Disney has announced it is offering buyouts to 600 of it’s managers nationwide in an effort to cut costs at it’s various parks following the worldwide recession. If enough managers don’t accept the deal, layoffs will begin to thin the herd. I’m surprised it took this long for the theme park operator to make cuts even though this division out performed the rest of the company in it’s latest quarterly report.
Target downsizing it’s headquarters
January 29, 2009 — Colione
Target, the number 2 retailer behind WalMart is cutting the workforce at its headquarters by about 9%. About 600 positions including 400 already vacant positions are being cut due to the economic downturn. Target already announced it has frozen salary increases to its top executives and has suspended its share repurchase program.
Caterpillar to cut 20,000
January 27, 2009 — Colione
Caterpillar moves to cut 20,000 workers as it expects a slowdown in business for 2009. 8,000 workers cut will be contractors not directly employed by the company. Direct workers will amount for about 12,000 of those cut and equals 11% of it’s global workforce.
Toyota Thinking Cuts
January 27, 2009 — Colione
Toyota, one of the most solid car companies out there, is thinking of making cuts in the US and UK. A good point in the story is the company will make all cuts through voluntary programs as it has in the past. No involuntary cuts are expected.
Sales were down 18% for all of 2008 and 37% alone for December.
Home Depot cutting 7,000; closing EXPO stores
January 26, 2009 — Colione
Home Depot said it is exiting it’s high end EXPO business and close all of the EXPO branded stores. This will also lead to a cut of 7,000 employees involved with the chain.
The company stated the cuts would not affect it’s main business; the Home Depot branded stores, or it’s staff in those stores.
Over the next two months the company will close 34 EXPO stores, 5 yardBIRDS stores, 2 Design Center stores and a bathroom remodeling business known as HD Bath.
Harley Davidson cutting 1,100 positions
January 26, 2009 — Colione
Harley Davidson has said it will cut 1,100 positions in 2009 and 2010 as it cuts production values and reorganizes.
It will also consolidate it’s two engine plants in the Milwaukee area into a Wisconsin plant and discontinue it’s domestic transportation fleet. It will also close it’s distribution facility in Wisconsin and consolidate it’s paint and frame operations in York PA.
The company said it expects to take charges of $110-$140 million and receive annual savings of $60-$70 million.
Circuit City to Liquidate
January 18, 2009 — Colione
Circuit City announced Friday it will begin liquidations of all of it’s remaining 567 stores beginning Saturday (yesterday). Someone could still step up and purchase all or part of the company to rescue it but it’s highly unlikely at this point. 34,000 employees will be let go as stores begin to close which is expected to be completed by March 31, 2009. The company said in it’s press release that employees will receive 60 days notice of termination. If they are layed off prior to that they will receive pay for the full 60 days.
What’s the point of laying them off before the 60 days then? If they stay at work at least your getting something for your payroll expenses.
One bright spot is Circuit City’s website business which tops $1 Billion in an average year. That alone could attract a potential buyer for it’s online business. That could lead to less loses on the backend if you’re a vendor that sold merchandise to the company.
Read the full article: CNN or Associated Press
Alcoa set to layoff 13%
January 7, 2009 — ColioneAlcoa, producer of aluminum, is set to layoff 13%, or 13,500, of it’s workforce amid the economic slowdown. In addition to this layoff, the company has also reduced it’s contractor workforce by 1,700 and has put in place a global salary freeze.
While it’s good in a way to see a company taking proactive steps to stem financial problems, lets hope it extends to the fat cat executives that normally get huge bonuses.
More Job Cuts
December 22, 2008 — ColioneSovereign Bank (Banking) and Electronic Arts (Video Games) each announced they were cuttting 1,000 positions. EA, which is a video game maker, announced it will close nine offices as part of the layoff announcement. Both companies blamed the recession.
Fed Ex announces cuts amid higher profits
December 18, 2008 — Colione
While most companies are (or close to) bleeding money, Fed Ex had higher profits than last year’s 3rd quarter, but announced cuts because of the economy. A competitor, DHL, has announced it will no longer service domestic shipping in the US, so Fed Ex stands to gain some market share.
Currently, Fed Ex has a hiring freeze in place, a reduction in labor hours and has announced staff cuts.
The increase in profit is said to be from lower fuel surcharges, but that is expected to change in the coming year.
