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Closures & Layoffs (Mar. 22-28): Mass Layoffs Increasing

March 25, 2009
Employers took 2,769 mass layoff actions in February that resulted in the separation of 295,477 workers. That was 542 more actions than in January involving 57,575 more workers.

In February, 1,235 mass layoff events were reported in the manufacturing sector, resulting in 152,618 initial claims. The manufacturing sector accounted for 42% of all mass layoff events and 47 percent of initial claims filed in February 2009; a year earlier.

Thirteen of the 19 major industry sectors reported program highs in terms of average weekly initial claimants for the month of February- mining, construction, manufacturing, wholesale trade, retail trade, transportation and warehousing, finance and insurance, real estate and rental and leasing, professional and technical services, management of companies and enterprises, educational services, accommodation and food services, and other services, except public administration.

Of the 9 geographic divisions, the Pacific had the highest number of initial claims (54,411) due to mass layoffs in February, followed by the East North Central (52,690) and the Middle Atlantic (24,387).

U.S. Post Office Closing Six District Offices

The U.S. Postal Service plans to close six of its 80 district offices, eliminating positions across the country and offering early retirement opportunities. These actions are expected to save the Postal Service more than $100 million annually.

The six offices closing are:
3415 W. Lake Mary Blvd. Lake Mary, FL
76 Main St., North Reading, MA
955 Goffs Falls Road, Manchester, NH
19-21 Kilmer Road, Edison, NJ
1618 Ash St., Erie, PA; and
421 W. Riverside Ave., Suite 103, Spokane, WA.

Additionally, administrative staff positions at the district level nationwide are being reduced by 15%. More than 1,400 mail processing supervisor and management positions at nearly 400 facilities around the country also are being eliminated and nearly 150,000 employees nationwide are being given the opportunity to take an early retirement.

In the past year the Postal Service cut 50 million workhours; halted construction of new postal facilities; instituted a nationwide hiring freeze; reduced authorized staffing levels at postal headquarters and area offices by at least 15%; and sold unused and under-utilized postal facilities.

National Layoffs & Closures

Alcoa announced a series of operational and financial actions to significantly improve its cost structure and liquidity. As previously announced, it is exiting four mid and downstream businesses and the Shining Prospect special purpose vehicle that held shares in Rio Tinto.

Bassett Furniture Industries Inc. in Bassett, VA, cut 50 positions in departments throughout the company affecting personnel in corporate retail, administration, customer service, manufacturing, and marketing. The cuts represent a 6% reduction in payroll. In addition, the company closed its Mt. Airy, NC, distribution facility at 1625 Sheep Farm Road. Overall distribution costs will be reduced by 7%. The Mt. Airy facility has been listed for sale.

Cortex Pharmaceuticals Inc. in Irvine, CA, is cutting its personnel by approximately 50%. The workforce reduction is in addition to other capital preserving initiatives, including the reduction of salaries of its executive officers.

Jewett-Cameron Trading Company Ltd. in North Plains, OR, announced a targeted 5% reduction in personnel. The staff reduction also includes Terry Schumacher, the company's CFO.

LeCroy Corp. in Chestnut Ridge, NY, has cut its staff by 6.5%.

National Semiconductor Corp. is taking actions this quarter to reduce overall expenses and shift more of its R&D investments towards new and emerging growth opportunities. As part of the plan, the company will eliminate approximately 850 positions worldwide in product lines, sales and marketing, manufacturing and support functions. As part of the manufacturing consolidation plan, the company will close its wafer fabrication plant at 1111 W. Bardin Road in Arlington, TX. The closures will occur in phases over several quarters, eventually resulting in the elimination of an additional 875 positions. After the consolidation, National will have three manufacturing facilities including one other in the U.S. in South Portland, ME.

Local Layoffs & Closures

Company Address Closure or Layoff # Affected Impact Date
AFC Cable Systems Inc. 1600 E. Orangethorp Ave., Fullerton, CA closure 61 4/13/09
American Home Mortagage Servicing Inc. 6501 Irvine Center Drive, Irvine, CA layoff 210 4/15/09
AT&T, Information Technology 2600 Camino Ramon, San Ramon, CA layoff 34 4/3/09
ATK Space Systems 250 Klug Circle, Corona, CA layoff 22 4/17/09
Avalon Natural Products Inc. 1105 Industrial Ave., Petaluma, CA closure 23 4/1/09
Biomet Sport Medicine 4861 E. Airport Drive, Ontario, CA closure 12 4/3/09
California Institute of Technology 1200 E. California Blvd., Pasadena, CA layoff 103 4/2/09
Celestica 520 Graves Ave., Oxnard, CA closure 81 4/6/09
Ceradyne Inc. 1922 Barranca Pkwy, Irvine, CA layoff 91 4/6/09
Charles Schwab & Co. Inc. 211 Main St., San Francisco, CA layoff 191 4/2/09
Community Hospital of Los Gatos 815 Pollard Road, Los Gatos, CA closure 500 4/10/09
Creative Labs Inc. 1901 Mccarthy Blvd., Milpitas, CA layoff 49 4/6/09
Elan Pharmaceuticals Inc. 800 Gateway Blvd., South San Francisco, CA layoff 109 4/27/09
Electronic Arts Inc. 5510 Lincoln Blvd., Playa Vista, CA layoff 17 4/13/09
Expo Design Center 3211 Danville Blvd., Alamo, CA layoff 49 4/26/09
Expo Design Center 1011 N. Tustin Ave., Anaheim, CA layoff 90 4/26/09
Expo Design Center 1461 Concord Ave., Concord, CA layoff 75 4/26/09
Expo Design Center 5424 Ygnacio Valley Road, Concord, CA layoff 45 4/26/09
Expo Design Center 7050 Amador Plaza Road, Dublin, CA layoff 88 4/26/09
Expo Design Center 1550 Leucadia Blvd., Encinitas, CA layoff 99 4/26/09
Expo Design Center 6912 Edinger Ave, Huntington Beach, CA layoff 79 4/26/09
Expo Design Center 25600 Rancho Niguel Road, Laguna Niguel, CA layoff 82 4/26/09
Expo Design Center 10861 Weyburn Ave., Los Angeles, CA layoff 97 4/26/09
Expo Design Center 407 W. Huntington Drive, Monrovia, CA layoff 95 4/26/09
Expo Design Center 1555 40th St., Oakland, CA layoff 99 4/26/09
Expo Design Center 1519 Hawthorne Blvd., Redondo Beach, CA layoff 90 4/26/09
Expo Design Center 1120 Galleria Blvd., Roseville, CA layoff 89 4/26/09
Expo Design Center 7803 Othello Ave., San Diego, CA layoff 119 4/26/09
Expo Design Center 5095 Almaden Expressway, San Jose, CA layoff 107 4/26/09
Farmers Services LLC 3041 Cochran St., Simi Valley, CA layoff 82 4/10/09
GAF Materials Corp. 6505 Zerker Road, Shafter, CA closure 62 4/3/09
Gemological Institute of America (GIA) 5345 Armada Drive, Carlsbad, CA layoff 72 4/19/09
Goodrich Aerostructures Inc. 850 Lagoon Drive, Chula Vista, CA layoff 112 4/4/09
Gregg Industries Inc. 10460 Hickson St., El Monte, CA layoff 35 4/20/09
Hollingsead International Inc. 2228 Goodyear Avenue, Ventura, CA layoff 35 4/6/09
Horizon Hobby 4710 E Guasti Road, Ontario, CA layoff 12 4/2/09
JPMorgan Chase Bank 17872 Gillette Ave.,17875 & 17877 Von Karman Ave., Irvine, CA layoff 29 4/30/09
JPMorgan Chase Bank 4900,4920,4940,5020 & 5040 Johnson Drive, Pleasanton, CA layoff 53 4/30/09
JPMorgan Chase/Chase Home Lending 770 The City Drive, Orange, CA layoff 52 4/4/09
La Jolla Pharmaceutical 6455 Nancy Ridge Drive, San Diego, CA closure 94 4/20/09
Los Angeles Times Communications LLC 1375 Sunflower Ave., Costa Mesa, CA layoff 28 4/10/09
Los Angeles Times Communications LLC 2000 E. 8th St., Los Angeles, CA layoff 35 4/10/09
Naked Juice 5303 Rivergrade Road, Irwindale, CA closure 37 4/3/09
Netapp Inc. 495 E. Java Drive, Sunnyvale, CA layoff 251 4/10/09
Nolet Spirits USA 30 Journey, Aliso Viejo, CA layoff 44 4/30/09
Numonyx Inc. 2200 Mission College Blvd., Rnb-3-01, Santa Clara, CA layoff 57 4/1/09
O'Neil Product Development Inc. A Dover Co. 8 Mason, Irvine, CA layoff 13 4/20/09
Owens Corning Masonry Products 350 Tower Road, Napa, CA layoff 121 4/5/09
Pacific Life Insurance Company 700 Newport Center Drive, Newport Beach, CA layoff 112 4/15/09
Pacific Motor Trucking Co. 650 Hammond Way, Milpitas, CA layoff 56 4/13/09
Pacific Motor Trucking Co. 4500-B Etiwanda Ave., Mira Loma, CA layoff 89 4/13/09
Petaluma Valley Hospital 400 N. Mcdowell Blvd., Petaluma, CA layoff 44 4/8/09
Pioneer North America Inc. 1800 Holt Ave., Pomona, CA layoff 86 4/30/09
Printronix 14600 Myford Road, Irvine, CA closure 54 4/3/09
Santa Rosa Memorial Hospital 1165 Montgomery Drive, Santa Rosa, CA layoff 152 4/8/09
Sargent Fletcher Inc. 9400 E. Flair Drive, El Monte, CA closure 15 4/14/09
Seagate Technology LLC 155 & 195 S. Milpitas Blvd. & 311 Turquoise Drive, Milpitas, CA layoff 43 4/3/09
Sharp Cabrillo Skilled Nursing Center 3475 Kenyon St., San Diego, CA closure 168 4/3/09
Shutterfly Inc. 3157 Corporate Place, Hayward, CA layoff 45 4/2/09
Siemens Hearing Instruments Inc. 14351 Firestone Blvd., La Mirada, CA layoff 83 4/4/09
Special Devices Inc. 14370 White Sage Road, Moorpark, CA layoff 117 4/26/09
Tawa Supermarket Inc. dba 99 Ranch Market 8150 E. Garvey Ave., Suite 121, Rosemead, CA closure 47 4/30/09
The Boeing Co. 3370 Miraloma Ave., Anaheim, CA layoff 16 4/23/09
The Boeing Co. 2260 E. Imperial Highway, El Segundo, CA layoff 21 4/2/09
The Boeing Co. 5301 Bolsa Ave, Huntington Beach, CA layoff 61 4/23/09
The Boeing Co. 2401 E. Wardlow Road, Long Beach, CA layoff 78 4/23/09
The Home Depot - Expo Orange Store Support Center 3800 W. Chapman Ave., Orange, CA layoff 124 4/8/09
Valeant Pharmaceuticals International One Enterprise, Aliso Viejo, CA layoff 23 3/31/09
Vertis Communications 1345 Doolittle Drive, San Leandro, CA closure 88 4/5/09
Virgin Entertainment Group Inc. 2 Stockton St., San Francisco, CA closure 95 4/27/09
Wilson Sonsini Goddrich & Rosati 650 Page Mill Road, Palo Alto, CA layoff 80 3/31/09
Wm. Bolthouse Farms Inc. 7200 E. Brundage Lane, Bakersfield, CA layoff 93 3/31/09
Worldwide Flight Services Inc. (WFS) 615 N. Nash St. Suite 304, El Segundo, CA closure 143 4/12/09
Zebra Technologies Corp. 1001 Flynn Road, Camarillo, CA layoff 44 4/27/09
Zenith Insurance Co. 21255 Califa St., Woodland Hills, CA layoff 43 4/13/09

Download this story and all of the stories in the Watch List Newsletter here. The Adobe pdf version also includes all of this week’s leads of distressed properties and loans of concern, lease cancellations applied for in bankruptcy proceedings, all of the local and national facility closures & layoffs, the bad banks feature on banks with distressed real estate portfolios and lists of loans approaching their maturity date. Plus the pdf version contains bonus news items not found in these columns or the CoStar Group web news pages.

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