Closures & Layoffs (Feb. 1-7): 2008's Brutal Layoff Count

A Weekly Report on Future Corporate Downsizings

By Mark Heschmeyer

February 4, 2009

In this week's issue:

Sacked: 2008's brutal tally of job losses.

Macy's cuts workforce by 3.9%; reduces capital expenditures; reorganizes.

Starbucks closing 300 more stores; cutting 6,700 jobs.

Plus, a whole new round of major U.S. corporation closures and layoffs were announced in California, Florida, Georgia, Illinois, Indiana, Michigan, Mississippi, Nevada, New Jersey, Ohio, South Dakota, Tennessee, Texas, Virginia and Washington.

Correction: An item regarding RWD Technologies layoffs in the Jan. 25-31 issue incorrectly identified the location of the layoffs. The office at 4550 Corporate Drive in Troy, MI, is where the reductions are targeted not the office at 5440 Corporate Drive in Auburn Hills.

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Sacked: 2008's Brutal Tally

From the start of the recession in December 2007 through December 2008, employers initiated 23,485 mass layoffs. Each involved at least 50 people. The actions impacted 2.39 million workers. The numbers are the highest annual levels since 2001 and 2002, respectively.

Manufacturing accounted for 33% of all mass layoff events and 41% of initial claims filed during 2008, up slightly from 2007 (30% and 38%, respectively). The number of manufacturing claimants was highest in transportation equipment manufacturing, 323,676, followed by food manufacturing, 72,081, and wood product manufacturing, 56,374.

Among the major industry sectors, manufacturing had the largest over-the-year increase in mass layoff-related initial claims (+260,213) from 2007 to 2008. Within manufacturing, transportation equipment (+95,463), plastics and rubber products (+24,638), and fabricated metal products (+23,083) experienced the largest increases from the previous year. Administrative and waste services had the second largest increase (+78,183) among the major industry sectors, due to more layoff activity in administrative and support services (+77,864).

Among the 50 states and the District of Columbia, California recorded the largest number of initial claims (446,480) filed in mass layoff events during 2008, accounting for 21% of the national total.

The states with the next highest numbers of initial claims were Michigan (132,468), Ohio (131,813), Pennsylvania (128,041), and Illinois (103,685).

Eleven states--Florida, Hawaii, Indiana, Kentucky, Montana, New Mexico, New York, North Dakota, Tennessee, Vermont, and Wyoming--recorded series highs in mass layoff claimant activity in 2008, while two states--Maine and Virginia--reported series lows.

The national unemployment rate was 7.2% in December, seasonally adjusted, up from 6.8% the prior month and from 4.9% a year earlier.

Macy's Cuts Workforce by 3.9%; Reduces Capital Expenditures; Reorganizes

By: Sasha M Pardy
Macy's Inc. announced a series of cost reduction initiatives that the company expects will result in a $400 million annual reduction in planned expenses for 2010 and $250 million for 2009. Included in the plan is a company-wide consolidation of divisions and corporate office functions and investments in local infrastructure resulting in a net reduction of 7,000 positions or 4% of its total workforce;

In addition, Macy's is shifting management of stores into a "My Macy's" format that will group all stores into 69 geographic districts including 10-12 stores each. This new structure will become effective in the second quarter and will include approximately 1,200 new positions managing the My Macy's districts and regions. The company said a new executive management team would be put in place as well.

Macy's further reduced its 2009 capital expenditure plan to $450 million, down from a previously announced $550-$600 million. The company said no additional store closing announcements, aside from the 11 announced last month, would be made at this time.

Starbucks Closing 300 More Stores; Cutting 6,700 Jobs

By: Sasha M Pardy
Seattle-based coffee roaster Starbucks Corp. plans to close 200 additional underperforming company-operated stores. This is in addition to the 600 store closings the company announced in July 2008.

Internationally, Starbucks is closing 100 stores, plus the 61 store closures in Australia it announced during the summer. Nearly all these stores will be closed by the end of Starbucks' fiscal year in September 2009.

The coffee retailer is also pulling further back on new store openings. During fiscal 2009, it plans to open 140 new U.S. stores (down from its previous target of 200 stores) and 170 international stores (down from its previous expectation of 270 stores). Additionally, Starbucks has lowered its net new licensed store target (typically grocery store, school, and airport locations) to 125 in the U.S. and 360 internationally. In comparison, Starbucks opened 445 net new company-operated stores and 438 licensed stores in the U.S. during fiscal 2008, as well as 786 net new international locations.

Through these closures, as well as other "labor efficiency" initiatives, Starbucks said as many as 6,000 store positions and 700 non-store positions (including 350 at its Seattle headquarters) would be eliminated in 2009.

Starbucks' first quarter results included a 10% decline in U.S. comparable store sales and a 6% decline in U.S. net revenues.

Closures & Layoffs

California

3M Co., 1331 Commerce Street, Petaluma is closing down and laying off 105 workers on Feb. 1.

A Firstgroup America, dba-First Transit, 5357 Valley Blvd, Los Angeles is laying off 177 workers on Feb. 28.

Adobe Systems Inc., 601 Townsend Street, San Francisco is laying off 75 workers on Feb. 3.

Adobe Systems Inc., 345 Park Avenue, San Jose is laying off 191 workers on Feb. 3.

Alza Corp., 1010 Joaquin Road, Mountain View is closing down and laying off 29 workers on March 20.

AT&T Co., 4430 Rosewood Drive, Pleasanton is laying off 27 workers on Feb. 6.

AT&T, National Customer Support, 2623 Camino Ramon, San Ramon is laying off 16 workers on Feb. 6.

Calsonic Kansei, 9 Holland, Irvine is closing down and laying off 28 workers on August 28.

Cartus, 27271 Las Ramblas, Mission Viejo is closing down and laying off 120 workers on Feb. 6.

Cnet Networks Inc., 235 Second Street, San Francisco is laying off 85 workers on Feb. 9.

Decurion Management Co., 120 North Roberson Boulevard Los Angeles, 90048 is laying off 80 workers on Feb. 6.

Deutsch, 700 Hathaway Drive, Banning is laying off 78 workers on Feb. 21.

Deutsch Industrial, Products Division, 5733 W Whittier Ave., Hemet is laying off 41 workers on Feb. 21.

Dole Fresh Vegetables Inc., 500 South Alta Street, Gonzales is closing down and laying off 186 workers on March 1.

Domino Lasers Inc., 1904 Wright Circle, Anaheim is closing down and laying off 60 workers on Feb. 7.

Fluidmaster Inc., 30800 Rancho Viejo Road, San Juan Capistrano is closing down and laying off 27 workers on Feb. 18.

Gemological Institute America 5345 Armada Drive, Carlsbad is laying off 110 workers on Feb. 10.

Global Pharmaceutical Supply Group (GPSG), 700 Eubanks Drive, Vacaville is laying off 22 workers on Feb. 20.

Gregg Industries Inc., 10460 Hickson Street, El Monte is laying off 81 workers on Feb. 11.

Hannibal Industries Inc., 3851 South Santa Avenue, 90058 is laying off 35 workers on Feb. 16.

JPMorgan Chase Bank, 4900,4920,4940,5020 & 5040 Johnson Drive Pleasanton, 94588 is laying off 654 workers on March 31.

JPMorgan Chase Bank, 17861, 17875, 17877 Von Karman Ave. & 17872 Gillette Ave., Irvine is laying off 34 workers on March 31.

JPMorgan Chase Bank, 123 & 201 Mission Street, San Francisco is laying off 120 workers on March 31.

JPMorgan Chase Bank, 17872 Gillette Avenue & 17875 Von Karman Avenue, Irvine is laying off 29 workers on May 1.

JPMorgan Chase Bank, 400, Main Street, 95202 is laying off 44 workers on May 31.

Kaplan Professional Schools, 25341 Commercentre Drive, Lake Forest, 92630 is laying off 55 workers on Feb. 2.

Life Technologies, 850 Lincoln Center Drive, Foster City is laying off 40 workers on July 30.

Marriott Ownership Resorts Inc., 3130 S Harbor Blvd #150, Santa Ana is laying off 110 workers on Feb. 20.

Marriott Ownership Resorts Inc., 3130 S Harbor Blvd #150, Santa Ana is closing down and laying off 29 workers on March 6.

Marvell Semiconductor Inc., 5488 Marvell Lane, Santa Clara is laying off 46 workers on Feb. 13.

Naked Juice Plant, 435 West 8th Street, Azusa is closing down and laying off 33 workers on Feb. 13.

Pentair Electronic Packaging, 14100 Danielson Street, Poway is laying off 158 workers on Feb. 12.

Philips Lighting, 2930 S Fairview Street, Santa Ana is closing down and laying off 70 workers on Feb. 27.

Philips Lighting, 6603 Darin Way, Cypress is closing down and laying off 47 workers on March 27.

PVH Superbra/Insignia Neckwear Inc. 1735 S Santa, Ave., Los Angeles is laying off 148 workers on Feb. 15.

Ralphs Grocery Co., 3859 24th Street, San Francisco is laying off 67 workers on Feb. 14.

Ralphs Grocery Co., 3950 24th Street, San Francisco is closing down and laying off 31 workers on Feb. 14.

Ralphs Grocery Co., 1095 Hyde Street, San Francisco is closing down and laying off 17 workers on Feb. 14.

Ralphs Grocery Co., 1390 Silver Avenue, San Francisco is closing down and laying off 13 workers on Feb. 14.

Reelzchannel, 1201 W 5th, #T900, Los Angeles is laying off 64 workers on Feb. 8.

Roadway Express - Burbank, 12200 Montague Street, Pacoima is closing down and laying off 55 workers on March 1.

San Francisco Housing Authority, 440 Turk Street, San Francisco is laying off 73 workers on Feb. 13.

Seagate Technology LLC, 155 & 195, Milpitas Blvd. & 311 Turquoise Drive, Milpitas is closing down and laying off 43 workers on April 3.

Sharp Cabrillo Skilled Nursing Center, 3475 Kenyon Street, San Diego is closing down and laying off 168 workers on April 3.

Shutterfly Inc., 3157 Corporate Place, Hayward is laying off 45 workers on April 2.

Silicon Storage Technology Inc., 1171 Sonora Court, Sunnyvale is laying off 60 workers on Feb. 15.

Solstice Capital Group Inc., 17461 Derian Ave., Suite 200, Irvine is laying off 135 workers on Feb. 9.

Starwood Vacation Ownership Inc., 190 Carousel Mall, San Bernardino is closing down and laying off 218 workers on January 19.

Stec Inc., 3001 Daimler St., Santa Ana is closing down and laying off 102 workers on March 6.

Sunesis Pharmaceuticals Inc. terminated its lease with ARE-Technology Center SSF LLC at 341 Oyster Point Blvd. in South San Francisco, CA, which formerly served as Sunesis' headquarters and research and development facility. Sunesis was required to pay Alexandria a base monthly rent and operating expenses of approximately $15.7 million between February 2009 and June 2013. To terminate the lease, it paid $2.21 million.

The Western Union Co., 100 North Point, San Francisco is laying off 22 workers on June 5.

TTX Co., 10800 San Sevaine Way, Mira Loma is closing down and laying off 209 workers on Feb. 28.

Unilever Foodsolutions, 1930 California Ave., Corona is closing down and laying off 104 workers on Feb. 8.

USS-Posco Industries, 900 Loveridge Road, Pittsburg is laying off 827 workers on December 11.

Valeant Pharmaceuticals International, One Enterprise, Aliso Viejo is laying off 23 workers on March 31.

Vishay Siliconix, 2201 Laurelwood Road, Santa Clara is laying off 97 workers on Feb. 6.

Western Digital Fremont LLC, 44100 Osgood Road, Fremont is laying off 65 workers on March 2.

Western Digital Technologies Inc., 5863 Rue Ferrari, San Jose is laying off 22 workers on Feb. 6.

Wyndham Vacation Ownership, 18301 Von Karman Avenue, Suite 100 Irvine is laying off 56 workers on Feb. 17.

Xyratex International Inc., 855 Riverside Pkwy, West Sacramento is laying off 157 workers on Feb. 16.

Yahoo! Inc., 2700 Pennsylvania Avenue, Santa Monica is laying off 77 workers on Feb. 13.

Yahoo! Inc., 701 First Avenue, Sunnyvale is laying off 295 workers on Feb. 13.

Yahoo! Inc., 2811 & 2821 Mission College Boulevard Santa Clara is laying off 173 workers on Feb. 13.

Yahoo! Inc., 3333 & 3355 Empire Avenue, Burbank is laying off 160 workers on Feb. 13.

Yellow Transportation - Santa Springs, 12250 Clark Street, Santa, Springs is closing down and laying off 83 workers on March 1.

YRC Inc., 4200 W Capitol Ave., West Sacramento is laying off 183 workers on March 1.

Florida

Chico's FAS Inc. is cutting 180 positions, or approximately 11% of the headquarters employee based at 11215 Metro Pkwy in Fort Myers, FL. The cuts were to occur starting last week.

Signature Special Event Services Inc. and Welcome Holdings LLC terminated a lease at 750 Central Florida Parkway in Orlando, comprised of two buildings. The lease was scheduled to expire on March 31, 2012. SSES utilized the premises for storing and warehousing certain of its tent-rental products. Under the Lease Agreement, SSES was required to pay the Landlord a base monthly rent of approximately $30,000.

Georgia, Michigan

Barnes Group Inc. realigned its three-group reporting structure into two global business segments (Precision Components and Logistics and Manufacturing Services). Precision Components is vacating its Central Lake, MI, facility when its lease expires in September of 2009 and idling the Monterrey, Mexico facility, both of which primarily support the transportation industry. Logistics and Manufacturing Services is closing an Atlanta, GA, distribution center by the end of the first quarter. In addition, has frozen all employee salaries.

Illinois

Amsted Rail Co., Inc. is laying off 363 workers at 1700 Walnut St. in Granite City on Feb. 16.

Arcelormittal is closing down and laying off 244 workers at 10726 Steel Drive in Hennepin on Feb. 20.

Caterpillar is laying off 814 workers at 14009 Old Galena Road in Mossville on Feb. 23.

Fox Valley Publications LLC is closing down and laying off 155 workers at 3101 N. Route 30 in Plainfield on March 1.

Gareda Nursing Services, Inc. is laying off 1,458 workers at 1431 Huntington Drive in Calumet City on Feb. 22.

General Binding Corp. is laying off 75 workers at 712 W. Winthrop Ave. in Addison on Feb. 9.

Gray Interplant Systems, Inc. is laying off 299 workers at 8801 N. University St.; Route 29 & Old Galena Road in Peoria & Mossville on Feb. 23.

Gray Interplant Systems, Inc. is laying off 130 workers at 150 Spencer St., Bldg KK, in East Peoria on Feb. 23.

Interlake Material Handling, Inc. is possibly closing down and has decided to lay off 262 workers at 701 Interlake Drive in Pontiac on Feb. 15.

Interlake Material Handling, Inc. is possibly closing down and has decided to lay off 79 workers at 1230 E. Diehl Road in Naperville on Feb. 15.

Kmart Corp. is closing down and laying off 85 workers at 2700 Plainfield Road in Joliet on Feb. 15.

Orval Kent Food Co. is laying off 142 workers at 120 W. Palatine Road in Wheeling on Feb. 20.

Roadway Express is laying off 136 workers at 3700 - 78th Ave. West in Rock Island on March 1.

SIRVA, Inc. is laying off 95 workers at 700 Oakmont in Westmont on Feb. 10.

SKF Sealing Solutions is closing down and laying off 169 workers at 900 N. State St. in Elgin on Feb. 27.

Indiana

Wabash National Corp. at 1000 Sagamore Pkwy South in Lafayette, IN, implemented additional cost reduction actions that will substantially decrease its corporate overhead. It let go 25 associates, or 5% of its salaried workforce. It has now laid off 170 workers in the past year. It has also temporarily cut salaries 10% by moving to a 36-hour work week.

Michigan, Ohio

General Motors Corp. will cut 2,000 jobs at plants in Michigan and Ohio and it will halt production for several weeks at nine U.S. plants over the next six months due to slow sales. GM will eliminate the second shift at its Delta Township plant near Lansing, MI, on March 30 and the second shift at its Lordstown, OH, factory will end April 6. About 1,200 workers will be laid off at the Michigan plant, while 800 jobs will be cut in Ohio. The plant shutdowns come about a month after GM temporarily closed 20 factories across North America.

Mississippi

Hancock Fabrics Inc. based at 1 Fashion Way in Baldwyn, MS, is cutting 30 corporate and store support positions, equating to approximately 9% of the corporate (non-store personnel) workforce. The cuts were effective last week. In addition to cost reductions, the company has lowered its planned capital expenditures for fiscal 2009 by approximately $4 million or 45% from the anticipated 2008 levels. The 2009 capital expenditures will relate primarily to the relocation of certain stores and system improvements to enhance inventory management.

Nevada

International Game Technology based at 9295 Prototype Drive in Reno, NV, will reduce its workforce by approximately 200 manufacturing-related positions. IGT's manufacturing functions are based mainly in Reno with some related activities in Las Vegas.

New Jersey

The Children's Place Retail Stores Inc. plans to relocate its e-commerce business from its Secaucus, NJ, distribution center in Harmon Cove Industrial Park to the its Southeast distribution center in Fort Payne, AL, in June 2009. Approximately 350 positions at the Secaucus facility will be eliminated by the planned move.

Ohio

MeadWestvaco Corp. will discontinue its MWV Calmar pump and dispensing manufacturing and distribution operations in Washington Court House, OH. The Washington Court House facility manufactures dispensers for the personal care and beauty industry. The company is consolidating production and equipment from Washington Court House to its San Luis Potosi, Mexico, plant. The transition is expected to be completed by the end of 2009. A small component manufacturing presence will be maintained at Washington Court House. The closure will impact approximately 278 hourly and salaried employees.

South Dakota

Hutchinson Technology Inc. will close its Sioux Falls, SD, facility at 2301 E. 60th St. North and consolidate those operations at its Eau Claire, WI, and Hutchinson, MN, facilities by March 29.

Tennessee

Blount International Inc. will permanently close its Milan, TN, production facility. It is anticipated that the closure will be completed during the second quarter of 2009. The Milan facility currently is one of the seven manufacturing facilities supporting the company's core business, the Outdoor Products segment. The Milan facility employs close to 100 employees and accounted for approximately five% of the segment's production cost in 2008.

Texas

Unidym Inc. plans to close its operations at 16200 Park Row in Houston, TX, and consolidate its operations in its Northern California facilities. Unidym currently leases two facilities in the Houston area. Unidym will continue to incur rent expense for the Houston facility it currently occupies under a month to month lease until the facilities are vacated and returned to the landlord. Unidym leases another facility in Pasadena, TX to which it was previously planning to relocate its Houston operations. Unidym is seeking to sublease this facility and will incur rent expense until it enters into a sublease.

Virginia

Cuisine Solutions Inc. terminated its lease with Duke Shirley LLC at 85 S. Bragg St., Suite 600, in Alexandria, VA, effective Feb. 15.

Washington

Weyerhaeuser Co. is closing two mills in Aberdeen, WA, state due to weak market conditions. The closures include the permanent shutdown of a sawmill and its Pacific Veneer mill. The closures will affect approximately 196 hourly and 25 salaried positions.

Nationwide

AOL based in New York is cutting up to 700 jobs, or about 10% of the Internet unit's work force, in a bid to cut costs. Randy Falco, AOL CEO, told employees that it plans to cut the jobs in the next several quarters. He also said that AOL will skip merit pay raises in 2009.

Boeing Co. based in Chicago, IL, plans to cut 10,000 jobs, or about 6% of its workforce. The job reductions include 4,500 that were previously announced in the commercial-plane half of Boeing's business.

Bon-Ton Stores Inc. based at 2801 E Market St. in York, PA, is reducing its reduce corporate and store personnel by approximately 1,150 positions.

Corning Inc. based in Corning, NY, plans to reduce its workforce by about 3,500 employees, or 13%, before the end of the year. About 1,500 of the reductions are salaried employees. The company is also in the process of reducing more than 1,400 temporary workers. The restructuring program will include a selective early retirement program, global workforce reductions and consolidation of manufacturing facilities. The company also suspended merit increases for its salaried employees.

Eastman Kodak Co. based in Rochester, NY, expects to reduce its worldwide employment by between 3,500 and 4,500 positions during 2009, approximately 14% to 18% of its total workforce. This includes the reduction of 2,000 to 3,000 positions related to the company's 2009 restructuring program. The reductions, which include executive positions, have commenced and the company expects to implement the majority of the actions associated with this program in the first half of 2009.

ING will be reducing its global workforce by approximately 7,000 full-time positions this year. As part of the restructuring, Michel Tilmant will step down from the executive board. It has appointed Jan Hommen, currently Chairman of the Supervisory Board of ING Group, as CEO of ING Group.

Jabil based in St. Petersburg, Fl, plans to cut its manufacturing capacity in certain geographies and to shrink its worldwide workforce of 85,000 by approximately 3,000. Approximately 10 global plant sites will be impacted and approximately 10% of the headcount reductions will take place in the United States.

Kimberly-Clark Corp. based in Dallas, TX, is consolidating its infant and child care operations in North America. Employees at all 23 facilities slated for sale, closure or streamlining as part of the cost reduction plan have been notified about workforce reductions and other actions.

NEC Corp. plans to close three domestic production facilities and five other business locations and cut 9,500 jobs worldwide, about 450 of which will be in the U.S.

Oshkosh Corp. based in Oshkosh, WI, is cutting its workforce by 7%, which is in addition to the workforce reduction concluded in the summer of 2008. In addition, it plans to close a number of underutilized facilities, which it did not identify.

Pfizer and Wyeth entered into a definitive merger agreement under which Pfizer will acquire Wyeth in a cash-and-stock transaction currently valued at $50.19 per share, or a total of approximately $68 billion. While the combined company will create one of the most diversified companies in the global health care industry, it will initially mean a cut of about 8,000 jobs through elimination of duplicative job functions.

SAP with U.S. headquarters in Newtown Square, PA, intends to reduce its workforce globally by 3,000 positions to 48,500 by year-end 2009, taking full advantage of attrition as its primary means of cuts.

Sprint Nextel Corp. in Overland Park, KS, plans to eliminate 8,000 positions within the company, which is expected to be largely completed by March 31. The positions to be eliminated will impact all levels of the company and the impact on geographic locations will vary. The reduction total includes approximately 850 positions expected to be eliminated under a voluntary separation plan started late last year.

Standex International Corp. based in Salem, NH, plans to cut 190 jobs and consolidate plants. It closed a Hydraulics Products group operation and consolidated the production into an existing facility. It is closing a Cooking Solutions facility at 30 Pine St. in New Rochelle, NY, and will move production to operations in Mexico and Wyoming. In its Engraving group, it is consolidating mold texturizing production from Detroit, MI, facility into a Canadian facility.

Texas Instruments Inc. based in Dallas will reduce total employment by 12% through 1,800 layoffs and 1,600 voluntary retirements and departures.

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