable luxury. Sales in America and Europe were particularly poor, though the Middle East was up by 9%.

Geiger International Inc to lay off 34 employees

2009-03-14T00:01:00.000-07:00

Geiger International Inc., a Lake Mills manufacturer of office sofas and chairs, plans to lay off 34 employees by May 11.

“Due to the current global economic conditions, Geiger International has experienced a tremendous decrease in demand for products that we manufacture at the Lake Mills facility,” the company stated in a notice filed Thursday with the Wisconsin Department of Workforce Development. The layoffs, which are expected to affect all departments, are likely to be permanent.

The Department of Workforce Development’s Dislocated Worker unit will work with the South Central Workforce Development Board to provide services to affected workers.

Sesame Workshop Cutting 20%

2009-03-13T23:19:00.000-07:00

The crisis on Wall Street is plaguing Sesame Street.

Sesame Workshop, the nonprofit producer of "Sesame Street" and other kids' programs, is cutting about one-fifth of its work force because of the economic downturn.

The New York-based company said Wednesday that it's eliminating 67 of 355 staff positions.

Declaring it is "not immune to the unprecedented challenges of today's economic environment," the company pronounced a need "to operate with fewer resources in order to achieve our strategic priorities."

The statement reiterated the organization's mission "of helping children reach their highest potential here and around the globe."

Best known as the home of such Muppet characters as Big Bird and Elmo, Sesame Workshop was founded in 1968 as Children's Television Workshop, then unveiled the groundbreaking "Sesame Street" as a literacy-building initiative a year later. That show, which remains a worldwide hit, was the first step toward a media empire that encompasses television, books, toys and online programing.

Among the company's early TV efforts is "The Electric Company," which aired during the 1970s and was revived with new episodes on PBS in January.

Sesame Workshop gets revenue from product licensing and the sale of its programs to PBS and syndication. The company is also funded by government agencies, foundations and corporations.

Total revenue was $145 million in 2008, with operating expenses totaling $141 million, according to the company's Web site.

Baker & McKenzie to Cut up to 85 Jobs From London Office

2009-03-13T23:08:00.000-07:00

Baker & McKenzie's London office has launched a formal redundancy consultation that will see the loss of between 60 and 85 jobs.

The month-long review, which will kick off on March 31, is expected to see between 20 and 30 legal jobs cut, around half of which will be in corporate. Trainees will not be affected.

In addition, the firm's support staff headcount will be reduced by 20 to 25, while 20 to 30 secretarial jobs will be cut.

The reduction in headcount comes on top of January's announcement that the U.S. firm's London office was laying off up to 20 legal staff across a number of practice areas, including corporate.

Announcing the latest cuts in an e-mail to all staff, office managing partner Gary Senior warned that employees should expect salaries to be frozen for the next financial year. The firm also said that it does not anticipate paying an all-staff bonus this year.

Senior said in the e-mail: "During this process, we will be consulting with elected employee representatives. We want to hear what employee representatives have to say, and we will consult with them about relevant issues, including ways of avoiding redundancies and reducing the number of redundancies."

He added: "I want to assure you that we will continue to look at, and discuss with employee representatives, ways of retaining as many people as possible, including reducing working hours, and offering sabbaticals and unpaid leave."

The move comes amid growing numbers of job cuts across the U.K. Earlier this week White & Case said that between 80 and 95 London support staff and lawyers would be laid off in the firm's second redundancy round in the last five months.