Closures & Layoffs (Jan. 11-17): Crippling Job Losses
A Weekly Report on Future Corporate Downsizings
In this week's issue:
* 2/3 of construction companies planning layoffs.
* To the mat.
* Plus, a whole new round of major U.S. corporation closures and layoffs were announced in Arizona, California, Colorado, Georgia, Illinois, Iowa, Louisiana, Maryland, Michigan, Minnesota, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Texas, Virginia, Washington, West Virginia and Wisconsin.
Download the Closures & Layoffs and all these stories by downloading the file in Adobe pdf format here. The pdf version also includes all of this week’s Watch List stories and properties, plus bonus news items not found in these columns or the CoStar Group web news pages.
2/3 of Construction Companies Planning Layoffs
An estimated two-thirds of the nation's non-residential construction companies are planning to cut their payrolls, according to new employment and business forecast figures released by the Associated General Contractors of America. All told, those layoffs are forecast to result in a 30% decline in the number of people working on construction projects.
"Unless the business climate changes significantly and soon, the construction sector will continue to experience the kind of devastating job losses and crippling declines in business activity that will undermine efforts to end the recession," Stephen Sandherr, the association's CEO said.
The forecast results found no relief in sight for construction companies that already have been among the hardest hit by the economic slowdown. Many construction companies experienced significant slowdowns beginning late last year, resulting in a 10% decline in the number of construction workers since 2006, Sandherr noted.
According to the forecast figures, the association's member companies have seen or are planning for declining activity in every type of construction market. Ninety-two percent of building contractors and 93% of road builders are expecting or experiencing declining activity. Over 83% of utility contractors are bracing for declines while 77% of water resource contractors are expecting a decline in business building levees or locks.
The forecast did find, however, that planned investments in infrastructure projects as part of the stimulus package is likely to dramatically improve the employment and business outlook for the year. For example, 85% of non-residential construction companies would either cancel layoffs or add new employees if states embarked on stimulus-funded infrastructure projects.
According to the forecast, construction companies would increase their payrolls by 25% if the stimulus included new infrastructure investments. And construction companies predict they would invest an average of $500,000 this year in new equipment if they received new work as part of the stimulus package.
To the Mat
World Wrestling Entertainment in Stamford, CT, is throwing 10% its staff to the mat and counting to three. This reduction of about 57 employees will result in annual savings of about $8 million and doesn’t count any of its wrestlers, who are independent contractors. In addition to staffing, the company has completed a comprehensive evaluation of its operating and capital expenditures and has identified additional efficiencies, but did not go into detail.
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Closures & Layoffs
Arizona
Oncothyreon intends to close its Tucson, AZ, facility at 221 E 6th St. this year and transfer that work to Seattle or outsource the activities.
California
· Adobe Systems Inc. is laying off 75 employees at 601 Townsend St. in San Francisco on Feb. 3.
· Advanced Medical Optics is laying off 61 employees at 510 Cottonwood Drive in Milpitas on Jan. 17.
· Belkin International Inc. is laying off 84 employees at 501 West Walnut St. in Compton on Jan. 16.
· Castaic Brick is laying off 77 employees at 32201 Castaic Brick in Castaic on Jan. 7.
· Downey Ford is closing down and laying off 63 employees at 9500/9207 Lakewood Blvd. in Downey on Jan. 18.
· Exelixis Inc. is laying off 76 employees at 249 East Grand Ave. in South San Francisco on Jan. 5.
· Gregg Industries Inc. is laying off 81 employees at 10460 Hickson St. in El Monte on Feb. 11.
· Health Research Association is laying off 79 employees at 1640 Marengo St., 7th Floor in Los Angeles on Jan. 30.
· Irvine Regional Hospital and Medical Center is closing down and laying off 510 employees at 16200 Sand Canyon Ave. in Irvine on Jan. 15.
· KLA-Tencor Corp. is laying off 153 employees at One Technology Drive in Milpitas and 81 employees at 160 Rio Robles in San Jose on Jan. 19.
· Lam Research Corp. is laying off 149 employees at 4300-4650 Cushing Parkway in Fremont on Jan. 20.
· Naked Juice Plant is closing down and laying off 52 employees at 533 West Foothills Blvd. in Glendora on Jan. 30.
· National Semiconductor Corp. is laying off 151 employees at 2900 Semiconductor Drive in Santa Clara on Jan. 13.
· Palm Inc. is laying off 107 employees at 950 W Maude Ave. in Sunnyvale on Jan. 19.
· Pearson Ford is closing down and laying off 130 employees at 4300 El Cajon Blvd. in San Diego on Jan. 19.
· Qualex Inc. is laying off 68 employees at 18250 Euclid St. in Fountain Valley on Jan. 16.
· Riverside Cement Co. is laying off 84 employees at 19409 National Trail Hwy in Oro Grande on Jan. 30.
· Seagate Technology LLC is closing down and laying off 43 employees at 155 & 195 S. Milpitas Blvd. & 311 Turquoise Drive in Milpitas on April 3.
· Shutterfly Inc. is laying off 70 employees at 3157 Corporate Place in Hayward on Jan. 16.
· Starwood Vacation Ownership Inc. is closing down and laying off 218 employees at 190 Carousel Mall in San Bernardino on Jan. 19.
· Symantec is laying off 38 employees at 350 Ellis St. in Mountain View on Jan. 13.
· Symantec is laying off 55 employees at 20330 Stevens Creek Blvd. in Cupertino on Jan. 19.
· United Industries Corp. is closing down and laying off 50 employees at 4139 Bandini Road in Los Angeles on Jan. 15.
· Vertis Communications is closing down and laying off 88 employees at 1345 Doolittle Drive in San Leandro on April 5.
· Vishay Siliconix is laying off 97 employees at 2201 Laurelwood Road in Santa Clara on Feb. 6.
Colorado & Iowa
Heska Corp. finalized a plan to reduce its staffing levels at its Loveland, CO, and Des Moines, IA, facilities. Affected employees will be notified this month and all activities associated with this action are expected to be completed within 60 days.
Georgia
LodgeNet Interactive Corp. will be transitioning calls from hotel guests requiring assistance to connect to the Internet to a call center operated by a third party specializing in providing support to Internet customers. As part of this transition, the company will be closing its Atlanta, GA, call center facility during the first quarter of 2009. The closing will affect 110 full time positions, representing approximately 9% of its total workforce.
Illinois
· Caterpillar Inc. notified 814 production employees at its Mossville, IL, engine assembly facility that it would indefinitely lay off those employees starting Feb. 23.
· Club Libby Lu Inc. is closing down and laying off 67 workers at 2700 W. Grand Ave. in Chicago on Jan. 31.
· Sara Lee is closing down and laying off 185 workers at 1000 W. Pershing Road in Chicago on Jan. 30.
· Sun-Times Media Group Inc. in Chicago intends to consolidate its printing operations and tentatively plans to close its Fox Valley Publications production facility in suburban Plainfield, IL, by April 2009. The company intends to sell the facility. The company anticipates that printing work performed at Fox Valley will be performed at the Company’s Ashland Avenue production plant. The 100,000-square-foot Plainfield facility houses pre-print, editorial and administrative functions. At the time of the closing, some of the 153 employees at the Plainfield facility will move to other locations, depending upon job function, and the company anticipates there will be some positions at the Ashland production plant for employees currently performing press work at Fox Valley. The company said there will be some headcount reductions.
Louisiana
Westlake Chemical Corp., a Houston-based petrochemical and fabricated products company, is idling one of its ethylene plants in Lake Charles, LA, due to significant customer inventory destocking and resulting weakened demand of the company's derivative products. A maintenance turnaround scheduled for this plant for the first half of 2009 will be brought forward to be performed during this down time. The company's plants have been operating at reduced rates since the third quarter of this year due to the general weakened demand as a result of the continued deterioration in the U.S. and global economies and as a reaction to the concurrent sharp product price declines due to the recent collapse in energy and feedstock prices.
Maryland
· Structural Systems Inc. has started laying off 110 employees at 201 Poplar Ave. in Thurmont.
· Harland Clarke is closing down and laying off 120 employees at 1904 Park 100 Drive in Glen Burnie on Feb. 1.
· Brunswick is closing down and laying off 113 employees at 10801 Day Road SE in Cumberland this week.
· Solo Cup Operating Corp. has started laying off 147 employees in Owings Mills.
Michigan
· Cleveland-Cliffs is laying off 200 employees at its Tilden Mine in Inspemming and 151 employees at its Empire Mine in Negaunee.
· GM is closing down and laying off 109 employees its service parts operation in Waterford and laying off 837 employees at its Orion assembly plant in Lake Orion.
· Hakim Inc. is laying off 250 employees in Dundee.
· National Copper Products is closing down and laying off 180 employees at 415 E Prairie Ronde St. in Dowagiac.
· SKD Automotive Group is closing down and laying off 55 employees at 1450 W. Long Lake Road, Suite 210, in Troy and closing down and laying off 301 employees at 260 Gaige St. in Jonesville.
Minnesota & Wisconsin
Wausau Paper is closing down its Jay, ME, mill and relocating its converting equipment from its Appleton, WI facility to its Brokaw, WI and Brainerd, MN, mills and then at a later date relocating its distribution activities from Appleton and Brokaw. The Appleton facility will eventually be closed entirely by Dec. 31.
Missouri
· ATC Drivetrain dba Aaron's Automotive is closing down and laying off 184 employees in Springfield on Feb. 7.
· Ball Corp. is closing down and laying off 187 employees in Kansas City on March 31.
· BlueGreen Corp. is laying off 104 employees in Branson on Jan. 24.
· DHL is laying off 72 employees in St. Louis this week.
· Fasco is closing down and laying off 422 employees in Eldon on Feb. 8.
· Johnson Controls is closing down and laying off 144 employees at 2730 W. Main St. in Jefferson City on Feb. 28.
· National Bedding Company d/b/a Serta Mattress Company is closing down and laying off 98 employees in St. Louis on Jan. 31.
· Polar Tank Trailer has started laying off 61 employees at 4825 E. Kearney St. in Springfield.
· Sears Holdings Corp. is closing down and started laying off 101 employees in Florissant.
· The Rapco Horizon Company d/b/a Major Custom Cable is closing down and started laying off 98 employees at 104 S. Garrett St. in Advance.
· Tracker Marine Group has started laying off 275 employees at 1402 Killingsworth Ave. in Bolivar.
· Trinity North American Freight Car Inc. is closing down and laying off 206 employees in Springfield on Feb. 2.
· Unilever is laying off 75 employees at 13000 E. 35th St. S in Independence on Feb. 1.
Nationwide
Unisys Corp. is exploring a wide range of cost-reduction options and that actions currently underway are expected to reduce its annual cost structure by more than $225 million. Its initial cost-reduction actions are focused on reducing SG&A expenses and controlling or reducing labor costs across the board. These actions to reduce costs include reductions in third-party expenses, facility consolidations, headcount reductions of approximately 1,300 positions worldwide, and a suspension of company matching contributions to the U.S. 401(k) plan. The headcount reductions have begun and will continue into 2009.
Nevada
The Lawn and Garden Segment of Myers Industries Inc plans to close its manufacturing facilities in Sparks, NV, by March.
New Jersey
· City & Suburban Del. has started laying off 372 employees statewide.
· Comcast Cable is laying off 185 employees on Jan. 19at 90 Lake Drive in E. Windsor.
· Johns Manville is laying off 170 employees on Jan. 31 Berlin.
· National Wholesale Liquidators has started laying off 134 employees at 370 Essex St. in Lodi and at locations in Edison.
· National Gypsum is laying off 66 employees on Jan. 19 Delair.
· Pike Machine Products is laying off 71 employees on Jan. 31 at 502 York St. Elizabeth.
· Sears is laying off 94 employees this week at 150 Woodbridge Center in Woodbridge.
· Thelen LLP is closing down and started laying off 645 employees at 200 Campus Drive in Florham Park.
New York
Harris Interactive has reduced its US employee headcount by approximately 51 people, or about 8% of its total US full-time workforce. The positions, in research, project management, operations, marketing, sales, and corporate, were throughout the company’s US locations. The company also expects to take a restructuring charge in conjunction with the consolidation of office space at its Rochester, NY, headquarters at 60 Corporate Woods.
North Carolina
· ASMO North Carolina (AAC) is closing down and laying off 95 employees in Mount Airy next month and 107 employees at 470 Crawford Road in Thomasville this month.
· DHL Express is closing down and laying off 10 employees in Raleigh this month.
· Federal Reserve is laying off 78 employees at 530 E. Trade St. in Charlotte this month.
· Fleetwood Enterprises is closing down and laying off 95 employees in Pembroke this month.
· Hanesbrands Inc. is closing down and started laying off 185 employees in China Grove.
· MeadWestvaco (AGI) is closing down and laying off 123 employees in Grover this month.
· National Gypsum Co. is closing down and laying off 60 employees at 838 Sunnyvale Drive in Wilmington this month.
· News and Observer is laying off 75 employees at 215 S. McDowell St. in Raleigh this month.
· Vaughan-Bassett Furniture is closing down and laying off 400 employees at 500 E. Main St. in Elkin this month.
· RF Micro Devices, Inc., a manufacturer of high-performance semiconductor components, intends to streamline operations and reduce semiconductor manufacturing costs. RFMD expects the actions will begin to take effect in the March 2009 quarter. Its Greensboro, NC, campus manufacturing will be transitioned to another location. RFMD estimates approximately 250 employees, or approximately 5% of its global workforce, will have been affected by these actions between December 2008 and March 2009.
· Vulcan Materials Co. has started laying off 38 employees in Winston-Salem.
Ohio
· DealerTrack Digital Services Inc. is closing down and laying off 32 workers at 3268 SR 73 South in Wilmington by the end of February.
· Georgia-Pacific Corrugated LLC is closing down and laying off 94 employees at 4600 Brookpark Road in Cleveland by March 9.
· GM has started laying off 101 workers at its Comprehensive Logistics facility at 365 Victoria Road in Austintown.
· Lordstown Seating Systems, a Division of Magna Seating of America, is laying off 237 employees at 1702 Henn Pkwy this week in Lordstown.
· Newspaper Network of Central Ohio (Advantage Press) will end all printing and production operations at 3675 Dolson Court in Carroll and laying off 50 employees on Feb. 15.
· Office Depot is closing down and laying off 104 employees at 3425 Urbancrest Industrial in Grove City by Feb. 22.
· Target is closing its store at 5585 Chantry Drive in Columbus and relocating to 2437 Taylor Park Drive in Reynoldsburg on March 3.
· Teleperformance is laying off 417 workers at 57 Dayton-Yellow Springs Road in Fairborn beginning Feb. 13.
· Tenneco is laying off 118 employees at 2555 Woodman Drive in Kettering this month.
· Textileather is laying off 115 employees at 3729 Twining St. in Toledo by the end of the month.
· VSM Sewing Inc. is consolidating operations and intends to close down at 31000 Viking Pkwy. in Westlake by April 30.
Ohio & Pennsylvania
Accuride Corp. has committed to a second series of strategic cuts, including the consolidation of its aluminum wheels facility in Cuyahoga Falls, OH, into its Erie, PA, facility. The closure will affect approximately 130 employees, some of whom may have an opportunity to relocate to other Accuride facilities.
Oklahoma
Kaiser Aluminum plans to close operations at its Tulsa, OK, extrusion facility and significantly reduce operations at its Bellwood, VA, facility. Approximately 45 employees at the Tulsa facility and 125 employees at the Bellwood facility will be affected. The Tulsa and Bellwood facilities primarily produce extruded seamless tube and rod and bar products. These actions are expected to be completed by early this year.
Oregon
· BMHC Cos. dba BMC West/Select Build at 20285 SW Cipole Road in Sherwood is planning a permanent reduction beginning March 2, and the number to be laid off is 105.
· Country Coach at 135 E. 1st St. in Junction City plans to begin a mass layoff March 1; the number to be laid off is not stated, other than a mass layoff, and no one answers the phone at Country Coach.
· Lime Financial Services, Ltd. is closing down its headquarters at 5885 SW Meadows Road, Suite 600, in Lake Oswego. This permanent reduction will take place between Feb. 13 and Feb. 27, and the number to be laid off is 54.
Pennsylvania
· ABX Air Inc. is closing down and laying off 72 employees this week at 1901 Wager Road in Erie.
· American Medical Response is closing down and started laying off 71 workers at 585 Mayer St. in Bridgeville.
· Dal-Tile Corp. is laying off 108 workers at 211 N. 4th St. and 2938 York Road in on Feb. 9
· DHL Express is laying off 105 employees Jan. 18 at 28 Summit Park Drive in Pittsburgh.
· Huhtamaki Flexibles Inc. is laying off 71 employees at 2400 Continental Blvd. in Malvern on Feb. 1.
· Linens 'n Things is closing down and started laying off 71 employees at 1700-C Fruitville Pike in Lancaster.
· QVC Inc., the home shopping channel, will eliminate 500 jobs at its headquarters at 1365 Enterprise Drive in West Chester, PA. Job cuts will start Feb. 27 with as many 110 employees, and continue over the course of 14 months.
· Reynolds Packaging Group is closing down and laying off 31 employees at 520 Lincoln Ave. in Downingtown by the end of the month.
· Scozio's Wexford Foods LLC is closing down and started laying off 73 employees at 10688 Perry Highway in Wexford.
· Seagate Technology is closing down and laying off 76 employees at 1251 Waterfront Place in Pittsburgh on Feb. 2.
· Sovereign Bank, the banking unit of Philadelphia-based Sovereign Bancorp Inc., is cutting 1,000 jobs, or 8.3% of its workforce, in an effort to reduce costs amid the economic downturn. The decision to cut jobs comes as Sovereign Bancorp is selling the remaining stake in itself to Spanish bank Banco Santander SA.
· Wolf Organization has started laying off 70 employees at 20 W. Market St. in York.
· WuXi AppTec is closing down and started laying off 89 employees at 4751 League Island Blvd. in Philadelphia.
Rhode Island
Textron Inc. in Providence, RI, approved a plan to exit all of Textron Financial Corp.’s (TFC) commercial finance business through a combination of orderly liquidation and selected sales. The company previously indicated that it would be exiting its Asset Based Lending and Structured Capital segments, as well as several additional product lines. . The program, along with other volume-related reductions in workforce, eliminates approximately 2,200 positions worldwide.
Texas
· Air System Components Inc, with a plant at 12504 Weaver Road in El Paso will be going through a reorganization process in the coming months that will result in about 29 layoffs. The company will be moving some production activities from the Horizon City facility to other plants, including the company's Juarez, Mexico, facility. The specific timetable and numbers of employees impacted are still somewhat tentative. This is not a plant closing situation.
· AT&T may experience a layoff or termination at 2270 Lakeside Blvd. in Richardson involving 50 or more employees.
· Carrier Corp. is transferring the production of its small package products from its plant at 1700 E. Duncan St. in Tyler to its factory in Monterrey, Mexico, by Feb. 20.
· Citation will close its facility at 161 1 N. Raguet St. in Lufkin on Feb. 27 due to economic reasons. As a result, it anticipates that it will permanently lay off approximately 322 employees beginning Feb. 15.
· Citigroup Inc. expects to permanently lay off employees at 7550 IH - 10 West in San Antonio by Feb. 16 and as a result of the closing of the site.
· Convergys Customer Management Group Inc. plans to permanently close its Houston call center facility at 1203 1 N. Freeway in Houston by April 30. It is currently anticipated that approximately 653 employees will be affected.
· Ivy Steel & Wire will permanently close its operating facility at 6933 Clinton Drive in Houston, laying off 116 people on Feb. 14.
· Roadway Express is closing at 800 E. Berry St. in Fort Worth and 83 employment terminations will commence on March 1.
· Target will be closing its Hays County store at 11 80 Thorpe Lane in San Marcos and relocating to a new store at 700 Barnes Drive in San Marcos; and closing its store at 10000 Kleckley St. in Houston and relocating to 503 S. Sam Houston Pkwy E in Houston. Both on March 4.
· Troxel Manufacturing sole customer has informed it that its current plan is to take back in house its manufacturing business now being done at 4295 Hayes Ave. in Tyler and will likely shut down all operations there. The shutdown, if implemented, will be in phases, based on the timing of the transfer of business from Troxel to the in-house operations of the customer. There are fewer than 50 employees at the Tyler location.
· United Parcel Service Inc. decided to close the Next Day Air night sort operations at Dallas Fort Worth International Airport. This change will reduce the current UPS staffing levels at DFW, by 72 positions after Feb. 8.
· Yellow Transportation is closing at 3345 Miller Park in Garland affecting 89 employees and closing at 5501 Campus Drive in Ft. Worth affecting 23 employees on March 1.
Virginia
· Caraustar is closing down and laying off 52 workers at 111 Hull St. in Richmond on Feb. 8.
· Cryptek is closing down and started laying off 61 employees at1501 Moran Road in Sterling.
· Frank Chervan Inc is laying off 90 workers at 412 Jackson St. in Bedford on Feb. 10.
· Genworth Financial Inc. based at 6620 W. Broad St. in Richmond, VA, is eliminating about 1,000 jobs globally.
· Gildan Inc. is closing down and laying off 177 employees at 358 Industrial Park Drive in Hillsville on Feb. 27.
· Intermet New River Foundry is laying off 140 workers at 1701 W. Main St. in Radford on Jan. 20.
· Invista is laying off 623 workers at 400 Dupont Blvd. in Waynesboro on Feb. 8.
· Lockheed Martin is closing down and laying off 350 workers at 6607 Army in Pentagon City on Feb. 1.
· The Washington Examiner is closing down and laying off 101 workers in Alexandria on Jan. 31.
· Wachovia Corp. is laying off 929 employees at locations in Richmond and Glen Allen this month.
Washington
· Agilent Technologies is laying off 120 employees at 24001 E. Mission Ave. in Liberty Lake, WA, by the end of the month.
· JPMorgan Chase & Co., the new owner of Washington Mutual, will not be taking over the bank’s thousands of feet of downtown Seattle office space. WaMu has leases at five downtown office buildings, including its former headquarters, Washington Mutual Tower at 1201 Third Ave. where WaMU leases 263,823 square feet. Its largest location is 1111 Third Ave. (305,280 square feet) and it also leases 132,639 square feet at 1301 Fifth Ave. In all WaMu leases about 543,000 square feet and subleases an additional 185,000 downtown. The process of moving WaMu employees has already begun and all employees will be moved by March 24.
West Virginia
On December 17, 2008, Century Aluminum of West Virginia Inc. is potentially planning to close its Ravenswood, WV, smelter in 60 days. This facility employs approximately 684 persons. It already has plans to curtail its four potlines there by Dec. 20, affecting 120 employees.
Wisconsin
· Consumables filed notice of plans to close its Viroqua facility at 1201 N. Main St. beginning March 8, 2009. The closure will affect approximately 81 individuals.
· Erdman Co. filed notice of its intent to begin permanent layoffs at its Madison (One Erdman Place) and Waunakee (600 Marshall Drive) locations. The layoffs are expected to affect 79 employees in Madison and 29 employees in Waunakee.
· Evergreen International Aviation Inc. filed notice it will be closing its Milwaukee facility at 201 W. Air Cargo Way effective March 8. There are currently 35 employees there who will be affected.
· Greatwide Truckload Management filed notice of plans to close its Pleasant Prairie facility 8210 104 St., Suite 101, beginning Feb. 16. The closure will affect 64 workers.
· JP Morgan Chase filed notice that it is planning permanent layoffs of 402 employees at 111 E. Wisconsin Ave. beginning Feb. 9.
· KCS International Inc. filed notice of an immediate permanent layoff of 60 workers and an extension of a current layoff for 68 other employees at their Oconto facilities at 804 Pecor St. and 205 Charles St.
· Lippmann Milwaukee Inc. at 3271 E. Van Norman Ave. in Cudahy Filed notice of a possible mass layoff there. The exact time, duration, or number of employees affected is not yet known.
· Mortgage IT Inc. filed notice of plans to close its Middleton facility at 1350 Deming Way beginning Feb. 9. The closure will affect 72 individuals.
· Regal Beloit filed notice it will be closing its Leeson Electric facility at 1506-1515 Industrial Drive in Neillsville. The plant will be shutting down permanently between Feb. 10 and April 30. There will be 37 workers affected by the closure.
· WS Live filed notice of plans to close its Superior call center facility at 823 Belknap St. Feb. 3 affecting 76 employees.
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