Author Topic: More layoffs  (Read 2989 times)

Offline Cedar

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More layoffs
« on: July 07, 2017, 07:45:19 AM »
- Microsoft 3,000. I guess the good news is they are mostly overseas, and only 1,000 here in the US.
- Sikorsky Aircraft in Troy, AL - 160
- alot more health positions

- The Akron, Ohio Board of Education voted Monday to cut 31 teachers, three administrators and more than 50 other staff positions for the 2017-18 school year.
- Utica, NY Community Schools expected to lay off nearly 50 teachers, This is the second largest school district in the state.
- Largest school district in Macomb, MI to lay off 47 teachers
- 100 year old Oscar Myer plant in WI, is closing its doors.
- FoxNews Fox Sports - Several Writing / Editing Positions
- Philadelphia School - Contract = 3,800 Layoffs
- EPA plan to buyout more than 1,200 Employees
- L.A. School District Budget - 120+ Layoffs
- General motors plant in Kansas (undetermined number, could be whole plant)

Cedar

Offline Smurf Hunter

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Re: More layoffs
« Reply #1 on: July 07, 2017, 09:21:56 AM »
Being more local to Microsoft, the attitude is not as negative as the press would suggest.  Seems limited to sales people.
Why software/services companies feel they need sales people in 2017 is beyond me.

My team at work spends over $100K monthly for amazon services and we never talked to a sales person before making a million dollar+ decision.

Offline bigbear

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Re: More layoffs
« Reply #2 on: July 07, 2017, 11:58:42 AM »
In the headlines today as well...  Job growth beats expectations.  April and May numbers were revised upward.  And June added 222,000 non-farm jobs. 

http://www.businessinsider.com/jobs-report-nonfarm-payrolls-june-2017-7

Again, I think the Microsoft layoffs is about the technology and market they are in.  Amazon and Google are growing a lot in the cloud and SAS space (and taking market share/jobs from Microsoft). 

The .gov jobs have pension issues.  I feel for the employees, but their unions pushed the budget to the brink. 

Offline Smurf Hunter

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Re: More layoffs
« Reply #3 on: July 07, 2017, 12:03:39 PM »

The .gov jobs have pension issues.  I feel for the employees, but their unions pushed the budget to the brink.

On the NPR biz news segment I caught today, some states have restructured how they pay their public school teachers.

Previously many states only paid teachers for 9 months out of the year.  Now, to smooth lean budgets and cashflow, they are spreading the same annual amount of 12 months.
This has the unintended consequence of making it LOOK as if a bunch of teachers got hired this summer.

Payroll is both a good and bad metric for unemployment levels.

Offline Ms. Albatross

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Re: More layoffs
« Reply #4 on: July 07, 2017, 12:14:31 PM »
On the NPR biz news segment I caught today, some states have restructured how they pay their public school teachers.

Previously many states only paid teachers for 9 months out of the year.  Now, to smooth lean budgets and cashflow, they are spreading the same annual amount of 12 months.


Jeez.  I can't believe some states were still doing the 9 or 10 month payments.  I work for a public school and we have had the 12 month payments for at least 15 years now - if not longer.

Offline Smurf Hunter

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Re: More layoffs
« Reply #5 on: July 07, 2017, 12:20:21 PM »
Jeez.  I can't believe some states were still doing the 9 or 10 month payments.  I work for a public school and we have had the 12 month payments for at least 15 years now - if not longer.

CA is very progressive I hear... ;)

Offline bigbear

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Re: More layoffs
« Reply #6 on: July 07, 2017, 12:33:33 PM »
On the NPR biz news segment I caught today, some states have restructured how they pay their public school teachers.

Previously many states only paid teachers for 9 months out of the year.  Now, to smooth lean budgets and cashflow, they are spreading the same annual amount of 12 months.
This has the unintended consequence of making it LOOK as if a bunch of teachers got hired this summer.

Payroll is both a good and bad metric for unemployment levels.

Agreed on the payroll/jobs report.  It's a mixed bag at best, but it's what TPTB work with for better/worse. 

I remember years ago MD switched to year round pay for teachers (back when my mom was a teacher).  In MD, the teachers' union pushed for the change so that the gov't didn't earn the interest income.

Offline Ms. Albatross

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Re: More layoffs
« Reply #7 on: July 07, 2017, 12:36:27 PM »
My husband worked for San Diego Unified School District.  They sent lay off notices 952 teachers but later rescinded half of them.  They have, or plan to, lay off 175 non-teachers (bus drives, aides, maintenance, etc)

His department (Maintenance and Landscaping) has been decimated by the lay offs.  When they offered a early retirement option, he took it.  Because he was most likely going to get laid off anyway.

Their budget is still millions of dollars in deficit. 


Offline Smurf Hunter

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Re: More layoffs
« Reply #8 on: July 07, 2017, 02:27:41 PM »
Their budget is still millions of dollars in deficit.

It's really sad. There is so much wealth, brain power, natural resources in CA. 
It reminds me of a millionaire athlete or actor who blows through their fortune and dies in debt.

Offline NWPilgrim

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Re: More layoffs
« Reply #9 on: July 08, 2017, 12:25:48 AM »
If it was not for the artificial propping up of the economy by the Fed's ZIRP policy we would have seen tons more layoffs over the past 9 years.  This was one of my big concerns working in high tech at the time and being fairly narrowed in my career.  If I lost my career job (assuming an industry-wide impact) it would be nearly impossible to replace it at the same income level.  I think the sword of economic re-balance hovers ever near and one of these days we will be reading of thousands of layoffs at each of hundreds of plants.

I agree with Smurf that what is reported in the news is often the gross figures but after the cycle of early retirement offers, normal percentage of departures, etc. the actual number of adversely affected employees is often 25%-50% of the originally reported number.  Sometimes there is hardly any change as even many "laid off" workers are hired into other positions.

Most of government agencies are so bloated with staff and programs that you could cut 25%-50% and not notice much real change, except that they normally try to make it as harsh on the public as possible so they "feel the pain" of even a 1% cut to the pre-planned 12% increase.  But after a bit of time things settle back to normal.  Happened around here with schools about 15 years ago--everyone was in a panic over a 10% cut--kids would die, buildings would crumble, etc--but after the cut was actually implemented they magically found ways to continue growing enrollment and programs.  Today you would not find any evidence there had ever been a "life changing gutting" of our schools.  Only a very, very small number of teachers actually lost their job and many of them applied and got teaching jobs in nearby districts.  So I would take any talk of govt layoffs with a large helping of salt.

Intel a few years ago cut about 3,000 jobs, but with an employee base of 100K it made just a ripple.  Many, many of us took generous early retirement packages and I think in the end they really didn't need to actually lay off many.  Though the press wrote it up like a massive gutting of Oregon plants.  And I don't remember reading any followup pieces that explained the actual impact, just the hysteria when first announced.

osubuckeye4

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Re: More layoffs
« Reply #10 on: July 10, 2017, 08:44:29 AM »
If it was not for the artificial propping up of the economy by the Fed's ZIRP policy we would have seen tons more layoffs over the past 9 years.  This was one of my big concerns working in high tech at the time and being fairly narrowed in my career.  If I lost my career job (assuming an industry-wide impact) it would be nearly impossible to replace it at the same income level.  I think the sword of economic re-balance hovers ever near and one of these days we will be reading of thousands of layoffs at each of hundreds of plants.

You hit the nail on the head.

Everything is continuing as normal (fueled by debt) because central banks are using every trick in the book to allow that to happen.

SNB is (and has been for a decade now) acting like a hedge fund and buying stocks.

ECB is bailing out corporations by buying corporate bonds at negative yields.

Federal Reserve was loading up it's balance sheet via QE and giving the illusion of growth through ZIRP.

BOJ has been buying just about every available ETF for the last two decades and has been utilizing NIRP policies.



This all works for awhile. Pretty soon all these emerging markets and developing countries are going to start requesting capital to expand though... and interest rates will have to go up to meet that demand.. lest central banks get eaten alive on the yield.

Interest rate increase of .25% might not seem like much to you or I, because we have very little or no debt.

When you're talking about .25% increase on $20,000,000,000,000 though? That's a substantial increase in interest owed.

You raise that a full 1%... and you just quadrupled the minimum owed, you really  start to feel the pain at that point.

Establish rates back to their baseline of 3-4% and you're screwed and have 2 options:

1) Reduce entitlement spending (aka steal from your citizens)

2) Print cash and run the risk of hyperinflation


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I agree with most on here... when the bottom falls out, it's not going to be a gradual process. It's most likely going to be a very sharp and rather immediate correction.

LVWood

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Re: More layoffs
« Reply #11 on: July 10, 2017, 09:10:21 AM »
Abercrombie ended efforts to sell itself and decided to continue on..
Probably couldn't get the price they wanted.