We are a world wide economy and world wide downsizing will still be the norm for years to come.
Two examples of downsizing:
U.S. food giant General Mills (IW 500/68) said Tuesday it would cut 850 jobs globally in a restructuring plan aimed at cutting costs.So, let's recap.
General Mills, maker of Green Giant frozen vegetables, Cheerios and Pillsbury products, also said it would write down some production equipment as part of the restructuring initiative. The roughly 850 job cuts represent 2.4% of the firm's global workforce of 35,000 employees. "Savings from these restructuring actions will be reinvested to support the company's future growth strategies and to accelerate innovation across General Mills global business platforms," the company said.
Japanese microchip maker Renesas Electronics will cut 6,000 jobs, or 15% of its workforce, a leading daily newspaper reported on Tuesday, as the nation's chip industry struggles on the world stage.
The firm, which employs about 42,000 people worldwide, also plans to raise 50 billion yen ($630 million) in fresh capital, Japan's top-selling Yomiuri Shimbun said without citing sources. Renesas, which lost 62.6 billion yen in the year to March, declined to confirm the report, adding in a brief statement that it has not made any announcements on job reductions or capital-raising plans.
We in the private sector are losing customers. We are asked by Washington to "pay or fare share." How can you raise taxes on people who will be earning less? If companies are cutting back and restructuring, it only makes sense that governments and their employees do the same and cut back the spending?????????? Sounds like Europe now, doesn't it??????????