When a person loses his or her job, the financial strain can be huge. Lately, tough economic conditions have caused companies to reduce costs and make more frequent layoffs.
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The United Space Alliance, a company of 6,350 people, recently announced that 548 Kennedy Space Center employees will be laid off on April 8, 2011.
The company, which is based in Houston, had expected to layoff 700 people, so it appears some jobs were saved. But that brings little comfort to the 548 people who were notified they'd be out of a job by April.
In January, 143 other positions were also cut. But the company says there are no further layoffs planned until after the last shuttle flight.
Yahoo, one of the world's largest search engines, has not ruled out the possibility of layoffs, amid rumors floating around the media saying Yahoo's planning on laying off 20 percent of its workforce.
The layoff talk started after a top technology blog reported about Yahoo's plan to layoff 1/5 of its staff, citing two anonymous sources.
In a recent media report, Yahoo called rumors about a 20 percent reduction in their workforce "misleading" and "inaccurate".
Yahoo, the number two (behind Google) search engine in the United States, has struggled to keep its market share as Facebook and Google have started to take over some of its traffic.
The Orange County Register reported Mitsubishi Motors has shut down its design studios that produced U.S. versions of the popular Eclipse and Spyder vehicles. As a result, approximately 20 workers in Cypress, Calif. and another 40 nationwide were laid off. The design work previously performed in Cypress will now be done in Japan.
The Business Review reports the U.S. Postal Servicewill offer early retirement packages to 150,000 workers nationwide and plans to close administrative offices. U.S.P.S. reportedly will close 80 district offices this year and cut administrative staff positions by 15 percent. Approximately 1,400 mail processing supervisors and managers at nearly 400 facilities around the country will be laid off.
The Los Angeles Times reported money manager Western Asset Management has laid off 10 percent of its workforce in order to cope with shrinking assets. Western is the nation’s third-largest manager of bonds and other fixed-income securities. Approximately 100 workers worldwide were laid off.
The world's largest drug manufacturer, Pfizer Inc., has announced it will lay off 800 scientists this year. The Daily Record reported the company plans to refocus research efforts and trim overhead costs in anticipation of falling revenue.
Cummins Inc. announced plans to lay off at least 800 workers worldwide by the end of February and freeze salaries for 2009, according to The Memphis Business Journal. The company did not specify the locations where the job cuts will happen.
Cummins officials say the company will offer qualified employees in the U.S. a second voluntary retirement package before the layoffs. Combined with the layoffs at the company in December, Cummins will have reduced its professional workforce by 1,400, its hourly workforce by more than 600 and its contingent workers by about 2,500 after this round of layoffs.
According to a Forbes.com brief, Neiman Marcus will lay off 375 employees, equaling just fewer than 3 percent of its workforce.
Worldwide delivery company DHL announced on November 10, 2008 that it is cutting 9,500 jobs in the U.S. as it phases out domestic air and ground operations by January 30, 2009. The company says that its DHL Express unit will continue international operations. DHL has said the move is to "minimize future uncertainties" due to the weak economy in the United States. The 9,500 layoffs come on the heels of 5,400 layoffs the company announced earlier this year. DHL will shut down all ground hubs and reduce its number of stations in the United States from 412 down to 103. CNN Money reported that the company will spend $3.8 billion on restructuring costs over two years and reduce its annual operating costs from $5.4 billion to under $1 billion.
American Express will lay off 7,000 workers as it struggles to deal with a surge of bad debts owed by customers who are feeling the effects of the economic recession. The company is making the cuts to save an estimated $1.8 billion each year. The layoffs will reduce AmEx's workforce by 10 percent. The company has imposed a hiring freeze and vetoed pay increases for management staff. The budget for technology and marketing will be scaled back and the company will also cut spending on travel, consulting and entertainment.
General Motors will lay off approximately 1,600 hourly workers at its assembly plants in Detroit and Pontiac, Michigan and Wilmington, Delaware, according to a report by the Detroit Free Press. The company says that the layoffs are in response to a decreasing demand for large vehicles and luxury cars. Beginning December 8, the company will lay off 400 workers at its plant in Wilmington, Delaware, where the Saturn Sky, Pontiac Solstice and Opel GT roadsters are assembled. On December 23, an additional 500 workers will be laid off at the company's Detroit Hamtramck Assembly plant because of the diminished demand for the Cadillac DTS and Buick Lucerne. Then on February 1, GM will begin the layoffs of 700 workers at its truck assembly plant in Pontiac. A company spokeswoman said that the layoffs in Detroit and Pontiac are the result of planned line-speed reductions. The plant in Wilmington, Delaware is reducing production from two shifts to one.
General Motors has also announced that it will close its plant in Janesville, Wisconsin on December 23, a year ahead of schedule. It will also close its Grand Rapids, Michigan stamping plant by December of next year and accelerate the closing of its plant in Moraine, Ohio.
Merck has announced that it intends to cut 2,900 jobs in the United States and 7,200 worldwide. Approximately 6,800 active employees will be laid off and 400 job vacancies will not be filled. The layoffs will affect all areas of the company worldwide and will be completed in 2011. Approximately 40 percent of the layoffs will be in the United States.
New York - based Deloitte & Touche LLP will lay off approximately 900 workers from its U.S. offices in response to the sluggish economy. Deloitte currently employs 45,000 people, according to Accounting Today. The company has said that the layoffs will be immediate and it did not specify the location of the workers who will be let go. However, it did say that the layoffs will be across all support functions and client service units. Deloitte described the layoffs as a move to align its workforce to better reflect business and client needs.
Ebay Inc. has announced that it will lay off approximately 1,000 workers, not fill job openings and eliminate some part-time and contract workers in an effort to reduce costs and streamline its business. The Omaha World-Herald reported that the layoffs will affect an unspecified number of the 3,000 customer service workers at eBay's PayPal call center in La Vista, Nebraska. The company will eliminate 10 percent of its workforce overall, but is not being specific yet about which jobs will be lost and where. A spokesperson for Ebay said that the layoffs will cost the company between $70 and $80 million for severance packages and other expenses, but will save the company about $150 million per year in salaries. Ebay also has plans to acquire an online credit company for $945 million. This will allow the company to combine Bill Me Later operations with PayPal. The company will also purchase two Denmark-based classified advertising websites for $390 million.
BMW of North America has notified its employees that it plans to lay off 90 workers in North America in response to slack sales. A spokesman for the company said that it is still too early to tell how many of the 800 workers at the corporate headquarters in Woodcliff Lake, New Jersey would be laid off. The one sure thing is that the layoffs will happen immediately, according to a report by The Record. The layoffs are part of an overall cost cutting strategy that the company has recently implemented in order to remain profitable in these uncertain economic times.
Schering-Plough Corporation has announced plans to lay off 1,000 workers in its sales force as part of broader cuts to cut costs and reposition itself in the industry. The layoffs equal approximately 20 percent of the company's U.S. sales jobs and are part of a 10 percent staff reduction that was announced in April. The pharmaceutical company hopes that by cutting costs and pruning staff it will save $1.5 billion annually by 2012. Schering-Plough is offering severance packages and other benefits to the laid off workers.
General Motors has announced that it will reduce its white-collar staff in the United States and Canada by 15 percent, or 5,100 people. These job cuts will be made by November 1 and is part of GM's $15 billion cost cutting effort that was announced on July 15, according to Americas Automotive Insights. GM's President and chief operating officer has said that he hopes that most of the job cuts will be achieved through voluntary redundancy and retirement, although layoffs are possible.
Deluxe Enterprise Operations Inc. has announced that there will be more layoffs as it closes three of its manufacturing plants on the East Coast and streamlines other parts of its business. The check printer and small business services provider will layoff approximately 570 workers in North Carolina, Pennsylvania and New Jersey, according to a report by the St. Paul Pioneer Press.
New York-based GMAC Financial Services has announced that it is closing all of its 200 retail offices and will lay off 5,000 workers. The closings and layoffs are part of a plan to reduce the company's mortgage lending and servicing because of the sluggish housing market. Most of the layoffs will be in GMAC's mortgage lending division, according to the Chicago Tribune. Sean Egan, president of Egan-Jones Ratings Co., a Haverford, Pennsylvania-based credit-rating company, estimates that GMAC will need to raise at least $10 billion over the next two quarters to avoid failing. GMAC will lay off approximately 3,000 workers this month and 2,000 more by the end of the year.
Trucking company Priority America, Inc. is going out of business, according to the Rochester Democrat and Chronicle. The company is unable to keep its trucks on the road with the rising costs of fuel, the poor economy and increased toll costs. The company will close in mid-September and will lay off 100 workers in New York and another 100 in Indiana. Approximately 500 truck drivers will also lose their jobs due to the closing.
United Airlines' parent company, UAL Corporation, has said that it will lay off 1,550 flight attendants as it reduces capacity in an effort to save money on jet fuel, according to Comtex News Network. The layoffs equal about 10 percent of the airline's cabin work force. The airline will attempt to avoid some of the layoffs through voluntary furloughs, but will cut the jobs one way or another by the end of October. United plans to eliminate 7,000 jobs by the end of next year.
Embarq Holdings Company LLC has announced that it will lay off between 500 and 700 workers and eliminate 300 contract positions, according to the Chicago Tribune. The company provides local phone service in 18 states and has said that the layoffs will all be in its Network Services organization, which installs and maintains its network. The layoffs are a result of a continued decline of telephone customers as more consumers now depend on cell phones and Internet telephone services rather than land lines. The layoffs represent 3 to 4 percent of Embarq's total workforce.
Eclipse Aviation Corp. has announced plans to lay off 650 workers, according to a report by the New Mexico Business Weekly. The layoffs come on the heels of the company's recent decision to lay off 190 temporary workers. After the layoffs the company will be left with 1,100 employees. A spokesperson for the company said that the layoffs will affect more temporary workers and full-time workers who have been on the job less than six months. Workers at Eclipse service centers in Gainesville, Florida and Albany, New York will be affected, in addition to workers in Albuquerque, New Mexico. The company says that the layoffs are part of an effort to gain financial stability.
Mervyns LLC. will close 26 of its underperforming stores this fall in an effort to successfully emerge from Chapter 11 bankruptcy. The store closings will result in the layoffs of between 2,340 and 3,120 workers. After the store closings, Mervyns will have 150 open stores remaining. The East Bay Business Times reported that one of the store closings will be the only remaining Mervyn's store in Idaho.
Wachovia Corp. has posted a second-quarter loss of $8.9 billion, slashed its dividend and will cut 10,750 jobs as part of a turnaround plan. The massive job cuts are part of a cost-cutting effort and will result in 6,350 people being laid off and 4,400 open positions not being filled. Most of the layoffs will be in the company's mortgage business and Wachovia plans to lay off an additional 4,400 mortgage employees over the next 12 months, according to the San Francisco Business Times.
American Airlines will lay off 1,500 workers in its maintenance division as it reduces its fleet of aircraft, according to a report by the Associated Press. The airline has maintenance hubs in Kansas City, Kansas, Tulsa, Oklahoma and Fort Worth, Texas and many other smaller bases around the country. The distribution of the layoffs has not been announced. The cutbacks at American Airlines are an attempt for the airline to cope with rising fuel costs and a poor economy.
United Airlines will lay off 4,550 more employees after reporting a steep quarterly loss, according to the Rocky Mountain News. The airline's efforts to reverse its plummeting financial situation and offset record fuel costs sent its shares soaring 69 percent. United previously cut 2,450 jobs through furloughs, layoffs and attrition. Overall the airline says that 7,000 jobs will be cut by the end of next year.
Student loan company Sallie Mae Inc. will lay off 160 of its 250 employees at its location in Mount Laurel, Pennsylvania. A company spokesman told the Philadelphia Business Journal that the company is eliminating its collections unit in Mount Laurel but keeping the 90 employees who work in the loan origination group. The layoffs in Mount Laurel are part of a company-wide job reduction effort in which approximately 2,000 people will be laid off. The company says that the layoffs were necessary because Congress has reduced student loan subsidies.
Citigroup Inc. will lay off 89 workers at its Student Loan Corp. operation in Perinton, New York as part of a company-wide restructuring and cost savings effort. The Rochester Democrat & Chronicle reported that 85 other employees will be laid off in Stamford, Connecticut and at Citibank in South Dakota. Most of the layoffs will be in August, and employees will be offered the chance to relocate for jobs in other parts of the country. The laid-off workers will be given human resources counseling, job placement counseling and severance packages.
Regions Financial Corp. has laid off 560 workers in Birmingham, Alabama and across the 16 states in which it operates. The layoffs are part of an ongoing merger consolidation after the company's acquisition of AmSouth Bancorp., according to a report by the Birmingham Business Journal. Regions is Alabama's largest banking system.
Starbucks Corporation has announced plans to close 600 stores in the United States and as a result will lay off 12,000 employees, according to CNN. This round of layoffs accounts for about seven percent of the company's workforce worldwide. Starbucks will lay off both full and part time workers. The sagging U.S. economy has hurt Starbucks as Americans have had to cut back on "extras" in order to afford essentials such as food and gas. Starbucks is the world's largest chain of coffee shops and had doubled the number of its stores in the U.S. over the past four years, however, the company's sales slowed and earnings dropped in the second quarter.
US Airways Group Inc. will begin replacing its skycaps with unionized airline workers at airports across the U.S. beginning on July 9. The airline will also begin charging travelers $15 for their first checked bag on that date. The Philadelphia Inquirer reported that skycaps at the Philadelphia International Airport were notified on June 27 that they would be laid off on July 31 and would receive a $400 bonus if they stay on the job until then. The airline will also close curbside check-in with skycaps at 34 airports.
US Airways Group Inc. has announced plans to make additional reductions to the capacity of its domestic flights, resulting in the layoff of 1,700 workers company-wide. The airline will also begin charging passengers a $15 fee for the first checked bag as part of a plan to offset skyrocketing fuel prices. The domestic mainline capacity will be reduced in the fourth quarter by 6 to 8 percent, according to a report by the Sacramento Business Journal. The layoffs will reportedly include about 300 pilots, 400 flight attendants, 800 airport employees and 200 staff and management personnel.
OfficeMax Inc. has announced that it will lay off about 2,700 store management jobs this month. The Naperville, Illinois chain has 900 stores across the country and will cut one of every two assistant store managers and two of every three store supervisor jobs per store. The company says that it will add sales positions and hire in-store sales representatives specializing in furniture and technology. OfficeMax recently licensed Sharper Image and Broyhill brands, according to a report by the Chicago Sun Times.
The McClatchy Company will lay off 10 percent of its work force, a total of 1,400 employees, as part of a plan to cut costs due to the decline of advertising revenues. The Associated Press reported that the newspaper publisher owns two of North Carolina's largest newspapers and 200 of the job cuts will be there. McClatchy has reported a 15.4 percent decline in advertising revenues during the first five months of 2008.
Chemical producer Rohm & Haas Company has announced plans to shut down production of its acrylic emulsions and cut a significant chunk of its plastics additives line, according to Business First of Louisville. The company's changes will result in the layoff of 925 workers in the United States. Rohm & Haas says that the rising costs of raw materials and energy, coupled with a decrease in demand have led to a major restructuring of its North American business.
DHL Express has announced that it will lay off about 1,800 workers in low volume rural locations as part of its restructuring of operations in the United States. The Journal of Commerce Online reported that another 6,000 jobs will be eliminated at air-cargo carrier ABX Air if DHL is successful with its deal with UPS. DHL plans to hire UPS to provide air transportation for all of its domestic express, deferred shipments and airlift for DHL shipments between the U.S, Canada and Mexico. This air transportation deal would wipe out ABX Air, the company that currently provides DHL with airlift. DHL plans to close its air sort hub in Wilmington, Ohio and phase out its outsourced flying in order to turn that business over to UPS.
Hallmark Cards Inc. has announced plants to close three of its greeting card manufacturing operations and consolidate the work into its plants in Lawrence and Topeka. Approximately 335 employees will be laid off as the plants in Siloam Springs, Arkansas, Bloomington, Indiana and Toronto, Canada cease operations. The consolidations will increase production by 10 to 15 percent at the plants in Lawrence and Topeka, but no additional employees will be hired. The laid off employees will receive severance packages and the company will try to help them find other jobs, according to the Kansas City Business Journal.
Thomson Reuters Corp. of New York, New York will lay off 1,500 workers in an effort to consolidate operations and reduce costs, according to the Chicago Tribune. The layoffs were expected and will eliminate overlaps between companies following Thomson Corp.'s April 17 acquisition of Reuters Group PLC.
Clopay Corporation in Mason, Ohio, a garage door sales and installation company, has decided to exit the installation business and will consolidate facilities and lay off workers. The company's restructuring has cost 370 workers their jobs in North Carolina, Alabama, Minnesota and the Southwest according to a report by the Business Courier.
Merek & Company Inc. has announced that it is cutting 1,200 sales jobs in the United States. The announcement came one week after federal regulators unexpectedly rejected an experimental cholesterol drug. The 1,200 layoffs will be completed by the end of July and mark the second mass layoff at Merek. In December 2005, the company laid off 8,100 workers, according to a report by the Associated Press.
Home Depot Inc., the largest home-improvement retailer in the world, has announced that it will lay off 1,300 workers, close 15 of its flagship stores and scrap plans to open 50 new stores. Home Depot has never closed a flagship store for performance reasons, but the U.S. economy and housing slump is taking a toll on the company. The Baltimore Sun reported that the stores that will close are located in Wisconsin, Ohio, New Jersey, Indiana, Kentucky, Louisiana, Minnesota, North Dakota, New York and Vermont.
General Motors Corp. has announced that it will reduce production of big trucks and SUVs by almost 140,000 units this year. The cuts will result in the elimination of assembly shifts at four plants, and approximately 3,550 workers will be laid off as a result. This mass layoff marks the largest one time layoff at GM in recent years. The layoffs will be in Janesville, Wisconsin; Pontiac, Michigan; Flint, Michigan; and Oshawa, Ontario, according to the Times Union. Sales of the Chevrolet Silverado and GMC Sierra fell 16 percent in the first quarter of 2008.
Monaco Coach Corp. is laying off 600 workers in Oregon and Indiana. The Associated Press reported that the layoffs at the recreational vehicle company represent about 12 percent of its workforce and will affect administrative and production employees. A spokesman for the company said that the layoffs are a result of rising oil prices and declining consumer confidence. The overall demand for recreational vehicles is low.
Johnson & Johnson has announced that it will lay off 400 workers in sales jobs in the United States due to drug safety problems. The company has said that it will consolidate its marketing and sales departments at its biotechnology businesses. These layoffs are a direct result of the falling sales of Procrit, which is a type of anemia drug that stimulated the formation of red blood cells. The Associated Press reported that sales of the drug have dropped off since federal regulators put new safety warnings on these types of drugs last year.
Sub-Zero Freezer Company Inc., a manufacturer of high-end refrigeration and cooking appliances, has announced plans to lay off 235 employees at its plants in Fitchburg, Wisconsin and Phoenix, Arizona. The employees were notified that they will be laid off on or after June 13. A company spokesman said that the nation's poor economy and the slowdown in construction of high-end homes and condominiums are major factors in the layoffs, according to a report by the Wisconsin State Journal.
Home Depot Inc. will lay off 970 workers in a reorganization of its human resource staff. The company plans to use the savings to hire more employees to work inside the stores. The company laid off 500 employees at its corporate headquarters in January. Home Depot plans to hire the equivalent of three additional full-time workers at each of its 1,970 stores nationwide, according to the Atlanta Journal-Constitution.
Regions Financial of Birmingham, Alabama will lay off approximately 1,300 workers in the 16 states where it does business. Regions acquired AmSouth Bank last year in a $10 billion deal, according to the Sarasota Herald-Tribune. Regions is in the same situation as other banks and has been set back by the collapse of the housing market. Its fourth-quarter profits fell 80 percent as it wrote off millions of bad loans and set aside money for the problems to come.
Wyeth has laid off approximately 1,200 sales representatives in the United States as of the end of March. The layoffs were part of a major company-wide restructuring program. The company says that drug sales are down due to increased competition from generic products, according to a Datamonitor Commentwire report. Wyeth intends to achieve a 4-6 percent reduction of its workforce by mid-year.
The Bear Sterns Companies will lay off about 8,000 employees worldwide after its acquisition by JP Morgan Chase & Co. this month according to a Global Banking News report. JPMorgan decided to lay off the workers due to fears that downward pressure on share prices will continue.
Delta Airlines Inc. has said that it plans to get rid of 2,000 employees this year through voluntary buyouts, attrition and other initiatives. The airline is cutting domestic flights due to rising fuel costs. The Los Angeles Times reports that Delta will ground approximately 40 planes that shift its focus to more profitable international flights.
Western Union Financial Services Inc. has announce that it will close two Missouri facilities in Bridgeton and St. Charles and the closing will result in 681 layoffs. The company also plans to close an office in Dallas, Texas and lay off 117 workers there. The St. Louis Post Dispatch reports that some of the employees who will be laid off due to the closings will be able to apply for jobs at other Western Union facilities. The call center and data operations jobs that will be eliminated in the U.S. will be outsourced in other countries or moved to non-union facilities.
Citigroup Inc. will lay off 185 workers in its home mortgage division due to difficulties in selling home equity products. The Associated Press reports that Citigroup is not exiting the home equity business but does plan to shift its focus to the support of existing Citibank, corporate and Smith Barney customers.
Pilgrim's Pride Corp. has announced that it will close a chicken-processing plant and six of its distributions centers. The Sun-Sentinel reported that the closings would put 1,100 people out of work. The company says that there may be other closings in the near future as they announced that the processing plant in Siler City, North Carolina would be shut down and distribution centers in Plant City, Florida, Oskaloosa, Iowa, Jackson, Mississippi, Nashville, Tennessee, and Cincinnati, Ohio would also close.
Ford Motor Company has announced that it will be cutting shifts at its factories in Chicago, Illinois, Louisville, Kentucky and Cleveland, Ohio due to a slowing demand for its vehicles. Due to the shift cuts, Ford will be laying off 2,500 workers at the three factories. The Ford Taurus, Mercury Sable and the Taurus X crossover vehicle are made at the Chicago factory. At the Louisville plant, the Ford Explorer and Mercury Mountaineer SUVs are assembled. Beginning this summer, each plant will have only one shift according to an Associated Pres report. At the Cleveland plant, a six-cylinder, 3.0-liter engine is manufactured. That plant will cut back to one shift in late April.
Due to the effects of a strike by a General Motors Corp. axle supplier, Lear Corporation has laid off 1,000 workers at seven facilities, according to a report by Ottawa Citizen. Lear Corp. is the second-largest manufacturer of automotive seats.
PRC, LLC will lay off about 850 workers as it closes four Midwest call centers and makes cutbacks at a fifth. The Plantation, Florida-based company, formerly known as Precision Response, filed for bankruptcy protection in January. Workers in Des Moines, Cedar Falls and Marshalltown, Iowa and Denver, Colorado will be laid off. The Miami Herald reports that workers at the company's Florida facilities will not be affected in the layoffs.
Starbucks Corporation is laying off 600 workers according to the Sun-Sentinel. The layoffs represent less than 1 percent of the coffee giant's workforce. Starbucks recently closed all of their stores for 3 hours to conduct staff training in an effort to provide a better product and therefore boost sales.
Kimball Hill Homes Inc. of Rolling Meadows, Illinois announced on February 27, 2008 that it would be taking two actions as part of a strategy to reposition its business to combat toll of the depressing housing market. According to a report by Business Wire, Kimball will be exiting the Florida housing market. The company will complete all homes in Florida that are currently under construction by the end of the year. Kimball will also cut 75 jobs at its corporate offices in Rolling Meadows, Illinois and other locations. Because of the collapse of the housing market, reduced home prices and stricter lending policies, the company decided that it could no longer compete in Florida under the current market conditions. The company will continue building homes in Illinois, Texas, Nevada and California.
General Motors Corporation has announced plans to lay off 930 workers, according to a report by The Associated Press State & Local Wire. The auto finance business will be restructuring to cut expenses as a result of the recent tightening of the credit market. GMAC LLC will merge 20 U.S. and Canadian offices into five regional business centers located in Atlanta, Chicago, Dallas, Pittsburgh and Toronto. The layoffs will happen by the end of the year.
Starbucks Corporation has announced the layoff of 600 people as the company restructures operations, according to the Los Angeles Times. The company seeks to turn business around after experiencing a decline in business. Most of the layoffs were of support personnel.
Wilsons The Leather Experts Inc. in Brooklyn Park, Minnesota announced that it will close up to 160 of its Leather Experts, Inc. mall stores and will lay off 64 workers at the corporate headquarters, overseas offices and distribution center and 938 workers at the stores. The company will keep 100 stores open, but they will be remodeled to a new "studio" concept that will create brand-driven stores focusing on women's fashion accessories. The company plans to have the remodels completed by August according to a Pioneer Press report.
Package delivery firm DHL Express USA has announced that it will lay off 600 workers, the Miami Herald reports. The job cuts amount to approximately 3 percent of the company's employees. DHL will lay off people in management, administrative and back-office positions across the country. The company says that the job cuts will not affect the company's service to the public.
Silver State Helicopters, Inc. of North Las Vegas, Nevada has declared bankruptcy. The helicopter flight training school has closed and laid off 750 employees at 33 locations. Students of the school in 18 states are now responsible for hundreds of thousands of dollars in uninsured student loans and several are planning to file lawsuits. The students claim that an executive of the company, Jerry Airola, operated the flight school as a pyramid scheme, according to The New York Times. By filing bankruptcy, the flight school wriggled out of a binding-arbitration proceeding meant to settle the complaints of 40 students who filed an earlier lawsuit accusing the company of fraudulent business practices. Silver State charged each student approximately $70,000 tuition.
Buffets Holdings Inc. has shut down 51 of its restaurants and laid off between 2,200 and 2,300 workers just a month after filing for Chapter 11 bankruptcy protection. The St. Louis Business Journal reports that the company operates 626 restaurants in 39 states under the Old Country Buffet, HomeTown Buffet, Ryan's and Fire Mountain names, and 11 Tahoe Joe's Famous Steakhouse steak-buffet restaurants.
H&R Block Inc. plans to lay off 505 corporate staff positions in order to reduce its overhead expenses by $110 million per year, according to The Kansas City Star. H&R Block is the largest tax preparation company in the United States, but has been hurt by the subprime mortgage crisis that has caused the impending demise of its mortgage subsidiary. H&R Block employees who work in human resources, information technology, and legal and marketing departments will be let go. The company may lay off some additional workers at its headquarters in Kansas City, Missouri but the layoffs will not affect those employees working in the tax-preparation division.
U.S. Foodservice Inc. has announced that it will close its plant in Mesquite, Texas in March 2008. When the plant closes, 138 workers will be laid off. The company will begin the layoffs on March 14th and continue until March 28th when the plant is closed permanently. U.S. Foodservice is also closing a plant in Fairfield, Ohio and laying off 148 workers there. The company has more than 27,000 employees and distributes to more than 250,000 clients, including hospitals, schools, restaurants, and hotels. It is also the second-largest foodservice distributor in the United States.
Schlumberger Limited, the world's largest oil-field-services provider, has announced that it will lay off several hundred workers in North America as customers shift exploration spending to the Eastern Hemisphere. A company spokesperson said that they will lay off fewer than 500 workers.
Bank of America Corporation has announced that it will lay off 650 employees and make other changes to adjust to the effects of a global credit crisis. The employees will be laid off from the bank's investment banking and global markets businesses. Bank of America will also sell its equity prime brokerage business to a leading rival in the business but will keep its other prime brokerage businesses such as foreign exchange. The banking giant is also cutting back its structured products business, which includes collateralized debt obligations.
Mortgage lender IndyMac Bancorp Inc. said it will cut its work force by 24 percent, and lay off 2,403 employees in order to cut costs and try to ride out the housing slump and overcome problems selling home loans to investors. The layoffs include a significant reduction in temporary vendor staffs, mainly in India. As a result of the layoffs, IndyMac is also closing wholesale mortgage lending centers in Tampa, Florida, Philadelphia, Boston, Massachusetts and Columbia, South Carolina, in order to consolidate operations in other locations. The company ended 2007 with 9,938 employees. IndyMac was ranked eighth largest among mortgage loan servicers in 2007. The company said the job cuts were necessary because the company still faces a lack of demand for home loans on the secondary market and tighter access to capital due to the credit crunch that followed the collapse of the subprime mortgage market.
Lehman Brothers Holdings, Inc. in New York, New York has announced that it will lay off 1,300 employees in its residential mortgage lending business. Lehman has suspended all wholesale and correspondent lending activities at Aurora Loan Services, its Alt-A lender based in Littleton, Colorado. Aurora will continue to originate loans directly to customers and maintain its servicing business, Lehman said. The company will close three operational centers in California, Florida, and New Jersey, while Aurora's Colorado operations will be consolidated into the Littleton office.
Citigroup, Inc. of New York, the largest bank in the U.S., is expected to lay off as many as 37,000 people. The layoffs are a result of a shaky year in 2007 in which the former CEO left the company amid billions of dollars in writedowns. Citi has lost almost 50% of its share value over the past year.
RBC Centura Banks Inc. will acquire Alabama National BanCorp. in early February and jobs will be lost. When the bank's system conversions are complete in late spring and early summer employees will be faced with layoffs. The company has not announced exactly how many people will lose their jobs. Alabama National BanCorp has already cut positions such as back-office jobs in human resource departments and check processing centers. These jobs will be consolidated into the new structure of operations after the acquisition. Employees in Alabama, Georgia and Florida have been and will be laid off.
The asset-management division of Wachovia Corporation, Evergreen Investments, has announced plans to reorganized its fixed-income business and has laid off an undisclosed number of workers. Employees in Philadelphia, Pennsylvania and Jacksonville, Florida were affected in the layoffs which were said to not be related to cost-cutting.
Regional bank KeyCorp has announced that it expects to post a loss of 5 cents per share in the fourth quarter of 2007, will exit certain businesses and lay off 1,040 workers because of the slumping housing market. KeyCorp attributed their losses to miserable conditions in the commercial and residential real estate markets, primarily in Florida and California. The company has said that they will no longer do business with non-relationship homebuilders outside of its 13-state community-banking operations. KeyCorp says it will also exit its home-improvement lending and payroll services businesses.
LendingTree, LLC, based in Charlotte, North Carolina has laid off workers for the third time in 2007. In this round of layoffs 220 employees at the company's three main U.S. locations in Charlotte, North Carolina, Irvine, California and Jacksonville, Florida were let go. LendingTree acts as an online matching service for people seeking home loans and is also a home mortgage lender. Earlier in the year, LendingTree laid off 440 employees in May and another 250 employees were let go in September.
All of the 400 nationwide Pure Weight Loss centers will close on January 4, leaving all of the employees without jobs. The company has decided to completely go out of business. The company formerly known and heavily advertised as L.A. Weight Loss suffered from a split of two key business partners three years ago and then changed its name to Pure Weight Loss Centers last summer. The company has said it was closing down due to a number of factors, including fierce competition in the weight loss market on the Internet, the introduction of the over-the-counter weight loss pill Alli, a difficult economic environment and competition from other commercial diet centers.
Pfizer Inc. has plans to begin outsourcing as much as 30 percent of its manufacturing. The pharmaceutical giant currently outsources 15 percent of its manufacturing and plans to double that number in order to cut costs. Manufacturing plants in Brooklyn, New York and Omaha, Nebraska will be closed. Pfizer has plans to cut its worldwide workforce by 10 percent.
Due to the increasing popularity of generic drugs, some areas of the pharmaceutical market are suffering. Bristol-Myers Squibb Company, Inc., the manufacturer of Plavix, has announced that it will begin a broad restructuring and close more than half of its manufacturing plants, forcing a mass layoff of 4,300 employees. The company is aiming for a cost savings of $1.5 billion by 2010. The layoffs represent 10 percent of the company's staff.
Dow Chemical Co. has announced that it will close a number of plants and lay off about 1,000 workers to cut costs and direct capital toward businesses with better growth prospects. The company has suffered because of soaring hydrocarbon feedstock and energy costs and has been trying to improve its earnings through a series of joint ventures and by expanding its more profitable specialty businesses. Dow has announced that it will exit the automotive sealers business in North America, the Asia-Pacific region and Latin America in nine to 18 months and explore options for its business in Europe.
The Home Depot Inc. will lay off 750 people in the Tampa Bay, Florida area and is expected to close its Brandon call center on January 28, 2008. Additionally, the company will close 200 smaller sites in Chicago and Dallas. The call centers handled quotes and follow-up calls for customers who order window, door and flooring installations at Home Depot stores. After the call centers close, local store employees will take up the slack and handle these calls. After the closings, there will be eight remaining Home Depot call centers left open across the country. The company says that those call centers will stay open for now.
Chevy Chase Bank, F.S.B. has announced that it will be laying off more than 300 employees as it cuts back its banking hours and adjusts to lower mortgage demand brought on by the housing market slowdown. More than 200 of the layoffs come from a change in banking hours. Around 100 layoffs will occur in its mortgage operations. Chevy Chase underwrites billions of dollars in home loans throughout the country, including many in California. Chevy Chase, which is privately held, operates 287 branches and employs 5,000 people, the vast majority in the Washington area. Its branches include 233 in traditional retail settings and 54 inside Giant Food stores.
GMAC Financial Services has announced that it is restructuring its mortgage operations, Residential Capital, LLC, as the housing market and mortgage industry continues to crumble. ResCap will streamline its operations and revise its cost structure, which will enhance its flexibility and allow it to scale operations up or down more rapidly to meet changing market conditions. On Oct. 15, 2007, a restructuring plan was approved that will include ResCap reducing its current worldwide workforce of 12,000 associates by approximately 25 percent, which means approximately 3,000 associates will be laid off. The majority of the lay offs will happen during the fourth quarter of 2007. This reduction in workforce is in addition to the measures undertaken in the first half of 2007 in which 2,000 jobs were cut. The reduction in ResCap's workforce was influenced by sharp downturns in the U.S. residential real estate markets and the global dislocation of the mortgage finance and credit markets.
AOL has cut its global work force by an additional 2,000 jobs as it continues to make the transition from an Internet access provider to an online advertising company. The mass layoff of 20 percent of its work force comes on top of 5,000 positions cut last fall, after AOL said it would try to boost traffic to its ad-supported Web sites by giving away AOL.com e-mail accounts, software and other features once reserved for paying subscribers. The cuts affected about 1,200 positions in the United States, including 750 in northern Virginia, which has long been AOL's headquarters. AOL recently announced that it was moving its headquarters to New York to be closer to the media advertising industry. Most of the U.S. employees affected in this latest round of job cuts have already laid off, while the job cuts abroad are expected by year's end. Last year's reductions were mostly in customer-service and marketing personnel as AOL opted to stop producing and distributing its annoying trial discs aimed at luring new customers to its Internet access subscription services. The latest cuts were expected to affect employees across the board. Workers at AOL's Dulles, Virginia, location had speculated for weeks that big layoffs were coming. The coming layoffs became even more obvious when workers reported seeing large pallets of empty cardboard shipping boxes arrive at an AOL warehouse, apparently in preparation for the newly unemployed workers to empty their desks.
Gap Inc. recently announced the mass layoff of 500 employees in light of the clothing company's shrinking revenue. Gap has already laid off 1,500 workers so far this year, in relation to a three-year sales slump. The San Francisco based company says that the layoffs would bring company-wide expenses in line with the reduction of revenues. The most recent layoff is in relation to the closure of the experimental Forth and Towne chain; Gap also owns Old Navy and Banana Republic.
Sun Microsystems analysts recently announced the potential layoff of between 1,300 and 2,000 employees as part of a restructuring plan to rebound in an increasingly competitive and consolidation-prone technology sector. Sun provides network computing infrastructure solutions that include computer systems, software, storage and other services. Santa Clara based Sun has already staged 3,800 layoffs since June 2006.
Monster Worldwide Inc., an online job site, recently announced the mass layoff of 800 jobs as part of a restructuring plan related to lower-than-expected quarterly earnings. The layoffs will constitute 15 percent of Monster's current full-time staff. Monster says that the layoffs will occur mainly in North America and outside its sales functions.
IBM recently announced the mass layoff of 450 employees at plants across the nation. Most of the layoffs will occur in the technology development and manufacturing and will occur in the mid-Hudson Valley in New York State, with the largest cuts in Fishkill, Poughkeepsie, and Burlington, Vermont. The layoffs are attributed to the recent merger of IBMs manufacturing and development of microprocessors and is now trying to increase productivity and efficiency and reduce duplication in those areas.
AstraZeneca recently announced the mass layoff of 4,600 employees as part of a plan to generate annual cost savings of more than $900 million by 2010. The London-based pharmaceutical giant has its headquarters in Wilmington, Delaware. The company had already announced plans to cut an additional 3,000 jobs in February, bringing the mass layoff total to 7,600. The 7,600 positions represent 11 percent of the company's workforce. A company CEO said the latest layoffs would come from European sales and marketing departments but also include employees working regulatory affairs and in certain undisclosed disease areas.
General Electric Co. recently announced the mass layoff of about 1,200 employees as it sells its WMC Mortgage subprime lending business. The layoffs are being attributed to soaring defaults in the subprime lending market which has closed 50 subprime lenders in all. The layoffs were conducted before the decision was made to sell WMC.
Prudential Financial Inc. recently announced the mass layoff of 420 jobs in 13 locations worldwide as it closes its small stock research and sales business. Business analysts consider the department to be a "distraction" with little value. The Newark, New Jersey based company said that operations at Prudential Equity Group would be severely diminished worldwide. Prudential Equity has offices in New York, Washington, San Francisco, Chicago, Philadelphia, Cleveland, Atlanta, Boston and Kansas City, Missouri.
Dell recently announced its plans to lay off approximately 10 percent of its work force over the next year. The mass layoff would affect approximately 8,800 people. The chief executive and founder of Dell said the layoffs would be undertaken in an attempt to "turn the company around" after it reported a flat net income and a 2.8 percent growth from one year earlier.
Circuit City Stores Inc. recently announced the mass layoff of about 800 positions nationwide. The layoffs will involve about 200 positions at its corporate offices and about one manager at each of its 654 U.S. stores. The layoffs are being orchestrated as part of a $110 million cost-savings plan. Two months ago, the company laid off 3,400 store employees, replacing them with lower-paid workers, and trimmed about 130 corporate information-technology jobs by outsourcing the work to IBM.
The international information technology consultant Unisys Corp. recently announced the layoffs of 950 jobs in, predominately, the U.S. and U.K. The layoffs are being conducted in order to tap a cheaper labor market overseas and are in addition to the company's job cuts of 5,600 announced last year. Unisys said its restructuring action in 2006 and the first-quarter of this year should save more than $340 million by the second half of 2007.
Auto parts supplier ArvinMeritor recently announced it will close 13 plants in North America and Europe and will lay off 2,800 employees. ArvinMeritor has 110 manufacturing plants and 27,500 employees worldwide. The spokeswoman of the Michigan based corporation said that the company has not released information about which North American plants would be affected. Market researchers expect the mass layoffs to be made in relation to the reduced sale of heavy trucks. They explain that new emissions regulations are expected to drive the cost of these vehicles upward and their sale downward.
IBM recently cut seven jobs at its Essex Junction, Vermont facility - an example of a larger action that included more than 1,000 layoffs across the country. A company spokesman described the layoffs as part of a periodic restructuring while a union representative called the layoffs part of an ongoing shift of jobs overseas. 1,315 workers were laid off across the country, according to the national coordinator for the Alliance at IBM Union. IBM, an international corporation that employs 355,766 employees worldwide did not release this number. IBM has 130,000 employees nationwide.
Wal-Mart Stores Inc. plans to lay off about 1,000 store-management jobs at its Sam's Club wholesale unit as part of a rare nationwide job cut. The world's largest retailer plans to consolidate about 3,000 salaried-manager positions at 580 U.S. Sam's Club stores. The restructuring is being done to improve customer service and management flexibility rather than to cut costs.
Pennsylvania-based Kraft Foods recently announced it will lay off workers from its plant in Lehigh County. The company plans to consolidate its processed cheese production into three Midwestern plants by next summer. Kraft says it does not know how many workers will be affected, but a news source quotes that more 200 jobs "hang in the balance." There are currently 21 salaried and 213 hourly positions in the processed cheese department.
Ford Motor Co. recently announced plans to eliminate 25,000 to 30,000 jobs in North America and to close 14 plants by 2012. The planned mass layoffs are a result of a long term decline in revenues. Ford reported a full-year net loss of $12.7 billion in 2006.
Circuit City Stores, Inc. has announced a mass layoff of 3,400 workers nationwide in an attempt to raise profits. Circuit City, the second largest electronics retail chain in the U.S., will also close 70 stores for an additional loss of 400 jobs next February. The initial 3,400 lost jobs comprise 8 percent of Circuit City's current labor force. According to a company spokesman, the layoffs are attributed to worker pay exceeding the normal market rates and that laid off workers may be allowed to reapply for their old jobs at a lower rate of pay.
Citigroup plans to lay off 17,000 workers in an attempt to boost market value for its shareholders. The company's net income declined 13 percent to $21.5 billion last year, down from $24.6 billion in 2005. The nation's biggest bank is also moving another 9,500 jobs to "lower-cost locations" in an effort to improve the bottom line for current and potential investors. Industrial analysts are claiming that such restructuring may hurt Citigroup in the long run, arguing that the company should focus its efforts on increasing its revenues rather than creating job layoffs to shave off expenses. 43 percent of Citigroup's layoffs and changes are expected in the United States, with the rest occurring overseas.
Tower Automotive will lay off 120 employees and close its Kendallville, Indiana plant by November. Exactly 90 workers will lose their jobs in May and June while the remaining 30 will remain until the plant actually shuts down. The closing of the plant is part of a restructuring plan the company issued after filing for Chapter 11 bankruptcy last year.
Around 140 employees of the Lancaster Glass Plant in Lancaster, Ohio will lose their jobs. The parent company Lancaster Colony Corporation announced the production of industrial glass would be phased out by June 30. The company originally called Lancaster Lens Company and was established in 1910 made the glass reflector for the Statue of Liberty torch in 1934.
FormTech Industries announced it would close its Canal Fulton, Ohio plant and terminate 100 employees. The company, which is based in Royal Oak, Michigan, has six other plants, which will remain open. The automotive supplier expects the mass layoff will be completed by June. While FormTech is closing the plant due to declining sales in the automotive industry, some of the employees slated for layoff may be offered jobs at the other facilities.
About 100 jobs were cut from the Internal Revenue Service in the last couple months. Specifically, employees from the gift and estate tax return group were laid off. The mass layoff came as the number of estate tax returns has dwindled recently. Most of the former employees accepted buyout offers. Some tax attorneys have voiced their concerns about the reduction in workforce in that estate tax audits may be less accurate.
CompUSA is closing 126 stores nationwide over the next three months. The restructuring process will result in some mass layoff notices in order to increase the company's cash flow by $440 million. Company officials did not announce the exact number of layoffs expected yet. It was revealed that all stores in Minnesota, Mississippi, Missouri and Nebraska would be closed.
Abbott Laboratories, based in Illinois, announced plans to eliminate several hundred sales positions nationwide. The company cites its integration of Kos Pharmaceuticals as the reason for the mass layoff. Spokesman Scott Stoeffei says they are identifying which overlapping sales staff to terminate and will notify those employees this week.
Gap Incorporated announced plans to close all its Forth & Towne stores, resulting in a mass layoff of 550 workers. The stores were part of an 18-month pilot for a "chic" new style of clothing. The stores are not proving to be a profitable investment so the retailer will go back to focusing only on Gap and Old Navy stores. The 19 stores nationwide will close by the end of June.
Citizens Gas and Coke Utility of Indianapolis told 300 employees a possible mass layoff will happen in the next two months. The company is considering selling the plant and has been considering the idea for many months. The only reason given for the possible sale is that the facility does not fit into the company's long-term strategy plans.
Job cuts at Gwinner, North Dakota's anchor business may impact the city's economy. Bobcat Company employs more people than are residents in the town. The skid-steer loader plant laid off 142 positions and city leaders are concerned about the future plans for the plant. Bobcat employs around 2500 workers in the state of North Dakota and is a unit of Ingersoll-Rand Company Ltd.
BorgWarner will close its automobile parts plant in Muncie, Indiana by April 2009 when its United Auto Workers (UAW) contract expires. The workforce reduction will occur gradually, but the company made no other details about the timeline available. The mass layoff is taking place because Ford truck sales have declined and BorgWarner main product line includes transfer cases for the automaker.
Eastman Kodak Company modified its layoff estimate from 27,000 to up to 30,000 employees. The restructuring program was first announced in January 2004 as the company planned to modify its business structure. The original mass layoff estimate of 25,000 to 27,000 was issued in August 2006. The announcement did not mention when the mass layoff would be completed.
DaimlerChrysler AG plans to lay off 10,000 hourly employees as part of a restructuring plan to be announced February 14. The Detroit News reported that Chrysler will close Newark, Delaware and Detroit, Michigan plants. No other details about this mass layoff are available yet.
Dun & Bradstreet Corporation (D&B) announced plans to layoff up to 400 employees by the end of 2007. The mass layoff will impact employees company-wide as the business information company begins in a restructuring program expected to save the D&B more than $80 million in operating costs.
Layoffs announced yesterday totaled 289 among Time Inc.'s various magazines including People, Time, Entertainment Weekly and Sports Illustrated. The country's largest magazine publisher notified 117 employees from the business side of the company. Executives also gave notices to 86 editorial employees and hope 86 more will volunteer for buyout packages. The cuts will affect locations in Chicago, Atlanta, Austin, Miami, Los Angeles, and Washington D.C.
The parent company of the Nielsen television ratings service, VNU, announced a mass layoff to affect 4,000 employees globally. The job costs will cut company costs by 10 percent as part of a reorganization prompted by the company's buyout from a private-equity consortium this year. Company officials have not revealed the timing of the mass layoff or which workforce locations will be impacted by the terminations.Speak to a Bankruptcy Lawyer Today
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