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 Assignment 3 (Due: before June 29, 2008, 13:00hrs)

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PostSubject: Assignment 3 (Due: before June 29, 2008, 13:00hrs)   Sat Jun 14, 2008 11:16 am

Visit and identify a company website that has undergone HR downsizing. Identify the cause of downsizing and describe its processes.
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Hannah Rhea Hernandez


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PostSubject: PLDT sacks 575 employees   Sat Jun 21, 2008 2:56 pm

Last September 17, 2007, the leading Telecom provider in the country, namely PLDT have sacked 575 employees from the fleet services, traffic operation, and network sector of the company.

Changes in technology and consumer demand are the main reasons for the phone firm’s decision to downsize its employees. Also with the decrease in operator-assisted national and international long distance telephone calls, they thought that manpower reduction at these times becomes inevitable. The company also decided that instead of paying these number of workers, they would just replace these people with fully automated machines that could increase their productivity while decreasing their operational costs.

“From 216 million calls in 2000, the number of operator-assisted international and domestic long distance calls fell to 153.8 million in 2001 and has continued to slide until it was down to 36.5 million in 2006. Customers have shifted massively to direct distance dialing and mobile phones because of convenience and lower cost,” PLDT spokesperson Ramon R. Isberto said.

The company has planned this massive lay-offs a few years before so to make this employee dismissal a benefit for both parties, they enrolled their employees to certain training courses for the past 3-4 to get them ready for the company downsizing and to prepare them for redeployment.

In a further note, PLDT offered generous compensation package plus a two-year medical program for the retrenched workers. According to the PLDT Press Release, "The package is the normal retirement benefit plus 100 percent premium while those with less than 15 years of service will receive 200 percent times the number of years or on the average, each employee will get P1.1 million compensation." All in all, it was almost a win-win situation between both parties. Razz



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PostSubject: Assignment # 3   Sun Jun 22, 2008 1:51 pm

The number of corporations currently undergoing the downsizing process abound.
One such company is Colgate-Palmolive Company.
Their effort is aimed at improving global competitiveness through cutting costs and improving efficiencies. Over the next two years, 24 of Colgate's 112 global factories will be closed or reconfigured. Some 3,000 workers worldwide, which is 8.5 percent of their 36,000 workforce, will lose their jobs. For these restructuring and administrative changes, Colgate will take a $369 million after tax charge in the third quarter. Colgate's last restructuring effort took place in 1991.

The main reasons for Colgate's recent restructuring are
(1) reduced trade barriers in Europe and Latin America;
(2) The need for new technology in manufacturing to improve competitiveness;
(3) the trend toward more concentrated products such as laundry detergent, which requires less production; and
(4) acquisitions that result in adding more plants.

These restructuring efforts are aimed at improving Colgate's position worldwide, and according to analysts, may allow the company to catch up with rivals, Proctor & Gamble Company, in particular. Analysts claim Colgate should have moved earlier. It will take three years for Colgate to recoup the expenses of the restructuring, which will do little to help the company overcome the short-term problems it faces, especially in Mexico. After the fall of the peso last December, annual sales have dropped to $550 million for 1995 from approximately $800 million in 1994.Original projections for this year's sales were $900 million. Colgate's situation indicates a need for more frequent evaluations and change. This would help the company become less effected by market shifts, and better prepared to protect its market shares and margins in the short-term.(Levaux, 1995).

Colgate website: http://www.colgate.com/app/Colgate/US/HomePage.cvsp
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PostSubject: Motorola Downsized 2,600 Workers   Sun Jun 22, 2008 9:16 pm

Downsizing, which is also known as layoff, is defined by wikipedia as either the temporary removal or suspension or the permanent termination of an employee in a certain job.
This is done mostly for cost-cutting reasons.

One company that recently downsized its workers was Motorola Inc. The company downsized 2,600 workers across the company in the world.
The reason for this downsize was that this was a part of a plan by Motorola to cut cost by $500 million this year. The higher ups in the company announced the cost reducing-program at the start of 2008 and and they announced that it could mean job losses. Motorola's head count totaled 66,000 at the end of 2007, which is according to the annual report filed on February. In its annual report on April, the company showed some declines in sales of its handsets. The company previously announced that it was planning to split its handset division into an independent, publicly traded company.

The majority of the 2600 workers came from Asia, most notably from Singapore, where the company is planning to halt the cell phone manufacturing by the end of this year. At the end, 700 jobs will be lost in Singapore due to this downsizing. The rest will be coming from China and other parts of the world that manufactures Motorola's hand set products. Majority of the hand set products are made in here in Asia.

Since becoming the chief executive on January this year, Greg Brown, he restructured marketing operations with its chief marketing officer leaving the company. Also on February this year, he took control of the cell phone unit and hired new heads of office of finance and human resources.

Chicago Tribune
Motorola April 2008 Financial Report

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PostSubject: AT&T Lay off More Than 4,000 Employees   Mon Jun 23, 2008 11:46 pm

Align to the said issue, downsizing, according to wikipedia, it is about lay-off of employees to cut labor cost and other issues regarding to the company. One company that undergone downsizing is one of the big or said to be the biggest telecommunication in America. the AT&T Telecommunications.

Last April of 2008, Telecom giant AT&T lay off 1.5 percent of its employees, primarily in management, in an effort to streamline its operations. AT&T had about 310,000 employees at the end of 2007, meaning the layoffs affect about 4,650 workers.

The said lay-off is due to "next step" in streamlining company operations in an effort to operate more efficiently after recent mergers between parent company SBC, the old AT&T and BellSouth. And still it it so to cut labor cost so that the profit of the said telecommunications increases from 2007 to 2008. The layoffs mean AT&T will take a one-time charge of US $374 million during the first quarter of 2008 and AT&T reported a net income of $3.1 billion for the fourth quarter of 2007. It's revenue for the quarter was $30.3 billion.

Still, the company helps the employee who has been lay-off by giving them another chances to apply again to the said company. The company still hires additional employees to support growth areas.

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PostSubject: BBC cuts off 3000 jobs   Tue Jun 24, 2008 8:20 pm

In a business enterprise, downsizing is reducing the number of employees on the operating payroll. Businesses use several techniques in downsizing, including providing
incentives to take early retirement and transfer to subsidiary
companies, but the most common technique is to simply terminate the
employment of a certain number of people.

And one of the companies that has undergone HR downsizing is BBC.

Last December of 2004, BBC director general Mark Thompson has announced savings of £320m a
year and thousands of job losses as part of a "transformation" of the

About 2,900 jobs are to be cut, mainly from administration departments. Mr Thompson said the savings were needed so more of the licence fee could be put into programmes.

The BBC aims to meet the savings target within three years, redirecting the money into programme-making.

The departments hardest hit by the cutbacks are
professional services, including human resources, training, finances
and legal services, although programme legal advice is to remain as it

Mr Thompson said the job losses would be through redundancies and outsourcing of posts during the next three years.

The BBC employs about 27,000 people and most departments
would be expected to make 15% cuts as savings, with some further job
losses possible, staff were told.

References: http://whatis.techtarget.com/definition/0,,sid9_gci759501,00.html

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PostSubject: Alcatel - Lucent lays off additional employees   Tue Jun 24, 2008 8:46 pm

What is downsizing? see http://whatis.techtarget.com/definition/0,,sid9_gci759501,00.html

As I've searched the net for topics related to downsizing, I have come across this particular subject in one of the forums connected to industries and companies. Thanks to Hoovers Business Insight Zone, I have found a subject for my assignment. Very Happy What attracted my attention is a featured telecommunications company (of the day - in the forum) which has, or is, actually experiencing continuous layoffs with its employees.

What I'm talking about is the Alcatel-Lucent, a company that operates in telecommunications equipment sector. According to what I have searched, Alcatel-Lucent took its current form in late 2006, when French company Alcatel plunked down $11.6 billion to buy Lucent in a merger. They agreed in a $13.4 billion deal to combine their productions, creating a company with revenue of $25 billion, 88,000 employees and phone customers across the world. The merging of North America with Central and Latin America in Alcatel-Lucent's sales structure is part of a broader move to simplify the way the company sees the world, splitting it into just two regions: the Americas, and the rest.

But with the 2006 merger, reports said that the $27.5 billion company has posted six quarterly losses and has taken more than $4.5 billion in writedowns, while its stock has plummeted 50%. Despite the efforts of CEO Patricia Russo and her team the misery hasn’t gotten better since the two companies joined forces.

In fact, I've learned that the company has undergone company downsizing and further layoffs after its postmerger financial performance continued to disappoint. As part of the restructuring, the company also announced that it was going to lay off 16,500 employees throughout the country. Well, the lay-off plans were mainly due to the company's three-point plan for restoring the company to profitability.

Last Oct. 31, 2007's news is full of stories on Alcatel-Lucent’s plans to lay off 4,000 employees. Worse than the news is how little surprise it provoked: the company has already announced layoffs of 12,500 people this year, it just reported yet another sizeable loss.

Russo will in future be advised by panel of seven senior executives, down from 11 before. Just two of them are former Lucent employees: Cindy Christy, who will add Central and Latin America to her existing responsibility for North American sales, and John Meyer, head of services, a role he held at Lucent.

Other changes ahead for the company include a tighter focus on products to help carriers transform their networks to an all-IP (Internet Protocol) infrastructure, a move from products to value-added services, and a more streamlined organization with fewer staff in support functions to eliminate post-merger duplication.

Pedini's role in human resources is particularly significant as the company prepares to shed a further 4,000 jobs by 2009, having already cut 3,800 in the first half of this year. Her approach is likely to focus on the numbers -- the company hopes the job cuts will save it a further €400 million -- rather than the people, as she worked for four years as Alcatel's deputy CFO, only taking on the role of vice president of human resources and communications in January 2006.

This June 1, 2008 news said that already 2,000 Lucent employees left the company's 600,000-square-foot Lisle office to work across the street in Naperville. The building on Warrenville Road was more than 50 percent vacant. The move will consolidate 4,100 employees and contractors in the Naperville office.

Meanwhile, the Lisle location will be put on the market. Until 2005, Lucent Technologies also operated in Naperville Woods Office Center on Warrenville Road. The employees at that location were moved to the Naperville/Lisle office as the telecommunications equipment giant suffered losses and enacted companywide downsizing.

Major Source:
Hoovers Business Insight Zone

Online articles:
Update: Poor results at Alcatel-Lucent prompt more layoffs By Peter Sayer, IDG News Service
Oct. 31, 2007

Alcatel-Lucent CFO leaves in management change by Peter Sayer, Wed, 31 Oct 2007
About.com: PC World Computing Center

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PostSubject: coca-cola's downsizing   Wed Jun 25, 2008 5:25 pm

Last January 28, 2000, Cola-Cola Company, the world’s largest soft drink makers, announced the lay off of almost 6,000 employees of its global workforce. It was said that this has been the largest lay off ever done by the company in history. Most of the employees wept as they were escorted from their offices as they said goodbye to their job. None of them was prepared to lose a job and they find it very hard to find a comparable paying one.

It was reported that this corporate downsizing was the idea of the newly designated CEO, Douglas N. Daft, who took over the position month ago, replacing M. Douglas Ivester, whose brief two-year tenure was marked by falling profits throughout its worldwide operations.

For the last two years, Coca-Cola has been struggling due to the hit of economic crisis in Russia and Europe as well as its biggest controversy after children in Belgium fell ill from the soft drink. The board decided to reduce the workforce to acquire their earning target and so as to save $300 million a year. David Garza said that “they are moving the company back in the line with economic reality”.

The said job cuts will be carried out through early retirements, outsourcing and eliminating positions.

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PostSubject: Assignment 3   Wed Jun 25, 2008 9:06 pm

AOL or America Online - offers services such as Internet access, email account, instant messaging, chat, and other online features.

The online giant AOL announced last October 18, 2006 that it is closing its Albuquerque call center, a move expected to result in the loss of more than 900 jobs by the end of December. It’s really difficult news. The cuts are part of a restructuring plan AOL announced in August, in which the company said as many as 5,000 employees would be laid off within six months - a quarter of its global work force. Albuquerque's call center at 6301 Jefferson St. N.E. employs more than 900 workers. The company wouldn't disclose the typical salary paid in Albuquerque, only saying it was "on par with the industry." Employees were told of the layoffs, and then given the day off. They will continue to work for AOL through Dec. 15, after which they will be offered a severance package that provides a combination of salary and benefits.

In total, AOL announced 1,400 job cuts in the United States. A call center in Tucson will also see about 400 job cuts, while a call center in Ogden, Utah, will be sold to another company. The reduction in customer service workers comes as AOL, a unit of Time Warner Inc., transitions away from charging customers for high-speed Internet, e-mail and other services and into an advertising-driven Web services company. Customers who have been maintaining their AOL subscription just to keep their AOL.com e-mail address, for example, now receive that service online for free.

AOL has maintained a call center in Albuquerque for about a decade. The Albuquerque facility was one of AOL's first customer call centers and remains its second-largest, falling just behind a call center in Oklahoma City that will remain open. The Albuquerque call center employees worked with subscribers to answer questions on high-speed Internet connections, billing issues, registration to the service and other areas of technical support. But with the company moving away from its subscriber-driven service, the need for customer service workers has minimized.

In August, Time Warner Inc., AOL's parent company, said it expected to spend $250 million to $350 million through 2007 to implement the changes, about half of that for employee severance. The AOL cuts are the latest in a series of work force fluctuations in the Albuquerque area's call centers, which employ an estimated 12,500 people in the metro area. Sento Corp., a customer support company in Utah, in August announced 65 job cuts after its Downtown call center lost a key client. The company, though, employs about 300 at the Compass Bank building and has said it still plans to expand to 800 workers in the next three years. Verizon Wireless is in the midst of hiring as many 400 customer service call center workers by the end of the year to fill a new, $20 million facility at 7000 Central Ave. S.W. that at its peak will hold 1,400 workers.

AOL's departure means more than just job losses. The company was an advocate for Albuquerque as a home for corporate customer relations centers. The departure from Albuquerque is strictly due to AOL's change in business model. It has nothing to do with the viability of the local market or other economic factors.


Company Website:
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PostSubject: Clipsal sacked 200 workers..   Wed Jun 25, 2008 11:38 pm

  • Downsizing refers to the reduced number of employees in a certain company that undergone temporary suspension or permanent termination of employment for a reason that certain positions are no longer necessary or there is a business slowdown. Razz
Many companies started downsizing their workforce to
improve the image of the firm among the stockholders or investors and to become
more competitive.

One of the downsized company is Clipsal.
Last June 12, 2008, the South Australian-based manufacturing company Clipsal announced it would sack 200 permanent workers and close its Nurioopta plant based in the Barossa Valley. The company indicated that there would likely be unspecified “flow on” job cuts in its labour hire workforce.

The sackings will take place when Clipsal closes its Nurioopta plant
along with a second plant in the city’s fringe at Bowden. Clipsal will
consolidate its operations at Gepps Cross in Adelaide’s north.
Permanent employees will be offered new jobs in the Gepps Cross plant,
an 80-kilometre round trip for workers living in the Barossa.

Management stated that permanent employees who cannot move from
Nurioopta to Gepps Cross will be made redundant, but not those from the
Bowden plant. The move will start later this year and continue through
to 2009.

A June 13 ABC Online report quoted the Australian Workers Union (AWU)
official Wayne Hanson condemning Clipsal’s decision, saying that
management has broken its word.

Clipsal was recently bought by the Scheider company which promised that
no regional Clipsal plants would be shut down. Hanson told the ABC
Online that, when the Schneider company bought the Clipsal cartel it
gave very firm commitments to the continuation of manufacturing in the
regional areas. drunken


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PostSubject: company undergone downsizing   Thu Jun 26, 2008 12:55 pm

DOWNSIZING- In a business enterprise, downsizing is reducing the number of employees on the operating payroll. Some users distinguish downsizing from a layoff, with downsizing intended to be a permanent downscaling and a layoff intended to be a temporary downscaling in which employees may later be rehired. Businesses use several techniques in downsizing, including providing incentives to take early retirement and transfer to subsidiary companies, but the most common technique is to simply terminate the employment of a certain number of people.

Exclamation IBM lays off another 1,500 workers Exclamation

Tech firm has cut 3,700 jobs this year as part of restructuring

BOSTON - IBM Corp. laid off 1,570 people May 30, 2007 (Wednesday), primarily from an ongoing overhaul of operations in its giant technology services unit.
The Armonk, N.Y.-based company carried out a similar level of job cuts at the beginning of the month, for a total of 3,023 in this quarter and 3,720 for the year, according to IBM spokesman Edward Barbini.
That amounts to roughly 1 percent of the company, which employed 355,000 people at the beginning of the year. But even these small numbers reflect a big project inside IBM to transform its business.

Services is IBM’s biggest division by revenue, but the advent of lower-cost competition overseas has forced IBM to work harder to improve the unit’s profit margins. In the first quarter, pretax income for IBM’s tech services fell 19 percent, even as revenue rose 7 percent.
Wednesday’s job cuts were largely part of the company’s response. Although IBM did not disclose where the layoffs were being made, the company had blamed the first-quarter profit shortfall on problems in its U.S. outsourcing business.
IBM executives say they expect no more layoffs this quarter. But other shifts like this — IBM calls it “rebalancing” — figure to follow from time to time.

That’s because IBM’s services overhaul not only involves cheaper labor — IBM’s work force in India rose from 9,000 in 2003 to 52,000 last year — but also a quest to use less labor. That means rethinking and sometimes automating the ways that services contracts are carried out. Last year, IBM adopted a business-retooling system known as Lean last year to find such opportunities.

Robert Moffat, the IBM executive overseeing Lean, acknowledges it will reduce the need for some services labor, but he contends that it will also create new work for the company overall because customers will be getting more for their money.


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PostSubject: company undergoing downsizing   Thu Jun 26, 2008 4:40 pm

Downsizing is reducing your company’s workforce.
The purpose of downsizing is to make your business more profitable and more cost-effective.
Essentially you can use this important tool to change the course of your business strategy.

One of these company is the Ford Motor Company.

What's happened?

• cause - Ford's automotive losses are widening, prompting deeper cost cuts.

ways to recover :

• The company sold Hertz rental car unit for $5.6 billion to raise cash.

2,850 salaried positions have been eliminated.

• 401(k) match and bonuses for salaried employees have been eliminated.

• Ford, Lincoln and Mercury sales divisions have been consolidated

• Ford's supplier base will be reduced to less than 1,250 to help lower purchasing costs.

Since 2,850 salaried positions have been eliminated. human resource downsizing is one of those ways Ford taught would be the best...


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PostSubject: my assignment number #3   Thu Jun 26, 2008 6:08 pm

Downsizing is reducing numbers of labor force in a certain industry. Another term for it is lay off. Downsizing is a strategic action of a company in order to save the industry. There are certain reasons why companies slash employees out in the payroll even if it means losing of jobs of other workers, it may be for the purpose of saving the industry from dropping or may be for development purposes.

An Example a company that had undergone downsizing is the Samsung Electronics.


SKorea's Samsung Electronics sheds 1,600 jobs
Nov 17, 2007

Samsung is the world's largest producer of memory chips, has shed more than 1,600 workers this month, the first fall in its labour force since 2002.

Data reported to financial authorities show the number of Samsung employees was 85,269 in September, down 1,630 or 1.9 percent from the 86,899 reported six months earlier.The downsizing is the first at Samsung Electronics since 2002, when the company cut about 700 employees.

Yonhap news agency said the cut was a prelude to a "full-scale corporate restructuring" at Samsung Electronics, which is suffering from falling memory chip and flat-panel prices.

"Some 500 to 800 staff quit here seasonally because high school graduates want to go to colleges. The 1,600 is more than usual but it has nothing to do with the corporate downsizing," spokesman James Chung
of Samsung told AFP.

There have been rumors that the South Korean company wants to downsize since July, when it launched a voluntary retirement scheme.

Samsung Electronics has reported that its net profit in the third quarter to September this year recovered to the level a year earlier on brisk demand despite low semiconductor prices.

Net profit for the July-September period stood at 2.19 trillion won (2.39 billion dollars), about the same as a year earlier, it said.

But the company reported a five percent drop year-on-year in net profit during the second quarter to June, due to falling chip prices. It earned 1.42 trillion won during April-June, the lowest in four years for that period.


Exclamation There are certain issues why an industry, small or large scale had to cut-off its labor force. Even the Samsung Electronics which is the world's largest IT industry had to undergone into it. Samsung had to cut it's labor force for the improvement of the industry and it's products to make it more profitable. Another reason of its downsizing is the seasonal phenomena which is likely normal because some of the workers works only in a season for example summer where students apply for a job then quit when classes starts.

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PostSubject: ASSIGNMENT 3   Thu Jun 26, 2008 7:04 pm


UAL corporation, parent company of United Airlines, said that they are going to layoff again for about 950 pilots because of soaring fuel prices. They are are now taking the necessary actions to reduce the number of people upon running thier business. According to the latest layoffs, nearly 15 percent of the pilots were saying goodbye to thier jobs. This downsizing aims to reduce domestic capacity in thier fourht quarter.

The airline industry said that they are highly battered with fuel cost, and its major cause is that the stability through capacity cuts is now in the darker side which effect thie operation and a higher charge fares. By knowing the impact of capacity reduction, the united airlines doing thier very best to elleviate involuntary furloughs.
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PostSubject: Re: Assignment 3 (Due: before June 29, 2008, 13:00hrs)   Fri Jun 27, 2008 12:31 am

Downsizing refers to reducing the overall size and operating costs of a company, most directly through a reduction in the total number of employees.

Many companies are experiencing it nowadays. One of these is the company, Phil Corporation Ltd. (Phil), incorporated in the year 1983. It was formerly known as Photophone Industries Ltd. and had been a major player in the field of photography business. It also ventured into the business of manufacturing and marketing of photography products. As its turnover kept on increasing, the company had by now increased its employee strength to over 2000 employees. The company achieved stupendous growth in few years since the time of its incorporation. But later, it had started facing stiff competition, which compelled the company to opt for the decision of downsizing its excess staff. Many companies like Kodak were promoting and selling products at the cost much lower than the products manufactured by Phil.

The company was now facing problems from all ends. Its sales had decreased and its profits were badly affected. Soon, the demand for its products reduced drastically and the work force was left without work. There was a need for quick action to be taken to arrest further losses. It had only one option: to reduce the excess amount of labors and then plan strategies to regain its lost ground. Although reducing the excess work force could face lot of resistance, it had to be implemented.

By the end of the year 1997, it started the downsizing process by identifying departments with excess number of workforce. It identified first 159 excess workers from the three factories of the total 450. The management floated the VRS option to the factory workers. According to this option,workers with over and above ten years of service with the company would be offered compensation of 45 days of their gross salary multiplied by the total number of years worked. The workers union did not accept this offer and demanded for 90 days instead of the offered 45 days. Since the management was reluctant to accept this demand, the workers observed a 'slow down' strike wherein they further reduced their production capacity. This was not agreeable to the management. This issue remained pending for a while until after long negotiations a total of 65 days of gross salary was agreed upon mutually. A total of 121 workers availed VRS Scheme while 38 of the excess workers did not accept the VRS option. This carried for over six months. Even as this continued, employees would resign as; either they were asked by the organization or voluntarily, finding better prospects elsewhere.

As employees kept on leaving, it had by now reduced the excess workforce and this problem appeared to be solved. Finally, the management decided on assigning back job responsibilities to the employees who remained in the company.

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PostSubject: Assignment No.3 "Downsizing"   Fri Jun 27, 2008 12:37 am

Boeing Company

“Boeing” is said to be the world's largest aerospace and defense company which operates in over 90 countries and claims the title of America's largest exporter. It has three divisions: commercial airplanes (50.3% of revenue), integrated defense systems (48.3%), and a small aircraft leasing subsidiary (1.2%). The most prominent is the commercial airplane section which faces intense competition from its Airbus line of planes.

Since Boeing is known to be the only remaining U.S manufacturer of large commercial aircraft, they will be making military and special aircraft ten years from now. But according to Alan MacPherson, professor and chair of the Department of Geography in the College of Arts and Science its days of manufacturing large passengers jets will probably have to come to an end.

After the incident of The World Trade Center and Pentagon on September 11, the senior Boeing officialssensed that airplane manufacturer would suffer drastically on this happening. Because of this event, the Boeing Commercial President and CEO Alan Mulally consulted Chairman Philip M. Condit and made the decision on September 18 to cut 20%( 20,000) to 30%( 30,000) of 96,000 people in Seattle area employed by Boeing’s commercial airplane unit. This decision was hard to make by the Boeing’s Company because such dealings and actions will affect the lives of the people who work in their company.

The following are the evidences noted by Pritchard and MacPherson:

1. Boeing's sale or closure of approximately 10 million square feet of space devoted to commercial and military aircraft production in the past decade

2. A 60 percent decline in Boeing's commercial aircraft production, with less than 50 aircraft in backlogs of four of its six commercial aircraft models, when most viable, mature aircraft programs have backlogs in excess of 100

3. The lack of new aircraft programs—Boeing's most recent aircraft is the 777, designed in the early 1990s

4. Boeing's announcement on Dec. 20 that it would shelve its futuristic, high-speed, sonic-cruiser design in favor of a cheaper alternative, its second cancellation of a proposed commercial jetliner program

This strategy will probably be positive because aviation services and high-tech military aircraft manufacturing have had higher profit margins than the commercial side.

The effect of this strategy is losing the members or the employees of this company who mainly do riveting and aircraft assembly. And now, they will be needing people who have new sets of skills that will fit on a specific position.

I conclude that downsizing could be a hard decision for the company to be made because the lives of the employees will be affected. On the other hand, it will be helpful for the company to maintain their standing in the industry to be able to compete to other companies.



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PostSubject: Re: Assignment 3 (Due: before June 29, 2008, 13:00hrs)   Fri Jun 27, 2008 1:39 am

Morgan Stanley Company Description

One of the world's top investment banks, Morgan Stanley serves up a whole smorgasbord of financial services. The company divides its operations into three primary business segments: institutional securities (capital raising, corporate lending, financial advisory services for corporate and institutional investors); global wealth management group (brokerage and investment advisory services, financial planning for individual investors and businesses); and asset management (asset management services and products including alternative investments, equity, fixed income; merchant banking; investment activities). Morgan Stanley has some $782 billion in assets under management.

Mass Layoffs Updates for May 21, 2008

Morgan Stanley of New York has announced intentions to lay off approximately 5 percent of its employees this year. According to a report by the New York Times, most of the layoffs will be in the United States. Workers at the company's retail brokerage firm will not be affected by the layoffs. Morgan Stanley has laid off 3,000 workers since October and as of the end of February 2008 had just over 47,000 employees. With the exclusion of approximately 8,500 financial advisers in the wealth management division, a 5 percent workforce reduction would equal approximately 2,000 layoffs.

Downsizing means to reduce in number or size. A corporation downsized its personnel in response to a poor economy.
In a business enterprise, downsizing is reducing the number of employees on the operating payroll. Some users distinguish downsizing from a layoff , with downsizing intended to be a permanent downscaling and a layoff intended to be a temporary downscaling in which employees may later be rehired. Businesses use several techniques in downsizing, including providing incentives to take early retirement and transfer to subsidiary companies, but the most common technique is to simply terminate the employment of a certain number of people.

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PostSubject: Re: Assignment 3 (Due: before June 29, 2008, 13:00hrs)   Fri Jun 27, 2008 1:53 am

rendeer Human Resource Downsizing

St. Lawrence Cement Group inc.

This company which was recently taken over by Holcim Ltd., plans to close its head office in
Montreal and transfer some operations to Ontario in a move that will affect 80 employees.
The Montreal-based company will also transfer its Northeast U.S. assets to Holcim, and will
reorganize its corporate, administrative and information technology services.
All St. Lawrence corporate administrative functions will be integrated into the existing
offices of the regional headquarters in Concord, Ont., just north of Toronto.
Employees at the regional headquarters in Longueuil, Que., as well as those at the company’s
other Quebec operations will not be affected.
“Following the buyout of the minority shareholders, we are re-configuring the organization on a geographic basis,” said Gaetan Jacques, senior vice president of human resources and communications. “We are transferring our Northeast U.S. division
to Holcim U.S. (and) now we will be a Canadian focused organization with two major regions — one
in Ontario, one in Quebec and Atlantic,” said Jacques. “We will have two main offices, one in Longeuil
and one in Concord.” The cuts affect people working in the finance, human resources and information technology departments, as well as a small group from manufacturing engineering facilities, he said,
adding no other major cuts are planned.“We are an organization that focuses on synergies
and costs (but) we don’t have in our plans right now any other big reorganization or downsizing
plan,” Jacques said. “There will be some adjustments, that’s part of normal business, but there’s
nothing else that is being planned right now.” Once the reorganization is complete, St. Lawrence
Cement will offer some of the affected employees the opportunity to transfer to Concord, while others
will be offered professional assistance services to help them find new jobs.

drunken A company would really undergo downsizing due to some circumstances that they encouter
though some of thier employees lose thier job but they need to take the risk for the company to be competitive in the industry. It is not an easy decision for the company but its part of the circulation to survive.

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PostSubject: aW aH!   Fri Jun 27, 2008 5:15 am

.-.A Case on Downsizing in Phil Corporation Ltd.-.

Shubhasheesh Bhattacharya
Faculty Member
ICFAI Business School
Plot No 5, Equity Tower, Sanghvi Nagar Road, Aundh, Pune-411 007
E-mail: subasishb@rediffmail.com / sbhattacharya@ibsindia.org

Guided by:
Prof. Subasish Bhattacharya

Submitted by:
Shaikh A. Faisal

Goa Institute of Management, Ribandar
Phil Corporation Ltd.

Naryan Sopte is finally relieved as he resumes his job responsibility of managing sales of Konica products. He has been undergoing a lot of tension and insecurity over the last six months with regard to his job and now, having survived the downsizing process has been finally assigned back his job responsibility. Although he looks relieved, deep inside he would know that his job worries may be far from over, as the company's business doesn't seem to be doing any better over the years. The company had undergone a huge downsizing process wherein it had taken major steps to trim its excess work force and thereby re-organize the company.

Factors that compelled the company to downsize its staff:

As we analyze the case, it can be studied that the company achieved stupendous growth in few years since the time of its incorporation. This was largely believed due to its monopoly position in the photography sector. But later, it had started facing stiff competition, which compelled the company to opt for the decision of downsizing its excess staff. It faced competition from the following:

* Kodak, an international brand in the field of photography entered into India and started promoting its products aggressively. The brand was well accepted by the professionals in photography, which helped it gain mileage over Konica.
* The parent company Konica Corporation, Japan started selling its products in India through another channel ' Computer Graphics Ltd.' which offered better margins to dealers who in turn pushed the products more as compared to that of Phil.
* In Instant Photography, goods manufactured at lesser rates in China started infiltering into the Indian Market through unauthorized channels, which also affected its business drastically.

Teaching notes from the case

Retrenchment under the ID Act

Retrenchment means the termination of service of a workman by the employer, for any reason other than a punishment inflicted by way of disciplinary action. Retrenchment, however, does not include the following:

* Voluntary retirement of the workman;
* Retirement of the workman on reaching the age of superannuation;
* Termination of service of the workman as a result of non-renewal of the employment contract on its expiry or the termination of such contract under a stipulation to that effect contained in the contract;
* Termination due to continued ill health. (Section 2(oo) of the ID Act)
* When a workman is retrenched, and the employer proposes to take on another employee, an opportunity must be given to the retrenched workman to offer himself/herself for re-employment. Such retrenched workman will have preference over other persons. (Section 25H of the ID Act)

Conditions for retrenching a workman

The following conditions have to be fulfilled by an industrial establishment having less than one hundred workmen, for the retrenchment of a workman who has been in continuous service for not less than one year:

* The workman must be given a one-month's notice in writing, indicating the reasons for retrenchment.
* The workman must be paid, at the time of retrenchment (expiry of notice period), compensation, which is equivalent to fifteen days' average pay for every completed year of continuous service or any part thereof in excess of six months.
* A notice must be served in the prescribed manner, on the appropriate Government. (Section 25F of the ID Act)

The following are conditions precedent to the retrenchment of a workman, who has been in continuous service for not less than one year by an industrial establishment with one hundred or more workmen.

* The workman has to be given three month's notice in writing indicating the reasons for retrenchment or the workman has to be paid in lieu of such notice, wages for the period of the notice.
* The workman has to be paid, at the time of retrenchment, compensation which is equivalent to fifteen days' average pay (for every completed year of continuous service) or any part thereof in excess of six months; and
* Notice in the prescribed manner is to be served on the appropriate Government (or such authority as may be specified by the appropriate Government by notification in the Official Gazette).

Did the company abide by the rules of the ID Act?

* As we study the case it is evident that the company tried to downsize its excess staff by instigating the employees to tender their resignation from the services. It did not retrench or terminate any employee since by the rules of the Industrial Disputes Act, the company would have to pay the due compensation to the retrenched employees and provide an explanation of its actions on retrenchment to the concerned government authorities.

* In case of the employee, Mr. Naryan Sopte, the management could have taken the action of terminating him since he did not abide by the management orders and accept the transfer to Orissa. But, even in this case, the management did not taken such an action as it had not taken such an action all along the downsizing process and thought it would be inappropriate to do so now as it would aggravate matters for them.

* It was however incorrect of the management to offer VRS option only to the workers and not to the officers. According to the pensions benefits ordinance scheme, VRS should be introduced to all grades at ranks and above where there is surplus staff or anticipated surplus staff problem. Thus the officers could have challenged the decision of the management in the court of law.

study >>>--shYeNiM--<<< Shocked

s0uRcE: http://www.indianmba.com/Faculty_Column/FC220/fc220.html
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felix sumalinog jr


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PostSubject: Hungarian Telephone and Cable Corp.'s HR Downsizing   Fri Jun 27, 2008 10:42 am

Hungarian Telephone and Cable Corp.

On August 2005, Hungarian Telephone and Cable Corp. made workforce reduction in Hungary.
-Hungarian Telephone reduced its workforce by approximately 200 employees, which represents about 20% of Hungarian Telephone's workforce.
- Hungarian Telephone estimated that the one-time costs associated with the workforce reduction would range from 600 million to 1 billion Hungarian Forints (U.S. $3-5 million), which costs are payable in cash in 2005 and will affect Hungarian Telephone's 2005 reported results.

Causes of Hungarian Telephone and Cable Corp. HR downsizing:
> The company had continuing effort to integrate the businesses of its Hungarian operating subsidiaries (Hungarotel and PanTel).
> The company wanted to maximize synergies and extract additional cost savings from the PanTel acquisition.
> With the increasingly fierce competition in the Hungarian fixed telephony markets, it was imperative for Hungarian Telephone to streamline its operations to achieve the necessary long-term cost efficiencies which would enable it to compete in this marketplace.

Processes of Hungarian Telephone and Cable Corp. HR downsizing:
> Hungarian Telephone agreed with the Hungarian Trade Unions and Workers Council representing most of its Hungarian-based employees on the key provisions of a workforce reduction plan.
> The process would consist of an offer to employees to voluntarily accept a severance package.
> Each 200 employees would have $15,000 to $25,000 depending on the final composition and seniority of the affected employees.

Hungarian Telephone and Cable Corp. is the leading alternative telecommunications service provider in the Republic of Hungary with a presence in other countries in Central and Eastern Europe.


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PostSubject: Re: Assignment 3 (Due: before June 29, 2008, 13:00hrs)   Fri Jun 27, 2008 2:19 pm


Unilever,the Anglo-Dutch consumer products multinational, may shed a major portion of its global human resources department as a result of the seven year HR outsourcing deal it struck with Accenture.

The outsourcing program is part of the company's One Unilever initiatives to:
*increase leverage of its scale
Like a Star @ heaven *improve its marketplace competitiveness
Like a Star @ heaven *deliver functional excellence
Like a Star @ heaven *create a more competitive cost-structure allowing it to focus on its consumers and customers.

Unilever has also been under tremendous performance pressure over the past few years. While the growing clout of global retailers like Wal-Mart and Tesco is gradually eroding its competitiveness and squeezing margins, Unilever has also been unable to discover new growth markets, which is forcing it to rationalize costs and turn more "lean and mean" globally.

The contract Unilever awarded to Accenture for HR outsourcing impacts about 3300 employees of the HR department across the globe, but less than 40 percent are expected to be directly impacted out which, not all may be losing their jobs and livelihood.
According to Unilever affected employees of this downsizing are:
Like a Star @ heaven *all those who handle the transactional side of HR
Like a Star @ heaven *payroll
Like a Star @ heaven *recruitment

Arrow But as many as 60 percent of its global HR employees that perform strategic functions may be retained and transferred to other roles within the company.

Tim Johns the Unilever Global Media Relations Vice President said that, Unilever has a long history of both buying and selling companies and brands.They have a lot of experience in managing human resources, and when they do, they manage it with professionalism and understanding for all the people affected. Unilever would try their best to find attractive alternatives for those whose roles no longer exist in the company as a result of this deal.
Johns also hinted at the possibility of some of its HR employees moving to Accenture.

Idea Shedding an important department, like HR, is not new to Unilever. Last year, in a similar seven year deal Unilever had outsourced its financial functions across Europe to IBM.



I love you JEALOU L. AZUCENA BSIT-3 I love you
_"wit beyond measure is the man's greatest treasure"_ study

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PostSubject: Company Downsizing   Sat Jun 28, 2008 10:18 am

I had a difficult time searching for a company with a website that went through downsizing. *whew* At last, I found one but it's not even located in the Philippines... Here it is:

Valdosta Company Downsizing

“The demand for residential wood products continues to erode and this announcement is a direct result of the business environment we face,” said Scott Reed, plant manager at the facility.

On November 9, 2007, the Weyerhaeuser facility on Clay Road in Valdosta announced that they are going to layoff half of their workforce and totally close the mill in Valdosta for an indefinite period of time. They is what they called an indefinite layoff because it is unclear when they will recall the affected employees and reopen the facility.

There are approximately 245 people employed in their company who will be affected by the downsizing. After the downsizing, the number dropped to about 100. The company says that the reason for the layoff was because of the slow demand for engineered wood products in the housing market. They say that they only need to operate in order to balance supply with demand. Although, the company also pointed out that there are many available jobs out there.

“This was a very difficult decision, our associates have done an excellent job of executing that which has been asked of them. This announcement is in no way a reflection of the performance by our associates,” Reed said. “The indefinite layoff announcement of November 9th was a recent action in the strategic analysis to address current market conditions. Unfortunately, ongoing business conditions now require that we take this further action. We recognize the impact of this closure on our associates and the Valdosta community, and we will do our best to work with affected associates through this difficult period.”

As a sort of compensation to the laidoff employees or associates, the company made them undergo counseling on specific details about the benefits. They will still receive pay and benefits for 60 days, as provided by the Worker Adjustment and Retraining Notification (WARN Act).

Weyerhaeuser says it hopes to recall the laidoff employees as soon as business picks up again but this is not something that they're sure of.

However, the affected employees still had sentiments about the layoff because it was almost Thanksgiving and Christmas and they had no money to spend. Talk about wrong timing. Sad

Additional Information: Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities.

Ref: http://www.wctv.tv/home/headlines/11319401.html
Ref: http://www.weyerhaeuser.com/Company/Media/NewsReleases/NewsRelease?dcrId=07-12-14_WeyerhaeuserAnnouncesMillClosureatiLevelFacility
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PostSubject: downsized.   Sat Jun 28, 2008 12:01 pm

It is the reducing the number of employees on the operating payroll. Some users distinguish downsizing from a layoff , with downsizing intended to be a permanent downscaling and a layoff intended to be a temporary downscaling in which employees may later be rehired.

Businesses use several techniques in downsizing, including providing incentives to take early retirement and transfer to subsidiary companies, but the most common technique is to simply terminate the employment of a certain number of people.

And, according to my research, below is a large company who undergone downsizing for how many years now.Very Happy


Leningradskoye Optiko Mechanichesckoye Obyedinenie

Lenigrad Optical & Mechanical Enterprise

For more than 80 years LOMO has designed and manufactured optical devices for various applications. Beginning with its foundation in 1914 LOMO was largest optical device manufacturer for Russian Army. Times have changed and now LOMO works not only for military and space programs but also for science and industry and for the consumer products market.

This is situated in the city of St. Petersburg – well-known Russian scientific and cultural center, the most westernized in Russia. The staff of LOMO consists of highly professional designers and workers with wide experience – 8,500 strong. The company downsized from 34,000 within the last ten years as a result of changes in production structure.

All of these changes have given LOMO the advantage to be competitive with other high-end optical manufacturers worldwide.

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PostSubject: AmeriQuest downsized   Sat Jun 28, 2008 2:31 pm


Ameriquest Mortage offers home loans and home equity loans to customers with less-than-perfect credit.

Ameriquest Mortgage had closed 229 branch offices, and laid 3,800 employees off in Arizona and in other states. The California based company has operated in the mortgage lending business since 1980.

The main reason for downsizing:

Arrow company's decision to shift toward a business model that emphasizes Internet and phone service over sales associates.
Arrow managers believe that this will help them to cope better with the rising interest rates and decreases in mortgage lending.

On my observation(since the article didn't mention their process of downsizing), they have undergone with this processes during the downsizing:

Like a Star @ heaven Decide which branch will be closed as well as the employees that will be laid off
Like a Star @ heaven When will be the notice be given
Like a Star @ heaven Amount of severance pay
Like a Star @ heaven Help the laid-off employee find another job

Ameriquest Mortgage said that they are moving strategically and decisively to remain a leader in an industry that was undergoing fundamental changes.

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PostSubject: Re: Assignment 3 (Due: before June 29, 2008, 13:00hrs)   Sat Jun 28, 2008 2:58 pm


In a business enterprise, downsizing is reducing the number of employees on the operating payroll. Some users distinguish downsizing from a layoff , with downsizing intended to be a permanent downscaling and a layoff intended to be a temporary downscaling in which employees may later be rehired. Businesses use several techniques in downsizing, including providing incentives to take early retirement and transfer to subsidiary companies, but the most common technique is to simply terminate the employment of a certain number of people.

-------------------------------this is not purely from the internet but from an experience------

i cant remember when, but way back 1990's my uncle was an employee from the universal Robina corporation.
i dont even know how many of them but several of them were cut-off from the payroll of URC. they were once a part of the downsizing of the said company. surprisingly, i was not only him and his fellow workers with the same rank but also hiss very own boss who ia also a family friend.
as far as i can remember they where removed from the company for some reasons about finance, or somehow there are to many people enlisted in the companies payroll. and after that they were replaced with new workers.

i've been looking for an article about this in the internet but unfortunately i found nothing. there are some but the infos are too poor.
im not so sure about the reason of the companies downsizing but im sure my uncle was a part of it. Mad
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PostSubject: Yahoo Downsizing in the United States   Sat Jun 28, 2008 3:01 pm

Yahoo Downsizing in the United States

Downsizing at Yahoo have been doing the rounds since Terry Semel (former CEO since 2001) left Yahoo last June 2007. Co-founder Jerry Yang, the interim CEO, no doubt would like to save as many jobs as possible. He has promised to focus on three objectives:
1. Becoming a starting point for consumers on the Web;
2. Making the company a top choice for marketers seeking to place ads on sites across the Web;
3. And opening Yahoo’s technology infrastructure to third-party programmers and publishers.

Cause of downsizing:
* To reduce costs and narrow its focus to its most important businesses
* Yahoo shares fell more than 10 percent, to levels of more than three years ago.
* Yahoo was planning to expand its base in India.

Yahoo has begun narrowing the focus of its portal on a few key areas, including its front page, the personalized home page service MyYahoo, search, mail, and properties like news, finance and sports. Improvements to those services have led to double-digit increases in visits to Yahoo.
Yahoo said that it renegotiated and expanded a lucrative partnership with AT&T. Instead of receiving fees for each broadband customer AT&T signs up, Yahoo will share search and display advertising revenue with AT&T. Under the four-year deal, Yahoo’s search technology will also be available to AT&T’s cellphone customers.
The deal will result in upfront payments from AT&T to Yahoo for $300 million to $400 million, which will be recognized over the length of the agreement
Yahoo’s decision to purge 1000 staff members primarily from its United States operations (some in Europe) has been hot news this year. But, when the announcement was made was that Yahoo was planning to expand its base in India.
Yahoo is establishing a new lab in Bangalore with a focus on long-term research. The lab will be “a center of excellence for next generation search and advertising technologies, focused on making the Web more relevant and simple for users and advertisers.”
According to the Washington Post, the new lab will be headed by Rajeev Rastogi (previously the head of Bell Labs India) and will hire “sociologists, micro-economists, and computational scientists among other categories of staff for the lab.” The exact number of employees the new lab will hire was not disclosed, however the figure is believed to be in excess of 500 people.

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PostSubject: downsizing...   Sat Jun 28, 2008 3:04 pm

Teleperformance EDSA IT Center 2 in Mandaluyong City has downsized its work force and is transferring 300 employees to the other call center sites in the country.

The reason of this is the company was doing "staff adjustments" after they found out that its technical support accounts reported less calls than previously estimated, the other reason is that a client ditched the local unit of the Utah-based firm.

Teleperformance Philippines Managing Director David Rizzo guaranteed that Teleperformance EDSA employees would keep their jobs. People who are laid off are those who violated company policies and have performance issue.

The 200 employees will be transferred to the new 7,000-square-meter site in Sucat Road, Paranaque City and the remaining 100 agents have three other locations to choose from.

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PostSubject: hr downsizing   Sat Jun 28, 2008 3:34 pm

DOWNSIZING Exclamation
*A downsizing strategy reduces the scale (size) and scope of a business to improve its financial performance.
*A reduction of the workforce is one of only several possible ways of improving profitability or reducing costs.

Call it layoffs, downsizing, early retirement or "corporate rightsizing." It's no secret that pressures to improve profit levels have turned massive workforce reductions into a way of life for many companies. But with this recent trend has come concern and a demand for higher levels of assistance to discharged workers. Companies have explored many different downsizing options, but one pharmaceutical firm has unique solution to this often difficult situation that should be of interest to HR professionals caught in the corporate rightsizing struggle.*

And this company is the Warner-Lambert in which in 2000, Warner-Lambert merged with Pfizer, bringing together two of the fastest-growing companies in the pharmaceutical industry and adding to Pfizer's global strengths and rich heritage. Pfizer Incorporated is a major pharmaceutical company, which ranks number one in the world in sales. With Warner-Lambert, Pfizer gained product lines ranging from Parke-Davis branded pharmaceuticals to Listerine mouthwash to Schick and Wilkinson Sword wet-shave products.

*** Surprised Last year, as part of a worldwide restructuring effort, Warner Lambert's New Jersey corporate headquarters eliminated several secretarial and administrative assistant positions. The result was displaced employees whose skills were in high demand elsewhere throughout the immediate geographical area. Rather than losing these valuable workers to competitors or outside placement agencies, Warner-Lambert developed a program that meets the economic needs of both the organization and the displaced employees.

When the downsizing effort began in December 1991, the company established an in-house Temporary Secretarial Department (TSD). Similar to a temporary employment agency, secretaries and administrative assistants who had met acceptable performance standards registered with the TSD by filling out forms listing their various skills. As departmental managers had temporary job openings due to sickness or vacation leaves, they were required to fill the opening through the TSD. Management could only use an outside agency if an in-house temp was unavailable.

"It's really worked out well for everyone concerned," says Mary Gebhard, Corporate Human Resource Representative and head of the TSD at Warner-Lambert. "I match the appropriate person to each opening as it comes up, depending on the skills that are needed, We charge back each department using a temp at a much less expensive rate than they would get from an outside agency, which tacks on a service charge. And our colleagues are happy, since they are employed at the same salary that they were getting before the downsizing began, including full benefits."

Because of the TSD, displaced workers have been able to retain their income and receive training to learn a new skill or to enhance an old one, while still pursuing permanent employment either within the company or outside of it. Employees not out on temporary assignment are kept busy by a constant flow of word processing work.

"We've also offered all colleagues in the Temporary Secretarial Department an opportunity to bid on any full time job openings within the company as they are posted," explains Gebhard. "And if they would like to retrain or learn a new word processing package in order to make themselves more marketable, they have the opportunity to do that as well."

But Gebhard is quick to point out the psychological toll of the downsizing. "At first, the impression among some of the temps was that some people within the company may not give them a fair shot at a permanent opening here. But after a while, they realized that we were serious and we really valued their work."

To help counter any trauma caused by the downsizing, Warner Lambert set up an Employee Assistance Program support group for the displaced workers. "It's really helped them knowing that they could go and talk with others who were in the same position," says Gebhard. "The company also set up a secretarial savvy course that covered skills like networking and resume writing."

Over 50 employees have been in the TSD and to date only 14 remain, says Gebhard. All the others who sought a full time job within the corporation have been placed. Originally scheduled to end June 30, the program has been such a success that it was extended through the summer to give workers an extra three months to find an opportunity.

"It's really been a wonderful answer to what could have been a very sticky problem for our corporation," says Gebhard.

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John Cesar E. Manlangit

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PostSubject: HR Downsizing   Sat Jun 28, 2008 3:51 pm

In a business enterprise, downsizing is reducing the number of employees on the operating payroll. Someusers distinguish downsizing from a layoff , with downsizing intended to be a permanent downscaling and a layoff intended to be a temporary downscaling in which employees may later be rehired.
One corporation has undergone downsizing because it wants to undergo restructuring. And that is Borland Software Corporation.
Borland Software Corporation had undergone a restructuring program to accelerate its Software Delivery Optimization vision by more closely aligning the Company's investments with its strategic focus on the Application Lifecycle Management market. The restucturing took place last May 2006.
Borland reduced its workforce by approximately 300 employees, or about 20 percent of its regular full-time staff. The majority of staff reductions came from the re-scoping of Borland's international operations. Upon completion of the workforce reduction, geographic consolidation, and planned divestiture of its Developer Tools Group, Borland anticipated annualized cost savings of approximately $60 million.

Specific Structural Changes Include:

  • New Field Operations Function. Borland has combined its Sales and Professional Services functions to create a new Field Operations function. The new field structure is intended to reflect how Borland's most successful customers are approaching their ALM engagements - by enabling skills training and consulting early in the project where benchmarking and process expertise are more likely to ensure a successful outcome from a technology purchase.
  • Customer Support Combined with Research and Development. Borland has folded Customer Support into Research and Development in order to ensure better customer responsiveness, and create a tighter feedback loop between product engineering and customers. This combined organization will focus on improving quality, efficiency and customer focus across Borland's product portfolio.
  • New Business Operations Function. Borland has created a new Business Operations function that will focus on aligning internal processes and systems toward serving customers. Reporting directly to CEO Tod Nielsen, this new function will be led by Borland senior vice president, Chris Barbin.
  • New Vice President of EMEA. Paul Taylor, formerly head of World Wide Sales at Vitria, has been appointed vice president of Borland EMEA. Taylor is responsible for serving customers and developing business across EMEA with a primary focus on Germany, the United Kingdom and France.

The majority of Borland's planned workforce reductions are part of a plan to re-scope its international operations, which currently serves 29 countries.


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venus s. millena


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PostSubject: assignment 3   Sat Jun 28, 2008 4:25 pm

Alcan Incorporation

What is Downsizing?confused confused
Exclamation Downsizing is a commonly used euphemism which refers to reducing the overall size and operating costs of a company, most directly through a reduction in the total number of employees.

Company undergone Downsizing:What a Face

sunny Actually many big companies are undergone downsizing, one of these is the ALCAN INC.. Rio Tinto Alcan Inc. is Canada's largest aluminum company and the world's third largest, behind its former parent Alcoa (from which it split in 1928) and Rusal (however Alcan is largest by sales).


According to Travis Engen, President and Chief Executive Officer of Alcan Inc.

1. Restructuring is necessary to ensure Alcan’s competitiveness in the marketplace and to create favorable conditions for future growth and expansion.
2.Maintaining competitiveness is the best insurance for long term sustainable employment.

The proposed restructuring effort would include:

* the downsizing of four sites: Laffon in Italy, Kolin in the Czech Republic, Froges (pharmaceutical workshop) in France and Alcan Mass Transportation Systems (AMTS) business unit in Zurich, Switzerland;
* two potential sales: Mercus and Froges (high purity business) in France;
* three plant closures: Flemalle in Belgium, Cruseilles in France, Garbagnate in Italy.

In these restructuring cause the downsizing of jobs resulting to reduction of employees .In Europe, there will be a proposed reduction of approximately 520 jobs. If there is reduction, there is also an expected creation of 40 new jobs in France and Switzerland, as well as other additional jobs in Italy. Alcan presently employs 46,000 people in Europe.

Posted November 26th, 2004

Reference: http://www.azom.com/news.asp?newsID=2346
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PostSubject: Company undergone HR downsizing   Sat Jun 28, 2008 5:09 pm

flower Layoffs loom at NBC Uni
Idea Downsizing or layoff is the temporary suspension or permanent termination of employment of an employee or (more commonly) a group of employees for business reasons, such as the decision that certain positions are no longer necessary or a business slow-down or interruption in work.

Idea NBC Universal rolled out Thursday a wide-sweeping series of changes and cuts designed to reduce about $750 million from the company by the end of 2008 under its NBCU 2.0 program announced earlier this year.

Idea The restructuring, long rumored, will reduce NBC Universal's work force by about 700 positions, 5% of the work force. It wasn't immediately clear where the jobs would cut or whether there would be layoffs, buyouts or jobs left unfilled.

Idea Among the moves NBC Uni said it would make are the moving of MSNBC's headquarters from Secaucus, N.J., to 30 Rockefeller Center in midtown Manhattan where the rest of the NBC News operation is located; a consolidated news operation in Burbank that will include NBC, Telemundo, KNBC, KVEA and KWHY; and what the company called the strategic realignment of domestic theatrical, home entertainment and television marketing and distribution divisions. There will be other consolidations at Universal Studios as well.

Idea NBC Uni executives have said that the 2.0 changes were needed to deal with the shifting media landscape and to maximize digital revenues.

Idea "NBC Universal 2.0 will prepare us for future growth from a position of strength," NBC Universal CEO Jeff Zucker said in a prepared statement. "With new momentum in prime time at NBC, continued leadership from NBC News, real growth at Telemundo, and solid performances in virtually every other division of our Television Group, there is no better time to re-engineer the company for the revolutionary changes to come."

Idea Sources cautioned that the cuts are not expected to be implemented Thursday but rather that there will be a discussion of the approach the company intends to take over the long term. Reps for NBC Uni TV Group declined comment late Wednesday.The NBC News operation is said to be eyed for significant reductions as NBC Uni moves toward centralizing newsgathering and production operations throughout the company.Also located in Secaucus is Weather Plus, the joint venture between NBC and its affiliates, providing a digital competitor to the Weather Channel, and NBC's national and international news desks. The move would reunite the news desks with the rest of the NBC News operation at 30 Rockefeller Center.

Idea Some layoffs also are expected to affect NBC's entertainment division, which could face a reorganization in an effort to realign its programming and production operations to be more attuned to producing a wider range of content for platforms beyond the NBC broadcast network and cable outlets including USA Network, Sci Fi Channel and Bravo.

Idea While parent company General Electric signaled last week that NBC Uni will report a profit increase during the fourth quarter, the division reported a 10% decline in third-quarter earnings. NBC has been mired in fourth place among the broadcast networks for the past two years in key demographics, though it has perked up one month into the new TV season, with primetime ratings up 9% in the 18-49 demographic. The NBC broadcast network claims the sleeper hit of the season so far in the rookie drama "Heroes," which has performed well for the network on Monday nights.

Idea Two other units likely to face significant cuts are Telemundo, the Spanish-language network NBC acquired in 2001, and NBC News Channel, the Charlotte, N.C.-based unit of NBC News managed under a cooperative agreement with NBC affiliates. The branch produces hundreds of news stories each day to NBC's local stations, cable channels, foreign broadcasters and other news organizations. There also could be consolidation of news bureaus nationwide.

Idea NBC has been in belt-tightening mode for at least a year, cutting costs as is the fiscal style of GE under its famed Sigma Six strategy (HR 8/16/05).
The cuts might be the steepest that NBC has experienced since 2001, when the company shed about 560 jobs, or 10% of its work force. NBC completed its merger with Universal Studios in 2004.
@ Reference: http://www.hollywoodreporter.com/hr/search/article_display.jsp?vnu_content_id=1003285113
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Jerusalem M. Alvaira

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PostSubject: Assignment # 3   Sat Jun 28, 2008 6:08 pm

Downsizing is a commonly used euphemism which refers to reducing the overall size and operating costs of a company, most directly through a reduction in the total number of employees. When the market is tight, downsizingdownsizingdownsizing is extremely common, as companies fight to survive in a hostile climate while competing with other companies in the same sector. For employees, downsizing can be very unnerving and upsetting.

We really cannot deny the fact that a lot of companies are downsizing their workforce in order for them to gain profit. Sometimes, downsizing is the last resort to save the company. BMW is an example of a company that has downsized it's workkforce several times.


Due to meager sales of the newly released models and economic decline, BMW laid off 600 of its employees due to economic decline shrinking motorcycle production from 23,531 in 1955 to 15,500 in '56. With warehouse surplus for the bigger machines growing and the oil shortage caused by the Suez Crisis compounding matters, BMW shifts its focus to fuel-efficient machines.

Now in 2008:

Thousands Of BMW Workers Temporarily Laid Off
LONDON -- Unite members at BMW in Cowley have temporarily been laid-off because of Spanish fuel protests.
3,000 workers at the site in Oxfordshire were sent home on full pay on Friday 13th June, in line with the Working Time Account when production ground to a halt after component parts they rely on could not be shipped from the continent.

The Working Time Account allows members to bank hours and also in situations like these they can go in to deficit. Contractually they can owe up to 200 hours but must pay these hours back to BMW at a later stage.

"Although our members are getting paid this is a very frustrating situation for them. No one wants to owe hours as they will have to make these up,” said Ray Dillon, Unite Regional Official.
"This proves that relying on shipments of parts from abroad is risky and that moving manufacturing to Europe to save money does not always pay off," he continued.

Production staff were turning out 49 cars per hour. BMW has lost 45 hours of production and in excess of 2,000 cars this weekend.
The shipment Cowley is waiting on contains rear lights and brake pads.

(company website)

Last edited by Jerusalem M. Alvaira on Sat Jun 28, 2008 6:31 pm; edited 1 time in total
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Fatima Paclibar


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PostSubject: Re: Assignment 3 (Due: before June 29, 2008, 13:00hrs)   Sat Jun 28, 2008 6:30 pm


• Downsizing or doing layoffs is a toxic solution. Used sparingly and with planning downsizing can be an organizational lifesaver, but when layoffs are used repeatedly without a thoughtful strategy, downsizing can destroy an organization's effectiveness. How you treat people really matters - to the people who leave and the people who remain.
• One outcome of downsizing must be to preserve the organization's intellectual capital.
• How downsized employees are treated directly affects the morale and retention of valued, high-performing employees who are not downsized.
• Downsizing should never be used as a communication to financial centers or investors of the new management's tough-minded, no-nonsense style of management -- the cost of downsizing far outweighs any benefits thus gained.

Electronics giant Toshiba, hit by the collapse in computer chip prices, is to axe 18,800 jobs.

The firm, Japan's largest chipmaker, has confirmed media reports that it is to cut its global workforce by 10%. Toshiba is also exploring a tie-up with European rival Infineon, which has reported a slump of almost two thirds in profits at its memory chip division.

The moves provide further evidence of the difficulties besetting Japan's tech sector, still reeling from the announcement a week ago that Fujitsu was cutting 16,400 posts. Hitachi, Japan's largest electronics manufacturer is also considering cutting 20,000 posts, a report by a Japanese newspaper said on Sunday.

Hitachi on Monday confirmed it was to cut 800 jobs by March at its electronic materials and household chemicals unit, Hitachi Chemical, with news of more widespread cuts not expected for a fortnight.
Toshiba blamed the job losses, which will be enacted by March 2004, on the deteriorating business climate, which has affected firms in technology sectors particularly badly.

"The dramatic economic slowdown that began in the US at the end of 2000 is becoming a global phenomenon that has undermined worldwide demand for IT," the firm said in a statement. The majority of jobs culled - about 17,000 - will go from operations in Japan, where six of 21 factories will be closed.
A further 10,000 staff will be encouraged to shift posts within the group.

"With this action plan we want to regenerate the company," company president Tadashi Okamura said.



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karl philip abregana


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PostSubject: ASSIGNMENT 3   Sat Jun 28, 2008 7:34 pm


The main idea behind outsourcing has always been, If you’re not good at it, outsource it. Find a vendor who specializes in it. If you’d rather not be bothered by trivial—read: noncore—processes such as benefits and payroll; recruitment, training, and performance evaluation; then maybe you should consider human resource (HR) outsourcing.

The human resource department, contrary to what most people think, is not merely a central database of information and statistics. Neither is its main function merely to convert this database into reports of employee performance. Human resource involves attracting, retaining, and developing a company’s main asset: its employees and their knowledge.

Why Outsize?

Outsizing reduces the need for large capital expenditures on noncore functions, among which is HR. This has gained popularity as companies aim to gain speed and flexibility needed to compete in today’s business environment. Companies need not invest capital to maintain and upgrade HR systems and infrastructure as this is left to the outsourcer.

Outsize to have the work done by experts. Companies that choose to outsource their HR functions prefer partners whose main business is in human resource management. Outsourcing allows for faster response time and convenient access to benefits and other HR data.

Outsource to access and maintain critical expertise. High-quality HR delivery means specialized HR knowledge. HR tasks are becoming more complicated with the improvement of technology. Companies that have undergone corporate restructuring, mergers and acquisitions, or repeated downsizing may have dismantled HR functions and lost pertinent expertise.

The downsizing of Ford Motor Company

Contrary to popular wisdom, size does not matter. As big as you are, the rules and risks are the same. Large size does not guarantee survival. Another example of that fact was confirmed on Monday, 23rd January, 2006, Ford Motor Company announced its long awaited restructuring plan. Some 30000 jobs will go and about 14 plants will be shuttered. One of them is the Wixom facility, home of the Lincoln, a few miles from my home.

With the closure will come accusations, finger pointing and anger. Wixom is the largest manufacturing plant in the immediate area. The effects of its closure will be felt for miles around. One can only guess how many suppliers may also be shuttered, employees made redundant, restaurants and stores that will face closure as they lose business. The entire community will suffer. Metropolitan Detroit house prices were already flat and falling contrary to the general upward trend throughout the rest of America. Now, one can expect a glut of houses on the market as people try to leave the area, finance companies repossess property from families who cannot pay their mortgage, which is rising along with rising national interest rates.

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jade mijares


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PostSubject: Re: Assignment 3 (Due: before June 29, 2008, 13:00hrs)   Sat Jun 28, 2008 8:00 pm

Downsizing, retrenching, restructuring, and layoff are four different words that mean the same thing: termination of employment. Downsizing is usually done by companies to cut their expenditure. Their operational cost exceeds that of their profit or that their profit is too small due to labor costs thus laying-off employees would solve part of the problem. In the publication, “The Effects of Downsizing on Operating Performance”, by Chartered Financial Analyst (CFA) www.cfainstitute.org , downsizing improves the performance of the Company. Thus, downsizing definitely benefits the company and not the employees involved. Downsizing would mean more work for the employees that were retained by the company.

If you are interested in looking at the companies (in US) that downsized, http://www.jwtinside.com/hrlive/layoffs.php would be a good link to start with. The site links you to a database of all reported companies that downsized.

I performed a search of the most resent (June 27, 2008) layoffs and I got 57 instances of companies laying-off employees for one reason or another. I chose the first entry, General Motors Corp. General Motors was founded 1908 and is the worlds largest automaker. Its headquarters is located in Detroit. According to the company, the reason for downsizing was because of low consumer demands on some of their products, namely the pickup trucks and SUVs. This layoff would not of course happen instantaneously. The company filed a Worker Adjustment and Retaining Notification (WARN) to the proper authorities and for this instance: Department of Workforce and Development. The layoffs would begin around August 25 giving ample time for the workers to prepare for the worst. An estimated maximum of 100 employees would be affected. The company projects that come 2010 the plant would be closed to make way for the production of fuel efficient vehicles.[b]
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Marren Joy Pequiro


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PostSubject: Re: Assignment 3 (Due: before June 29, 2008, 13:00hrs)   Sat Jun 28, 2008 9:39 pm


is the act of reducing the number of employees within a company in order to decrease costs and increase efficiency, with the ultimate goal of greater profitability. Downsized companies either continue the same work functions with fewer employees or they decrease the scope of company wide activities. Downsizing in organizations is a popular management strategy. However, in the field of organization change, the question of whether downsizing practices eventually improve performance is frequently asked and is never satisfactorily answered. The consequences have not always materialized over these years. On the negative side, downsizing harms employees, their families, and at the same time causes social chaos. The possible answers could be the ignorance of some important mechanisms between them.

Last December 5, 2001 the BT Group as British Telecommunications has been renamed, eliminate 4,000 more jobs to cut costs. As the company faces increased competition and heightened regulatory scrutiny decided to layoff employees. All the new jobcuts are from the BT Retail division, which supplies telephone service to 21m customers in Britain. They bring the total number eliminated in the unit to 13,000 jobs, or 19% of its workforce, as part of a plan begun in March 2000 to trim $1.2B in costs over three years.

But the BT Group is not yet done with its downsizing because on March 28,2002.

The BT Group eliminated about 1,200 jobs at its BT Retail division by March 2004, as it closes 53 call centers. The job cuts are in addition to 13,000 staff reductions over three years announced in December. These job cuts that made by the BT Group have been planned and this layoffs done on March 28 are part of 5,000-6,000 reductions that BT have planned to made in 2002. The job cuts are through attrition or by relocating employees to other BT divisions.

BT has transformed itself in the last year from a company with global ambitions to one that is more focused on offering basic phone and Internet services in its home market...


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Sarah Jean Tisara


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PostSubject: Re: Assignment 3 (Due: before June 29, 2008, 13:00hrs)   Sun Jun 29, 2008 12:34 am

Downsizing- In a business enterprise, downsizing is reducing the number of employees on the operating payroll. Some users distinguish downsizing from a layoff , with downsizing intended to be a permanent downscaling and a layoff intended to be a temporary downscaling in which employees may later be rehired. Businesses use several techniques in downsizing, including providing incentives to take early retirement and transfer to subsidiary companies, but the most common technique is to simply terminate the employment of a certain number of people.

McClatchy Plans to Cut 1,400 Jobs, 10% of Workforce

June 16 (Bloomberg) -- McClatchy Co., owner of the Miami Herald and 29 other daily newspapers, will cut about 1,400 jobs, or 10 percent of its workforce, to save $70 million annually after a record drop in industrywide advertising sales.
The reductions are part of a plan to cut costs as much as $100 million in the next four quarters, Sacramento-based McClatchy said today in a statement. The Miami Herald plans to eliminate 250 positions, or 17 percent of its staff, and the Charlotte Observer will cut 123 positions, or 11 percent, the newspapers reported.
Tribune Co. and New York Times Co. have also reduced staff to save money as companies that historically advertised in newspapers shift their spending to the Internet. Newspaper print ad sales slumped 14 percent in the first quarter, the most on record, the Newspaper Association of America said June 13.

Causes of downsizing:
Idea Ad sales at McClatchy, which also publishes the Sacramento Bee, fell 17 percent in May after a 15 percent decline in the first quarter.
Idea The company was hurt by the housing market slump in California and Florida, where it owns eight daily newspapers.
Idea McClatchy fell 11 cents to $8.04 at 4:01 p.m. in New York Stock Exchange composite trading. The shares have declined 36 percent this year.
Idea The stock has lost 84 percent of its value since the company announced plans in March 2006 to acquire Knight Ridder Inc., the second-largest U.S. newspaper chain at the time, for $4.1 billion.

The job cuts will come through attrition, employee buyouts and firings.

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Ida Karla Duguran


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PostSubject: Re: Assignment 3 (Due: before June 29, 2008, 13:00hrs)   Sun Jun 29, 2008 12:47 am

♪ Microsoft To Downsize Training Division ♪
by The Associated Press
June 23, 2006

Microsoft Corp. is eliminating 14 jobs in its Microsoft Learning division, and will instead have an outside vendor perform that work.

The jobs are being cut because the company decided to consolidate the work under the outside vendor, which had previously shared those duties with the in-house workers, Microsoft spokesman Lou Gellos said Thursday.

Microsoft Learning, which employs more than 300 people, is the division of Microsoft that provides training on how to use and implement its products, including offering classes, books and certification resources.

The eliminated jobs were in the production part of the unit, which produces manuals and other technical books about Microsoft products.

Gellos said the jobs were eliminated amid a broader restructuring of Microsoft Learning, which also saw some jobs shifted elsewhere in the company.

In May, Microsoft told about 1,000 technology contract workers to take seven days off, without Microsoft pay, because the company wanted to save money.

In February, the company said it planned to spend about $1 billion over the next three years to expand its sprawling Redmond corporate campus by about one-third, to accommodate new and existing workers.

Last year, it also said it planned to nearly double its work force in India over the next four years.

~~> Idea this site gives you full infomation on HOW DOWNSIZING WORKS.. this surely satisfies you on your queries regarding the process of downsizing.

king Visit my blog for your comments.. king
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PostSubject: Re: Assignment 3 (Due: before June 29, 2008, 13:00hrs)   Sun Jun 29, 2008 8:31 am

Hewlett-Packard (HP) incorporated is one of the popular company nowadays. It started on 1939 and it was owned by Bill Hewlett and Dave Packard. In 1979, they had 52,000 employees and produce more than 4,000 products.

In 1980's, they'd encountered problems and as their solution they applied downsizing. Downsizing means letting go of worker, layoff or redeployment. The causes of HP's human resource were their company structure was decentralized organization, no firm business policies, increasing debt, new companies were rising and declining of profits. And the effect of the downsizing was that, because workers decreased in number, the remaining workers will be too pressured because of the works left.

To stay on the business and to bring back their employees they reconstructed the organization from decentralized to centralized. They trained their employees to have the five values of the HP way 1) trust and respect individuals; 2) continually focus on achievement and good contribution; 3) conduct HP business with integrity at all times; 4) strive to use teamwork when achieving objectives; and 5) use flexibility and innovation in all processes at the firm. The employees developed their teamwork to accomplish their tasks properly with the contribution of the other workers. They made some divisions to their company, to have an easier assessment on the development of the company. They don't pressure and stress their workers on making some projects, instead they allow their employees to rest in the right time. And lastly, they have employment security policy by giving benefits and payments to those who will be redeployed.

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Jan Neil Gador


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PostSubject: Downsizing   Sun Jun 29, 2008 11:45 am

In a business enterprise, downsizing is the reducing of the number of employees on the operating payroll.
Downsizing also distinguished from a layoff, where downsizing is the permanent downscaling of employees and
a layoff is the temporary downscaling of employees where they can be rehired.

An example of a company that has undergone downsizing is MCI. Last June of 2004, the company has eliminated
2,000 U.S. sales jobs as part of a cost-cutting effort in the face of increasing competition, declining revenue and greater
reliance by consumers on e-mail. After the latest series of job cuts, the MCI workforce has dropped to 40,000 from its
its 56,000 workforce.

The MCI spokesman Peter Lucht said that the layoffs were necessary because of "realities in the telecommunications
marketplace, including federal legislation that has resulted in 62 million people joining the 'Do Not Call' list . . .
and increasing use of e-mail."

MCI announced job cuts of 1,700 in January; 4,000 in March; and 7,500 in May. The company said in May that it lost $388
million during the first quarter of this year, compared with a profit of $52 million in the first quarter of 2003. MCI reported
revenue of $6.3 billion in the first quarter, compared with $7.2 billion in the first quarter last year, a 12.5 percent decline.

The cause of the downsizing was the increasing competition, declining revenue and greater reliance by consumers on e-mail.
The downsizing was also not surprising because other local phone companies are being very aggressive in taking significant
market share away from MCI and AT&T. - F. Drake Johnstone

online sources:

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Tanya Clarissa G. Amancio


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PostSubject: Re: Assignment 3 (Due: before June 29, 2008, 13:00hrs)   Sun Jun 29, 2008 11:50 am

What is downsizing? Question Question

--In a business enterprise, downsizing is reducing the number of employees on the operating payroll. Some users distinguish downsizing from a layoff , with downsizing intended to be a permanent downscaling and a layoff intended to be a temporary downscaling in which employees may later be rehired.

--AT&T Downsizing Jeopardizes Quality Service, CWA Charges --

==April 30, 1999

----The Communications Workers of America is in discussion with AT&T over the proposed downsizing of 2,400 to 3,000 technicians who maintain the AT&T network nationwide.

----The company has made no public announcement and CWA currently has not been given details about exact locations and jobs to be affected. Discussions, however, are continuing.

----AT&T's move seriously jeopardizes service and puts the integrity of the network at risk, said CWA Vice President Jim Irvine, who is responsible for CWA's day-to-day operations with AT&T.

----AT&T is talking about eliminating half, or more, of the skilled technicians who maintain and monitor the AT&T network nationwide. Clearly, losing this many skilled employees will have a detrimental impact on quality service. AT&T already has cut its workforce to the bone. Now it proposes getting rid of the very people responsible for AT&T's reputation for quality and for generating a 39 percent increase in first-quarter profits this year.

----When AT&T purchased cable giant Tele-Communications Inc., we hoped that AT&T would elevate the inferior quality of the cable companies. What we didn't expect is that AT&T instead would lower its own standards as it continues to invest tens of billions of dollars in an effort to dominate that industry.

----But that's exactly what's happening. By cutting the jobs of the skilled employees responsible for the high quality service customers have come to expect, AT&T is degrading the quality of its network, the morale of its employees, and above all, a reputation that made it among the most profitable companies in the industry."




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roy laurentino cuevas


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PostSubject: Re: Assignment 3 (Due: before June 29, 2008, 13:00hrs)   Sun Jun 29, 2008 12:20 pm

First,the definition of downsizing:
In a business enterprise, downsizing is reducing the number of employees on the operating payroll. Some users distinguish downsizing from a layoff , with downsizing intended to be a permanent downscaling and a layoff intended to be a temporary downscaling in which employees may later be rehired. Businesses use several techniques in downsizing, including providing incentives to take early retirement and transfer to subsidiary companies, but the most common technique is to simply terminate the employment of a certain number of people.

Why do Firms Downsize?
Downsizings began as the strategy of sickly corporations shedding workers in the face of weak demand, but soon, strong firms looking to boost shareholder value even further adopted the policy. Downsizing will be examined as a strategic option that management can exercise in order to boost equity value. Downsizing will be presented as a macro-economic phenomenon, having an impact on inflation, and therefore the rate at which stock prices are discounted and valued.

Here is an article that contains a company that has undergone downsizing:

"In recent news, Ameriquest Mortgage had closed 229 branch offices, and laid 3,800 employees off in Arizona and in other states (Business Journal, May 3rd, 2006). The California based company has operated in the mortgage lending business since 1980. It offers home loans and home equity loans to customers with less-than-perfect credit. The main reason for downsizing was the company's decision to shift toward a business model that emphasizes Internet and phone service over sales associates. The managers believe that this will help them to cope better with the rising interest rates and decreases in mortgage lending. Aseem Mital, the chief executive of the Ameriquest, announced that the company was moving strategically and decisively to remain a leader in an industry that was undergoing fundamental changes."




It would be better if you could comment at:
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March Dawn Eder


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PostSubject: Re: Assignment 3 (Due: before June 29, 2008, 13:00hrs)   Sun Jun 29, 2008 12:55 pm

Arrow Downsizing is a commonly used euphemism which refers to reducing the overall size and operating costs of a company, most directly through a reduction in the total number of employees. When the market is tight, downsizing is extremely common, as companies fight to survive in a hostile climate while competing with other companies in the same sector.

Arrow Circuit City Group has undergone downsizing in order to streamline responsibilities, reduce field leadership costs, improve communication and provide clear lines of accountability with a minimal impact on headcount.

Arrow Circuit City laid off 3,400 of its highest-paid sales associates
last month and may put its Canadian operation on the auction block as part of an ongoing restructuring aimed at lowering costs and improving its financial performance.

Arrow They had laid off their highest paid sales associates and hired new employees who will be compensated at the current market range for those jobs.

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PostSubject: Re: Assignment 3 (Due: before June 29, 2008, 13:00hrs)   Sun Jun 29, 2008 2:00 pm

What is Dowsizing? Question Question
Downsizing is a commonly used euphemism which refers to reducing the overall size and operating costs of a company, most directly through a reduction in the total number of employees. When the market is tight, downsizing is extremely common, as companies fight to survive in a hostile climate while competing with other companies in the same sector. For employees, downsizing can be very unnerving and upsetting.

More than 400 companies have shut down while 2,000 others retrenched tens of thousands of workers due to economic difficulties last year.

A latest report of the Bureau of Labor and Employment Services (BLES) showed that the closures resulted in the permanent loss of jobs to 16,847 workers while retrenchments resulted in the lay-off of 30,022 workers.

The biggest casualties were reported by the manufacturing sector which accounted for 56.5 percent all closures and retrenchments last year.

Manufacturing companies that closed shop numbered 107 while 658 others cut down the number of their workers. Casualties reached 15,297.

Hardest hit segments of the manufacturing sector was the food and beverage industry which reported 98 companies going belly-up and 589 others resorting to retrenchments. It lost a total of 14,681 workers.

The top two industries that reported the biggest number of laid-off workers belonged to the export sector which had been vocal over a strong peso that undermined their ability to survive.

They had earlier reported closures and retrenchments but confirmation by a government was only made this week with the BLES report.

Manufacturers of equipment and apparatus were the second biggest victims with seven firms closing down and 37 others downsizing and accounting for 5,834 workers who lost jobs.

Third biggest sector hit by lay-off and closures was the garments industry. The industry reported 25 companies that closed and 57 others that retrenched workers. These firms accounted for 3,997 workers losing their jobs.

The services sector also reported a high rate of closures and retrenchments. It admitted to laying off 18,718 workers with the closure of 288 establishments and retrenchment made by 1,305 others. Retail trade and real estate firms topped the list of casualties.

Cause of downsizing:
Exclamation The primary reason is to make the daily operations of a business more efficient.
Exclamation In some cases, it becomes apparent that a business has too many employees.
Exclamation Because there has been a decline in demand for the company's services, or because a company is running more smoothly and efficiently than it once was.

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michelle adlawan


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PostSubject: Re: Assignment 3 (Due: before June 29, 2008, 13:00hrs)   Sun Jun 29, 2008 5:23 pm

Downsizing is a reduction of employees in a company. It is said as an economic treatment for a company who has been experiencing the need to change employees or to gain profitable benefits in a company who is trimming down in the industry.

Eastman Kodak is a company that provides imaging technology products and services to the photographic and graphic communications markets. Its products are digital cameras and accessories; consumer inkjet printers and media; digital picture frames; retail printing kiosks and related media; online imaging services; prepress equipment and consumables; workflow software for commercial printing; electro photographic equipment and consumables; inkjet printing systems; document scanners; origination and print films for the entertainment industry; consumer and professional photographic film; photographic paper and processing chemicals, and wholesale photofinishing services.

Last September, 1997, the said company was looking for ways to arrest the downward spiral of its profits. It decided to cut its employees from the senior and middle management positions worldwide. This is for the purpose of the company to get itself back in the fighting trim.

Reasons of Downsizing:
* Sliding profits and steadily losing market share in Kodak’s mainstay conventional film and paper business to Fuji Photo Film (its rival in the industry), which has been undercutting Kodak's prices.
* To keep the company competitive with other makers of film and photographic products
* To save $1 billion in the next two years through the job reductions

The announcement, made in a letter to employees from Kodak's chief executive, George M. C. Fisher, and its president, Daniel A. Carp, was the first concrete indication of the company to get back its profits. Kodak had raised its job-cut since the month of its announcement of downsizing until the month of December, 1997. The announcement was released in the press in the Kodak's headquarters town, where the struggling photography giant had already given termination notices to more than 3,000 people, a figure that was then reached 6,000 or more.
The reduction was made on a unit-by-unit basis and its announcements was made between now and the end of the first quarter of next year.

Though Kodak had made the biggest layoff announcement ever in the history of American companies by that year, it’s philanthropic and research financing had made many its workers and retirees have large portions of their investments tied up in the company. During and after the company’s downsizing, began an all-out attempt to raise the morale of workers. They’ve given them options in order for employees to move on from being laid off.

Kodak announced that it would give each of its 90,000 non management employees a one-time grant of options to buy 100 shares of Kodak stock, priced at the average price on April 2. The options vest in two years.

Researchers said that reduction of jobs in the company was a good start, but they have to do a lot more to quantify how they will restructure their whole overhead situation.

Downsizing is not the only weapon in Kodak's cost-cutting arsenal: the company will also pare $150 million off its research budget. And, it is looking at outsourcing, partnerships and various consolidations of operations to squeeze costs out of its manufacturing processes. They intended to take significant amounts of cost out of the cost of goods, according to Kodak’s president Daniel A. Carp.

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kathy kay feranil


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PostSubject: Re: Assignment 3 (Due: before June 29, 2008, 13:00hrs)   Sun Jun 29, 2008 8:34 pm

bounce bounce bounce
Downsizing is a commonly used euphemism which refers to reducing the overall size and operating costs of a company, most directly through a reduction in the total number of employees. When the market is tight, downsizing is extremely common, as companies fight to survive in a hostile climate while competing with other companies in the same sector. And one of those companies that undergone downsizing is the Siemens Mobile Company. Last July 30, 2003, the Siemens decided to downsize. Their main reason is that they intend to take steps to increase their productivity because the company’s sustained weakness of the market. That means cost cuts, and involves getting rid of 2,300 employees - 500 of them in Germany - by the end of the firm's financial next year in September 2004. No details were available of where else jobs would be going. The layoffs are part of a $1.1bn cost cutting package. Some 2,000 jobs have already gone in each of the past two years, leaving a
current workforce of about 28,000.
bounce bounce bounce
Siemens said it was making the job cuts as part of responsible long term planning. "The world market for mobile communication networks had already declined by 15% last year. This year, the market will contract by up to 20%," Siemens said . Futhermore, while sales of mobile phones continue to grow, they are doing so more slowly, Siemens said. Mobile phone makers worldwide have had trouble with a market that is moving from fresh users to upgrades of existing subscribers' phones, and have also suffered as operators concentrate more on sweating more money out of existing customers than on signing up new ones.The combination means an overall market shrinkage which could reach 20% this year. Siemens' mobile phone business ranks in the world's top four, but it has been struggling with price cuts and competition from Asian manufacturers. Its chief executive, Heinrich von Pierer, has also acknowledged that it has lacked attractive new handsets in comparison to rivals such as Motorola, Samsung and Nokia. As well as handsets, it makes network infrastructure for mobile telecoms providers. In that sector, like its competitors,
it faces a shrinking market. Rolling Eyes Rolling Eyes Rolling Eyes

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Jethro Querubin

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Age : 30

PostSubject: Hundreds of Layoffs Expected at Yahoo   Sun Jun 29, 2008 11:36 pm

Lay off or downsizing - Downsizing is reducing your company’s workforce. The purpose of downsizing is to make your business more profitable and more cost-effective. Essentially you can use this important tool to change the course of your business strategy.

For you to call an exercise 'downsizing', it usually involves laying off three or more workers. Please don't use 'downsizing' as an excuse for firing problem employees, or creating a culture change in the organization by replacing old workers with new ones. These are different circumstances usually involving problem employees. In these situations, it is more efficient to counsel individual employees about their expected standards of behavior, and how they have acted wrongly. Remember people have their own personalities and it is usually better to deal with them on a case-by-case basis.

On the other hand, employees that are 'downsized' lose their jobs for reasons that are no fault of their own. Either the business environment has changed or the company itself is undergoing financial stress. Downsizing then becomes necessary to refocus the company on just those core business areas making money.

reference: http://www.downsizinghelpforemployers.com/

SAN FRANCISCO — Yahoo is planning to lay off hundreds of employees in an effort to increase its profitability, prop up its deflated stock price and narrow the focus of its sprawling Internet portal to a smaller number of crucial areas, people close to the company said Monday.

The final number of layoffs from Yahoo’s work force of about 14,000 is yet to be determined and is likely to be announced around the end of the month, perhaps during Yahoo’s conference call on Jan. 29 with analysts after it reports fourth-quarter results, these people said.

Company executives are still trying to determine exactly which areas will be cut. One person close to the discussions said a final plan, or perhaps a few alternative plans, would be submitted to the board at a coming meeting. The plan’s final shape may be influenced by the company’s fourth-quarter performance, this person said.

Yahoo declined to comment specifically on any plan for layoffs. In an e-mail statement, a company spokeswoman, Diana Wong, said: “Yahoo plans to invest in some areas, reduce emphasis in others, and eliminate some areas of the business that don’t support the company’s priorities. Yahoo continues to attract and hire talent against the company’s key initiatives to create long-term stockholder value.”

The statement echoes a strategy sketched out in recent months by Jerry Yang, the company’s co-founder, who was appointed chief executive last summer amid growing shareholder dissatisfaction.

After a 100-day review of the company, Mr. Yang said in October that Yahoo would focus on three areas: becoming a “starting point” for the most consumers on the Web; extending its advertising offerings to sites across the Web; and opening up Yahoo’s technology infrastructure to third-party developers and publishers.

The strategy is aimed at revitalizing Yahoo, which has been eclipsed by Google in Internet search, and has faced increasing competition from social networks like MySpace and Facebook. As a result, Yahoo’s share of the overall online advertising market has declined. Still, the company remains a powerful force on the Internet, with about 500 million people visiting its sites around the world each month.

Company executives have said that to achieve its “starting point” goal, Yahoo would continue to invest in areas like Internet search, e-mail, the Yahoo front page and the personalized home-page service MyYahoo, as well as news, finance and sports.

Some other areas would be de-emphasized. In recent months, Yahoo said it would phase out or consolidate services like photos, premium music, auctions and Yahoo 360, a largely unsuccessful social network.

During the weekend, some blogs reported that Yahoo was considering layoffs of 10 to 20 percent of its work force. But the people close to the company, who discussed Yahoo’s layoff plans on condition that they not be identified, said the cuts would most likely be in the hundreds.

The last time Yahoo had sizable layoffs was in 2001, after the dot-com crash. During the last year, the company added several hundred people, some through hiring and some through acquisitions of companies like the online advertising specialists Right Media and BlueLithium and the e-mail provider Zimbra.

Mr. Yang and other Yahoo executives have said recently that they believe that those acquisitions and a series of reorganizations have primed the company for a turnaround. But they have cautioned that financial results may not improve quickly. They have also said they believe Yahoo can succeed as an independent company, amid growing speculation that the company could become a takeover target.

With the stock price sliding, Mr. Yang and the board may see layoffs as necessary to ensure that the company can indeed remain independent. Yahoo shares have lost more than half of their value since early 2006, closing Friday at $20.78.

Reference: http://www.nytimes.com/2008/01/22/technology/22yahoo.html?_r=2&adxnnl=1&oref=slogin&adxnnlx=1214750880-1mRwuFCieaeGWzSdXsOH1w

Last edited by Jethro Querubin on Sun Jun 29, 2008 11:53 pm; edited 1 time in total (Reason for editing : lacking of information)
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