Losing jobs left and right
Politics, The Economy, Real Estate October 23rd, 2008
The US economy is collapsing and companies are laying off thousands of employees. Most economist predict that unemployment rate will reach 8.5% sometime next year and this will put additional pressure on the housing market. Fasten your seat belts folks!!! Things are going to get much worse.
These are some of the layoffs announced this week:
Chrysler to Cut 25% of White Collar Jobs in November
NEW YORK (CNNMoney.com) — General Motors expects to meet or exceed its target for a 20% reduction in the cost of its salaried workforce, but a worsening sales outlook is likely to force additional cost and staffing reductions, a company spokesman said Thursday.
Final numbers on an early retirement program announced this summer are not yet available, said GM spokesman Tom Wilkinson, as many who signed up are still within a window during which they can change their mind. The final figure is due on Nov. 1.
GM Prepares for Involuntary Layoffs of Workers
General Motors is taking actions throughout its global operations to conserve cash, including involuntary layoffs and the suspension of benefits such as matching payments into 401(k) stock savings plan starting Nov.1, according to Dow Jones Newswires and Reuters.
The changes, which are expected to eventually include more changes to salaried employee benefits, come as North American and Western European markets have contracted severely, according to the report, which cited a letter written to executives at the company.
The automaker had hoped to reduce its salaried work force by 15 percent, or 5,000 workers, under a buyout and retirement incentive program. Now, more workers then expected are opting for the program.
The extent of the automaker’s problems will become clearer when it announces its third-quarter results and October sales figures.
Goldman Sachs to Cut 10% of Workforce
Goldman Sachs plans to cut 10 percent of its total staff, or almost 3,300 jobs, a source familiar with the matter said on Thursday.
Goldman Sachs has suffered less than most of its peers from the global financial crisis and remains the leading adviser to mergers and initial public offerings worldwide.
But its transition from an investment bank to a traditional bank holding company means the Federal Reserve will use its new regulatory authority to limit the bank’s risk taking and encourage longer-maturity funding.
Goldman Sachs to cut 3,260 jobs
NEW YORK (CNNMoney.com) — Goldman Sachs will cut 10% of its workforce, or 3,250 jobs, a source familiar with the investment bank’s plans said Thursday.
The source cited “unprecedented difficult conditions in the financial markets,” as the impetus for the cuts, which will be company-wide.
Cutting 10% will bring the company’s headcount down from a record high of 32,500 employees to 2006-2007 levels.
Chrysler cutting 1,825 jobs with moves at 2 plants
DETROIT (AP) — Chrysler LLC will cut 1,825 jobs by eliminating one shift at a Toledo Jeep plant and accelerating the closure of its sport utility vehicle factory in Newark, Del., because of the slowing global economy and a shift toward smaller vehicles.
About 825 workers at the Toledo North Assembly Plant will be laid off indefinitely as of Dec. 31. The Newark closure also will be effective at the end of the year and affect about 1,000 jobs, the company said Thursday in a news release.
The cuts are about 6 percent of Chrysler’s U.S. hourly work force of 33,000.
TRENTON, N.J. (AP) — Drugmaker Merck & Co. said Wednesday it will slash 7,200 jobs as part of a new restructuring program that comes as its third-quarter profit plunged 28%, due to a hefty restructuring charge and flat sales.
Chrysler cutting 1,825 jobs; GM will cut 401(k) match
DETROIT — Chrysler will cut 1,825 jobs by eliminating one shift at a Toledo Jeep plant and accelerating the closure of its sport-utility vehicle factory in Newark, Del., because of the slowing economy and a shift toward smaller vehicles.
GM, meanwhile, says it is cutting benefits to conserve cash. The company is temporarily suspending company matching of its 401(k) retirement savings program as of Nov. 1. And it is suspending tuition reimbursement and adoption assistance as of the end of this year.
At Chrysler, about 825 workers at the Toledo North Assembly Plant will be laid off indefinitely as of Dec. 31. The Newark plant will close at the end of the year and affect about 1,000 workers, the company said Thursday.
The cuts are about 6% of Chrysler’s U.S. hourly work force of 33,000.
Yahoo to dump 1,500 workers as slump deepens
SAN FRANCISCO (AP) — Yahoo Inc.’s leaders still have jobs despite investor misgivings about their decision making, but at least 1,500 workers will be shown the door after the slumping Internet company’s profits tumbled yet again in the third quarter.
National City Corp. plans to shed 4,000 jobs
Also on Thursday, Chrysler LLC said it will cut 1,825 jobs and Xerox Corp. said it plans to eliminate 3,000 positions, or 5 percent of its work force.
Other companies have announced reductions this week: Yahoo Inc. is cutting 10 percent of its employees, or 1,500 people; drugmaker Merck & Co. is eliminating 7,200 positions; and financial services firm National City Corp. plans to shed 4,000 jobs.
Analysts expect work will be harder to come by as companies not only slash jobs but hold back on hiring, too.
“There is every reason to expect hiring to drop in the wake of the disaster in the stock markets and the continued tightening of credit,” Ian Shepherdson, chief U.S. economist at High Frequency Economics, wrote in a note to clients.
The impact of the job losses is rippling through the economy. As jobs disappear, foreclosures rise when out-of-work homeowners can no longer make mortgage payments.
October 23rd, 2008 at 1:14 pm
GM is done in by their sky high pensions and other underfunded worker benefits…no company with half a brain would touch all that.
October 23rd, 2008 at 8:09 pm
The economy has definetly softened but I still see thousands of jobs posted on employment sites.
www.linkedin.com (networking)
www.indeed.com (aggregated listings)
www.realmatch.com (matches you to jobs)
good luck to those searching for jobs.