STORM2K

Layoffs: Meijer, Iowa Packing Co., Wilson's, Kraft, and Drexel Heritage
Retailer Says It Will Cut Jobs To Stay Efficient, Keep Prices Down

Report: Meijer To Cut About 3,000 Jobs

There may be more problems for grocery stores in Michigan after Local 4 learned that Meijer will cut nearly 3,000 jobs.

The Grand Rapids headquartered retailer plans to cut department manager positions in all 158 stores in five states, according to Business Editor Rod Meloni.

Meijer stores typically have 40 to 42 departments, each with their own manager. Beginning at 6 a.m. Friday, store directors reportedly started telling about half of those managers that they would lose their jobs.

An efficiency consultant hired by the company last year advised the retailer that one manager could handle three departments. Meijer cut about 350 administrative jobs back in September with advice from the same consultant.

Overall, 15 to 20 managers per store will lose their job, according to the station's reports.

Customers appeared upset when Local 4 told them about the cuts, but they were not surprised.

"The company is going to do what they want to do. You can't stop them," said Henry Kozlowski, a Meijer shopper.

The company will reportedly offer the department managers a choice -- accept a lower position working on the floor, or take a severance package.

Meijer says it needs to make the cuts to stay efficient and keep prices down.

But shoppers like Lena Kocis disagree.

"Sometimes you can't get help … because they don't have enough help," said Kocis.

Local 4 learned that Meijer had record-breaking sales this holiday season, but the retailer believes that it's best to make cuts while in a position of strength, as opposed to a retailer like Farmer Jack, who has been forced to close some of its stores because of financial troubles, the station reported.

Meijer said it plans to open another five stores this year, and several more in the future, which will create thousands of new jobs, Local 4 reported.

The company plans to make an official announcement about the department manager cuts on Saturday morning.

Meijer employs a total of about 75,000 people.

http://www.clickondetroit.com/money/2788844/detail.html

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Iowa Packing Company Sold To Pine Ridge Farms

520 Plant Employees Await Layoff Decision

DES MOINES, Iowa -- Workers at a Des Moines pork-processing plant say half of its 520 employees are expected to lose their jobs when the plant is sold next week.

Officials say that Pine Ridge Farms, based in Kansas City, will purchase the assets of Iowa Packing Company -- located at 1801 Maury in Des Moines -- along with ForeSure Transport, a Des Moines trucking operation, and a Missouri meat-processing plant.

Workers at the Des Moines plant say they have heard that all employees will be laid off and about half will be rehired. Workers expect to learn Saturday who will be rehired. They were told that at least one of the plant's slaughter operations would close.

Farmers who sell to the plant said they were told the new owners intend to increase slaughter numbers -- possibly doubling them. But first they will temporarily close an older part of the operation to renovate it.

http://www.theomahachannel.com/mone...796/detail.html

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Wilsons to cut 1,020 jobs, close 100 stores



Wilsons The Leather Experts Inc. plans to close up to 100 stores and dismiss about 1,020 employees as it tries to repair its finances amid a sales decline.


A company spokeswoman said Friday that a list of store closings will be released next week. Wilsons operates five stores in Central Ohio, at Columbus City Center, Easton, Eastland, Polaris and Tuttle malls.

Wilsons will dismiss about 950 store employees and will eliminate 70 positions at its headquarters in Brooklyn Park, Minn., and at its distribution centers in Minnesota and Nevada. The company will also close its distribution center in Las Vegas.

Wilsons has seen declining sales in recent months; it reported a 6.8 percent decrease in same-store sales in December, forcing it to ask its lenders for easier credit terms. The company posted a loss of $11.6 million, or 57 cents a share, for the third quarter ended Nov. 1

Wilsons sells leather clothing, accessories and luggage. It operates 598 stores in 45 states and the District of Columbia, including 464 mall stores, 115 outlet stores and 19 airport shops.

The measures are part of what the company called "an aggressive cost-reduction initiative."

"The decision to take these actions, while very difficult, is the right move for the health of Wilsons Leather," said Chief Executive Joel Waller.

In 2002, Wilsons closed its Bentleys' Luggage and El Portal luggage and travel-products shops, shuttering stores at City Center and Easton malls.

Wilsons said it has begun talks with landlords of the stores that will be closed. The company has retained a real estate firm and a liquidation company to help with the closings.

Wilsons expects to take a pre-tax charge of $40 million to $50 million, which will influence results for its 2003 and 2004 fiscal years.

http://www.theomahachannel.com/mone...796/detail.html

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Kraft to slash 6,500 jobs: analysts


By Jennifer Waters, CBS.MarketWatch.com
Last Update: 4:27 PM ET Jan. 23, 2004


CHICAGO (CBS.MW) - Kraft is expected to announce up to 6,500 job cuts next week as part of a sweeping reorganization plan.

Chief Executive Roger Deromedi will speak to analysts next week for the first time since being named the Northfield, Ill.-based food giant's sole leader last month. Analysts widely expect him to announce the layoffs of about 10 percent of the workforce as well as plant closures and further streamlining of the company's cost structure.

"We are likely to hear about a large restructuring that incorporates plant rationalization, headcount reductions, divestiture of noncore/underperforming assets," Goldman Sachs analyst Romitha Mally said in a research note.

She added that she anticipates "significant spending to revitalize Kraft's brand and to make price gaps more competitive."

Kraft (KFT: news, chart, profile) shares fell back 78 cents, or 2.4 percent, to $31.18 Friday. Join the discussion.

Analysts also see the parent of Oreos, Lunchables and Oscar Mayer cold cuts positioning for a spin-off from Altria (MO: news, chart, profile), which owns 84 percent of the company. Kraft has struggled mightily in recent quarters, blaming economic woes for missed earnings expectations and lowered forecasts.

"It appears Altria is looking for the earliest opportunity possible to spin off the rest of Kraft to shareholders," Credit Suisse First Boston analyst David Nelson said in a note to clients. "It may be reasonable to assume that Altria would like to optimize the value of Kraft and thus encourage more substantial move to elevate Kraft's share price."

Nelson further suggested that Kraft may sell the slow-growing Oscar Mayer business as it shores up expenses.

In December, Kraft changed the dual-leadership structure of its operations, naming then co-CEO Betsy Holden to the newly created role of global marketing chief. Deromedi, who had led the international division, took responsibility for the North American division that accounted for about 75 percent of the company's revenues.

Earlier this month, the company announced a new organizational matrix structure that sets up the company to operate more efficiently in a global environment, much like other large consumer products companies such as Procter & Gamble.

Kraft also said then that it was shuttering its Rye Brook, N.Y., operations. The international commercial group that operated there is moving to the Chicago area while the desserts and Post cereal divisions are headed to Tarrytown, N.Y. The Latin American region will move to Miami.

Deutsche Bank analyst Eric Katzman, who came up with the 6,500-layoff prediction, also expects the company to take a hefty charge to cover the costs of the restructuring and further investments in marketing.

"Assuming savings of about $75,000 per employee, we estimate total savings would approximate to 18 cents per share, or about the same amount most investors and analysts have assumed in terms of incremental advertising and promotional spending planned for 2004," he told his clients.

Jennifer Waters is the Chicago bureau chief for CBS.MarketWatch.com.

http://cbs.marketwatch.com/news/sto...%7D&siteid=mktw

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Drexel Heritage laying off nearly 400 workers in WNC

North Carolina


By Dale Neal, Staff ReporterJan. 22, 2004 7:03 p.m.

Drexel Heritage's 351 workers in Marion on Thursday heard the bad news that the city's oldest manufacturing plant would close in April. Drexel officials also announced the company is closing a smaller veneer plant, which employs 45 workers in Morganton. For more about the closings, see Friday's Citizen-Times on newstands and online at CITIZEN-TIMES.com.

http://cgi.citizen-times.com/cgi-bin/story/48701
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Yep, the economy sure is looking up eh?

I don't buy the economy hype one bit. Sure the number of people filing for benefits are declining, but that's because their benefits have run out and they are still jobless. They aren't being counted IMO

Agreed, Blizzard. And wasn't it just yesterday that Eastman Kodak announced something like 6500 layoffs? Here locally, one of our largest employers announced 25 layoffs. And that's just the beginning.

Yea the economy is looking better all right. My wallet is just bursting with cash

Its not better - it won't get better until the president decides to make it his number one priority - don't think that's going to happen with the election year around the corner.

ticka1 wrote:Its not better - it won't get better until the president decides to make it his number one priority - don't think that's going to happen with the election year around the corner.

Well you said the key word Priority and we can see where his lie

Just look at the stock market and you'll see the econoy is a lot better than it was a year ago. If you care to study any recovery, the job market is the last thing to turn around. We just laid off almost 20% of our company so I know first hand.

And I'm sure that your co-workers who are now standing in the unemployment line are going to agree with you that the economy is better now than it was a year ago.

The fact is that of the 9 people that lost their job, 6 have already found new ones. Not bad for just over a week. The job market here is beginning to show signs of life for the first time in 2 years.

Rainband wrote:

ticka1 wrote:Its not better - it won't get better until the president decides to make it his number one priority - don't think that's going to happen with the election year around the corner.

Well you said the key word Priority and we can see where his lie

Yeah, with our SAFETY so we're alive to work in this improving economy!!

I think since Sept 11th - security is a given - it has to be done. Our economy needs to improve on all levels before I would centure to say things are good.....

Patricia

The economy turns around in stages, leading indicators are poitning upward while the stock market is reflecting that. Only after the business growth shows a sustained upward trend will companies start to hire new employees.

Think of all the people who lost jobs in the following industries and fields:

-vacuum tube manufacturing
-typewriter repair
-chemical companies making DDT
-Camera film production
-Asbestos insulation manufacturing

The point is, the economy moves on and re-invents itself. Likewise, people must move on and re-invent themselves. There is a job for virtually anyone that wants one, if they are willing to move, get training in another field, or take a job that "is beneath them" start climbing the ladder again.

that's how our economy works. If an industry becomes obsolete, or if it gets fat and lazy, there's others that will take their place and provide new jobs. The rewards belong to the innovative, the hard workers, the educated, the flexible, not those that cling to the way things used to be.

Too many people expect things to be provided for them instead of doing what they have to do and going out and getting it for themselves. Anyone who shows a little initiative will surpass those that don't. And there's plenty of people out there without any initiative.

That makes sense, Ed. I would assume there are as many or more new companies out coming out soon... the "2004 and beyond companies" opposed to the ones of past decades.

Stock market not doing as well lately?


Company back in my hometown just layed off 250+ jobs two weeks ago!!

coriolis wrote:Think of all the people who lost jobs in the following industries and fields:

-vacuum tube manufacturing
-typewriter repair
-chemical companies making DDT
-Camera film production
-Asbestos insulation manufacturing

The point is, the economy moves on and re-invents itself. Likewise, people must move on and re-invent themselves. There is a job for virtually anyone that wants one, if they are willing to move, get training in another field, or take a job that "is beneath them" start climbing the ladder again.

that's how our economy works. If an industry becomes obsolete, or if it gets fat and lazy, there's others that will take their place and provide new jobs. The rewards belong to the innovative, the hard workers, the educated, the flexible, not those that cling to the way things used to be.

Too many people expect things to be provided for them instead of doing what they have to do and going out and getting it for themselves. Anyone who shows a little initiative will surpass those that don't. And there's plenty of people out there without any initiative.

While I agree with some of your points. I cannot agree with all of them. There are not jobs out there for everyone. The simple fact is our government has made it possible and easier for what once was American companies, go over to Mexico and other countries and manufacture their products. This has taken jobs away from the American citizen. Programs like NAFTA. While we are on this subject, what in the heck is our government thinking, allowing countries to import their goods with little or no tariffs, when we are paying out the nose in tariffs for our exports. IMO that is just inviting trouble for our citizens. And now with Bush's plan for illegals, that is just plain ridiculous. That is just a breeding ground for low wages. Its allowing some of those companies that hire illegals to get away with paying substandard wages and getting around the minimum wage law.

I'm done ranting on this subject, but it hits a really sore spot with me since we have huge resources of taconite right up the road from me, and our government is making it so that Japanese steel is cheaper for American industry to purchase than our own steel. Due to the lack of tariffs and taxes on imports. And yes, I also put some of that blame on the steel purchasers, for purchasing foreign steel. But they are in the business to keep costs low.

I know, Blizzard, I understand that our gov't isn't always looking out for the little guy, either. I was providing the opposite point of view for balance.

True, there's not a job for EVERYONE, but our economy is based competition, so there's winners and losers, and rewards for the winners. That's the engine that drives the economy. Of course it is necessary to have a level playing field, and I don't agree with everything that is going on either.

Sheesh, this post should have been named the "I feel sorry for myself as I read bad news and ignore good news." Even in the worlds best economy, business will lay-off employees and its usually the businesses fault. Meijer has been trying to expand throughout Ohio in the past 5 years and analyst will tell you that they were moving to fast.

Here is news that I'm sure means nothing if we go for the "I hate Bush" pessimistic stances.

http://24hour.startribune.com/24hour/business/story/1127111p-7842413c.html

The Labor Department data showed that for the work week ending Jan. 17, new applications filed for unemployment insurance dipped by a seasonally adjusted 1,000 to 341,000, the lowest level since the end of December.

The more stable four-week moving average of claims dropped by 3,250 to 344,500, the lowest level since January 2001.

With the four-week moving average of jobless claims running below 400,000 for 16 straight weeks, economists are growing more confident that the fragile job market is turning the corner.

http://www.heraldnet.com/Stories/04/1/22/18075704.cfm

A key measure of future economic activity rose 0.2 percent in December to its highest level ever, helped by relatively strong consumer spending and growing indications the job market is improving.

The report released Thursday coincided with government data suggesting that the employment picture may be improving.

http://money.cnn.com/2004/01/17/news/companies/bc.tech.ibm.reut/?cnn=yes

IBM to add 4,500 U.S. jobs
Benefiting from a rebounding economy, Big Blue's hiring plans are above forecast.

http://www.time.com/time/archive/preview/from_covers/0,10987,1101031124-543722,00.html

Who's Hiring ... and Where
Jobs are coming back, but not where you might expect. A look at the new rules for finding one

http://www.businesscycle.com/showstory.php?storyID=609

Every sector is now expanding at a rapid rate, the jobs picture is improving and the U.S. recovery is helping to pull the world along.

The GDP grows at 7 to 8%, jobless claims are falling, and consumer confidence is rising. Believe it or not, that is good news. The economic cycle always starts this way with jobs the last to catch up.

http://www.newlearner.com/courses/hts/bbi-bit/bibho37.htm#expansion

Recovery

Let's begin our analysis of the economic cycle in a period of economic recovery. This is when the cycle is just starting to expand out of a period of recession. First, we will consider how consumer spending influences this economic environment. If a consumer purchases a certain product, they inject money into the economy and add to the demand for that particular product. As a result, the seller of the product has gained income. This increase in income might influence the seller to increase the hours of a part-time worker. Now that part-time worker also has more money to spend. These increased wages may then be spent on other goods or services. The seller of those goods or services will then experience increased profits, and thus hire more employees. Those employees are now earning more money - which they quickly spend on goods and services. The compounded effect of all this hiring and spending will then lead to a period of tremendous economic activity, which we call economic expansion.

Okay, I'll let you get back to your pity party.

The Labor Department data showed that for the work week ending Jan. 17, new applications filed for unemployment insurance dipped by a seasonally adjusted 1,000 to 341,000, the lowest level since the end of December.

The more stable four-week moving average of claims dropped by 3,250 to 344,500, the lowest level since January 2001.

With the four-week moving average of jobless claims running below 400,000 for 16 straight weeks, economists are growing more confident that the fragile job market is turning the corner.

341,000 new applications for unemployment insurance....Hmmmm sounds great to me..

Jonless claims dropped due to the fact that their benefits ran out, they are still unemployed. Sure, some of them found jobs, but come on....lets wake up and see that the numbers get skewed depending how you want to interpret them.

blizzard wrote::roll:

Hmm...a strong response!!??