Archive for December, 2008

Sara Lee Cuts 700, Illinois Jobs Minimally Affected

Thursday, December 11th, 2008

Sara Lee Corporation announced its intent to outsource pieces of its North American and European Finance and Global Information Services groups, as well as the company’s global indirect procurement activities. This effort is an important component of Sara Lee’s “Accelerate” initiative, the company’s series of global projects designed to drive annualized benefits of $200 – $250 million in the next three years.

As a result, approximately 700 positions, including roles currently performed by contractors, would become redundant. According to Crain’s Chicago Business, Illinois jobs, where the company is headquartered, will suffer only minimal cuts.

“’Project Accelerate’ is designed to improve margins and drive shareholder value as we continue to build the long-term strength of the company,” said Brenda Barnes, chairman and chief executive officer, Sara Lee Corp. “In addition to the cost savings, business process outsourcing will help Sara Lee further drive standardization, increase efficiency and provide flexibility.”

Sara Lee expects to begin implementation of the initiative in North America in the current fiscal year, and plans to complete global implementation within three years, fully respecting all required consultation procedures in Europe. The company is currently finalizing contract specifics with a third-party supplier.

The company operates various consumer brands, including AmbiPur, Ball Park, Douwe Egberts, Hillshire Farm, Jimmy Dean, Kiwi, Sanex, Sara Lee and Senseo. Collectively, these brands generate more than $13 billion in annual net sales covering approximately 200 countries. The Sara Lee community consists of 44,000 employees worldwide.

Healthcare Jobs in Atlanta Feeling Recession

Monday, December 8th, 2008

While the healthcare industry is often considered to be recession-proof, Healthcare jobs in Atlanta are starting to feel the pain of the current economy.

Many hospitals, doctors and other medical providers are seeing financial problems as more patients can’t afford to pay bills and more patients postpone medical care. The State of Georgia has more than 170 hospitals, all of which are being affected by the economy. Because of less income, hospitals are being forced to delay equipment purchases and renovations.

According to an article by the Atlanta Journal Constitution, part of the problem is that Georgia’s unemployment rate continues to rise, resulting in more and more people being without health insurance and causing some people to cut back on elective surgeries, scheduled procedures, appointments and prescription drugs.

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Jobs in Chicago Lost, Union Protests

Sunday, December 7th, 2008

Employees who recently lost their jobs in Chicago are currently protesting layoffs. According to the Associated Press, approximately 250 union workers who used to work for the Republic Windows and Doors plant have refused to leave the building.

Although these employees are upset about losing their jobs in Chicago, the real problem is the fact that the company only gave them three days’ notice about the fact that the factory would be closing. Even if the economy was in a better condition, this would not be long enough for anyone to be able to find a new place of employment.

The workers effected are taking shifts occupying the plant. They have said that they will not leave the building until their previous employer assures them that they will all get severance and vacation pay. Union leaders stationed outside the facility have criticized the government’s decision to bail out many on Wall Street while workers are being left behind.

According to the AP, Leah Fried, who is with the United Electrical Workers, has said that the manufacturer neglected to give the workers 60 days worth of notice about the plant’s closing, which is required by law. Fried went on to say that during the last two days workers have been cleaning the building.

Fried has said that the reason the company has not paid the 300 employees who were effected by the plant closing is because its creditor, Bank of America, will not allow them to. The bank recently received $25 billion from the financial industry bailout, yet they have said they are not responsible for Republic’s obligations to their workers.

On Sunday one union member told Fox News that they are willing to go to jail if it necessary to get the company to take care of those who have lost their jobs. So far, protest have remained peaceful.

Mimeo.Com Expands in Newark, Creates Local Jobs

Saturday, December 6th, 2008

Mimeo.com, an innovator of online, on-demand printing for business documents and marketing materials, has opened a 75,000 square foot facility in Newark, New Jersey, to handle its increasing customer base. The number of employees is expected to triple over the next 18 months, bringing much needed jobs to the state.

“The opening of our new, state-of-the-art facility in Newark, NJ is an important step toward strengthening Mimeo.com’s production, distribution and overall time to market on the east coast,” stated Adam Slutsky. “It also allows the company to confidently offer a multiple location production model that many of our clients demand. Newark affords us many advantages including its proximity to a major transportation hub, distance from our Manhattan based headquarters, a skilled labor pool and the support received from the Mayor’s office and the State of New Jersey.”

The facility has the capability to produce more than a million printed pages daily, as well as thousands of bound documents and gives the company two of the most advanced digital printing hubs in the world.

The New Jersey Economic Development Authority supported Mimeo.com’s expansion through the State’s Business Employment Incentive Program. The agency provides annual cash grants to projects relocating or hiring new jobs in the State. Mimeo.com also received technical assistance from Brick City Development Corporation, the City’s economic development corporation, for site plan approval and the processing of permits within the City of Newark.

Noting the company’s record sales and growth, Slutsky continued, “At a time when many US-based businesses are cutting back their production and distribution facilities, and cutting head count, Mimeo.com is going in the opposite direction: we recently had our most successful month in Mimeo.com history. Mimeo.com had record sales in the month of September increasing revenue by 18% in the month of September vs. the same period last year.”

Mimeo.com recently hired 98 new application development and sales professionals to its 550-person employee roster, and expects to hire at least 85 more by year’s end. Just a little over a year ago, Mimeo.com announced the completion of a $25 million round of financing lead by Goldman Sachs Principal Strategies Group contributing to the new Newark facility, the opening of a sales office in San Mateo, California, and technology upgrades. Mimeo’s original world class facility is located in Memphis, TN.

Viacom Announces 850 Job Cuts

Friday, December 5th, 2008

Viacom Inc., consisting of BET Networks, MTV Networks and Paramount Pictures, has announced restructuring plans designed to better align its organization and overall cost structure with evolving economic conditions. These changes include broad-based staffing reductions, which will be implemented across all divisions of the Company. This process will result in approximately 7 percent, or 850 jobs being cut across the board. The Company is also suspending senior level management salary increases for 2009. In addition, reflecting a comprehensive review of its operations, the Company will write down certain programming and other assets.

The restructuring and write-down together will result in a pre-tax charge of $400 million to $450 million, or $0.42 to $0.48 per diluted share, in the fourth quarter of 2008. These staffing and compensation actions and write-downs are expected to result in pre-tax savings of $200 million to $250 million in 2009.

Viacom President and CEO Philippe Dauman said, “We are moving rapidly to adapt to the challenges presented by the current economic environment. The changes we are making in our organization and processes will better position Viacom to navigate the economic slowdown and generate sizable efficiencies that will help us to drive our business as the marketplace stabilizes and conditions improve.

“Viacom’s outstanding brands, diverse revenue streams and global footprint all provide a significant and enduring foundation for future growth. The steps we have taken over the last two years, including those we are announcing today, have put us on very sound financial footing with a strong balance sheet and substantial cash flow. This affords us the flexibility to successfully deal with challenges while also capitalizing on the opportunities that inevitably arise in uncertain times. We are committed to continuing this prudent course and aggressively managing our businesses for long-term growth.”

Jobs in Connecticut Created by Cell Phone Company

Friday, December 5th, 2008

During October employers cut 3,600 jobs in Connecticut, according to the State Labor Department. This caused unemployment to rise from 6.1 percent in September to 6.5 percent, which is the same as the national rate. Many job seekers are now worried about their ability to find work in Connecticut.

Although it may not make up for the jobs in Connecticut lost last month, Texas-based cell phone company Pocket recently announced that it will be creating a call center in Bloomfield, according to local news station Eyewitness News Channel 3.

After the call center is full operational it plans to have hired 400 workers in the area. This will enable Pocket to provide cell phone coverage from Philadelphia to Boston.

Channel 3 says that the positions Pocket will be hiring far includes everything from customer service jobs to engineering. At this point, 120 people have already been hired, a significant portion of which were previously unemployed, said the company’s COO Ricky Crossland.

Training for the new jobs in Connecticut has already begun. According to Crossland 25 individuals have begun instruction with the ultimate goal of becoming sales mangers and associates. The company is currently focusing on educating these individuals in telecommunication terminology.

“We really see this market as a great market opportunity, focusing on the tier II markets between markets like Boston and New York,” said Crossland.

Pocket provides cell phone service for around $30 a month. What makes this company unique is the fact that this price includes unlimited text messaging, picture messaging and phone calls without the need of a contract. Pocket also does not conduct credit checks on their customers.

The company will be holding a job fair in New Haven in January to recruit new workers. Information about this even can be found on Pocket’s web site.

Background Checks Crucial for Wisconsin Police Officers

Wednesday, December 3rd, 2008

Several candidates for police officer jobs in Janesville, Wis., recently underwent lengthy background checks.

About 175 applicants applied to compete for three open positions with the city’s police department. According to an article by the Janesville Gazette, Deputy Police Chief David Moore said the best candidates for the three positions underwent a 40-hour background check investigation.

To begin the process, candidates had to complete a written test that checked math, writing and reading comprehension skills. Candidates then had to pass a physical agility test, which checked for running and jumping skills. These two tests eliminated half of the original applicant pool.

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Job Loss Largest in 30 Years

Monday, December 1st, 2008

There’s no arguing that the current job market isn’t favorable to those looking for work, but the Wall Street Journal’s MarketWatch.com says that November’s report will likely show the worst job losses in the last 30 years. It is expected that somewhere around 350,000 jobs were done away with across the nation during the month, which is the largest decrease to occur since 400,000 positions were cut in May of 1980. According to the U.S. Labor Department, as of October, this year over a million jobs have been cut.

MaketWatch’s opinion that the job market situation is about to worsen is based primarily on the large number of individuals filling for unemployment benefits for the first time. Recently claimants have crossed the 500,000 point, which is more than a 50 percent increase since last year. Healthy job markets usually have around only 300,000 to 325,000 people claiming unemployment benefits.

Others feel that the job losses experienced during November may be worse. Economists from IHS Global Insight believe that as many as 370,000 positions were cut during the month.“Unemployment insurance claims have climbed rapidly as businesses are shedding labor and hiring is anemic,” said an analysts from Global Insight in a recent research note. “Retail employment is likely to fall very sharply since the usual seasonal uptick in hiring will be muted– translating into a steep seasonally adjusted decline.”

During October alone, American payrolls dropped by 240,000 positions. If MarketWatch and others are correct about Novembers decreases then the end of the four month period will show a loss of more than one million jobs.

“Weakness should be broad based across most industries given the high degree of caution and the need for employers to manage costs aggressively in this recessionary environment,” wrote one analysts with Credit Suisse.

MarketWatch analysts expect that unemployment will reflect these losses by increasing from October’s 6.5 percent to 6.8 percent. If this does occur, then it will be the highest jobless rate that the country has had since 1993.