Bankruptcy Filings Increase to a Record
Bankruptcy filings by consumers soared to a record 1.61 million in the year that ended on June 30, as unemployment touched a nine-year high, court records show.
Filings increased 30 percent over 2000, the Administrative Office of the United States Courts said.
''The latest bankruptcy record reflects the continuing hangover from the binge consumer spending and consumption of the late 1990s,'' Gerdano said in a statement accompanying the figures. ''Consumers, aided by historic low interest rates, helped make the last recession a shallow one, but at the cost of adding to already high household debt burdens.
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IBM axes another 600 high paying jobs>
Layoffs, forced vacations at IBM
August 19, 2003
ESSEX JUNCTION, Vt.-- IBM, the world's largest provider of computer hardware, laid off 600 workers at its Vermont plant Monday in an effort to right itself amid steep industry declines.
Another 3,000 workers will be required to take a week off without pay next month, company spokesman Jeffrey Couture said. The layoffs would take effect immediately.
''Essentially we're doing this because we have not seen a turn-around in our industry,'' Couture said.
The news was announced to employees by e-mail sent from John E. Kelly III, senior vice president for the technology group. Kelly said he, too, would take a week without pay in September.
''The layoffs address long-term competitiveness,'' Kelly said. ''The time-off-without-pay addresses short-term demand and expense issues, and helps reduce the number of people we must lay off.''
Many of those laid off were in higher-paying positions, the company said. The move does not affect the manufacturing work force at the factory spanning the Winooski River in Essex Junction and Williston. Workers at the facility research, design and produce microprocessors and high-speed chips.
IBM is Vermont's largest private employer, with just under 6,700 workers before Monday's layoffs. Thousands more rely on the company for contracts and other business.
While IBM posted profits for its second quarter, it lost money on its microelectronics business as the industry suffered a sharp downturn. ''With lower revenues, we're no longer a profitable business for IBM,'' Couture said. ''This can't continue.''
For some IBM workers, it was a bittersweet way to leave.
''I love Vermont. My kids have grown up here,'' said Tom Bruno, a technician who moved to the area a decade ago after working 11 years in other IBM operations. Among those laid off Monday morning, Bruno said he understood IBM was weathering a difficult time. ''It's the chip industry. It's so cyclical,'' Bruno said.
Rick Schwartz, who worked in the supply department, took some comfort in the severance package offered by the company.
''It gives me an opportunity to move to Florida,'' Schwartz said.
The workers who were laid off will remain on IBM's payroll for 60 days and will be provided with career counseling, Couture said.
Vermont Gov. James Douglas said last week he had no advance notice of developments at IBM, but he suggested some job cuts were expected.
IBM laid off 988 workers at the Essex Junction plant last year as part of a broad restructuring of its microelectronics division |
