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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (37648)	6/8/2001 10:23:28 AM
From: stockman_scott	Read Replies (2) \| Respond to of 65232

<<if they expected a recovery, then why wouldn't they preserve their valuable workers for that recovery?>> It's a good question to ponder...JW, you seem to be way too bullish for a Friday morning <VBG>...there clearly is A LOT of downsizing going on...here's an update from the largest consulting firm (that's preparing to go public)... ______________________________________________________ Accenture cutting 600 jobs, putting 800 workers on sabbatical Posted at 3:39 p.m. PDT Thursday, June 7, 2001 <<NEW YORK (AP) -- Consulting firm Accenture said Thursday that it will cut 1,400 jobs at its offices around the world because of the growing economic slowdown. The company said it will eliminate 600 jobs directly, but another 800 positions will be trimmed through voluntary sabbaticals lasting between six months and a year. ``While we had hoped to avoid making any work force reductions, even temporary ones, the current economic climate and our lower-than-usual attrition levels have created a modest imbalance between the demand for our services and our current staffing levels,'' said Joe W. Forehand, Accenture managing partner and chief executive in a statement. The company said its ``FlexLeave'' program will let the 800 workers, nearly all of them managers who have been with the firm for at least a year, to draw 20 percent of their annual salaries and benefits. The 600 jobs cuts will come primarily in support functions, including human resources and marketing departments. The workers on sabbatical also will be able to take part in Accenture's planned initial public offering. Accenture is the world's largest consulting firm with more than 75,000 people in 46 countries. The company had fiscal year 2000 revenue of $9.75 billion. Accenture dropped its founding name, Andersen Consulting, at the beginning of the year after it split from former parent Andersen Worldwide in 2000.>> _____________________________________________________ I still remain cautiously optimistic that we will not enter a long drawn out recession. I'm choosing to view this as a harsh economic downturn and I think there's a reasonable chance that the US will not register negative economic growth...right now we're sort of stuck between neutral and 1st gear. Yet, I feel the aggressive FED rate cuts and the upcoming tax cuts will start to kick in by the 3rd quarter. Lets hope I'm right!! Have a good weekend. Best Regards, Scott

To: Jim Willie CB who wrote (37648)	6/8/2001 10:30:15 AM
From: Sabrejet	Read Replies (1) \| Respond to of 65232

Jim, I believe the risk the fed took in aggressively lowering interest rates was the continued excessive demands it could put on personal debt. Statistics show that without a turn in the market place(corporate profits), we are really screwed. If the Euro recovers and even a glimpse of an upturn occurs in Japan, you will see a liquidity crunch like none other. We are in danger of really getting smoked here. I mean big danger. The argument about all this money on the sidelines is malarchy! Oil is a wild card, consumer debt is an oxidizer and Europe is the fuel. This could get goofy if it all doesn't fall in place. Sabre!