Yahoo to Cut 1,000 Jobs, and Warns on Growth

By MIGUEL HELFT

Published: January 30, 2008

SAN FRANCISCO — After announcing a sharp drop in fourth-quarter profits Tuesday, Yahoo issued a disappointing outlook for this year, suggesting that investors would have to wait until 2009 for a turnaround.

Yahoo also said that as part of its plan to revive its fortunes, it would cut 1,000 jobs by mid-February to reduce costs and narrow its focus to its most important businesses.

The company, however, said it planned to invest aggressively in some areas, like advertising technology and selected portions of its Internet portal, as it tries to capture a larger share of online ad dollars. Since some laid-off employees could apply for new jobs at Yahoo, the net effect on the work force, which recently grew to 14,300, was not clear.

Jerry Yang, the chief executive, warned investors of “head winds” this year. Yahoo’s projections for revenue growth and profitability in 2008 were either at the low end of analysts’ expectations or below them.

Yahoo executives said those projections were largely independent of the slowdown in the United States economy, noting that it was too early to predict whether weakness in the financial, travel and housing sectors would hurt online advertising.

“There is not a lot of positive about the outlook,” said John Aiken, an analyst with Majestic Research, an investment analysis firm in New York.

In a sign of growing impatience, investors reacted negatively to the announcements, which were made in a conference call after the markets closed. In after-hours trading, Yahoo shares fell more than 10 percent, to levels of more than three years ago.

Yahoo said that its fourth-quarter net income fell to $206 million, or 15 cents a share, down 23 percent from $269 million, or 19 cents a share, in the same quarter a year ago. Revenue grew 8 percent to $1.8 billion. Excluding commissions paid to certain advertising partners, revenue was $1.4 billion, in line with analysts’ expectations.

Mr. Yang, the Yahoo co-founder who was named chief executive last summer amid growing shareholder discontent, has promised to focus on three objectives: becoming a starting point for consumers on the Web; making the company a top choice for marketers seeking to place ads on sites across the Web; and opening Yahoo’s technology infrastructure to third-party programmers and publishers.

It is a strategy that will require time and investments. Yet Mr. Yang said he was upbeat. “We are seeing early signs of success as a result of this clear new focus,” he said.

Yahoo has begun narrowing the focus of its portal on a few key areas, including its front page, the personalized home page service MyYahoo, search, mail, and properties like news, finance and sports.

Improvements to those services has led to double-digit increases in visits to Yahoo, said Susan Decker, Yahoo’s president. Meanwhile, the company has said it would de-emphasize or shut down a number of other services, including photos, podcasts and a largely unsuccessful social network.

Ms. Decker also said that Yahoo had begun to make investments to revamp its advertising and search technology infrastructure, which would allow the company to be more efficient.

Yahoo needs to make some of those investments as it tries to become the seller of ads on a network of Web publishers, which for now includes eBay, Comcast, hundreds of newspapers and others. Some analysts said the plans made sense, but questioned whether the changes could translate into financial gains quickly enough.

“How long does all of this take?” asked Christa Quarles, an analyst with Thomas Weisel Partners. “How long does the board stay satisfied? How long does it take to grow the publisher network? Yahoo’s problems didn’t start in 2007; they started in 2003.”

Yahoo also said that it renegotiated and expanded a lucrative partnership with AT&T. Instead of receiving fees for each broadband customer AT&T signs up, Yahoo will share search and display advertising revenue with AT&T. Under the four-year deal, Yahoo’s search technology will also be available to AT&T’s cellphone customers.

The deal will result in upfront payments from AT&T to Yahoo for $300 million to $400 million, which will be recognized over the length of the agreement. Yahoo executives said that the deal would result in a net revenue loss this year, but that it stood to make more money over the life of the agreement.

Yahoo also said Tuesday that it had appointed Aristotle Balogh, 43, known as Ari, as chief technology officer, a crucial post vacant since Farzad Nazem left months ago. Mr. Balogh had been chief technology officer at the online security firm VeriSign.

Manufacturing had 462 mass layoff events in December

In December, employers took 1,433 mass layoff actions, seasonally adjusted, as measured by new filings for unemployment insurance benefits during the month, the U.S. Department of Labor’s Bureau of Labor Statistics reported on January 24. Each action involved at least 50 persons from a single employer; the number of workers involved totaled 141,750 on a seasonally adjusted basis. December layoff events were the highest since September 2005 (which reflected the impact of Hurricane Katrina) and were the highest for the month of December since 2002.

The number of mass layoff events in December 2007 increased by 104 from the prior month, while the number of associated initial claims increased by 2,079. In December, 462 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 58,108 initial claims. Over the month, mass layoff activity in manufacturing increased by 48 events, and initial claims increased by 1,143.

For all of 2007, the total numbers of mass layoff events, at 15,493, and initial claims, at 1,598,875, were higher than in 2006, when the totals were 13,998 and 1,484,391, respectively. The finance and insurance industry registered series highs for mass layoff events and initial claims in 2007. This reflected increased layoffs in the credit intermediation and related activities industry, which includes real estate credit, commercial banking, and mortgage and non-mortgage lending brokers. For all of 2006, layoff events had hit a series low, and the number of initial claimants was the lowest reported since 1996.

The national unemployment rate was 5.0 percent in December, seasonally adjusted, up from 4.7 percent in the prior month and from 4.4 percent a year earlier. Total non-farm payroll employment increased by 18,000 in December and by 1.3 million from a year earlier.

Industry Distribution (Not Seasonally Adjusted)The 10 industries reporting the highest numbers of mass layoff initial claims, not seasonally adjusted, accounted for 35 percent of all such claims in December. The industry with the highest number of initial claims was highway, street and bridge construction with 14,684, followed by food service contractors (12,518), school and employee bus transportation (11,362), and temporary help services (9,745). Together, these four industries accounted for 22 percent of all initial claims due to mass layoffs during the month.

The manufacturing sector accounted for 32 percent of all mass layoff events and 41 percent of all related initial claims filed in December; a year earlier, manufacturing made up 33 percent of events and 41 percent of initial claims. In December 2007, the number of manufacturing claimants was highest in transportation equipment manufacturing (31,910, largely in heavy duty truck manufacturing), followed by food manufacturing (10,267) and machinery manufacturing (6,864).

Construction accounted for 21 percent of mass layoff events and 16 percent of initial claims in December, primarily from heavy and civil engineering construction. Administrative and waste services comprised 10 percent of events and 9 percent of initial claims, primarily from temporary help services and professional employer organizations. Accommodation and food services made up 7 percent of all mass layoff events and 8 percent of related initial claims, mainly from food service contractors. Seven percent of all mass layoff events and related initial claims filed were from transportation and warehousing, largely from the school and employee bus transportation industry.

Due, in part, to a calendar effect, the number of mass layoff events in December, at 2,167, was down by 82 from a year earlier, and the number of associated initial claims decreased by 30,289 to 224,214. (December 2007 contained four weeks compared with five weeks in December 2006.) The average weekly number of events in December 2007 compared with December 2006 increased from 450 to 542, and the average weekly initial claimants increased from 50,901 to 56,054. Both weekly averages are at the highest levels for the month of December since 2002.

The largest over-the-year increases in December 2007 average weekly initial claims associated with mass layoffs occurred in food manufacturing (+855), specialty trade contractors (+804), machinery manufacturing (+581), motion picture and sound recording (+534), construction of buildings (+526), and food and drinking places (+513). The largest decrease occurred in electrical equipment and appliance manufacturing (-766).

Geographic Distribution (Not Seasonally Adjusted)
Among the 4 census regions, the highest number of initial claims in December due to mass layoffs was in the Midwest, 97,346. Two industries – transportation equipment manufacturing, and heavy and civil engineering construction – accounted for 32 percent of all mass layoff initial claims in that region during the month. The South had the second largest number of initial claims among the regions, 47,505, followed by the West with 42,504 and the Northeast with 36,859.

The number of initial claimants in mass layoffs decreased over the year in all four regions and in eight of the nine divisions, due, in part, to a calendar effect. However, all four regions experienced over-the-year increases in average weekly initial claims – the Midwest (+2,438), the South (+1,072), the Northeast (+1,067) and the West (+577). Seven of the nine divisions had over-the-year increases in average weekly initial claims, led by the East North Central (+2,900).

California recorded the highest number of initial claims in December due to mass layoff events (30,590), reflecting layoffs in motion picture and sound recording industries and in administrative and support services. Other states with large numbers of mass layoff-related claims were Michigan (25,005), Pennsylvania (15,993), Illinois (15,012) and Ohio (14,909). These five states accounted for 48 percent of all mass layoff events and 45 percent of all initial claims for unemployment insurance in December.

The number of initial claimants in mass layoffs decreased over the year in 33 states and the District of Columbia, due, in part, to a calendar effect. Twenty-five states reported over-the-year increases in average weekly initial claims associated with mass layoffs, led by Michigan (+1,683) and Pennsylvania (+1,109). For Michigan, the highest average initial claims occurred in transportation equipment manufacturing, and for Pennsylvania, food manufacturing had the highest activity. States with the largest over-the-year decreases were New York (-671) and Virginia (-596).

Read the full report and view all of the data tables by clicking on the link below:

ftp://ftp.bls.gov/pub/news.release/mmls.txt

Merrill Lynch plans to lay off 1,600: report

NEW YORK (Reuters) - Merrill Lynch & Co (MER.N: Quote, Profile, Research) plans to announce about 1,600 layoffs after disclosing fourth-quarter write-downs, CNBC reported on Thursday.

The layoffs are likely to be in trading positions and related areas, and will not likely include the investment banking or private client groups, CNBC's Charlie Gasparino reported.

Merrill Lynch had about 64,000 employees as of the end of September, so 1,600 layoffs would represent less than 3 percent of its work force.

A spokeswoman for Merrill Lynch was not immediately available for comment.

(Reporting by Dan Wilchins; editing by John Wallace)

2007 Job Growth Rate Half of 2006's: Meanwhile, the Number of Employed People Remained Flat From December to December, State Data Show

The News & Observer

By John Murawski, The News & Observer, Raleigh, N.C.

Jan. 26--The creation of new jobs in the Triangle for 2007 slowed to about half the pace of the previous year in the eight-county region that includes Wake, Durham, Johnston and Orange, according to data released Friday by the N.C. Employment Security Commission.

Another key measure of economic health -- the actual number of people employed -- remained flat between December 2006 and December 2007 after growing 5 percent the year before, the same data show.

The Triangle economy, along with the statewide job market, has been immune to the worst effects of the housing and credit problems hobbling other parts of the country, but it is increasingly feeling the drag of the national economic slowdown.

"You can see a clear decline in the growth of jobs," said Michael Walden, an economist at N.C. State University. "We're on trend with the rest of the country, but the overall economic conditions are better here than in many other areas."

The unemployment rate for the Triangle was 3.7 percent in December, similar to November's 3.8 percent rate. The jobless rate figures from the Employment Security Commission are seasonally adjusted by Wachovia. The nation's unemployment rate hit 5 percent, a two-year high. And inflation for 2007 was the worst in 17 years.

"The Triangle is actually benefiting from some of the problems that are are impacting places like Florida," said Wachovia economist Mark Vitner. "Folks are being priced out of those markets and relocating to places like the Triangle."

Anemic growth and a rise in unemployment are likely at least through the summer, Walden predicted.

Key local indicators tell the story here: Sales of existing homes in the Triangle are down for the first time in five years, while prices of Wake County homes sold in December declined for the first time since 1991. Foreclosures in the Triangle hit a record high last year.

The Triangle added 14,600 jobs during the year, with about two-thirds of that growth happening in the Raleigh-Cary area and the rest in Durham.

Most of the new jobs in the Raleigh area came from leisure and hospitality, education and health services, and professional and business services.

The Raleigh area's unemployment rate ticked up to 3.6 percent in December from 3.5 percent the previous month.

Durham had a 3.7 percent unemployment rate last month, unchanged from November. The annual job creation came from education, health services, and professional and business services.

john.murawski@newsobserver.com or (919) 829-8932

Bell Helicopter To Lay Off 5% Of Employees

North Texas-based Bell Helicopter will lay off about 5 percent of its work force this year, the company announced Saturday.

Officials could not give an exact number or date, but said the layoffs were needed for cost reductions and " to better align the organizational structure with strategies for future growth."

In a release, Richard Millman, President and CEO of Bell Helicopter, acknowledged it was difficult for the company to reduce their staff, "but the facts are that Bell Helicopter must undergo some changes in the short term to prepare for the long term future."

There are about 44,000 employees internationally.

"We must reduce operating costs to assure that our products will be competitive in the marketplace. We will do this by increasing our efficiency while reducing redundancies and flattening the organization."
The employees affected by the layoff are being notified, officials said, and added they will be offered assistance in locating other employment.

Yahoo China starts layoff, adjusts to Alibaba's reorganization

Methode to lay off 125 area plant workers

Methode Electronics Inc. said Thursday it will stop making one of its oldest products -- the simple plug-in connector with tiny prongs that mates with another connector on many of today's computers.

It's now mass produced in Asia and costs a lot less to make. Such competition has forced the Harwood Heights manufacturer to layoff about 700 workers, including 125 at its Rolling Meadows plant who make the connectors.

Cuts also will be at its Carthage and Golden plants, also due to outsourcing operations to Asia.

Besides stiff overseas competition, advancing technology has hurt sales for Methode's smaller connectors.

Wall Street reacted favorably as Methode shares bumped up 84 cents, or about 7 percent, to close at $12.24.

So many manufacturers have moved operations to Asia that the connector industry, including Methode, was forced to follow their customers, said Ronald Bishop, principal of St. Charles-based Bishop & Associates, a research firm for the connector industry.

"It's difficult to be a small and global company and still compete with those products that went to China years ago," said Bishop.

Methode products have been made for computers, telecommunications equipment, locomotives and autos, such as for Ford Motor Co. It also has contracts for devices used on fighter jets.

The company, which has about 3,600 workers, will start eliminating the 700 positions over the next six months, said Joey Iske, Methode's director of investor relations.

"This is going to be an evolutionary process," she said.

Methode plans to focus on sophisticated connectors and devices that require more engineering.

"We're doing some specialty connectors for the automotive industry that could easily cross other industries," she said.

Later this year, the Rolling Meadows plant, at 1700 Hicks Road, will likely house other business units and development. Its Palatine operations will remain untouched, Iske said.
The restructuring is expected to be completed later this year. Affected workers will received severance packages and outplacement services.

The actions will result in a pre-tax charge in 2008 and 2009 between $19 million and $25 million, or about 30 cents to 40 cents per share.

Troubled Yahoo to layoff 5% of staff

No yahoos or hoorays in Yahoo! these days for the reorganization headed by CEO Jerry Yang will result to job cuts of 500 to 700 people or 5% of the Internet company’s 14,000-workforce.

According to Financial Times, sources have confirmed these redundancies will be announced in the forthcoming 4th quarter earnings report. Yahoo has experienced declining profits in the last 7 quarters due to the worsening economic condition and tight competition against the seemingly formidable Google as well as sensational startups such as Facebook and MySpace.

Yahoo! stated it must make “tough decisions about the business to help the company grow”, focus efforts in priority areas and let go of other non-essential initiatives.

Despite these layoffs, Yahoo confirms it will still hire people in core areas of its business. Now, the thrust is to make Yahoo! Mail as the starting point of the Internet among its 500 million users scattered around the globe.

Rayloc To Lay Off 260

Officials from Rayloc, an automotive part remanufacturing plant based in Hancock, Md., have formally announced their intentions of laying off a large number of employees, including some Fulton County residents.

In a letter delivered to plant employees, Rayloc President Rick Borman stated last Tuesday a total of 260 individuals will be affected by the unexpected layoff set for March 17. Among those will be 235 employees involved in the production process. Others targeted by the decision include a handful of managers, seven clerical staff employees and 16 supervisors.

A small number of salaried individuals as well as an additional 25 employees needed for sorting, replacing and overstocking will be retained at the facility, which is the largest employer in the town of Hancock.

Full-time employees facing the layoff will receive a severance pay or package based on tenure. They must, however, remain with the company until March 17 to receive the monies.

The company is currently scheduled to end rotating electrical production and caliper production on March 15. Other production will cease on March 17.

SNE to lay off 300 Mosinee workers

Wausau Daily Herald
MOSINEE — The Peachtree Cos., owner of SNE Enterprises in Mosinee, will temporarily lay off 300 employees, a company official said this morning.

The employees will be laid off from the wood products line, company spokeswoman Amy Lewis said. Employees will be rehired by seniority when the market picks up, possibly in March or April.

SNE Enterprises manufacturers wood and vinyl window frames and doors.
The company typically lays off employees every year at this time, but this year the layoffs are more dramatic because of the depressed housing market, Lewis said. The company is hiring 100 positions in the vinyl product line, Lewis said, but that line is at a lower pay scale.Earlier this month, Greenheck Fan Corp. in Schofield announced to employees that it would ask for up to 45 volunteers for a temporary layoff.

That company also noted that it was affected by the housing market, among other factors.

Updated: Facility Closures and Layoff Announcements (Jan. 20-26)

The following future closings and permanent mass layoffs were reported in Texas.
· Goodyear Tire & Rubber is stopping most non-mix functions at its plant at 13701 State Highway 31 West in Tyler with most layoffs being completed by the end of this month.
· Integrated Logistics Inc. is losing its contract with Wal-Mart and will have to layoff 780 employees at its distribution facility at 4554 E. Greenwood Drive in Baytown by the end of next month.

The following future closings and permanent mass layoffs were reported in Washington, DC.

· MVM, Inc. at 425 I St. NW is closing down laying off 51 employees by the end of this month.
· Resources for Human Development, Inc. is laying off 20 employees in the District by the end of this month.

Updated: Facility Closures and Layoff Announcements (Jan. 20-26)

The following future closings and permanent mass layoffs were reported in Maryland.

· Chestertown Foods Inc. is laying off 143 employees on Feb. 29 at 27030 Morgnec Road in Chestertown.
· Coca-Cola Enterprises Inc. is laying off 49 employees on March 30 at 1705 N. Market St. in Frederick.
· Genco is laying off 100 employees on March 31 at 8901 Snowden River Parkway - Gateway Commerce Center 20 in Columbia.
· MV Transportation is closing down and laying off 178 employees on March 1 at 4925 Nicholson Court in Kensington.

The following future closings and permanent mass layoffs were reported in Ohio.
· Meijer Stores is closing its stores at 5800 N. Chantry Drive and 775 Georgesville Road in Columbus and 2741 Harshman Road in Dayton laying off 662 employees starting March 11 and concluding by April 26.
· RadioShack will permanently close its distribution center at 4343 Williams Road in Groveport, laying off 69 employees by May 30.
· Toys R Us is closing its distribution center at 375 Distribution Circle in Fairfield, laying off 68 employees by March 21.
Merix Corp. plans to close its leased manufacturing facility in Wood Village, OR, and transition production to its facility in Forest Grove, OR. Merix expects to fully shutdown operations by March 1, with full closure of its Wood Village facility by the summer of 2008. The closure of the facility and other restructuring actions will result in the elimination of approximately 180 positions.

Updated: Facility Closures and Layoff Announcements (Jan. 20-26)

The following future closings and permanent mass layoffs were reported in Indiana.
· Atwood is closing down and laying off 152 employees in Elkhart in late February or mid March.
· Colgate Palmolive is closing down and laying off 40 employees at 1410 S. Clark Blvd. in Jeffersonville Feb. 29.
· Hurst Manufacturing is laying off 55 employees at 1551 W. Broadway St. in Princeton on March 3.
· International Automotive Components is laying off 233 employees at 200,000-square-foot at 600 S. Kyle St. in Edinburgh on March 17.
· Macy's-Washington Square Mall is laying off 103 employees at 10202 E. Washington St., # 300, in Indianapolis on March 1.
· Superior Sample Company, Inc. is closing down and laying off 31 employees at 1225 North State Road 25 in Rochester on March 10.
· Trinity Health is closing down and laying off 158 employees at its Our Lady of Holy Cross Care Center at 7520 S. US Highway 421 in San Pierre on Feb. 29.

Updated: Facility Closures and Layoff Announcements (Jan. 20-26)

The following future closings and permanent mass layoffs were reported in California.

· Bank of the West is laying off 46 employees on Jan. 31 at 1977 Saturn St. in Monterey Park.
· Cadence Design Systems Inc. is laying off 84 employees on Feb. 4 at 2655 Seely Ave. in San Jose.
· Centinela Freeman Regional Medical Center is laying off 202 employees on Jan. 31 at 333 No. Prairie in Inglewood.
· Construction Metals Inc. is closing down and laying off 102 employees on Feb. 8 at 12968 Santa Ana Ave. in Fontana.
· Countrywide is laying off 73 employees on Feb. 3 at 8501 and 8511 Fallbrook Ave. in Canoga Park.
· Fresno Bee is laying off 58 employees on Jan. 21 at 1626 E. St. in Fresno.
· Giant Merchandising Inc. is closing down and laying off 120 employees on Feb. 5 at 5655 Union Pacific Ave. in East Los Angeles.
· IAP World Services Inc. started laying off 248 employees on Jan. 18 at 7000 East Ave. in Livermore (see Lawrence Livermore below).
· Kmart Corp. is closing down and laying off 90 employees on Jan. 17 at 1739 S. Victoria Ave. in Ventura.
· Lasco Bathware is laying off 149 employees on Jan. 11 at 3261 and 3255 E. Miraloma Ave in Anaheim.
· Lawrence Livermore National Security LLC started laying off 248 employees on Jan. 18 at 7000 East Ave. in Livermore (see IAP above).
· Long Beach Acceptance Corp. is laying off 135 employees on Feb. 1 at 500 North State College Blvd., Suite 350 in Orange.
· Marvell Semiconductor Inc is laying off 4 employees on Jan. 27 at 890 Glenn Dr. in Folsom, another 4 at 10955 Vista Sorrento Parkway, Suite 200, in San Diego, another 10 at 26880 Aliso Viejo Parkway, Suite 100 in Aliso Viejo, and 51 employees at 5488 Marvell Lane in Santa Clara.
· Oldcastle Precast Inc. is closing down and laying off 33 employees on Jan. 23 at 1495 8th St. in Colton.
· Optical Communication Products Inc. is closing down and laying off 130 employees on Jan. 29 at 6101 Variel Ave. in Woodland Hills.
· Option One Mortgage is laying off 157 employees on Feb. 2 at 6501 Irvine Center Dr. in Irvine and another 160 at 3 Ada in Irvine.
· Reliant Manufacturing LLC is closing down and started laying off 54 employees on Jan. 14 at 7390 Lincoln Way in Garden Grove.
· Resmae Mortgage Corp. started laying off 182 employees on Jan. 5 at 6 Point Dr. in Brea.
· SBMC Mortgage is closing down and laying off 46 employees on Feb. 7 at 14761 Califa St. in Van Nuys.
· Scan Health Plan started laying off 33 employees on Jan. 18 at 1770 Iowa Ave., Suite 110 in Riverside, another 33 employees at 2401 E. Katella Ave., #125 in Anaheim, another 41 at 2501 Cherry Ave., #200 in Los Angeles, another 51 at 3800 Kilroy Airport Way, #100 in Long Beach, and 33 at 500 N. Central Ave., #350 in Glendale.
· Sierra Cedar Products LLC is closing down and laying off 66 employees on Feb. 3 at 1401 Melody Road in Olivehurst.
· Target is closing down and laying off 133 employees on Feb. 2 at 1363 West Henderson Ave. in Porterville.
· The Vons Companies Inc. is closing down and laying off 74 employees on Jan. 27 at 2100 White Lane in Bakersfield.
· Veolia Transportation Services Inc. is laying off 82 employees on Jan. 31 at 14663 Keswick St. in Van Nuys.
· Veolia Transportation Services Inc. is closing down and laying off 82 employees on Jan. 31 at 5733 Sheila St. in Commerce.

Updated: Facility Closures and Layoff Announcements (Jan. 20-26)

A Weekly Listing of Future Corporate Downsizings

This report is excerpted from Watch List, a weekly column of distressed commercial properties, mortgages and corporate news. (Editors Note: We removed the layoff notice for LendingTree Loans/HLC that appeared here earlier today. According to the company no layoffs are planned.)

IndyMac Bancorp in Pasadena, CA, plans to eliminate 2,403 people, or 24% of its overall workforce, spread throughout the company, including a 27% reduction in staff with its outsourced and temporary vendors, mainly in India. IndyMac’s CEO, Mike Perry, notified employees in a blog posting and after telling employees in October that the bulk of its downsizing was done. "The reality is that since October 12 conditions have gotten worse in our industry.

The private secondary market remains virtually frozen, and the market suffered another setback in November, as the GSEs [government sponsored enterprises] reported large losses and indicated that they are capital-constrained, with the result that they had to further tighten their own guidelines," Perry wrote.

Of the 2,403 impacted individuals, 1,881 are being impacted immediately, including 1,440 regular employees and 441 from our global/non-traditional workforce. 470 are sales staff, who, the company said, will not be able to succeed and earn sufficient commission-based income and will therefore leave IndyMac by March 31. The remaining 52 individuals have already voluntarily resigned since Jan. 1.

As part of the plan, IndyMac has decided to close its regional wholesale mortgage centers in Tampa, FL (One MetroCenter, 4010 W. Boy Scout Blvd., Suite 600), Philadelphia, PA (480 East Germantown Pike, East Norriton, PA); Boston, MA (1 Adams Place at 859 Willard S., Suite 200, Quincy, MA); Columbia, SC (1333 Main St.); and Kansas City, MO (901 E. 104th St., 4th floor) by the end of the first quarter.

Lehman Brothers will substantially reduce its resources and capacity in the U.S. residential mortgage origination in light of the dislocation in the mortgage markets. As a result, it is suspending its wholesale and correspondent lending activities at its Aurora Loan Services subsidiary. The action affects approximately 1,300 employees and will result in the closure of Aurora’s regional operations centers in Lake Forest, CA (25510 and 25520 Commercentre Drive), Sunrise, FL, and Florham Park, NJ. Aurora’s Colorado operations will be consolidated at its Littleton office.

Bank of America Corp. plans to eliminate 650 corporate and investment banking jobs and sell its equity prime brokerage business. The restructuring also includes reduced activities in certain structured products, including collateralized debt obligations and resizing the international platform to emphasize core strengths in debt, cash management, and trading, including rates and foreign exchange.

London-based recording company EMI Group expects to cut between 1,500 and 2,000 in the next six months. The company did not identify how many of those will be in the United States.

Industry data: Employment in the UK hospitality industry

The hospitality industry in the UK employed more than 1.96 million people in 2007, according to latest Labour Force survey by People 1st, the sector skills council for hospitality, leisure, travel and tourism.

This represents a 5% year-on-year rise, with 94,400 more people now employed in the sector than in 2006.

Only contract catering saw a small drop in its workforce, which fell by 0.55% (or 1,000 people) to 181,000, down from 182,600 in 2006.

The biggest influx of new blood was seen in the hospitality services sector, which grew by 6.9% to add 27,100 new jobs.

However, restaurants (which employ the most people in the sector overall) was not far behind with a 5.4% boost to staff numbers, which increased by 27,000 bodies.

Staff levels at pubs and nightclubs grew by 7.36% (or 21,900 people) while hotels increased their employee numbers by 2.7%, which translates into 6,500 more people than 2006.

The figures for the Labour Force Survey are compiled by each year by People 1st.

Note: Hospitality services refers to hospitality occupations within an organisation where the main purpose is not hospitality (for example, an in-house cook working in an on-site cantee within a manufacturing company).EMPLOYMENT IN THE UK HOSPITALITY INDUSTRY 2004-2007

2004*
2005*
2006
2007
Contract food service provider
179,600
178,300
182,600
181,600
Hotels
247,100
238,400
238,500
245,000
Pubs, bars and nightclubs
368,400
333,900
297,700
319,600
Restaurants
518,700
514,700
499,700
526,700
Hospitality services
402,100
379,900
390,300
417,400
TOTAL WORKFORCE
1,917,300
1,843,000
1,866,300
1,960,700Source: Labour Force Survey

* In these years, individuals with both a main and a second job in hospitality are counted only once

BOO-HOO @ YAHOO!: 700 COULD BE AXED

By PAUL THARP

Yahoo! boss." border="0" width="223">

JERRY YANG
Yahoo! boss.

January 22, 2008 -- As it fights back rival giants Google and Microsoft from stealing more of its online turf, Yahoo! is tightening its belt by laying off about 700 workers.

Sources yesterday said Yahoo! is undergoing a three-year budget makeover ahead of a slowing economy, and aiming to focus energy on its growing businesses.

It won't come as a surprise if Yahoo jettisons workers, said Global Equities Research analyst Trip Chowdhry. He believes Yahoo has room to trim its work force by about 5 percent, or 700 employees, after phasing out some of its services, such as auctions and photos.

If several hundred employees are dumped, it will mark Yahoo's most extensive layoffs since 2001 when the company was trying to battle back from the dot-com bust.

Unlike then, Yahoo is profitable now. The efforts, however, haven't help improve Yahoo!'s poor record of seven straight losing quarters - a result that led to the abrupt ouster of CEO Terry Semel last summer.

The exact number of layoffs isn't known, but the company said it would give more details about its cost cutting when fourth-quarter earnings are announced Jan. 29.

Yahoo! expects to finish 2008 with about the same number of workers as it had at the end of 2007 - about 14,000. It also plans to add staff in some areas deemed priorities, insiders said.

"Yahoo! has embarked on a multiyear transformation that includes making tough decisions about the business to help the company grow," a company spokeswoman said in a statement.

CEO Jerry Yang said three months ago Yahoo! would focus on three priorities: becoming the Internet starting point for the most consumers, a "must buy" for the most advertisers and an open technology platform for developers.

Yahoo fell 44 cents to $20.78 last Friday. With Post Wire Services

Nevada’s Unemployment Hits Over a 5-Year High at 5.8 Percent

Nevada’s unemployment rate jumped to 5.8 percent in December, the highest it’s been since April 2002, while the national unemployment rate was at 5.0 percent in December, said Chief Economist Bill Anderson of the Department of Employment, Training & Rehabilitation (DETR).

Nevada’s statewide seasonally adjusted unemployment rate has steadily increased since reaching a low of 4.1 percent in late 2005 and early 2006, Anderson said. The rate climbed slowly for a year to reach 4.6 percent by mid-2007. Since then the unemployment rate has continued to climb, rising by four-tenths of a percentage point to 5.8 percent in December.
“Although population growth in the state has slowed, Nevada’s labor force has increased by about 25,000 since June,” Anderson said. “The economy has been unable to absorb the new workers, however, and the ranks of the unemployed have swelled by about 14,000.”

The housing slowdown remains the primary cause of labor market problems, Anderson said. The construction industry shed nearly 8,000 jobs in 2007, despite work on numerous large projects on the Las Vegas Strip. Other industries have contributed to Nevada’s weak job growth—now at a five-year low 0.6 percent—as well. The financial industry lost 1,500 jobs in 2007, and the employment services (temporary help) sector shed 8,200 jobs.

“The housing slump very likely contributed to the weakness in those industries as well,” Anderson said. “The year 2007 was a less than memorable one for Nevada’s economy. Labor market conditions continued the deterioration that began in 2006. When the final numbers are in, the state is likely to have seen its second weakest job growth—better only than 2002—in the past 15 years.”

Although retail sales figures for the holiday shopping season will not be available for several more weeks, the labor market did not receive its usual seasonal boost, he added. Retail trade employment increased by 5,300 from October to December, below the average of 5,700 holiday season retail jobs created in the previous 10 years.

“On a percentage basis, retail employment gains look even worse,” Anderson said. “From 1997 through 2006, the holiday season provided a 4.9 percent increase in retail sector employment, on average. In 2007, holiday season hiring advanced retail employment by only 3.8 percent.”

Anderson said it is important to note labor market statistics are revised each year. Modified labor force and industrial employment estimates take into account new population data, revised seasonal adjustment factors and more complete employment data than is provided by the monthly surveys.

“While much of the prior year data will be revised—with initial publication of the revisions in early March—the slowing trend reported throughout 2007 is almost certain to be confirmed,” he said. “his trend is likely to continue into 2008.”

State's jobless rate tops 6 percent

Governor speeds up planned construction to provide work

By Dean Calbreath
UNION-TRIBUNE STAFF WRITER

January 19, 2008

Despite relatively strong job growth, the unemployment rate in California jumped above 6 percent last month, prompting Gov. Arnold Schwarzenegger to speed up construction projects that would result in the hiring of 5,000 new workers.

California employers added 15,000 new jobs last month, according to data released yesterday by the state Economic Development Department. The strongest growth came from educational and health care services, which added 5,900 jobs.

Nevertheless, the unemployment rate jumped dramatically, rising from 5.6 percent in November to 6.1 percent in December, because the number of people entering the work force were greater than the number of jobs being added.

“Never has California seen unemployment rise this drastically in a period that was not officially considered to be a recession,” said Christopher Thornberg, co-founder of Beacon Economics in Los Angeles. “This significantly diminishes the outlook for the state economy and state budget in 2008.”

In addition, the real estate and financial industries continue to deteriorate. Statewide, financial firms – including mortgage and real estate brokerages – cut 4,200 workers last month and construction firms shed 2,000 jobs.

To combat the job losses, Schwarzenegger ordered the accelerated release of $300 million in funding for roads, highways and other transportation projects, as well as $200 million for levee reconstruction.

Those funds are already in the budget, but were not slated to be spent this early in the year. Among the projects are a $25 million expansion of Interstate 5 in San Diego County.
“Speeding up construction of roads, schools and levee repairs will help our economy continue to grow and keep more people working,” Schwarzenegger said.

Schwarzenegger said he is also working with the Legislature to speed the release of $29 billion in unallocated funds from the 2006 infrastructure bonds.

“I have spoken with all four legislative leaders, and we are committed to acting quickly on removing regulatory and statutory hurdles that hinder investment in new construction in both the public and private sector,” he said.

Despite December's relatively healthy hiring pace, job growth in California was dismal in 2007. Payrolls grew only 0.5 percent, the slowest growth since 2003 and half the national rate of 1 percent. It was only the third time since 1995 that California's job growth lagged the nation's. In comparison, California employment grew by 1.7 percent in 2006.

“It's unusual for California to grow slower than the U.S.,” said Jed Kolko, research fellow at the Public Policy Institute of California, an economic think tank in Sacramento. “The main reason is that the housing slowdown is worse here than elsewhere.”

Kolko added that even though California's employment growth was slow last year, it was nowhere near as bad as it was during the recession of the 1990s and was even a bit faster than the sluggishness following the dot-com crash in 2000.

“We're doing a lot worse than the best of years, but a lot better than the worst years,” Kolko said.

But a report by the U.S. Bureau of Labor Statistics suggested that job growth in California may be slower than the state is reporting. A BLS study released Thursday shows that California added 120,000 jobs between June 2006 and June 2007, compared to 207,000 jobs reported by the state.

The state is slated to revise its 2007 data on Feb. 29, using updated information similar to that used by the BLS.

Stephen Levy, director of the Center of the Continuing Study of the California Economy in Palo Alto, said the BLS report provides an indication of what will happen after the state revises its estimates.

“For the state, job growth for 2007 is likely to be revised sharply downward, resulting in minimum job gains,” Levy said. “Job levels will be revised sharply downward for construction, finance and manufacturing.”

Levy expects the revised figures to show job losses in Orange County and large downward revisions for the Riverside-San Bernardino area. On the other hand, the new BLS figure for employment in San Diego last June is slightly higher than the number that the state reported at the time.

According to the data released yesterday, San Diego County continues to perform better than the state as a whole, although it has recently been lagging behind the national average.
Unemployment rose only slightly in the county, from 4.8 percent in November to 4.9 percent in December, not adjusted for seasonal hiring fluctuations. In comparison, the unadjusted rate was 5.9 percent for California and 4.8 percent for the nation.

Murtaza Baxamusa, director of policy research at San Diego's Center for Policy Initiatives, said that if the local rate were adjusted for seasonal changes it would be higher, since it would not include the temporary hiring of retail workers for the holiday season.

In the past year, the county added 14,600 salaried jobs, for an increase of 1.1 percent. Last month, the county added 1,800 jobs, on a seasonally adjusted basis, led by 800 new jobs in professional, scientific and technical services and 600 in health care.

But local real estate brokerages cut 400 workers last month. Administrative and support services were down 400, telecommunications resellers 200, construction firms 100, and information technology firms 100.

Dean Calbreath: (619) 293-1891; dean.calbreath@uniontrib.com

IndyMac layoffs in India 400-450

Independent mortgage lender in the US, IndyMac Bancorp, has decided to cut down staff with its temporary and outsourcing vendors by 27%, mainly in India.

Currently, three service providers in India, Cognizant Technology Solutions, ExlService Holdings and WNS, cater to the ninth-largest American mortgage lender. IndyMac’s move could impact about 400-450 people at the three service providers.

St. Cloud Electrolux to temporarily layoff 190 workers

St. Paul, Minn. — Electrolux in St. Cloud, Minn., says it will temporarily lay off nearly 200 people. The freezer-maker employs 1,400 people in the central Minnesota city.

A company spokesman told the St. Cloud Times the move is normal for this time of year and that the lay off is nothing unique.

However, the company's union representative, Louie Neumann, says the slowing economy and slumping housing market are the biggest reasons for the layoffs at Electrolux:

"And people are holding back on spending money right now because I really believe the recession is around the corner and people tend to hold back on purchasing bigger items like that," Neumann said.

Neumann says if the country goes into a full recession, there could be more layoffs at the plant.

One Electrolux worker told the St. Cloud Times he's been through several lay offs in the past, and said the company usually hires workers back by April.

Stora Enso Announces Layoff Plans

Finnish forest products giant Stora Enso announced Thursday it will lay off 985 employees.

The number of layoffs is slightly less than initially forecast. Last October, the company said it would cut some 1,100 jobs. Stora Enso also confirmed it will close plants in Kemijärvi and Summa, and one machine at the Anjala paper mill.

Stora Enso said rising costs and the need to safeguard the company's future profitability are behind the job cuts.

The Kemijärvi plant will close in late April, while the Summa plant shuts down at the end of this month. The paper machine in Anjala will close in November.

Stora Enso also announced Thursday it will double the amount of funds set aside to help employees at the Kemijärvi and Summa plants find new jobs.

The Finnish government has also reserved 15 million euros to support the regions affected by the layoffs.

Lear prepared to lay off 150

MICHAEL HAMMOND
RECORD STAFF

KITCHENER

Another 150 workers at Lear Corp.'s Kitchener auto parts plant are bracing for layoffs, the latest blow to Waterloo Region's beleaguered manufacturing industry.

After a tumultuous 2007, which saw hundreds laid off at the Manitou Drive plant, another 150 layoff notices were issued to employees before Christmas.

Layoffs have reduced the number of unionized workers at Lear to 339, a dramatic drop from early last year when the workforce numbered 770.

Tony Moxey, plant chair for the Canadian Auto Workers, Local 1524, said the layoffs will take effect in late February, if they are needed. He stressed that the notices do not mean the layoffs are guaranteed.

"Does this mean they anticipate letting go of 150 people? Probably not."

Moxey said the plant is struggling because of a shortage of new orders.

"People want to see more work coming into our building, but most of the new work is going to Mexico," he said. "It's hard to compete for work when the dollar is so high."

The plant makes metal components that end up in seats. Its products are mostly shipped to another Lear plant in Ajax, which makes seats for General Motors cars and pickups.

As part of an earlier agreement between Lear and Local 1524, some production machinery in Kitchener was removed in December and shipped to a plant in Mexico, Moxey said.

Officials at Lear's headquarters in Southfield, Mich., could not be reached for comment.

The potential layoffs at Lear coincide with the imminent closure of the Collins &Aikman auto parts plant in Guelph, which will leave 510 without work. Area Collins & Aikman facilities have operated under bankruptcy protection for years, including a plant at the corner of King and Breithaupt streets, which was purchased in October by the International Automotive Components.

Lear, on the other hand, recently told analysts it expects its 2007 earnings to reach $750 million US, not including one-time expenses. The company previously forecast earnings of $680 million for the year.

Lear expects to absorb as much as $180 million US in one-time expenses due to restructuring efforts. Besides the job cuts in Kitchener, Lear closed a plant in Windsor in November, putting 164 workers there out of work.

Lear isn't the only auto parts supplier struggling with the strong loonie and aggressive foreign competition.

Magna International Inc. warned yesterday that its sales will slip in fiscal 2008. The auto parts giant, which employs 83,000 worldwide, expects sales to hit between $24.9 billion US and $26.2 billion US. The company has not yet reported 2007 results, but previously said it expected sales to hit between $25 billion and $26.3 billion US.

Magna is blaming reduced output from the Big Three North American automakers and European vehicle producers for the expected drop in sales.

With the Canadian dollar maintaining near-parity levels with the U.S. dollar, a growing chorus of auto industry executives are pressuring the federal government to help the industry.

Earlier this week, both Toyota Motor Manufacturing Canada president Ray Tanguay and Chrysler LLC chief executive Tom LaSorda said the federal government needs to change a number of its policies so that Canadian auto plants can attract new investment.

Jayson Myers, chief executive officer of the Canadian Manufacturers & Exporters association, said any help from Ottawa will likely be announced in the upcoming federal budget.

With the U.S. economy possibly nearing a recession and the Canadian economy expected to be affected, Myers said there are worries there won't be much of a surplus that the government can use to help manufacturers.

Still, he said, the government needs to help the industry because of the impact it has on the wider economy. "When we see (closures) in a community like Guelph or KW, I think everybody is aware the problem is not just in the company itself," he said. "Everybody in the community is affected by this. It's bad news not just for the companies but for the community too."

The federal government has pledged to lower the corporate tax rate to 15 per cent by 2012 from 22 per cent.

Ottawa has been working on a comprehensive automotive industry policy for months, but the details are not expected to be made public until the federal budget at the earliest.

The provincial government has touted its $1.15-billion Next Generation Jobs Fund as a way for Ontario manufacturers to make investments in their plants and become more competitive.

mhammond@therecord.com

IDM outlines big layoff in restructuring plan

Two weeks after it was jilted in a key drug collaboration deal, IDM Pharma filed papers with the SEC saying it will lay off 60 percent of its workers at core facilities in Paris and Irvine, CA. IDM--which is based in Irvine--had already announced plans to restructure as it shelved a development program for the melanoma drug Uvidem and ratcheted back on its work regarding L-MTP-PE for osteosarcoma. The restructuring should be done earlier this year.

There's still no exact figure, though, on how many IDM workers will get a pink slip. IDM announced at the end of December that Sanofi-Aventis had decided to pull out of a partnership on Uvidem, leaving all rights for the drug with IDM.

Slow retail hiring crimps Houston employment figures

Area gained nearly 60,000 jobs through 2007 despite late slowdown

By L.M. SIXEL
Copyright 2008 Houston Chronicle

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More conservative holiday hiring by retailers last month slowed overall job growth in the Houston area, according to data released today by the Texas Workforce Commission.

Retailers added only 700 jobs between December 2006 and December 2007. One year earlier, retailers put on 4,000 jobs.

Usually there is a surge in year-end retail hiring, said Joel Wagher, labor market analyst for The WorkSource, which manages employment services, education and training for the Houston area.

But retail isn't growing like it had been because people aren't buying as much, he said. They're having to devote more of their income to cover the higher prices for gasoline and food.

Overall, employers added 59,800 jobs during the past 12 months, a 2.4 percent gain, according to the Texas Workforce Commission.

Houston's unemployment rate was 4.2 percent in December, up from 4 percent in November. Local jobless data is not seasonally adjusted.

The statewide unemployment rate rose to 4.5 percent in December, its highest level in 10 months and a sign of slowing in the regional economy.

Figures showed that the number of job hunters swamped a modest increase in hiring in Texas, pushing unemployment up from 4.2 percent in November.

Initial claims for unemployment benefits in Texas declined 4.3 percent, to 57,364 from 59,943 in November.

lm.sixel@chron.com

Ariz. jobs data may portend trouble

Unemployment rate rises to 4.7 percent

Betty Beard
The Arizona Republic
Jan. 18, 2008 12:00 AM

Arizona's unemployment rate rose to 4.7 percent in December, more than a full percentage point higher than it was two months earlier.

While the state gained 10,100 jobs in December to hit a new record of 2.76 million, the number was a scant 1.1 percent higher than the same time a year earlier, the Arizona Department of Commerce reported Thursday.

"This is an economy that is losing momentum," said Marshall Vest, director of the Economic and Business Research Center at the University of Arizona. "We're still adding jobs, but two years ago employment growth touched 6 percent. Today, it is 1 percent, and it's headed lower.

"And these are the kinds of numbers that are consistent with an economy that is either near recession or perhaps is already in one."

Vest expects the unemployment number to continue rising because claims for unemployment increased last year.

"I don't think it (unemployment rate) will get as high as 8 or 9 or 10 percent. I don't expect anything like that. But I wouldn't be surprised to see 6 percent before it settles," he said.

"There will be rounds of layoffs as we go forward, and I think it's going to affect nearly every industry, with the possible exception of the health-care industry. Health care is immune from business cycles."

Frances Griego, an economist with the Department of Commerce's research administration, said December's 4.7 percent seasonally adjusted unemployment rate is not worrisome, and Vest agreed.

Griego said, "We believe it was expected (to rise) because it had been extremely low several months earlier."

Phoenix came in with the lowest rate, at 4.1 percent, in December.

But the state's unemployment rate is the highest since it last hit 4.7 percent in October 2005 and puts Arizona fairly close to the national average of 5 percent.

Arizona hit an all-time record-low unemployment rate of 3.3 percent in September and its highest rate, 11.5 percent, in February 1983.

Unemployment rates rose throughout the state, especially in Yuma.

The Yuma metro area, which is in the midst of its annual produce harvest, saw its rate jump from 13.6 percent in November to 16.1 percent in December. Its December rate was 15 percent higher than a year earlier.

The Kingman area saw its rate rise from 5.1 percent to 6 percent. Other areas of the state saw about half a percentage-point increase.

Dennis Doby, acting research administrator with the Department of Commerce, said, "We're seeing more people looking for work, and it may be taking them more time to find work."

The state's new jobs last month were mostly in services, especially retail and tourism. The holiday season created 4,700 retail jobs in the state. Two other sectors, professional and business services, and educational and health services, also grew.

The two biggest losses in December were in construction and goods-producing jobs. Overall, construction lost 24,400 jobs last year for a 24 percent drop, and manufacturing lost 22,200 jobs for a 22 percent drop.

Doby pointed out that not everything was on the downturn.

"State personal income is still positive," he said. "Over the (fiscal) year, employment growth is still positive. It's a lot weaker than it was a year ago, mind you, but it's still in positive territory."

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Unemployment down to 4.3%

Interest rates look set to rise next month as tight labour market conditions continue to fan inflationary pressures in the economy.

The Australian Bureau of Statistics (ABS) today released figures showing the unemployment rate fell to 4.3% in December, from 4.5% the previous month.

A total of 20,100 people joined the workforce in December, including 6,300 full-time and 13,800 part-timers, after an impressive rise in November when 47,600 found new jobs.

However, the strong employment growth is somewhat of a double-edged sword.

The further tightening in labour market conditions presents a risk of a wages blow-out - a situation that would add to inflationary pressures already evident in the economy and boost the case for another rate hike.

"Although jobs growth slowed in December, the gain in employment remained solid, keeping labour market conditions as tight as a drum and, therefore, maintaining upside pressure on wages," JPMorgan economist Helen Kevans said.

"Rising labour costs, combined with healthy corporate pricing power and firm domestic demand, will add to broader inflation pressures," she said.

Ms Kevans said whether or not the Reserve Bank of Australia (RBA) hikes rates in February will largely hinge on December quarter consumer price index figures to be published next Wednesday.

If if core and underlying inflation growth is above the RBA's target band of between two and three per cent, as many economists expect, the central bank is likely to raise the cash rate by 25 basis points to 7%.

However, Ms Kevans said RBA officials will also take note of the outcome of the next US Federal Reserve meeting on January 30, at which it is expected to cut interest rates.

Some pundits have even suggested the Fed - the US equivalent of the RBA - could cut rates by as much as 0.75% in an effort to stimulate a US economy already teetering on the brink of recession.

"Signs that the Fed will continue to cut US interest rates aggressively in coming months may make the RBA reluctant to hike interest rates at its February meeting," Ms Kevans said.

"Domestic conditions alone, however, undoubtedly warrant an imminent rate hike from the RBA."

Su-Lin Ong, a senior economist and fixed income strategist with investment bank RBC Capital Markets, said it would be a "very close" call.

"Today's data largely confirm what we - and the RBA - already know," Ms Ong said.

"Reflecting the strength of the overall economy, the labour market remains exceptionally strong and healthy, and the buoyant leading indicators suggest that this picture is unlikely to change anytime soon.

"Indeed, the multi-decade low in the unemployment rate highlights the very tight state of the labour market and the constraints that face an economy which has just entered its 17th consecutive year of growth.

"(But) domestic resilience and inflation risks will be weighed against intensifying concerns over US growth, global credit concerns, and defacto tightening by the key domestic lenders."

The RBA board next meets on interest rates on February 5 with its decision to be announced the same day.

Polish December unemployment rate up to 11.4 pc

Eurozone unemployment remains record low in November

Greek unemployment inches higher to 7.9 percent in October

Britain's unemployment stable at 5.3 percent

26% UNEMPLOYMENT AMONG FEMALES

13% UNEMPLOYMENT IN 4TH QUARTER

10.1% UNEMPLOYMENT AMONG MALES

Sprint Nextel to cut 4,000 jobs

Wireless carrier loses 683,000 postpaid customers

By Jeffry Bartash, MarketWatch

WASHINGTON (MarketWatch) -- Sprint Nextel Corp. said Friday it would eliminate 4,000 jobs and close 8% of company-owned retail stores amid the loss of more key customers to rivals.

The store closings and the 6.7% reduction in Sprint's workforce represent the first major moves by new Chief Executive Dan Hesse, who was hired last month.

Nokia Cuts Jobs, Sprint Expected To Do The Same

Nokia said it will layoff 2,300 employees at its German production plant, while the Wall Street Journal said Sprint is planning extensive layoffs.
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By W. David Gardner InformationWeek January 15, 2008 10:53 AM


Job cuts at both wireless service provider Sprint Nextel (NYSE: S) and mobile phone maker Nokia (NYSE: NOK) are looming as competition in the mobile phone business gets more intense.
Nokia announced Tuesday that it will layoff 2,300 employees at its German production plant, while the Wall Street Journal said Sprint is planning extensive layoffs.
At the same time, rumors resurfaced that Sprint is considering returning its headquarters to Overland Park, Kan. The firm's new chief executive officer Dan Hesse has been working and living in Kansas, and Sprint's longtime employees there have been agitating for the headquarters to be moved back there from Reston, Va. The headquarters was moved to Reston after Sprint acquired Nextel. Sprint laid off 5,000 employees last January.
Sprint has been racked with turmoil since the merger as the two firms incompatible networks haven't melded easily. In addition Sprint's $5 billion bet on Mobile WiMax -- a still largely unproven technology -- has complicated the firm's future as it also struggles to deploy advanced CDMA2000 EV-DO wireless technology at the same time.
A Sprint spokesman said the company won't comment on "rumors and speculation when asked about the reports of pending layoffs and a return of the headquarters to Kansas.


While Sprint is dealing with reports of layoffs, as well as takeovers and mergers, Nokia was precise in its announcement that it will close its Bochum, Germany, plant and layoff 2,300 jobs there. "The planned closure of the Bochum production site is necessary to secure Nokia's long-term competitiveness," said Nokia's Veli Sundbaeck, in a statement. "It cannot be operated in a way that meets the requirements for global cost efficiency and for flexible capacity growth." Sundbaeck is Nokia's head of corporate relations and responsibility.

Nokia has been expanding operations in Romania and South Korea, which are expected to make up for some of the production lost by the closing of the German plant. Nokia's sales and profits have been soaring, and the company's market share in mobile phone handsets is more than its next three competitors combined. The company recently reported an 85% jump in profits. Still, the job cuts are an indication of the growing competition in the marketplace as the major mobile phone players jockey to catch the latest handset and service wave.

Macy's Cuts 100 Chicagoland Jobs

Further evidence that Macy’s strategies are not headed in the successful direction executives hoped, Macy’s North, the division that operates Macy’s in the Midwest, announced Friday the layoff of 271 employees, citing lagging sales. Combined sales for November and December were down 1.1%, while December’s sales were down 7.9%, significantly worse than the anticipated 4 to 7 percent drop over last year.

January’s same day sales are expected to dip 4 to 6 percent.

100 positions in the Chicagoland area will be impacted, with 70 in Detroit, and the remaining in Minneapolis, where Macy’s North is headquartered. Most of the positions eliminated coincide with Macy’s shuttering their Marketplace food operations and wine sales beginning in March at every store other than the flagship State Street location.

Local stores impacted include Oak Brook, Aurora, Vernon Hills, and the new store in Bolingbrook. A Macy’s spokesperson said the effort is to align expenses with revenue. The layoff comes on the heals of Macy’s announcement just two weeks ago they will be closing nine underperforming stores, which impacts 900 employees. Although no stores are in Illinois.

Field’s Fans Chicago’s blog encourages fans to pen letters to the editor. One fan suggested, via the blog, an effort to organize a Field’s delegation at the next Macy’s annual meeting of shareholders. He added, “If Chicago can rise from the ashes of the Great Fire of 1871 which was the greatest disaster to hit any city since Pompeii, then Chicago can bring back Marshall Field’s!”

Conway Bus Plant to Lay Off 300

By Lance Turner1/11/2008 2:31:01 PM
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I.C. Corp. of Warrenville, Ill., said Friday that it will lay off 300 workers at its Conway bus plant.
The plant employs about 1,300. Workers will be let go by the end of the month.

IC Corp. makes more school buses than any other company in the United States, I.C. plant manager Ed Hartung told Regional Economist magazine last year. For 2007, the company expected to make as many as 8,000 school buses, plus some prison buses and tour buses.

I.C. is the largest manufacturer in Conway. Other large manufacturers include Virco, with 821 employees; Kimberly-Clark, 481; and Snap-on tools, 472.

Brad Lacy, director of the Conway Development Corp., said the city has been dealing with rumors of a lay off since the summer, when I.C. said it might lay off as many as 500 people as demand waned. But Lacy said the market improved, at least in the short term, and last year's layoffs didn't happen.

Lacy said the city will work with the state's dislocated workers task force to help employees who are out of a job. He said the area's economy has been good due to the success of central Arkansas' booming Fayetteville Shale Play, the effects of which he hopes will soften the blow of the bus factory layoff.

Citigroup Announces Major Loss & New Investors

Citigroup, one of the largest financial institutions in the United States, said Tuesday it lost nearly $10 billion in the last few months of 2007.

The bank says its assets have shrunk by more than $18 billion because of huge investments in the troubled subprime mortgage sector.

The company says it will layoff another 4,200 employees to save money.

Citi is turning to outside investors to replenish capital, raising more than $14 billion from investors in Singapore, Kuwait, Saudi Arabia and elsewhere.

Meantime, Merrill Lynch, the largest brokerage, is suffering from similar problems and raising about $6.6 billion from investors in Japan, Kuwait and South Korea.

Some information for this report was provided by AFP, AP and Reuters.

2,400 workers targeted in layoff

PASADENA, Calif. - Mortgage lender IndyMac Bancorp Inc. said Tuesday that it will slash its workforce by 24 percent, laying off 2,403 employees in a bid to cut costs as it tries to weather the worsening housing slump and sagging demand for home loans.

The job cuts include a significant reduction in temporary vendor staffs, mainly in India, the company said.

"This action is clearly painful, but it is necessary in our drive to return IndyMac to profitability soon," Chief Executive Michael Perry said in a memo outlining the layoffs to company employees.

The layoffs follow a reduction of about 1,600 workers last year through voluntary resignations.

Perry said the firm has "a significant capital cushion and strong liquidity" but needs to keep costs down because it has been unable to sell its prime jumbo home loans on the secondary market and must keep them on its balance sheet.

Report: Sprint Nextel to Cut More Jobs

RESTON, Va. -- Sprint Nextel Corp. (S: 12.33, -0.03, -0.24%), the nation's third-largest wireless carrier, plans to cut thousands of jobs in an attempt to reassure investors that new Chief Executive Officer Dan Hesse is serious about streamlining the company's operations, The Wall Street Journal reported Monday.

Citing unidentified people familiar with the matter, the Journal said the cuts would run into the thousands of workers. The Reston-based company, with operational headquarters in Overland Park, Kan., laid off 5,000 employees last year to end up at around 60,000.

A Sprint spokeswoman declined to comment on the report.

The wireless carrier has struggled in the past year, falling far behind wireless rivals AT&T Inc. and Verizon Wireless in attracting new subscribers and wrestling with customer service problems and sometimes ineffective marketing.

The downturn cost former CEO Gary Forsee his job. Hesse, former CEO of local telephone company and Sprint spin-off Embarq Corp., is facing a long list of potential changes at the company, and cutting employee costs could be one of them.

Hesse has shown a stomach for employee reductions. While at Embarq, he cut staff by more than 1,200.

Besides a layoff, Hesse and his staff are considering a plan to consolidate the company's operations at its Overland Park base, the Journal reported, adding that a final decision hasn't been made.

The Reston headquarters, a remnant of the Sprint's 2005 purchase of Nextel Communications Inc., holds 4,500 workers and has served as a reminder of the company's internal divisions between former Sprint and Nextel employees. An additional 13,000 employees are based in Kansas.

The Journal said that while Virginia-based employees are worried about a relocation, a person familiar with the situation said a move would likely affect only a few hundred top managers and executives.

Hesse also is faced with rethinking the company's marketing effort and whether to continue its plan to roll out a wireless broadband network, called Xohm, using WiMax technology. While Forsee proposed WiMax as a competitive edge for the company, investors and some analysts have been less receptive, worried about its experimental nature, its cost and the lack of short-term profits.

BOFA TO AX 650, SHUT UNIT

By ZACHERY KOUWE

January 16, 2008 -- Bank of America chief Ken Lewis, fresh off a deal to buy struggling mortgage giant Countrywide Financial, plans to slash 650 jobs and sell its prime brokerage unit after suffering big losses on soured mortgage bets.

The job cuts represent about 12 percent of the investment-banking department's total 5,900 employees. The layoffs are in addition to previous plans to ax 3,000 people, including 500 in the corporate and investment bank. The entire company employs about 220,000 people.

BofA, which suffered $2 billion worth of writedowns and trading losses last year, is cutting back on its structured products business, which packages and sells real-estate loans and other mortgage-related debt, Lewis said.

Wall Street has always regarded BofA as a second-tier player in the investment-banking world despite its success in leveraged finance and other areas of lending. Three years ago, BofA pledged to become one of the top three investment banks in the areas of merger advice and underwriting.

But in October Lewis said the firm would be scaling back operations amid sharp earnings declines and subprime chaos.

January, 2008: The Job Market

I know the financial press has trouble saying this but the US is in recession . . . except in the skilled labor market. The slow down began with currency devaluation last year (the dollar dropping sharply against most currencies) and then fell off the table with the subprime mess in August.

As firms in many industries struggle to maintain the size of the operations or are reducing staff, people in skilled labor fields are finding no difficulty finding work.

There are more people working in information technology now than in the previous year and more than in any other time in US history. Firms tell me of shortages of engineers, accounting and audit professionals, health care workers and other skilled people.

Now the fun is that people who drive trucks are also in demand. you see, that is a skill that is also being sought.

To my eyes, in most areas salaries are not any higher than they were 10 or 15 years ago.

So where are the layoffs coming from that raised unemployment to 5%?

The "counter culture" (retail), manufacturing, office workers, real estate & residential construction (obviously) and people who support them. As I wrote in August in this blog, we have reached what I called "Game, Set and Match"--the end of the boom labor market for this part of the cycle and will probably start up again next year.

Why next year?

Simple.

Labor shortages.

You see, most companies cannot find enough labor because the Boomers are aging and the Facebook generation (Fooks) isn't interested (yet) in working hard or capable (yet) of stepping into their shoes.

But most importantly, there are a lot more Boomers and there are Fooks. So the shortages of actually bodies will keep most of America working but more working going offshore despite jingoist rhetoric.

Every generation gets profile the same way the Fooks are when they enter the job market--they don't know how to work, they are self-indulgent and want to make a lot of money with little effort.

Hmm. Sounds like most people I know but ageism makes the Fooks the low group on the totem pole and thus subject to criticism.

So, if you are an employer, you try to set up a groups on Facebook, MySpace, LinkedIn or develop your own social network for former workers so they think kindly of you and want to return to your staff.

You surf the job boards to find your current staff who are looking for work and, instead of doing the infantile thing of finding their replacement, sit with them and find out what's wrong and fix it.

You raise wage scales so that you are a magnet for new employees, instead of a target.

If you are a job hunter, you keep your skills at the highest level and your resume up-to-date so that if you are laid off, you are not writing it when you are experiencing a crisis. You network pro actively to make sure you know how to contact people when you need their help (and they need help).

The worst labor news will hit probably hit during the summer, prior to the election, and allow the candidates to demagogue about how the economy has been mismanaged by the Bush administration (it actually isn't; it has been mismanaged by Wall Street and, behind the scenes, they are doing a ton of things to rescue the financial system which will, eventually, pull things out).

They can't help you. The Fed can't help you.

Only you and your friends and colleagues can help you when that happens.


And I hope I'm wrong.

Jeff Altman

The Big Game Hunter
Concepts in Staffing
thebiggamehunter@cisny.com

© 2008 all rights reserved.

Jeff Altman, The Big Game Hunter, is Managing Director with Concepts in Staffing, a New York search firm, He has successfully assisted many corporations identify management leaders and staff in many disciplines since 1971. He is a retired certified leader of the ManKind Project, a not for profit organization that assists men with life issues, and a practicing psychotherapist.

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