The pink slips at Nortel and Cisco represent a fraction of cuts made by other companies in the last decade:
China Telecommunications Corp. Jobs eliminated: 200,000
Announced: August 2,000
Why: Restructuring. China's telecommunications sector was hit hard after the government split the telecom monopoly into four companies.
IBM Corp. Jobs eliminated: 85,000
Announced: July 1993
Why: A massive restructuring program led to the early retirement of 50,000 employees followed by a gradual phasing out of 35,000 jobs. By 1994, after several years of downsizing, IBM's total workforce was about 200,000, down from a peak of 406,000 in 1985
General Motors Corp. Jobs eliminated: 74,000
Announced: December 1991
Why: To restore the financial health of its North American operations, GM closed 21 plants and cut 74,000 jobs, including 9,000 in its home state of Michigan
Sears, Roebuck & Co. Jobs eliminated: 50,000
Announced: January 1993
Why: Phasing out of catalogues due to high costs.
AT&T Corp. Jobs eliminated: 34,000
Announced: January 1996
Why: The telecommunications giant originally cut 40,000 positions when it split into three companies. However, a voluntary buyout package and an eventual rehiring of 6,000 workers softened the blow.
Boeing Company. Jobs eliminated: 27,000
Announced: February 1993
Why: The world's leading airplane builder cut back production after carriers like United Airlines and Japan Airlines delayed on cancelled orders.
DaimlerChrysler AG Jobs eliminated: 26,000
Announced: February 2001
Why: Restructuring. To get the company back on its feet, chairman Jürgen Schrempp is unveiling new products - revamped models of Jeep Liberty, Dodge Viper and Durango.
Unilever Jobs eliminated: 25,000
Announced: February 2000
Why: Unilever divisions sold off 1,400 brands in order to focus on their 400 top sellers.
Nortel Networks Corp. Jobs eliminated: 10,000
Announced: February 2001
Why: Nortel announced its earnings would fall short of forecasts. Its share price plunged 30% taking down other companies in the sector
Cisco Systems Inc. Jobs eliminated: 8,000
Announced: March 2001
Why: In a move to cut costs after missing its first revenue-growth target in seven years, Cisco announced a plan to slash 16% of its workforce.
Taken from Report on Business Magazine, April issue. |
