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Posted by Wire reports January 26, 2009 12:54PM

Categories: Economy, Real Time News

Updated at 6:54 p.m.

 

Caterpillar Inc., Sprint Nextel Corp. and Home Depot Inc. led companies today announcing at least 76,000 job cuts as sales withered and construction slowed amid a global economic recession that may persist through 2009.

 

Caterpillar: The world's largest maker of construction equipment said it's cutting 20,000 jobs after fourth-quarter profit fell by almost a third.

 

"These are very uncertain times, and it's imperative that we focus ... on dramatically reducing production schedules and costs in light of poor economic conditions throughout the world," Caterpillar Chief Executive Jim Owens said.

 

Pfizer Inc: The New York-based drugmaker that's acquiring competitor Wyeth for $68 billion, said it will close five factories and eliminate 19,000 jobs, or 15 percent, of the combined company's workforce.

 

Job cuts at Pfizer will begin in the first quarter and are to be complete by 2011, according to company spokesman Ray Kerins. Cuts will include most departments, from administration in sales to manufacturing and research. "It will be done in a methodical way," Kerins said. "We will continue to look at the staffing needs of the company and make decisions based on those needs."

 

Sprint Nextel Corp.: The U.S. wireless carrier, will eliminate 8,000 jobs, or 14 percent of its workforce, in order to reduce expenses by $1.2 billion a year.

 

Texas Instruments Inc.: which makes chips for cell phones and other gadgets, will cut 3,400 jobs due to slumping demand. The Dallas-based company said Monday it will slash 12 percent of its work force -- 1,800 jobs through layoffs and another 1,600 through voluntary retirements and departures.

 

Brooks Automation Inc.: said it plans to get rid of 350 jobs, or 20 percent of its work force. It will be the second round of cuts for Brooks, which makes software and equipment for chip manufacturers.

 

Home Depot Inc.: The world's largest home-improvement retailer, said it will cut 7,000 jobs, or 2 percent of its workforce, and exit its Expo home-dicor business.

 

General Motors Corp: The largest U.S. automaker, said it will eliminate shifts at Michigan and Ohio plants, shedding 2,000 jobs as sales drop.

 

ING Groep NV: the biggest Dutch financial- services company, said it will reduce its workforce by 5.4 percent, eliminating 7,000 jobs, after its second consecutive quarterly loss.

 

Royal Philips Electronics NV: Europe's largest maker of consumer electronics, said it will cut 6,000 positions after its first quarterly loss in almost six years.

 

Corus: the unit of India's Tata Steel Ltd. That's Europes second-biggest steelmaker, said it will reduce its workforce by 8 percent, or 3,500 jobs, as demand from builders and automakers declines.

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Did anyone watch the 60 minutes story about that town in Maryland that was the DHL hub? It brought me to tears seeing honest, hardworking families who are stocking up on food to make sure they can eat after they're laid off. My company did layoffs last week... thank goodness I was spared. Its such a sad reality and it is all over the country. Crazy.

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Wow, serious vibes to all those affected by these massive layoffs. My small office laid off over 10% of our workforce last week with possibly more layoffs or mandatory furloughs to come. It seems like everyone I know knows someone who has lost their job. At this point I'm happy to have a job, even if I don't like it very much right now.

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Many of my customers (similar to Cat) are implementing periodic shut downs (a week or so at a time) of their operations in lieu of huge layoffs. Still sucks, but at least the employees and families can plan somewhat and aren't completely out of a job.

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Many of my customers (similar to Cat) are implementing periodic shut downs (a week or so at a time) of their operations in lieu of huge layoffs. Still sucks, but at least the employees and families can plan somewhat and aren't completely out of a job.

At least that's what they're doing now. Unfortunately, that may not be enough to save jobs in the next few months.

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At least that's what they're doing now. Unfortunately, that may not be enough to save jobs in the next few months.

True, but I'm an optimist.

 

I'm also headed to see one of said customers in Ohio today. They're predicting 20% down this year. We'll see what the mood is.

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I have a little first hand knowledge of the CAT situation. Before Christmas they sent out a notice regarding early retirements. People I know contacted HR and got the scoop. Essentially they are getting a nice buy out packages to retire early. That is what the bulk of those jobs are going to be. There may be a few out there who don

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I have a little first hand knowledge of the CAT situation. Before Christmas they sent out a notice regarding early retirements. People I know contacted HR and got the scoop. Essentially they are getting a nice buy out packages to retire early. That is what the bulk of those jobs are going to be. There may be a few out there who don
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My company just paid out 60% of the potential bonus for 2008. Fingers crossed that it will stay in good shape.

 

Kate has some friends at a large company facing what amounts to the following choice: elect to quit and receive 18 months of pay and benefits or wait to find out if your position is eliminated (and only get a 3 month payout if it is). Yikes. Hard choice for those who've been with the company for a long time. I wonder if they'll have half the company quit on them.

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"Nice" meaning they'll never have to find work again?

 

Nice menaing these people are close to retirement and the packages they are recieving will tide make up for the present value of the differential between regular retirement amounts and what they are going to recieve for early retirement.

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Kate has some friends at a large company facing what amounts to the following choice: elect to quit and receive 18 months of pay and benefits or wait to find out if your position is eliminated (and only get a 3 month payout if it is). Yikes. Hard choice for those who've been with the company for a long time. I wonder if they'll have half the company quit on them.

That's harsh. I've not heard of a company using that approach of "act now or else...". We're going through another round of cuts right now, probably the 4th or 5th in as many years. Salary freeze this year as well. Could be worse... But we don't offer a better package for early volunteers than we do for laid off folks. I don't see the wisdom in that. It's never an easy thing to manage, but I don't get that approach.

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A friend of the family lost his job on Friday. Luckily, the company he worked for was able to pay him 1 years salary as a severance package. He's about 2 semesters away from getting his bachelor's degree and his wife is a stay at home mom.

 

He was a supervisor at NSK, a company that makes ball bearings for the automotive industry.

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Editorial: Deadline is real: 5 days to fix California's budget

 

Mercury News Editorial

Posted: 01/26/2009 08:00:00 PM PST

 

Five days are left to cut a deal on the state budget. If not, on Sunday, California, the world's eighth-largest economy, will become the world's biggest deadbeat.

 

Having raided every state fund and borrowed the max, the state will start issuing IOUs. College students won't get Cal Grants. Counties will borrow from reserves to cover social services. State contractors won't get paid, and taxpayers won't get refunds. The state already has shut down billions of dollars worth of construction projects. By April, as bills mount up, California, for all practical purposes, will stop functioning as a state.

 

It's shameful that things have come this far, but there's still time to stop things from getting worse

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That number is just of very recent announcements. You have to figure with Circuit City going belly up, alot of retailers will also follow. Uneployment is gonna sky. Good luck everyone, its gonna get tough.

 

 

Newest Cuts:

Corning and Clariant became the latest companies to slash jobs, with Corning cutting up to 4,900 positions and Clariant eliminating 1,000 workers.

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Some industries are supposed to be recession/depression-proof, but my cousin works for a Clear Channel radio station, and they recently announced cuts of 4,000 people nationwide. Twenty people were cut from her office, which does admin/sales for several stations in the bay area. Luckily for her she's still employed, for now anyway.

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I heard a dude (economic advisor to Reagan, architect of Bush 43's tax refund) yesterday on the radio say "the good news is no matter how bad it gets, we won't be seeing bread lines like in the Depression." :hmm I mean, I get that it's good we have FDIC and the like, but still - that's the good news!?

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