More store closings...

ntw0rk

ntw0rk

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Well, they announced today that Home Depot is cutting 7,000 jobs. The majority of these are from closing down the Expo Design Center stores, (The chain that I currently work in) due to tough economic times.
Really pretty bad!

Here is the official press release:

http://money.cnn.com/2009/01/26/news/companies/Home_depot/index.htm

Home Depot cutting 7,000 jobs

No. 1 home improvement retailer exiting its EXPO high-end business.

NEW YORK (CNNMoney.com) -- Home Depot, the No. 1 home improvement retailer, announced Monday that it is shuttering its high-end EXPO business and shrinking its support staff, with both moves resulting in a reduction 7,000 jobs.
Home Depot (HD, Fortune 500) said the staff cuts impact 2% of its total workforce. The company said the the latest job cuts will not impact any customer service positions in its Home Depot stores.
"Exiting our EXPO business is a difficult decision, particularly given the hard work and dedication of our associates in that business and the support of our loyal customers," Home Depot CEO said in a statement. "At the same time, it is a necessary decision that will strengthen our core Home Depot business."
The company said in a statement that its EXPO business has not performed well financially and is not expected to anytime soon.
"Even during the recent housing boom, it was not a strong business. It has weakened significantly as the demand for big ticket design and decor projects has declined in the current economic environment. Continuing this business would divert focus and resources from the company's core [Home Depot] stores," the statement said.
Over the next two months, the closure of 34 EXPO Design Center stores, five YardBIRDS stores, two Design Center stores and a bath remodeling business known as HD Bath will impact 5,000 jobs, the company said.
Additionally, the retailer said it will reduce support staff, impacting about 2,000 employees, and will result in a 10% reduction in the company's officer ranks.
Home Depot also announced a salary freeze for all of its officers although the retailer would continue to offer merit increases to non-officer level staff, earned bonuses an the company's existing 401 (k) matching contribution for all employees, including officers.
The company reiterated its previously announced full-year sales and profit guidance. Home Depot expects fiscal 2008 sales and earnings per share from continuing operations to decline by 8% and 24% respectively, excluding charge associated with the latest job cuts and store closings
Analysts expect Home Depot to post full-year profit of $1.73 a share on sales of $71.5 billion, according to Thomson Reuters.
For 2009, Home Depot said it expects continued weakness in sales. The retailer said it will cut capital expenditure to approximately $1 billion and will open 12 stores.
Home Depot will report its full-year results next month.
 
Big bummer for many to come:(

Tens of thousands more layoffs are announced


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Jan 26, 11:43 AM (ET)

By JEANNINE AVERSA

WASHINGTON (AP) - It's already been a lousy year for workers less than a month into 2009 and there's no relief in sight. Tens of thousands of fresh layoffs were announced Monday and more companies are expected to cut payrolls in the months ahead.

A new survey by the National Association for Business Economics depicts the worst business conditions in the U.S. since the report's inception in 1982.

Thirty-nine percent of NABE's forecasters predicted job reductions through attrition or "significant" layoffs over the next six months, up from 32 percent in the previous survey in October. Around 45 percent in the current survey anticipated no change in hiring plans, while roughly 17 percent thought hiring would increase.

The recession, which started in December 2007, and is expected to stretch into this year, has been a job killer. The economy lost 2.6 million jobs last year, the most since 1945. The unemployment rate jumped to 7.2 percent in December, the highest in 16 years, and is expected to keep climbing.

"Job losses accelerated in the fourth quarter, and the employment outlook for the next six months has weakened further," said Sara Johnson, NABE's lead analyst on the survey and an economist at IHS Global Insight.

Thousands more jobs cuts were announced Monday. Pharmaceutical giant Pfizer Inc. (PFE), which is buying rival drugmaker Wyeth in a $68 billion deal, and Sprint Nextel Corp. (S), the country's third-largest wireless provider, said they each will slash 8,000 jobs. Home Depot Inc. (HD), the biggest home improvement retailer in the U.S., will get rid of 7,000 jobs, and General Motors Corp. (GM) said it will cut 2,000 jobs at plants in Michigan and Ohio due to slow sales.

Caterpillar Inc. (CAT), the world's largest maker of mining and construction equipment, announced 5,000 new layoffs on top of several earlier actions. The latest cuts of support and management employees will be made globally by the end of March. An additional 2,500 workers already have accepted buyout offers, and ties have been severed with about 8,000 contract workers worldwide. In addition, about 4,000 full-time factory workers already have been let go.
 
Man..this whole situation isn't good, especially from the eyes of people like me in school bout to go out into the work force.
 
Wow, that is about 30,000 jobs cut just this morning. And that's not counting all the smaller places that don't make the news. It's rough out there and no doubt will be getting worse before it gets better.
 
lthlvnm04 said:
Man..this whole situation isn't good, especially from the eyes of people like me in school bout to go out into the work force.
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I hear you there. One of the big reasons I decided to train to get into the water industry is that it is relatively economy proof. Folks need clean water no matter if they're working or not. What is you area of coursework?
 
I have a fairly good major with sturdy jobs, I'm at the FSU school of criminology and criminal justice.
 
OCBob said:
Wow, that is about 30,000 jobs cut just this morning. And that's not counting all the smaller places that don't make the news....
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I hope I dont end up being one of those small companies that dont make the news........things are bad!

patrick
 
mauiSRT/10 said:
I hope I dont end up being one of those small companies that dont make the news........things are bad!

patrick
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Hope it turns around some for you Patrick. I think part of the problem is we look at houses and cars and other large ticket items as the "indicators", so that is what the government concerns itself with. But we spend much more on the little things, and I think these are the true indicators. If the guys doing the everyday jobs and making the everyday items go under, everybody suffers.
 
mauiSRT/10 said:
I hope I dont end up being one of those small companies that dont make the news........things are bad!

patrick
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This is my company's last week. I have too many clients that are not paying their bills, I just ran out of cash to keep it going:( :( . Add 3 unskilled laborers to the unemployment line. I planned ahead and am lucky enough to have some choices.
 
labontecsi said:
This is my company's last week. I have too many clients that are not paying their bills, I just ran out of cash to keep it going:( :( . Add 3 unskilled laborers to the unemployment line. I planned ahead and am lucky enough to have some choices.
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What line of work are you in?
 
This is such a shame. I work for a power distribution/transmission company, and for the most part, our business is predicated on the weather (ice, snow, hurricanes, tornado's, floods). So for the most part, we are insulated from variables effecting the economy.
 
labontecsi said:
This is my company's last week. I have too many clients that are not paying their bills, I just ran out of cash to keep it going:( :( . Add 3 unskilled laborers to the unemployment line. I planned ahead and am lucky enough to have some choices.
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Know what you mean, have to throw in the towel, no work. 20+ years of house payments gone, we are toast. Hello marshall, do you know of any cardboard boxes.
Anyone need a wornout 60+ year old disabled welder???
Today is the worst day of my life, looking for a cliff:rock: F**^ it I am just to old and tired.

In a couple of weeks no more internet (the least of my worries) , so I want to say thanks to all of you now (while I can) and maybe someday we will meet up again.You all have been great friends. May God bless you always.
 
includemeout said:
Know what you mean, have to throw in the towel, no work. 20+ years of house payments gone, we are toast. Hello marshall, do you know of any cardboard boxes.
Anyone need a wornout 60+ year old disabled welder???
Today is the worst day of my life, looking for a cliff:rock: F**^ it I am just to old and tired.

In a couple of weeks no more internet (the least of my worries) , so I want to say thanks to all of you now (while I can) and maybe someday we will meet up again.You all have been great friends. May God bless you always.
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There's something out there for all of us, just need to look in new places. I'm going to drive a truck. I'll miss my family, but I gotta do what I gotta do.
 
labontecsi said:
There's something out there for all of us, just need to look in new places. I'm going to drive a truck. I'll miss my family, but I gotta do what I gotta do.
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Thanks for the kind words. Had to turn my CDL in when they took my Medical Examiners card away. I wish you all the luck in the world.
 
What the press release does not tell you is Expo has never been a profitable venture for Home Depot anyway...Except for a couple years. Like last year when HD closed 15 stores that were not performing ( bellow 10 million in sales ) or considered seasonal stores that were non profitable . According to internal memos no stores ( Box stores ) will be touched. Just trimming the fat and making the company stronger in the process. As a stock holder this makes me very happy. The new CEO Frank Blake is going back to what made HD great in the first place. No more Nardelli stupidity that almost ruined the company either. This year alone it was projected that Expo would have run at a 100 million dollar loss....In these times you can't afford to carry dead weight and remain profitable....My store will record a Gross profit of almost 8 million dollars this year.

The company will be profitable as well. HD does not owe anyone any money they own all the stores and property it sits on and it's all bought and paid for. We pay all out bills except for special order items on a net 30 basis. This speaks to our climate as well these days...Supply people with Need and not want items...Expo catered to all want items. Also not mentioned in the report today was everyone of those in upper MGMT will be given full medical for 6 months and paid for another 60 days...Also they are free to apply within the organization for other jobs.

By cutting heavy top weight ops positions we are becoming leaner...While I hate to see someone like Scooter lose his job it's also the good of the whole that is being considered...Scooter if you need me I am here for you and will do all I can for you....You know that Buddy....Just thought I would shed some more light on this news article for those who might be interested....sorry to ramble :eek:
 
Prof said:
Over 45,000 jobs cut today alone.

Sad.
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Much more to come Roy.....It's always the workers that get screwed that's the American way it seems. After all your biggest expense is your work force right ? I like Franks way of doing things...Cut out the clutter and fat cats and save your core...You watch HD will continue to post excellent profits...Get ur stock while it's cheap....More announcements will be coming in March...I'm excited :D
 
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