By Chris Kramer
In a controversial move (to say the least), NYC Mayor Michael Bloomberg has called for downsizing education and laying off 6,166 teaching jobs.
The mayor just released the $65.6 billion budget, where these plans were laid out.
It's not the first time we've heard this from Bloomberg. He's made threats to cut teachers in the past in order to gain other concessions; however, this time he denies those charges, according to Crains New York.
The Mayor says the layoffs are due to the $1.86 billion loss in state and federal funding. According to some estimates, these layoffs could save the city about $3.5 million.
New York Governor David Paterson has announced that nearly 9,000 state workers will be laid off thanks to the adoption of a new state budget in April. Paterson ordered agency heads to come up with layoff plans, and claimed to have no alternative because of the refusal by state employee unions to accept cuts in their contracts. The job cuts will reportedly comprise 6.6% of each agency’s unionized workforce. Oddly enough no cuts will be made to the governor’s executive staff, which was significantly augmented after Paterson took over for Eliot Spitzer a year ago.
On Friday, June 5 at The New York Observer, a third of the 30 to 40 person edit team was cut, including top position holders. Staffers who will remain at the paper are mostly beat writers who contribute stories daily. Close sources claim that the moves were based on a need to trim the editorial budget due to increasing financial pressures. Also, an increased freelance budget will allow for cut salaried workers to continue to write for the paper.
In addition to cutting non-union, newsroom salaries by 5% for the remainder of the year, New York Times cut 100 jobs on the business side back in March in response to declining income. In general, publishers’ revenue has plunged dramatically since more readers use the internet for news, and advertising sales are also less lucrative. Commenting on the issue, newspaper analyst John Morton said, “It’s not going to end until newspaper economics get better, and that’s not going to happen any time soon.”
The Board Of Education of the City of Trenton, New Jersey will lay off 400 teachers, cafeteria workers, secretaries and other staff in the fall. Many of the approximately 177 of the nutrition program workers who will be laid off could be rehired by a private company that will take over cafeteria operations for the school district, according to the Times of Trenton.
The Syracuse School Board in Syracuse, New York has adopted a budget that will cut the jobs of approximately 70 teachers. The new plan is an improvement over the one proposed in February that would have caused 128 immediate layoffs, with an additional 66 pending, according to a report by the Post Standard.
Mack Trucks will reduce its staff in Macungie Township, Pennsylvania and lay off up to 25 workers in May. The plant will also hold three week-long shutdowns in April and May. A spokesperson for Mack said deliveries for trucks in Feb. 2009 totaled 942, which were 392 less than in Feb. 2008. Feb. 2009 was also the second month in a row that the plant produced less than 1000 trucks, according to a report by the Morning Call.
The largest magazine publisher in the world, Time Inc., has announced that it will lay off 600 workers, or approximately 6 percent of its workforce. The company will be radically revamped, but no magazines are scheduled to close. The New York Times reported that the layoffs are set to begin around mid-November. The 24 magazines that Time Inc. publishes in the United States and their Web sites will be reorganized into three divisions: news, lifestyle and style & entertainment. Entertainment Weekly has suffered a dramatic downturn in recent months and is likely to be scaled down. Time executives say that the reorganization will allow the company to focus on their big brands, such as Sports Illustrated, People, Time and Fortune in formats other than print.
Lehman Brothers Holdings Inc. in New York City is planning its fourth round of layoffs this year. The troubled Wall Street firm will likely lay off 1,500 people, equaling 6 percent of its workforce, in the next week, according to a report by the New York Times.
The McGraw-Hill Companies Inc. of New York, New York will lay off 395 workers in its financial services and education departments. The layoffs are a result of the tightened credit market and the consolidation of several support functions, according to a report by Comtex News Network.
Morgan Stanley of New York has announced intentions to lay off approximately 5 percent of its employees this year. According to a report by the New York Times, most of the layoffs will be in the United States. Workers at the company's retail brokerage firm will not be affected by the layoffs. Morgan Stanley has laid off 3,000 workers since October and as of the end of February 2008 had just over 47,000 employees. With the exclusion of approximately 8,500 financial advisers in the wealth management division, a 5 percent workforce reduction would equal approximately 2,000 layoffs.
JPMorgan Chase & Co. will lay off 300 workers at its home equity loan processing center in Rochester, New York according to an Associated Press report. These layoffs are reportedly the result of a national slowdown in the company's home equity loan business.
The Calgary Herald reports that Lehman Brothers Holdings Inc. of New York, the largest underwriter of mortgage-backed bonds, will lay off about 1,400 of its employees due to a slow U.S. economy and frozen credit markets. The layoffs will reportedly affect all divisions and regions. The company already laid off 3,900 people last year after the collapse of the U.S. subprime mortgage market.
The New York Housing Authority has notified its unions that 427 workers will be laid off due to budget deficits. The NYHA is the largest public-housing system in the country. The Daily News reports that federal cutbacks have caused problems with the budget and the NYHA now faces a $195.3 million deficit in the current budget year, which ends in June. Most of the people who will be laid off are administrative staffers.
Erie Plastics in Corry, Pennsylvania has laid off almost 200 workers after completing a major contract. Both salaried and hourly employees were let go. The company makes lids and other plastic products. The Associated Press State & Local Wire reports that the plant employed about 360 people before the layoff.
The New York City Off-Track Betting Corporation in New York, New York will close two branches immediately and has approved a plan to completely shut down by the middle of June according to a Newsday report. The betting corporation has been in an ongoing battle with the state of New York over a revenue-sharing agreement. During an emergency meeting on February 19, 2008, the board of directors unanimously decided to close all 60 branches citywide. All of the corporation's 1,500 employees will be laid off by June 15.
MedQuist Inc. in Mount Laurel, New Jersey is restructuring its non-medical transcriptionist workforce in order to cut costs. Health Data Management reports that the medical dictation/transcription technology and services firm has notified 200 employees that they will be laid off immediately.
The J.C. Penney call center in Moosic, Pennsylvania will close on March 28th, and 275 employees will be laid off. The call center handles sales for the J.C. Penney catalog. The closing is a result of reduced call volume because many customers now prefer to shop online.
Moody's Corporation in New York, New York has announced that they will lay off 275 workers as part of a reorganization plan. The layoffs will account for approximately 7.5 percent of the debt rating provider's total work force. Moody's has said that the layoffs are the result of consolidated employee functions, the integration of the company's analytics business and an expected decline in the issuance of new types of securities.
QMed, Inc. announced that in light of not obtaining additional capital, it will significantly reduce its work force. QMed is downsizing its operating structure as it seeks to maximize the value of the remaining businesses and assets. The company's employee base has been reduced from over 90 people to approximately 30.
American Axle and Manufacturing on Thursday took a major step toward the shutdown of its Buffalo Gear & Axle plant, which is scheduled to close in late December. Most of the plant's 650 production workers will be laid off later this month and in December, as production is discontinued. The closing is blamed on a drop in orders from customer General Motors, and on other factors outside workers' control. The Detroit-based axle maker was very busy when light trucks became popular, but business declined significantly in 2006 when GM canceled plans for a replacement rear axle for SUVs. The rise in gas prices and changing technology also contributed to the decline in production volume locally, making the plant costly to operate as more workers were laid off.
Dozens of workers are being laid off at a Snyder County, Pennsylvania manufacturing plant. Wood-Mode Inc. says it will lay off 50 employees immediately. The company says that the decline in the housing industry and accompanying cabinet sales is the reason for the layoffs. The 50 employees affected in the layoff are all in the production section.
"Saturday Night Live" has laid off most of the show's below-the-line production staff in light of the writers' strike and the fact that the show hasn't produced a fresh segment since Nov. 3. It is unclear exactly how many staffers were let go, but industry sources say it was around 50 people.
Building-materials company James Hardie Industries N.V. has announced that it will suspend its operations in Blandon, Pennsylavnia because of the downturn in the housing market. The vice president and general manager of the northern division of James Hardie, said 82 employees will be laid off from the fiber-cement exterior siding plant. The company plans to start laying off workers after Thanksgiving and continue through January.
Beneficial Mutual Bancorp, Inc., the parent company of Beneficial Bank, has announced plans to reduce its work force in Philadelphia, Pennsylvania. In order to accomplish this restructuring of its management team and workforce, Beneficial has approved severance plans, including the adoption of a severance pay plan. The workforce reduction and payment of benefits under the severance arrangements the company has adopted will result in approximately $3.7 million of charges during the fourth quarter of the fiscal year ending December 31, 2007, consisting of the payment to or accrual of severance benefits for 40 employees. Beneficial Mutual Bancorp is a community-based, diversified financial services company providing consumer and commercial banking services, along with insurance and wealth management services.
First Albany Co. will close its Albany office by the end of March. In a filing with the U.S. Securities and Exchange Commission, the investment bank said the move and other consolidations will result in the elimination of some jobs and the outsourcing of others. First Albany said about 30 percent of its work force will be affected by the change. The company has about 200 employees in offices around the country, and 50 people in Albany. First Albany has major offices in San Francisco, Boston, New York and Albany, as well as several smaller offices elsewhere but only the Albany office will close.
Morgan Stanley of New York, New York is cutting about 300 jobs at its institutional securities business, which was hurt by a global freeze in the credit markets. The cuts will come from the company's credit trading, structured products and leveraged lending businesses. Most of the positions are based in the United States, which has been hit hardest during the summer's market turmoil. Morgan Stanley becomes the latest big Wall Street bank to announce staff reductions of late.
Owens Corning told its employees this week that it will eliminate 150 to 175 jobs in Newark, New Jersey by the end of the year because of the struggling U.S. housing market. About 950 people work at Owens Corning's three plants making fiberglass insulation. Since U.S. home construction is at its lowest level in years, the Toledo-based company decided it probably won't be able to sell as many of its products as in the past and is eliminating one of its manufacturing lines. Insulation from Newark plant is used in commercial, industrial and residential construction.
Lehman Brothers Holdings Inc. announced a mass layoff which will impact 1,200 employees in 23 U.S. locations. The company is closing its subprime lending division BNC Mortgage LLC. Mortgage company layoffs for the year are at more than 37,000 with 13,000 in one week during the middle of August including Lehman Brothers.
Albany International Corporation is in the process of discontinuing operations at its press manufacturing facility in East Greenbush, New York. The company will also discontinue manufacturing dryer fabrics at its plant in Albany, New York. The company will transition the manufacturing processes to other facilities by January 2008. The move will impact a total of 225 employees from both plants.
The Pepsi Bottling Group plans to streamline some of its operations, which will result in a workforce reduction of approximately 700 employees. As it currently undergoes a realignment process, the company will reduce its business units from eight to six in an effort to streamline part of its field operations.
Trinity County recently announced the layoff of four employees in light of an anticipated $1.3 million dollar budget hole. Up to a dozen employees are expected to lose their jobs as various departments are being asked to make across-the-board cuts as the county finishes its fiscal year with $800,000 in carryover money. The departments have yet to decide where the layoffs will occur.
Pepsi Bottling Group Inc. recently announced the mass layoff of 700 jobs in order to "adapt to changes in the marketplace and improve operating efficiencies." Pepsi Bottling is the worlds' largest bottler of PepsiCo drinks, but now it intends to keep only six out of eight units in the U.S. and Canada. The layoffs are expected to save about $30 million a year before taxes. The layoffs include up to 550 hourly positions worldwide and about 150 management positions.
American Home Mortgage recently announced the mass layoff of more than 6,250 workers, including 1,300 out of 1,460 Long Island employees. The layoffs are being conducted in reaction to a deteriorating secondary mortgage market as well as the national real estate market
Albany International Corp. recently announced the layoff of 225 employees in response to a shrinking market and harsh competition with other businesses who keep cutting prices. Albany International Corp. is a paper manufacturing company that is halting its press fabric manufacturing at its East Greenbush facility and stopping dryer fabric production in Albany, New York. Company leaders say they are working with the union to provide fair severance packages and to find jobs for laid off workers.
The Bishop Guilfoyle Regional Catholic School recently announced the layoff of five teachers as a result of an overestimation of student enrollment this fall. The five teacher layoff will compromise 20 percent of the school's teaching staff.
The Overhead Door Corp. recently announced the layoff of about 70 employees because of a decrease in sales in retail garage door openers. The layoffs have affected other businesses within the town of Baltic which currently employs 180 workers. A proposed income tax hike heaped on a worsening economic climate within the town is expected to worsen living conditions for Baltic residents.
American Home Mortgage Investment Corp. recently announced the layoff of another 228 employees, bringing the total number of jobs laid off this month to 428. The layoffs are being attributed to the recent collapse of the sub-prime lending industry which kicked off a run of bad omens for all aspects of the housing industry.
Grand Theft Auto video game publisher Take-Two Interactive is restructuring and plans to lay off employees. The New York company's CEO and most board members were let go after a scandal over sexual content hidden in the popular video game was released in a recent federal probe. A 23% decline in second quarter revenue made it necessary for the company to plan a $25 million cut in expenses by the end of next year. No other details about the timing or number of employees who will be let go are being disclosed.
Labor experts said that the 260 Hydro Aluminum employees who lost their jobs last month when the Ellenville, New York plant closed are expected to find new jobs at comparable wages. However, the experts indicated those jobs would not likely be in the same county. The Norwegian-based company is continuing to run the extrusion plant with 50 employees.
Liz Claiborne, Inc. recently announced its plans to eliminate 600 to 800 jobs as part of a major corporate overhaul involving the strategic review of 16 of its brands. The company's brands include Juicy Couture, Lucky Brand, Mexx and Sigrid Olsen. The layoffs will constitute 7% - 9% of its non-retail workforce and are expected to yield annual cost savings of $100 million in 2008, and an additional $45 million in each of 2009 and 2010.
The Port Authority recently announced its plans to lay off 174 workers in September unless the Pennsylvania State Legislature steps in with more funding. The transit agency is undertaking the layoffs in tandem with the closing of several bus and "T" routes. The announcement comes after a 15 percent service cut that went into effect last month. The Port Authority is trying to fill a $44 million hole in its budget.
The Syracuse City School District recently announced its plans to lay off 67 employees, although most of those workers will be lost through attrition. The potential layoffs are being made in relation to a budget shortfall despite the district's budget growth of nine percent this year. The layoffs will primarily affect teaching and administrative positions.
The State of Pennsylvania recently issued a mass layoff notice to 24,440 "non-critical" employees. The layoffs will be executed if lawmakers cannot reach a budget agreement by next week. The layoffs are associated with a $300 million budget gap between Pennsylvania Governor Ed Rendell's budget plan and one favored by Republicans.
The Tropicana Casino and Resort in Atlantic City has recently announced the layoff of 55 positions as it adds to the hundreds of job layoffs in its aggressive layoff program that has drawn objections from New Jersey gaming regulators. The layoffs have occurred in relation to the recent buyout of the Aztar Corp. by the Kentucky-based Columbia Sussex Corp. which now owns the casino. Tropicana's workforce has diminished from 4,507 employees in January to 3,816 as of early June - a 15 percent decline.
Schenectady's St. Claire's Hospital recently announced the elimination of 50 full-time positions, though this does not mean it will lay off 50 current employees. According to hospital officials, only 20 full-time employees will actually lose their jobs; many positions will not be eliminated until some employees retire, while other positions were never filled to begin with. The layoffs will be conducted due to a lack of revenue.
The Syracuse City School District recently approved the layoffs of 137 staff positions. The School Superintendent said the layoffs were necessary for the district to meet its $320 million budget for next year. School officials say the financial formula that the state uses to grant money to districts is ineffective. The layoff announcement was made on Teacher Appreciation Day.
The Tropicana Casino and Resort has recently cut 40 employees from its limousine department. The layoffs are linked to the recent buyout of the casino by the Columbia Sussex Corp. in January. Columbia has been slashing hundreds of jobs since it acquired Tropicana from Aztar Corp. in a $2.75 billion deal involving four casinos in Atlantic City, Nevada and Indiana. Tropicana's work force has shrunk from 4,507 employees to 3,846 in three months, according to the New Jersey Casino Control Commission.
The Altoona, Pennsylvania based Amtran bus company were forced to lay off 10 full-time equivalent bus drivers, at least one maintenance worker and two management positions through attrition. The local bus company is blaming the Pennsylvania State Legislature for its decision to lay off the workers. Amtrad said the layoffs are an attempt to cover a $900,000 budget deficit.
About 90 employees will receive layoff notices at a printed circuit board plant in Owego, New York. Sanmina-SCI Corporation employees were notified on March 2 to not report to work the following week. Company officials are not making any comments on the job cuts.
Hydro Aluminum notified employees that it will close its Elleville, New York extrusion plant within two months. The plant closing will result in a mass layoff of 262 employees. One resident said the closing and the jobs losses will turn the town into a "ghost town." Ulster County plans to analyze which incentives it can provide to a potential buyer of the plant in an effort minimize the impact of Hydro Aluminum leaving the area.
The 56-year-old circuit-board maker Photocircuits Corporation will close its doors completely in 45 days. The announcement this week shocked the 740 employees who will lose their jobs. There will not be any severance package as part of the mass layoff. Competitive pressures from overseas manufacturers are forcing the Glen Cove, New York company to go out of business.
In an effort to restore financial stability to a four-hospital network in Northeast Philadelphia, Temple Health System announced it would cut 500 jobs. The workforce reduction is expected to save the group at least $35 million.
After hundreds of workers opted for buyouts when Johnson Controls Incorporated took over the Delphi battery plant located in New Brunswick, New Jersey, the remaining 102 employees thought they would remain at the plant for a long time. Now they just found out the plant is closing and they missed out on the incentives offered in the buyout agreement. The plant is closing because it does not make money for the company.
Amdocs Limited of Jersey City, New Jersey plans to lay off 650 employees due to lowered revenue projections for 2007. The company provides customer care, billing and order management systems for telecommunications carriers and internet services providers. Amdocs anticipates a drop in demand for these products this year.
More than 200 union employees at Frontier Communications will be part of a mass layoff to take place March 1. The telecommunications firm plans to consolidate the Gloversville, New York call center into one of its other larger call centers. There are also reports the telephone and internet service company may hire people to take customer calls from home.
Funding cuts forced the Philadelphia Housing Authority (PHA) to layoff nearly one quarter of its entire workforce. Layoff notices went out to 350 employees who will receive employment counseling and outplacement services. The PHA says the cuts will save the agency around $24 million of the $32 million per year expected budget shortfall.
A planned three-year mass layoff at Eastman Kodak will affect 12,000 to 15,000 employees worldwide. Rochester, New York expects to be hit hard by these job cuts. Kodak could lose its title of being the largest employer in the region if the actual number of layoffs in the Rochester facilities is as high as predicted.
Exton, Pennsylvania Adolor Corporation announced plans for a mass layoff to include 35 sales staff and 17 other employees due to delays in approval for its latest drug candidate. The biopharmaceutical company originally hired the sales staff to launch Entereg, which is a drug for managing a postoperative bowel disorder. However, the company decided the mass layoff was necessary since the timeline for final approval from the Food and Drug Administration is expected to take longer than originally expected.
Alcoa, based in Pittsburgh, Pennsylvania, plans to make 6700 worldwide job cuts in 2007. The aluminum manufacturer is reorganizing the business in an effort to maximize its profitability. The layoffs will not significantly affect the 1300 employees at plants in Massena, New York. Alcoa also plans to move 6400 employees to Orkla ASA Sapa Group in a joint venture with the Norwegian extruded aluminum company.
Eljer Manufacturing will lay off about 200 workers at its Ford City plant within the next year. Those jobs will be relocated to Mexico, China or South America. The layoffs will eliminate about 2/3 of Eljer's workforce in Ford City, and will occur in stages as the company outsources.
Rite Aid's acquisition of the Brooks-Eckerd pharmacy chain endangers an unknown number of jobs, but the immediate impact on Brooks-Eckerd's base of operations in Warwick, Rhode Island is readily apparent. Rite Aid has made it clear that the base of operations will be in the company's existing Camp Hill, Pennsylvania location. While "some jobs" will be added in Pennsylvania and Rite Aid has indicated that Brooks-Eckerd corporate employees will be interviewed for potential placement within the company, about 700 local jobs are at risk.
Deluxe Corp. announced in mid-August that it would be closing its downtown Syracuse call center early in 2007. Some of the affected 260 employees will be offered other jobs within the company.
The University of Medicine and Dentistry of New Jersey (UMDNJ) is laying off 120 employees, including nurses, clinical staff, housekeepers and Chaplains. Most of the affected employees work at University Hospital in Newark.
Mount Joy, Pennsylvania based NCR Corp. will close its doors in the fall of 2006. Layoffs of the companies' 73 employees are scheduled to begin on October 6, with full plant closure by November 30.
Eastman Kodak posted significant losses for the second quarter of 2006, boosting the planned layoff target to somewhere between 25,000 and 27,000 jobs. The Rochester, New York company eliminated 1630 positions during the second quarter of 2006, bringing the total layoffs to date to more than 20,000.
More than 80 workers at the American Rubber Products plant in North Tonawanda, New York could be laid off beginning July 31. The company is reportedly seeking a buyer for its operations, but indicated that if the search was not successful within a short period of time, the plant would have to be closed and they may have to file bankruptcy.
Constellation Energy, which owns and operates Units I and II at Nine Mile Point nuclear station, will eliminate 150 jobs beginning in August. The cutbacks reportedly come in response to a comparison study that showed Nine Mile Point overstaffed when compared with the best run nuclear plants in the industry.
The Camden Housing Authority won't be going ahead with plans to lay off 40% of the maintenance staff serving the public housing units throughout the city, but officials are warning that the reprieve may be only partial or temporary - the Housing Authority is facing a deficit of at least $700,000 before the end of 2006.
Griffin, Inc. laid off about 290 of the 325 employees at its West Point truck plant early in July. The company attributes the layoffs to lack of work and hopes to rehire many employees as work orders increase.
Sun Bankcorp / Sun National Bank eliminated 80 positions in June. The distribution of those employees among Sun's operations in New Jersey, Philadelphia, and Delaware has not yet been announced.
The U.S. Army is considering eliminating as many as 140 civilian jobs at New York's Fort Drum due to a budget shortfall.
Sun Microsystems announced plans to lay off between 4,000 and 5,000 employees during the second half of 2006, reducing its workforce by more than 10%. The company will sell off its campuses in Newark, New Jersey and Sunnyvale, California.
The Trenton, New Jersey school system will lose approximately 50 percent of its employees at the end of this school year. Faced with the need to cut $24 million from the district budget in the upcoming year, officials are indicating that the only way to meet that goal is to lay off 1,250 employees, including all non-tenured teachers in the district.