Cleveland Cavaliers center Shaquille O'Neal had surgery on on his thumb today. His thumb was injured last week in a game against the Boston Celtics. Shaq is expected to be out for six to eight weeks but will return in time for the playoffs. Shaq tweeted that when he returns from thumb surgery it will be time to "win da ring for da king!" Take a look:
Walmart is Cutting 300 Jobs at Corporate Headquarters
Bloombergreports that Wal-Mart Stores Inc. is cutting 300 jobs at its corporate headquarters in Arkansas.
Legal, finance, corporate-affairs and human-resources jobs will be cut, David Tovar, a spokesman, said by telephone today. The affected employees, about 2.5 percent of the 12,000 workers in the home office, were notified this morning, he said.
"This was a difficult decision but I believe that if we ask our operations to be leaner and more customer-focused, we must ask the same of our support teams at the home office," Chief Executive Officer Mike Duke told employees in a memo.
Walmart also recently announced they would be cutting over 11,000 Sams Club jobs. It is difficult to ascertain the health of the economy. Some retailers are doing a little better but at the same there continues to be new layoffs and little job creation.
Wal-Mart Stores Laying off 11,200 Sam's Club Employees
Wal-Mart is laying off 11,200 Sam's Club employees. The world's largest retailer is now outsourcing its product demonstrations.
Bloomberg reports;
About 10,000 demonstration employees, most part-time, will lose their jobs when Shopper Events takes over sampling, Sam's Club Chief Executive Officer Brian Cornell told employees today in a memo. The company also is cutting about 1,200 membership recruiting jobs, or about two in each of the club's U.S. stores.
Sam's Club is working with Shopper Events to develop in-store demonstrations, such as food sampling, currently performed by Sam's employees, Cornell said. The effort is aimed at improving demonstrations in the areas of food and beverages, personal wellness and electronics, according to the memo.
Shopper Events will now hire thousands of workers to do demonstrations and laid off employees are encouraged to apply for those jobs. In addition to these layoffs, Wal-Mart is also moving ahead with plans to close ten Sam's Club locations. 1500 people will lose their jobs as a result of those closures.
Saks to Cut 116 Jobs at Flagship Fifth Avenue Store
Reuters reports that Saks is cutting 116 positions at the cosmetics and fragrance counters at its flagship Fifth Avenue store in Manhattan. Saks is going to have companies like Chanel, Lancome and Clinique staff its cosmetic counters themselves so it won't need as many of its own employees working at the counters.
A Saks spokeswoman on Wednesday said the transition would be effective as of Jan. 31. The affected Saks workers, who are eligible for severance benefits, can apply for openings in other departments of the Manhattan store, the luxury retailer said.
Saks expects that "a number of the affected associates" will be asked to interview for jobs with the outside vendors.
The spokeswoman said that currently about 70 percent of workers in the cosmetics and fragrance departments are employed by outside vendors.
The New York Post also has an article on the job cuts. The Post says the employees were told they will lose their jobs just after the holidays.
Bloomberg reports that Gianni Versace SpA is reducing its workforce by 26% - 350 of its 1,360 positions. The cuts by the Italian fashion house are part of its plans to return to profitability in 2011.
Versace expects a loss this year and has a "flat" outlook for 2010, it said in a statement today. The company will eliminate about 350 positions worldwide from a total of 1,360.
"Trading conditions in the wake of the global financial crisis have been severe," Chief Executive Officer Gian Giacomo Ferraris said in the statement. "No organization can allow a situation like this to continue."
Versace closed its stores in Japan earlier this month. Versace CEO Giancarlo Di Risi resigned in May and was replaced by Gian Giacomo Ferraris. There were rumors of friction between Giancarlo Di Risio and Donatella Versace that Versace dimissed.
Fashion Week Daily is reporting that features director James Reginato has left W magazine. There were also layoffs last week at W in the sales and marketing departments according to Mediaweek.
More layoffs hit Condé Nast Oct. 16, this time at Vanity Fair and W, the oversized luxury fashion book. Vanity Fair lost a handful from the business side while W cut about seven people in sales and marketing.
Fashion Week Daily also says more layoffs at expected at W next week.
American Apparel Letting 1,500 Workers Go Following Federal Immigration Probe
Reuters reports that American Apparel is going to let 1,500 workers go. Reuters says the workers could not prove their U.S. immigration status or fix their employment records following a U.S. federal probe.
Chief Executive Dov Charney wrote in a letter to employees that he will "continue to fight for immigration reform" for the rest of his career.
The Wall Street Journalreports that the job cuts were tied to the immigration probe. However, American Apparel also has sales woes. The retailer's same-store sales plunged 20% in August compared to the year before.
Reuters reports that Ann Taylor will cut about 160 jobs as it continues to cut costs during the recession.
The latest round of job cuts will take place primarily in AnnTaylor's corporate and divisional home offices, affecting about 10 percent of that group's staff and about 1 percent of the whole company.
Ann Taylor is also planning to close 30 more stores. However, they will also be opening 14 new stores.
The original plan, laid out in January 2008, called for cutting 13 percent of AnnTaylor staff at headquarters and closing 117 stores.
Krill said on Thursday the company now plans to close an additional 30 stores, but aims to relocate those stores' best workers to other stores. Any job losses resulting from store closures are not included in the 160, Krill said.
She reiterated the company's plan to open 14 new stores this year.
There was some good news for the retailer. It's Q2 earnings estimates are expected to be ahead of analyst's expectations.
Reuters reports that American Express announced plans after the stock market closed Monday to layoff 4,000 people, about 6% of its workforce. It will also cut $625 million on marketing, business development, consulting and other services.
The cuts are part of the New York-based company's plan to save $800 million over the rest of 2009.
American Express plans to take an after-tax charge of $117 million to $163 million in the second quarter, largely associated with the job cuts. It said the cuts will occur across a variety of businesses, saving $175 million.
The company also plans to cut spending by $500 million on marketing and business development and $125 million on consulting and other services, travel and overhead.
American Express has been struggling from people who are unable to pay credit card balances because they have been laid off.
American Express CEO said in a statement, "While we have remained solidly profitable at a time when some parts of the card industry were incurring substantial losses, we continue to be very cautious about the economic outlook and are therefore moving forward with additional reengineering efforts to help further reduce our operating costs. We believe these efforts will put us in a better position to remain profitable and free up some additional resources that will be reinvested in the business to make sure we can take competitive advantage of opportunities as the economy begins to rebound."
Nike plans to cut about 1,750 jobs around the world - about 5% of its global workforce. Bloomberg says the cuts include 500 jobs at Nike's headquarters in Beaverton, Oregon.
The cuts amount to 5 percent of Nike's workforce of 35,000, the company said in an e-mailed statement today. About 500 positions will be eliminated at its Beaverton, Oregon, headquarters. Employees will be notified in the coming weeks.
The company said in February that it may eliminate as many as 1,400 jobs, or 4 percent of staff, to trim labor, manufacturing and sales costs. Nike aims to cut spending by $200 million, starting in the first quarter of the fiscal year that starts in June, Chief Financial Officer Don Blair said last month. Sales fell 2 percent in the quarter ended Feb. 28, hurt by the stronger U.S. dollar.
The Beaverton Valley Times has a story about the 500 job cuts at Nike's headquarters in Beaverton, Oregon.
The Columbus Dispatchreports that Abercrombie & Fitch is cutting 170 jobs at its home office.
It is the second round of layoffs this year for the purveyor of pricey casual clothing for young people. In January, the company terminated about 50 employees at its New Albany headquarters, and confirmed that it would not fill dozens of open positions.
"The company is committed to improving its efficiency. As a result, it has implemented significant initiatives at its home office where it is in the process of eliminating approximately 170 positions," chief legal counsel David Cupps said, reading from a prepared statement.
Abercrombie & Fitch has been struggling. The company's same store sales in March plunged 34%. There's also concern they are losing the teenagers that once found the brand so hip. Recently, the company said its Ruehl chain is a drag on earnings but they have not announced any store closings.
Boston.com is reporting that outdoor retailer L.L. Bean is laying off 240 workers in Maine.
Elsewhere, L.L. Bean Inc. yesterday notified employees it will lay off as many as 240 workers in Maine because of lagging sales. The Freeport-based outfitter told employees that previously announced retirement incentives did not draw enough volunteers to quit, so the company has to resort to layoffs, according to a letter from chief executive Chris McCormick obtained by the Associated Press.
An earlier report had put the layoff number at 150. L.L. Bean had voluntary layoffs and February and sent a letter to employees saying the voluntary layoffs helped but were not enough for the retailer to avoid more job cuts.
Retailers Hope For Better Same-Store Sales Figures in March
Retailers laid off cut 47,800 jobs in March. Some of that was from stores closing but it is also store employees being let go as retailers cut costs. As a result there may be less people available to assist you in some stores.
Retailers report March same-store sales figures this week and they are looking for anything positive according to a Wall Street Journal story.
Even if the numbers are simply less negative than expected -- down 20.7% from a year earlier for department stores, according to Thomson Reuters estimates -- retail investors will be encouraged. So will everyone else, because an economic recovery depends in large part on domestic consumption.
Analysts polled by Thomson Reuters are predicting a 0.8% gain across all categories, which would mark the second straight month of positive "comps," a measurement of sales at stores open for at least a year.
Emanuel Weintraub, chief executive of Emanuel Weintraub Associates, warns that any recovery will be a "new normal."
a retail consultancy, said he thinks the sector is in the process of recovering, but "whatever it is we are recovering to will be a 'new normal.'" He adds: "People who have gone through a near-drowning experience are careful about where they swim."
There won't be much of a recovery until the layoffs subside and home values stop falling.
Swarovski is laying off another 600 people at the factory in Wattens, Austria. The move is due to the recession and reduced demand for jewelery and accessories which use Swarovski crystals. The company is moving quickly to make sure that it survives the downturn.
Hard times call for hard decisions, but Swarovski executive board member Markus Langes-Swarovski said Thursday the latest wave of cuts at the crystal giant's main production facility in Wattens, Austria, was necessary to safeguard the future of the business.
"From a business perspective, to ignore the present general conditions would be irresponsible," Langes-Swarovski said. "After careful examination we have therefore decided on a plan of action for the [lasting] security of our market leadership and for the business location in Wattens."
Swarovski on Wednesday revealed plans to trim 600 more positions at the site this year — to add to the 150 cuts signaled in February and more than 750 job losses in 2008 — reducing the Wattens workforce to 5,000. Around 500 more heads will go next year as the company relocates certain manual finishing techniques to "more cost-efficient business locations," namely in Eastern Europe.
Langes-Swarovski said Thursday it was too early to specify where, but underlined these would be "near shore," or close to Wattens.
Swarovski, which counts two-thirds of its production in the euro zone, has plants in eight other countries, including the Czech Republic, and employs 23,900 people worldwide.
The company has been hurt by low-cost crystal production which comes out of Egypt and China. Swarovski says that is will stay as a brand base in Austria, even though it is opening a new plant in China to create a lower-end line of crystals under a different brand name. The better-made Swarovski crystals will continue to be based in Watten, where the company has been based since 1985.
Barneys New York is eliminating 76 positions. From sales people to corporate executives, the cuts are wide-ranging.
"They were across the board," said Dawn Brown, vice president of publicity for Barneys.
The retailer has about 2,400 employees. The cuts were effective Monday.
"Initially, we elected to cut other expenses to save jobs as long as possible and now the continued economic downturn has made layoffs necessary," Brown explained. The budget cuts have been made in every division and were started last year and continued into this year, she noted.
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Barneys is also grappling with other issues, including negotiating with a handful of factors over millions in delayed payments, though a resolution is expected soon, according to Barneys parent company, the Dubai-based Istithmar. Barneys has been operating without a chief executive since July. As the search continues, Barneys is operated by a committee of executive vice presidents and senior vice presidents, with some support from the board, which includes former ceo Howard Socol. Istithmar, an equity firm involved in buying and selling companies, will eventually try to sell Barneys to recoup its investment, but no sale is imminent. Istithmar bought Barneys for over $900 million from Jones Apparel Group Inc. in September 2007, and no sufficient offer has surfaced.
Barneys' cuts are in line with those made by its competitors, Neiman Marcus and Saks Fifth Avenue.