Boeing last week sent out 60-day layoff notices to 1,000 employees, about 800 of which went to employees of Boeing's engineering, operations, and technology unit. Most of those 800 are in IT, said Tim Healy, a company spokesman.
By the time the 60-day deadline rolls around, there's a chance retirements and other forms of attrition cold scale back some of the job cuts, "although it's impossible to predict how often that could happen or how many employees will leave the company," Healy added.
The most recent layoffs are the latest in Boeing's plan to cut some 10,000 jobs overall. Boeing employees about 158,500 people, including 18,000 in its engineering and technology group. Last month, the company reported record revenue for 2009 at $68.3 billion, up from $60.9 billion in 2008.
Lest anyone thought Microsoft was kidding about slashing its workforce by 5,000 when first announced a year ago, the Redmond outfit has met its goal, and well ahead of its self-imposed June 2010 deadline.
Steve Ballmer's plan for mass layoffs was the first in the company's history, and it has already handed out 5,300 pink slips, or 300 more than originally announced. About 800 positions were eliminated in the company's fiscal second quarter ended December 31, 2009, with Microsoft reporting it had paid $59 million in severance pay related to those layoffs.
When Ballmer first announced the cuts in January, 2009, he said they would continue over the next 18 months and might reach as high as 5,000. With five more months still left to go, Microsoft has overshot its goal by 300. From a bean counting perspective, the layoffs have been a success, helping Microsoft report a record $19 billion revenue in the last quarter.
According to a report in The Wall Street Journal, Dell plans to slash 16 percent of its 4,500 workforce in Malaysia, which breaks down to 700 pink slips by the end of June 2010. About the same time the job cuts were announced, several price mistakes began appearing on Dell's website. Coincidence? Perhaps, but as a modern day Spock would say, that s**t ain't logical (NSFW - language).
The pricing SNAFUs inevitably ended up on deal sites like SlickDeals.net, including a 3.2GHz dual-core Xeon 5060 processor for $10.99, Xeon E3110 for $16.99, Xeon E5450 for $39.99, and a Xeon L5340 for $12.99. We'd go with the Xeon 5060, or maybe one of each at those prices.
Not all of the pricing mistakes worked to the consumers advantage. For example, Dell's website listed a 120GB SATA HDD for a Dell Studio 1735 at $21,000, a laser mouse at $4,000, and an Inspiron AC adapter for $710. Not a big deal if you've ever shopped at an Apple Store.
So what do you think, an honest mistake (several of them), or scorned employees? Hit the jump and sound off!
Nokia, the world's largest mobile phone maker, announced on Tuesday plans to cut 220 jobs at research and development units in Japan. The latest cuts represent continued efforts to reduce costs.
"Japanese manufacturers are important partners who play a critical role in Nokia's global supply chain strategy and with whom Nokia continues to develop its world-class logistics operations," the Finnish company said.
Trimming staff is nothing new for Nokia as of late. Last week, the mobile handset maker handed out 330 pink slips in Finland and Denmark at its R&D operations that globally employ 17,000 workers, Businessweek reports.
Nokia said its latest round of cuts won't affect Japanese operations of Nokia Siemens Networks, or Vertu, Nokia's higher-end handset line.
As part of a restructuring effort, Blue Coat Systems said it plans to slash nearly 20 percent of its workforce. The firm will issue about 280 layoffs in all and close its facilities in Riga, Latvia, South Plainfield, New Jersey, and Zoelemeer, Netherlands.
At the same time, Blue Coat announced plans to acquire S7 Software, a services company out of Banglaore, for $5.25 million in cash. The acquisition will also add 65 employees to Blue Coat's workforce.
"The combination of the restructuring program and the acquisition of S7 Software strikes an appropriate balance between profitability and investment for innovation," said Gordon Brooks, senior vice president and chief financial officer. "Together these actions will allow us to invest for future growth while aligning the Company’s cost structure to its current revenue level, which should drive higher and more consistent levels of profitability."
In addition to the layoffs, Blue Coat will relocate an undisclosed number of engineering jobs from its Sunnyvale, California, and Austin, Texas offices to S7's offices in Bangalore and a few other locations. After factoring in S7's employees and a few new hires, Blue Coat's workforce reduction will be closer to 10 percent.
Microsoft may have been a little conservative earlier this year when it said it would eliminate up to 5,000 jobs in response to falling sales and profits. Now in its third round of layoffs since Janary, the software company plans to cut 800 jobs, which would put the total number somewhere around 5,400 so far.
The first round of layoffs began in January when Microsoft handed out 1,400 pinks slips, and then thousands more in May. But the worst news coming from Redmond is that more layoffs are yet to come
"Today, we are eliminating around 800 positions spread across multiple businesses and locations and have completed our reduction plan sooner than we had anticipated 11 months ago," Microsoft said in a statement. "At the same time, we continue to hire in priority areas, but also understand that continuing to manage our businesses closely, as we always do, can mean additional headcount adjustments."
The "headcount adjustments" come just a little over a week since Microsoft reported declines in revenues and profits.
It's not been a very good year for Novell employees, who never know what the next day will bring. For 100 to 130 workers out of Novell's roughly 3,900 global employees, this week brought more pink slips, CNet reports.
CNet's sources are saying that the Workgroup division saw the most layoffs, but according to Ian Bruce, Novell's public-relations director, the cuts sliced "across the company, both geographically and productwise."
Ironically enough, Linux jobs in general are doing a smashing job and are up 6 percent ince January, according to data from Dice.com. So if there's a silver lining to all this, Novell employees that were let go might not have such a rough spot finding employment elsewhere. In the meantime, they'll have several months of severance pay to tide them over, which is based on the number of years they were with the company, plus other factors.
And what about those who still have employment at Novell? The company also announced it would suspending 401(k) matching contributions.
Yahoo was able to report positive numbers to the tune of $186m so far this year compared to the disappointing $54m they reported this time last year. While those numbers seem promising, sales fell about 12% this year with revenue down to $1.58b.
They can report these numbers because thye slashed more than 2,000 jobs during the past year, freeing some of their overhead costs. Further, they deployed some large service changes, such as welcoming the use of rivals onto its portal, and upgrading and enhancing its web search tools. They also initiated a $100m global advertising campaign for its portal and advertising services.
Most likely, Microsoft is happiest to hear this positive growth as they signed a deal in July to utilize Yahoo’s advertising sales in exchange for Microsoft’s search services. The Federal Trade Commission is still finalizing the deal.
Dell said on Wednesday that it plans to close its desktop computer manufacturing plant located in North Carolina by the end of January. The announcement comes just two days after the plant celebrated its fourth year in operation.
The shuttering will put 600 workers in the unemployment line next month, and about 905 employees will be cut by the time the plant closes in January 2010. Dell said it will provide affected employees competitive severance packages, including severance pay, incentive payments, benefits continuation, and outplacement services.
Severance packages come as little consolation to employees who may have been put on the chopping block as a result of a dispute over a $280 million incentive package to open the plant in North Carolina. In 2004, the state agreed to give Dell $280 million in tax breaks, build roads to the factory, and open Dell repair classes in local colleges. In exchange, Dell agreed to invest $100 million in the factory and create 1,500 jobs within five years. But the agreement prompted a lawsuit claiming that using tax revenue to fund grants for private companies goes against the state's constitution.
Dell made no mention of the lawsuit when announcing plans to shut the plant, and instead pointed fingers at the economy.
"This is a difficult decision, especially for our North Carolina colleagues, but a necessary one for our customers and our company," said Frank Miller VP of Dell's Public Business Unit Supply Chain.
Stronger than expected demand for microprocessors has prompted Intel to raise its Q3 forecast from $8.1 billion to $9.2 billion, and the good news is they aren’t the only ones predicting better times ahead. Both HP and Dell are forecasting Q3 revenues to rise, though this news comes hot on the heels of disappointing year to date earnings.
On Thursday, Dell reported a 23 percent drop in Q2 profit, but still managed to beat the street estimates. CEO Michael Dell claims, “if current demand trends continue, we expect revenue for the second half of the year to be stronger than the first half”.Rival Hewlett-Packard reported a similarly depressing drop in profit of 19 percent for the first half of the year, but is also expecting the trend to reverse itself soon.
The PC Industry is expected to benefit from the economic stimulus package in China, as well as what appears to be the start of an economic recovery in the U.S. Windows 7 is also expected to help move PCs in the consumer sector, but businesses will likely put off upgrading for at least a year or more.