Also This Week: YRC Freight Proposes Network Improvements to Union Leadership; Planned Corporate Job Cuts Increase; and more Property Availability Leads
Boeing plans to consolidate its flight training capabilities in North America - including 787 flight and maintenance training - at the Boeing Flight Services training campus in Miami.
Boeing will relocate all full-flight simulators and other devices from Seattle to Miami, starting with two 787 training suites. Boeing’s largest commercial aviation training campus is located in Miami and serves as a preferred training location for customers based in Latin America as well as the United States, Middle East, Europe and elsewhere. With this consolidation, Miami will be established as the pro forma flight training location for Boeing in the Americas. Implementation will begin immediately.
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“This is about getting close to our customers, doing what is right for them and bringing them the best product support and services in the industry,” said Sherry Carbary, vice president, Flight Services, Commercial Aviation Services. “If we are going to better serve our customers and meet training commitments and airplane deliveries as we ramp up on rate, the time to do this is now.”
With 20 simulator bays, the Miami facility is one of the largest commercial flight training campuses in the world, but currently that space is underutilized, with 11 training devices and the capacity to accommodate nine additional full-flight simulators.
YRC Freight Proposes Network Improvements to Union Leadership
YRC Freight, a subsidiary of YRC Worldwide Inc. (NASDAQ:
YRCW), has mailed to union leadership a proposal for a new set of network improvements. The document proposes to consolidate 29 terminals into existing terminal locations and close three distribution centers.
"By realigning our network, YRC Freight will reduce the number of handling and relay locations in order to build network density," said Jeff Rogers, president of YRC Freight in Overland Park, KS. "These network improvements will be seamless to our customers and when implemented will improve our service. The ongoing effort to optimize our network is also a key part of our sustainability efforts as we reduce mileage and emissions. Better density means fewer empty miles and less emissions."
A committee composed of union and company leadership will convene a formal hearing - expected to take place in April 2013 - to consider the network improvements which are expected to begin in May 2013.
Planned Corporate Job Cuts Increase
Planned job cuts increased for the second consecutive month in February as U.S.-based employers announced workforce reductions totaling 55,356, up 37% from 40,430 in January, according to outplacement consultancy Challenger, Gray & Christmas Inc.
The February total was 7% higher than the 51,728 job cuts announced the same month a year ago. It was the highest monthly tally since last November, when announced layoffs reached 57,081.
Employers have now announced 95,786 job cuts so far in 2013. That is 9% fewer than the 105,214 job cuts through the first two months of 2012.
The financial sector dominated job cuts last month, with firms announcing 21,724 planned layoffs, the most since 31,167 were announced in September 2011. Last month’s total was nearly three times more than the 7,611 job cuts announced by financial institutions in January. Employers in this sector have now announced 30,302 job cuts this year, which is nearly 75 percent of the 41,008 financial job cuts announced in all of 2012.
Retailers announced another 2,279 job cuts in February, bringing its year-to- date total to 8,955, the second largest sector total behind financial. Retail job cuts are down 38% from a year ago, when these employers announced 14,516 layoffs in January and February.
The largest job-cut announcement of the month came from JP Morgan Chase, which reported plans to reduce its headcount by 19,000 positions over the next two years. On a positive note, a majority of the cuts are due to an improving housing market. The bank is trimming its mortgage unit, which had swelled in recent years to process the large number of troubled mortgages.
A 3,000 job cut plan by United Technologies Corp. this year, may foreshadow a surge in layoffs by aerospace and defense companies as the spending cuts forced by the sequester impact these and other employers.
“In addition to aerospace and defense, the sequester is likely to result in increased job cuts in the government, education and non-profit sectors, as well as private-sector industries that count the government among their biggest customers, such as technology, construction and transportation,” said John Challenger, CEO of Challenger Gray & Christmas.
Facility Closures & Downsizings
Sheet2 | | | | | | | |
. | Company | Address | City | State | Closure or Layoff | No. of Layoffs | Impact Date |
. | KGI Bridgeport Co. | 205 Bostwick Ave. | Bridgeport | CT | Layoff | 99 | 4/18/2013 |
. | AmeriPride Services | 490 Wethersfield Ave. | Hartford | CT | Closure | 55 | 5/1/2013 |
. | Boca Raton Bridge Hotel | 999 East Camino Real | Boca Raton | FL | Unknown | 96 | 4/30/2013 |
. | CTI Resource Management Services | 4800 Spring Park Road, Suite 200 | Jacksonville | FL | Unknown | 34 | 3/1/2013 |
. | Sea Ray Boat | 350 Sea Ray Drive | Merritt Island | FL | Unknown | 205 | 5/1/2013 |
. | J. C. Penney | 1801 Palm Bch. Lakes Blvd | West Palm Beach | FL | Closure | 125 | 5/1/2013 |
. | Contech Castings | 1200 Power Drive | Auburn | IN | Layoff | 128 | 2/25/2013 |
. | Ficosa North America Corp. | 917 Liechty Road | Berne | IN | Closure | 137 | 5/31/2013 |
. | Contech Castings | | Pierceton | IN | Layoff | 80 | 2/25/2013 |
. | Whitley Products | 1403 Stanley Drive and 1100 Flora St. | Plymouth | IN | Closure | 86 | 4/22/2013 |
. | Gluckenheimer | One Bowerman Drive | Beaverton | OR | Closure | 174 | 4/26/2013 |
. | Lectrus Corp. | 1919 Polymer Drive | Chattanooga | TN | Layoff | 47 | 2/7/2013 |
. | Hemlock Semiconductor | 1000 Solar Way | Clarksville | TN | Layoff | 277 | 3/31/2013 |
. | IO Studio | 565 Marriott Drive | Nashville | TN | Layoff | 97 | 2/20/2013 |
. | Comcast Communications | 660 Mainstream Drive | Nashville | TN | Layoff | 30 | 3/2/2013 |
. | Henco Furniture | 205 Henco Drive | Selmer | TN | Closure | 40 | 4/12/2013 |
. | T E Connectivity | 509 Airpark Drive | Tullahoma | TN | Layoff | 33 | 4/1/2013 |
. | Tennessee Apparel Corp. | 102 Industrial Blvd. | Waynesboro | TN | Closure | 93 | 4/15/2013 |
. | Semiahmoo Resort Co. | 9565 Semiahmoo Pkwy | Blaine | WA | Closure | 107 | 5/3/2013 |
. | Southeastern Container | 1630 Apex Drive | Beloit | WI | Closure | 47 | 4/29/2013 |
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