Wednesday, July 20, 2005
The World economy is stagnate - The proof.
Global economist Thomas Friedman's new book is called the World is Flat. He should write a sequel called The World Economy is Flat. This is true - spare the red hot Chinese economy. Most of Europe is sitting in a funk. The US, like me, is living high on credit. As a result, the global workforce is taking a collective kick in the nuts.
Kodak said Wednesday it will cut as many as 10,000 jobs in addition to the 15,000 already announced as the photographic products company announced it swung to a loss in the second quarter from a year-ago profit.
Eastman Kodak's quarterly loss totalled $146 million, or 51 cents a share, compared with earnings of $136 million, or 46 cents a share, a year ago. The employment cuts despite the fact that revenue grew 6% to $3.69 billion. This is an old big bank trick - revenues up, workforce down.
Hewlett-Packard Co. said Tuesday it will cut 10 per cent of its workforce over the next year and a half as the personal computer maker moves to chop its annual costs by $1.9 billion US. The Palo Alto, Calif., company said the bulk of the 14,500 job cuts will come in support areas, including information technology, human resources and finance. Cuts to the company's sales department will be minimal.
The firm plans to dissolve its customer solutions group, a standalone division responsible for sales to small and medium-size businesses and public-sector customers. It will merge the sales function and accountability directly into three other business units – technology solutions, imaging and printing, and personal systems.
These jobs will not be easy to replace in either the US or world economy.
Further proof that the US economy is more fiction than fact. Earnings at Found On Road Dead Motor Co. dropped in the second quarter, weighed down by tough conditions in the North American market, the company said Tuesday. Tough conditions? I thought the Canadian economy is stable. The Alberta economy is adding 5 new cars a day to the road and at least 2 of those have to trucks. The F150 is still pretty popular out west.
Not a good business week to date.
Kodak said Wednesday it will cut as many as 10,000 jobs in addition to the 15,000 already announced as the photographic products company announced it swung to a loss in the second quarter from a year-ago profit.
Eastman Kodak's quarterly loss totalled $146 million, or 51 cents a share, compared with earnings of $136 million, or 46 cents a share, a year ago. The employment cuts despite the fact that revenue grew 6% to $3.69 billion. This is an old big bank trick - revenues up, workforce down.
Hewlett-Packard Co. said Tuesday it will cut 10 per cent of its workforce over the next year and a half as the personal computer maker moves to chop its annual costs by $1.9 billion US. The Palo Alto, Calif., company said the bulk of the 14,500 job cuts will come in support areas, including information technology, human resources and finance. Cuts to the company's sales department will be minimal.
The firm plans to dissolve its customer solutions group, a standalone division responsible for sales to small and medium-size businesses and public-sector customers. It will merge the sales function and accountability directly into three other business units – technology solutions, imaging and printing, and personal systems.
These jobs will not be easy to replace in either the US or world economy.
Further proof that the US economy is more fiction than fact. Earnings at Found On Road Dead Motor Co. dropped in the second quarter, weighed down by tough conditions in the North American market, the company said Tuesday. Tough conditions? I thought the Canadian economy is stable. The Alberta economy is adding 5 new cars a day to the road and at least 2 of those have to trucks. The F150 is still pretty popular out west.
Not a good business week to date.
# posted by Shaky @ 9:00 a.m. 
