Idiot Inc. » Layoffs

Wall Streeter calls for layoffs at Microsoft

Jacopo Kane — Fri, 26 Dec 2008 20:26:41 +0000

Oppenheimer & Co. analyst Brad Reback has published a report that says layoffs at Microsoft “would be a healthy move for the company.” His math calls for a 10% reduction, which would amount to 9,100 axed employees, and an approximate 10-cent gain in earnings-per-share. According to Reback, the move would be a “signal that profitability is more important than revenue growth during this very difficult time.”

A hiring freeze has been in place for some divisions since October, but this is the first call I’m aware of for heads to roll at the company. We’ll see what develops.

Ashford Hospitality is pretty damn inhospitable

Jacopo Kane — Fri, 26 Dec 2008 18:37:16 +0000

Ashford Hospitality, a hotel real estate trust, is laying off an undisclosed number of employees, axing its dividends, and implementing a salary freeze. The company was unreachable for details so it is not known how many employees will be cut, or how much scrilla the company hopes to save.

CEO Monty Bennett made this buzzword-saturated statement:

“We will continue to be proactive in all measures to best position the company for near term sustainability.”

[Yahoo Finance] Ashford Hospitality cuts jobs, halts dividend

Unisys announces layoffs and cost cutting

Jacopo Kane — Tue, 23 Dec 2008 17:09:09 +0000

IT company Unisys is making big cuts in a bid to “boost its profitability.” For sour starters, the company will be laying off 1,300 employees, but refuses to say which divisions will be affected. The company will also be freezing salaries for employees left behind, and will stop contributing to their 401k plans.

All in all, the cuts are expected to save the company $225 million per year — nearly as much as the company’s meager market cap.

San Fran. Business Journal] Unisys cutting 1,300 jobs, freezing salaries, ending 401(k) matches

Textron runs over 2,200 employees

Jacopo Kane — Mon, 22 Dec 2008 23:06:27 +0000

Defense contractor and golf cart manufacturer Textron has lowered its 4th quarter guidance by more than half — the company now expects to lose between 91 cents and 81 cents per share. Executives used this opportunity to announce that the company would be laying off 2,200 employees at a cost of $250 million to $300 million. There has been no word on what divisions or employees will be affected.

[Yahoo Finance] Textron lowers 4Q outlook, to cut about 2,200 jobs

Johnson Controls cuts 125 employees

Jacopo Kane — Mon, 22 Dec 2008 19:20:01 +0000

Johnson Controls, a company that supplies GM, has announced that it will be laying off 125 employees from its Columbia, Tennessee facility.

Stephen Roell, the company’s CEO had this to say:

“Global automotive production is significantly worse than just two months ago… The ongoing uncertainties and rapid changes in the automotive industry make it difficult to provide meaningful financial guidance for the upcoming year

[Nashville Biz Journal] Johnson Controls to lay off 125

EA to lay off workers and scale back game development

Jacopo Kane — Mon, 22 Dec 2008 19:00:51 +0000

Electronic Arts will be closing nine facilities and laying off 1,000 workers because of “a high degree of economic uncertainty.” The company expects to save $120 million per year because of the cuts.

An EA spokesman also said that the company will be scaling back its game projects:

“We need to focus on making bigger bets on fewer games and cut costs accordingly.”

[CNN] Sovereign, EA to cut 2,000 jobs

Sovereign Bank axing positions before it is sovereign no more

Jacopo Kane — Fri, 19 Dec 2008 17:16:27 +0000

Philadelphia-based Sovereign Bank will be laying off 1,000 employees over the rest of the month and into 2009. The cuts represent just under 10% of the Sovereign’s 12,000 employees. The company is cutting costs before its acquisition by Spanish bank Banco Santander SA. Sovereign my ass.

During times like these, you have to go back and wonder if it was worth paying Sovereign’s ousted ex-CEO $8.4 million to leave.

[Yahoo Finance] Sovereign Bancorp cutting 1,000 jobs amid downturn

Motorola cuts benefits for employees; CEOs make half-hearted gesture

Jacopo Kane — Fri, 19 Dec 2008 08:53:23 +0000

Because of “continuing global economic challenges,” Motorola employees will have their pension plans frozen, and the company will no longer match contributions to worker 401k plans. According to the company, the cessation of 401k matching is temporary, the pension plan freeze is permanent.

In what we can only guess is a show of solidarity, Motorola co-CEOs Greg Brown and Sanjy Jha will be taking a 25% reduction in their base pay. Don’t praise them too much, Brown’s base salary last year was just shy of $850,000 but his total compensation was over $7 million. With stock rewards like that, it’s easy to take a 25% cut in base pay.

[BetaNews] Motorola freezes salaries and benefits, but no layoffs announced

Game over for 25% of Midway employees

Jacopo Kane — Fri, 19 Dec 2008 00:29:56 +0000

Video game maker Midway is laying off a whopping 25% of its workforce, 180 employees. The Chicago-based company will be shuttering a studio it runs in Texas, and will also be suspending development of several games. The firm has not yet announced which games will be affected by the cuts.

[WSJ] Midway Games to Cut 25% of Work Force

Genworth Financial will say goodbye, farewell to 1,000

Jacopo Kane — Thu, 18 Dec 2008 23:57:00 +0000

In an effort to cut $100 million in operating expenses, insurance company Genworth Financial will be laying off 1,000 employees from its workforce. Affected workers will be notified in early January, so they’ll have a nice Christmas of worrying about losing their job.

Genworth CEO Michael Fraizer had this to say about the layoffs:

“We are making tough business decisions to become substantially more streamlined and support our cost and capital positioning during this unprecedented period.”

I wonder if one of the “tough decisions” that Fraizer will make is to cut his $11.7 million in compensation?

[Yahoo Finance] Insurer Genworth Financial to cut 1,000 jobs

Omnicom Group to kick 5% to the curb

Jacopo Kane — Thu, 18 Dec 2008 20:53:39 +0000

The world’s largest advertising and public relations company — Omnicom Group — fresh from a kick-ass third quarter in which profits topped $213 million, has announced that it will be laying off 3,000 employees. The cuts are in preparation for a much tougher advertising climate in 2009 according to executives.

Company flack Pat Sloan had this to say:

“Given current economic conditions, our companies have reviewed their staffing levels as they relate to their current business requirements… Some, but not all, will have to make adjustments.”

I would have expected a better sound-byte from the head spin doctor of the world’s largest ~~bullshit~~ public relations company…

[Yahoo Finance] Omnicom cuts ‘less than 5 percent’ of work force

Sirius XM wants to remind us that they’re laying off too

Jacopo Kane — Thu, 18 Dec 2008 19:51:07 +0000

Sirius XM Radio’s CEO, Mel Karmazin, announced at a shareholders meeting that the company will have trimmed 22% of its workforce by the end of the year. All in all, 458 employees will have been axed from the semi-newly-merged satellite radio company. The company expects to save $425 million by the firings — just $75 million less than Howard Stern’s contract is worth.

[Yahoo Finance] Sirius ending 2008 with 22 percent less staff

Pentair layoffs will drown 1,600

Jacopo Kane — Thu, 18 Dec 2008 19:37:09 +0000

Pentair, an ironically-named company that manufactures water products, has announced that it will be laying off 1,600 employees (10% of its workforce). The company has also implemented a salary freeze for the leftover employees. Pentair expects to save $75 million next year due to this cost cutting.

[MN Business Journal] Pentair cutting 1,600 jobs

More details on Aetna layoffs emerge

Jacopo Kane — Wed, 17 Dec 2008 21:38:43 +0000

Aetna is an insurance company that has been pretty secretive about its layoff plans, which were initially announced a few weeks ago. According to numerous comments on our previous post, firings started at the company this morning.

According to an AP report, 1,000 employees will be laid off by the end of the year. 375 employees are being cut in Connecticut, 165 will go in Pennsylvania; our readers have reported 17 layoffs in Tampa, Fl. along with an unknown number in Jacksonville as well. If you have any more details, please let us know.

CEO Ron Williams — Aetna’s $23-million-dollar-man — issued this statement:

“These actions will reduce our operating costs and allow us to manage through the economic downturn from a position of strength… The fundamentals of our business are solid, and we continue to win in the marketplace.”

Yeah Ron, I’m sure employees who are losing their jobs just a week before the holidays will take comfort in the fact that the fundamentals of your business are strong.

[Yahoo Fianance] Aetna to eliminate 1,000 jobs in cost-cutting move

Layoffs at Detroit newspapers, home delivery will be scaled back

Jacopo Kane — Wed, 17 Dec 2008 20:56:14 +0000

The Detroit Media Partnership — which owns the Detroit News and The Detroit Free Press — has announced that they will only be offering home delivery three days per week, and will be laying off 9% of their total workforce. The papers currently employ 2,151 workers.

David Hunke, publisher of the Free Press showed off his remarkable ability to state the obvious:

“Our decision to limit home delivery to three days a week reflects the reality that major newspaper markets are facing daunting economic challenges. Advertising in this economy is down and costs are up. We can’t live in the past.”

It’s that kind of prescience that has put these newspapers on the cutting edge of media…

[Chicago Sun Times] Detroit newspapers cut back home delivery, announce layoffs