More companies announced layoffs this week as the employment picture continued to dim.
JPMorgan Chase and Chesapeake Energy were among the latest names on Thursday to announce job cuts.
CNBC.com
The number of U.S. workers continuing to claim jobless benefits notched a fresh record in the second week of February, Labor Department data showed on Thursday, while new claims for aid were the highest since 1982.
The number of people remaining on the benefits roll after drawing an initial week of assistance increased by 114,000 to a 5.112 million in the week ended Feb. 14, the most recent week for which data is available. The so-called continued claims topped every estimate in a Reuters poll of 15 economists, which had a consensus forecast of 5.00 million.
Initial claims for state unemployment insurance benefits increased to a seasonally adjusted 667,000 in the week ended Feb. 21 from a revised 631,000 the prior week, the Labor Department said. It was the highest reading since October 1982, when claims reached 695,000.
The year-long U.S. recession has savaged the labor market and sent the unemployment rate soaring, with some economists fearing it will pierce 9 percent in 2009 from 7.6 percent in January and mount further next year.
This was also the highest reading since October 1982, when the four-week average was 641,750.
Here is a rundown of corporate job cuts announced so far this month:
- Chesapeake Energy said that it will move or eliminate about 215 positions from its Charleston officein an attempt to cut costs amid tightening credit markets and falling energy prices.
- JPMorgan Chase said it is cutting up to 14,000 jobs, more than previously disclosed, as it tries to reduce costs in the face of a slumping economy and higher credit losses. The second-largest U.S. bank said it now expects to shed as many 12,000 jobs from integrating the former Washington Mutual, up from 9,200 announced in December. It also expects to cut up to 2,000 investment banking jobs.
- Home Depot , which is cutting 7,000 jobsas it shutters its Expo Design Center chain and trims corporate costs, also said it would open fewer new stores this year.
- Finnish Nokia is offering a severance package to the first 1,000 employees worldwidewho volunteer to leave the world's biggest cellphone maker, to help avoid compulsory lay-offs.
- Just two months after saying more local job cuts weren't expected, computer chip maker Micron Technology announced it will slash as many as 2,000 workers by the end of August and phase out certain manufacturing operations at its Boise, Idaho facility, amid the weak economy and lower demand for its DRAM memory chips.
- Boeing issued its second batch of 2009 layoff notices Friday, and for the first time the cuts hit the assembly mechanics and electrical-systeminstallers who actually build the airplanes.
- Identification products maker Brady posted a surprise quarterly loss, hit by restructuring charges and a fall in revenue, and lowered its 2009 earnings outlook, citing a strong dollar and inventory cuts by clients. The company, which cut about 20 percent of its jobs and reduced expenses in the recent past, said it was ready to take "additional action if needed."
—Sources: AP, Reuters, with CNBC.com staff.
The Layoffs Continue...
- Delta Air Lines said it would grant voluntary buyouts to the more than 2,100 employees requesting them, but the number of job cuts could grow as the company assesses future labor needs. The company eliminated 4,000 jobs last year though voluntary exit packages.
- Ninety-eight jobs will be cut at a local procurement business for food distributor Performance Food Group after the company decided to outsource its food-service purchasing functions.
- Goodyear Tire & Rubber plans to cut 5,000 jobs worldwide in 2009, or 6.7 percent of its staff, in response to signs of a prolonged slump in demand for new cars and trucks.
- GM said it would step up cost-cutting, reducing its global workforce by 47,000 jobs this yearand cutting five additional U.S. plants by 2012.
- Chrysler, meanwhile, will reduce capacity by 100,000 units and cut 3,000 jobs.
- Smithfield Foods announced a plan to restructure its pork group that involves cutting the number of independent operating companies in the group to three from seven, and closing six plants. The company expects to cut a net 1,800 jobs in the restructuring. Some workers will be offered transfers to other units, the company said.
- Nearly 800 jobs are being eliminated at the steering division of Delphi . The cuts announced are hitting 425 hourly workers and 350 employees who are on salary at the Delphi complex in Buena Vista Township.
- Pioneer said it is closing its television-making operations and plans to slash 10,000 jobs from its global workforce, as the economic slowdown batters the consumer electronics industry. The job cuts cover 6,000 staff positions—about 16 percent of the total—and 4,000 temporary positions.
- Auto parts maker BorgWarner said sharply lower global auto demand caused it to cut 4,400 jobs in the last six months—24 percent of its total workforce—and it posted a steep loss for the fourth quarter as industry-wide conditions worsened.
- U.S. heavy equipment maker Caterpillaroffered voluntary early retirement packages to about 2,000 production workers. The cuts are in addition to the 22,000 layoffs the company announced last month.
—Sources: AP, Reuters, with CNBC.com staff.
The Layoffs Continue...
- Putnam Investments plans to cut 260 jobs, or 11 percent of its workforce, this week, becoming the latest money manager to trim staff.
- Starbucks said it issued more than 1,000 pink slips related to its newest round of job cuts.
- General Electric said it will cut 350 jobs and temporarily furlough 1,200 workers at its locomotive unit as production declines. The cutbacks affect about 14 percent of the 11,400 workers at GE Transportation, spokesman Stephan Koller said.
- Nike said it could cut up to four percent of its workforce to reduce costs as it restructures its business. Up to 1,400 jobs out of about 35,000 globally could be cut.
- Applied Materials , which plans to slash 1,800 jobs or 12 percent of its workforceby the end of the current fiscal year, has pushed aggressively into solar equipment to galvanize growth.
- Wal-Mart Stores is cutting 700 to 800 jobs at its Wal-Mart and Sam's Club home offices as the world's largest retailer looks to realign its corporate structure and reduce costs.
- General Motors says it is cutting 10,000 salaried jobs, blaming the need to restructure the company amid the continued drop in new vehicle sales.
- UBS said client withdrawals reversed in January, and that it would cut about 2,000 more jobs as it restructures to focus on wealth management. It also reported a fourth-quarter loss, the largest ever for a Swiss firm.
FedEx Freight, a unit of FedEx, said it will cut about 900 jobs at 130 facilities, citing unprecedented economic conditions and aggressive pricing by carriers.
- SolarWorld plans to cut 53 jobs at its Camarillo plant by March 6, according to the company's notification with the state Employment Development Department.
—Sources: AP, Reuters, with CNBC.com staff.
The Layoffs Continue...
- Mining group Xstrata will restructure its Sudbury nickel operations in Canada and cut 686 permanent jobs there after a collapse in metal prices, the firm said.
- Harvard University said it will cut about a quarter of staff—or about 50 jobs—from the company that manages its endowment after the fund's value tumbled $8 billion in four months.
News Corp's CEO Rupert Murdoch, announced the company would slash costs and indicated layoffs were in store.
- GlaxoSmithKline did not spell out the number of jobs it would cut but analysts expect thousands more positions to be shedfrom a global workforce of around 100,000.
- Reeling from a precipitous slump in global holiday sales, Tiffany & Co , has laid off an undisclosed number of employees around the world, including several at its Westport and Greenwich stores.
- Estee Lauder said it would cut 2,000 jobs, or 6 percent of its work force, over the next two years as the apparel firm grappled with a 30 percent drop in its second-quarter profit and a difficult outlook for the coming year.
- Magna International will close its gear assembly plant in Syracuse, New York, after workers rejected a contract the company said wasnecessary to keep the factory competitive. The shutdown of the New Process Gear facility will ultimately eliminate 1,400 jobs.
- THQ posted a quarterly loss as sales of video games fell more than expected, and also said that it plans to layoff 600 peoplein fiscal 2010 and cut spending.
- Talbots said it plans to save $150 million by cutting 370 corporate jobs, or 17 percent of its corporate headcount, reducing the hours of workers in its stores and call centers and suspending its matching contributions to employees' 401(k) retirement accounts.
- Auto parts maker Tenneco posted a wider quarterly loss Thursday due to tumbling vehicle production and said it is closing three plants and slashing 1,100 jobs.
—Sources: AP, Reuters, with CNBC.com staff.
The Layoffs Continue...
- Footwear retailer Brown Shoe said it expects to cut 12 percent to 14 percent of its domestic work force, excluding stores and distribution centers, and take a charge of $27 million to $30 million related to its cost-reduction actions.
- Cisco Systems said forecast revenue will drop far more sharply in the current quarter than Wall Street expected, and announced the network equipment maker is cutting up to 2,000 jobs.
- Bloombergwill cut 100 television and radio jobsin the first layoffs since it was founded in 1981 by now-New York Mayor Michael Bloomberg.
- Fidelity National Financial , the largest U.S. title insurer, said it cut 1,500 jobs in January, and posted a fourth-quarter loss as the housing slump drove down home sales and refinancings.
- Clorox posted a lower quarterly profit, as consumers bought cheaper products and used up what they had at home, and said it would cut 170 jobs due to the tough economy.
- Allergan , maker of the anti-wrinkle treatment Botox, reported lower fourth-quarter earnings that beat Wall Street forecasts and said it would lay off 460, or 5 percent, of its workforce because of the recession.
- Time Warner Cable says it is laying off 1,250 people over the next few weeksin the face of slowing growth at the nation's second largest cable operator.
- Electronic Arts said it would cut 1,100 jobs, or about 11 percent of its workforce, higher than the 1,000 it announced in December. It also plans to close 12 facilities as it narrows its product portfolio.
- Fashion company Liz Claiborne said that it planned to cut 725 jobs, or 8 percent of its U.S. workforce, to reduce costs in a weak retail market.
- PNC Financial Services said it plans to cut 5,800 jobsfollowing its recent purchase of troubled lender National City, and posted a fourth-quarter loss tied to the transaction.
—Sources: AP, Reuters, with CNBC.com staff.
The Layoffs Continue...
- Huntington Bancshares said that it was cutting 500 jobs, or about 4 percent of its workforce, as part of moves to slash $100 million in costs in 2009.
- Forest-products company Tembec said it would shut down several facilities, affecting about 1,400 employees, due to the depressed markets for lumber, pulp and newsprint.
- King Pharmaceuticals is cutting 760 jobs, or 22 percent of its workforce,as part of a restructuring designed to reduce costs. About 240 of the job losses are corporate positions associated with King's $1.6 billion acquisition of drugmaker Alpharma.
- The 7,000 job cuts at Macy's account for 4 percent of the company's work force. In addition to the job cuts, the retailer said it is cutting the 401(k) contribution it provides to existing employees. Also hurting Macy's shares was a dividend cut, to 5 cents per share from 13.5 cents.
- Morgan Stanley plans to cut about 3 to 4 percent of its work force, or up to 1,880 people, as it battles with spiraling costs and slowing business, according to people familiar with the matter. This wave of layoffs comes in addition to 7,000 layoffs the firm announced in 2008.
- Caterpillar said it was laying off an additional 2,110 workers as the company scrambles to cope with a downturn in demand for its construction and mining equipment.
- Walt Disney's television division is cutting 400 jobs, or about 6 percent of the unit's work force, due to the slumping economy.
- Strattec Security announced it will cut back on its production work force and cut its salaried work force by 10 percent. Twenty salaried workers were let go, while 66 production workers, or about one-third of the Glendale factory's work force, are on temporary layoff.
- Electronics giant NEC said it will cut 20,000 workers worldwide to stanch mounting losses, joining a slew of other Japanese corporate heavyweights who are slashing jobs to survive the deepening global downturn.
- Cessna Aircraftissued 60-day layoff notices to thousands of Wichita workers, saying job cuts must go deeper than previously expected. Cessna plans to cut employment by about 30 percent—approximately 4,600 companywide. That number has mushroomed since Cessna first announced it would eliminate 665 jobs in November. In early January, Cessna said it would cut an additional 2,000 jobs.
—Sources: AP, Reuters, with CNBC.com staff.