Published Saturday, August 28, 1999, in the San Jose Mercury News

Autodesk laying off about 350 workers

http://www.mercurycenter.com/premium/business/docs/autodesk28.htm

[Fair Use: For Educational/Research Purposes Only]

SAN RAFAEL (AP) -- Autodesk, the maker of design software for architects and engineers, is laying off about 350 workers, or 10 percent of its workforce, after reporting a 99 percent plunge in second-quarter earnings.

Stock in the world's fourth-largest PC software firm has lost about half its value since January amid declining demand from customers who have focused their spending on Internet initiatives and Y2K preparedness.

The cuts, which include 150 jobs in the firm's San Rafael and San Francisco offices, will create a leaner company focused on its main software business and developing Internet-based products and services, said Carol Bartz, president and CEO.

-- Diane J. Squire (sacredspaces@yahoo.com), September 01, 1999

Answers

Heading into Deep Freeze as the EndGame heats up.

Cascading layoffs will indeed affect consumer perception, confidence, bottom line, stock market, etc.
We'll see how much of the High-Tech Boom is frozen in its tracks this Autumm. The Great Engine of the Miracle Economy may stall.

-- Ashton & Leska in Cascadia (allaha@earthlink.net), September 01, 1999.

FALL? I know programmers who have now been out of work longer than *I* have! EDS recently gave early retirement to 6,000 programmers also. Of course those packages won't pay the bills, so they're all looking for work. I know it's mean to say this, but I sure hope SOME companies didn't get their remediation done as quickly as the firms at which I worked. Fix-on-failure? You betcha! It's not like I ever got a call saying, "Anita...our programs are all working perfectly and we'd like to hire you to watch them run."

-- Anita (spoonera@msn.com), September 01, 1999.

I know, as a technical recruiter, that the number of job orders, especially in the manufacturing sector, has decreased. The time involved to make a placement has grown quite a bit since the first of the year.

I don't know why manufacturing is slowing down, except for the big hit from the Asian economy.

-- Jon Williamson (jwilliamson003@sprintmail.com), September 01, 1999.

This will likely cause layoffs and even medical care cutbacks...

Published Wednesday, September 1, 1999, in the San Jose Mercury News

Audit calls for more hospital cutbacks
Rescue plan outlined for UCSF Stanford

BY LISA M. KRIEGER
AND HALLYE JORDAN
Mercury News Staff Writers

http://www.mercurycenter.com/premium/local/docs/ ucsfstan01.htm

The only way to restore UCSF Stanford Health Care System's financial health is to cut costs more dramatically by reducing medical school support, shrinking San Francisco's Mount Zion Hospital and merging clinical departments, a long-awaited state audit said Tuesday. ...

[snip]

 Underestimated computer costs. The new Y2K-compliant computer system was anticipated to cost $25 million. The latest estimate is five times higher: $126 million.

[snip--to end]

-- Diane J. Squire (sacredspaces@yahoo.com), September 01, 1999.

Ouch!

There go the car payments, latte's and cell phones. I'm being flip but really this is very bad news. Both for the families involved and the economy as a whole if this is a trend. The effort ot fix Y2k may shut down our econmy before those dreaded double zeroes even have a chance.

Score

Y2k - Billions and billions of $$$

Civilization - 00

-- R (Riversoma@aol.com), September 01, 1999.

Ack - good thing I won't need to type to survive Y2k

-- R (riversoma@aol.com), September 01, 1999.

We'll start seeing massive layoffs come the end of September and well into the first week before Thanksgiving. Christmas will be bleak for many and it will be down hill from there. Consumer spending and consumer confidence is beginning to show. We are not hearing from too many businesses what their actual Y2K remediation costs are, and businesses will have to recoop this money be cutting overhead. Hold onto your hats the roller coaster ride is about to begin.

-- no kidding (nokidding@nokiddingg.com), September 01, 1999.

But then... there is always the potential for Y2K opportunities!

*Sigh*

Sometimes... in this valley... you dont know whether to laugh... or cry.

Diane

Silicon Valley Life
Published Monday, August 30, 1999, in the San Jose Mercury News
LEIGH WEIMERS

http://www.mercurycenter.com/premium/svlife/docs/ leigh30.htm

[snip]

SEASON'S GREETINGS: Actual press release: ``Anastar Inc., a Silicon Valley company, is introducing a new product that doubles as a bright Christmas tree-top star as well as backup lighting in case of a Y2K power outage.'' And if you make that tree out of bread sticks with salad greens for leaves and tofu ornaments, you'll have an emergency food supply, too. Gives me that warm, holiday feeling all over.

-- Diane J. Squire (sacredspaces@yahoo.com), September 01, 1999.

JUST NOW got off the phone with one of the main guys I do business with. He told me that the consultant market has COMPLETELY dried up. He had SEVENTEEN contractors come off assignment in August, and has only been able to put SIX back to work.

This news is VERY disturbing. He feels that many companies will panic due to not being ready for Y2K (in November), and the flood gates will open. Personally, I don't expect this to happen until January.

I am SO glad I'm not "looking" right now.

-- Dennis (djolson@pressenter.com), September 01, 1999.

That was funny Diane we need to laugh more!

-- bardou (bardou@baloney.com), September 01, 1999.

Heard on the news yesterday that CompUSA was laying off as well. Didn't catch the numbers, but they were in the thousands. *sigh*

-- Mac (sneak@lurk.hid), September 01, 1999.

Yep, Mac. Saw that too.

It heats up.

Bet the big iron guys are next.

Diane

Computown Closes, CompUSA Cuts Jobs
It's the latest shakeout among computer sellers
Chronicle Staff and Wire Reports
Tuesday, August 31, 1999
)1999 San Francisco Chronicle

http://www.sfgate.com/cgi-bin/ article.cgi?file=/chronicle/archive/1999/08/31/BU22401.DTL

In the latest evidence of the shakeout among computer sellers, CompUSA of Dallas is laying off half of its commercial sales staff and San Francisco's Computown chain has closed its doors.

CompUSA, which bills itself as the country's largest computer seller, said yesterday that it will eliminate 1,800 of its 3,600 commercial sales positions -- people who sell to corporations, schools and government -- to trim costs and help revive earnings.

At the same time, Computown and its principals are fighting a lawsuit from a creditor claiming the company defaulted on $7.7 million in loans.

The moves illustrate the bind that many computer retailers find themselves in, even as the tech industry propels the national economy through an unparalleled boom.

Computer prices have been slashed to the bone, making it difficult to achieve profits, and Web-based merchants have taken a big bite out of sales. ...

[snip--to end]

So... what happens when you are running lean and mean... then the bubble bursts? And then there is the secondary Y2K effect on the banking system... loan defaults.

Diane

-- Diane J. Squire (sacredspaces@yahoo.com), September 01, 1999.

Clinton looking for ways to stabilize manufacturing employment
KEVIN GALVIN, Associated Press Writer
Tuesday, August 31, 1999

http://www.sfgate.com/cgi-bin/ article.cgi?file=/news/archive/1999/08/31/national0238EDT0457.DTL

(08-31) 02:38 EDT WASHINGTON (AP) -- The Clinton administration is looking for ways to stem employment losses among the nation's manufacturers, who have lost nearly half a million jobs over the last 18 months despite the strong economy.

``The president and vice president have been committed to putting a specific focus on any part of the economy that has not shared in the strong economic times,'' said Gene Sperling, director of the National Economic Council.

The administration is working with economists and labor leaders to come up with proposals the president can make in his next State of the Union address in January. ...

[snip--to end]

*Sigh*

-- Diane J. Squire (sacredspaces@yahoo.com), September 01, 1999.

There is a term for a good ecomomy without manufacturing "short term illusion".

-- rambo (rambo@thewoods.com), September 01, 1999.

Dennis:

November will suit us just fine. It's sure better than waiting for the freezes to be lifted after January,2000.

Diane:

We ARE big iron.

-- Anita (spoonera@msn.com), September 01, 1999.

Ripples, within ripples Anita.

-- Diane J. Squire (sacredspaces@yahoo.com), September 01, 1999.

Can you say Arthur KPMG McBooz inspired rightsizing?? Gotta have the right levels in everything before we go infront of the shareholders.

C

-- Chuck, a night driver (rienzoo@en.com), September 01, 1999.

Chuck,

That's what's happening at my workplace, a ten percent workforce cut going into the fourth quarter. And we're getting new contracts, not like we have a dearth of new business. But we still need to have a "productivity and profitability increase" to show the markets we are serious about maximizing shreholder earnings.

Nevermind the fact that a few billion has to come out of the bottom line to make up for some space launch failures. We just can't expect shareholders and top executives to feel the downside of the costs of business risks, like exploding rockets, in their stock dividends.

When the market tanks next year look for some companies to announce increadible projections for high dividends in the second quarter. Just never mind that these will be empty factories with no product going out the door. The analysts will predict that with zero labor and plant operating costs the companies profits will go right through the stratosphere and the stock should quadruple in value over its historic peak.

WW

-- Wildweasel (vtmldm@epix.net), September 01, 1999.

If you look at the picture the way management looks at it, you'll see why they are laying off needed people right now.

They lay off many now, seeing that the fix will not be complete, use contingency plans and skeleton crew to stay afloat, look for the economy to go through massive corrections - - voila. They can hire back the same critically needed people at a fraction of the cost with no pension promises and get more production from them since the masses are desperate for work and would then be subject to "take any bone thrown to them". karen

-- karen (karen@karen.karen), September 02, 1999.

It depends on how many skilled workers will be left to go back to those jobs. The work force may be entirely different when the dust settles. Even if workers are called back at a lower wage, then that means prices will have to reflect the "new wage," and that includes housing, cars, etc. Speaking of housing, those $350,000 homes will only be worth $50,000 under this scenario.

-- no kidding (nokidding@nokidding.com), September 02, 1999.

Lots of layoffs in Houston lately. EDS, as Anita mentioned, Nabisco, Compaq, etc. Jobs are still available, though, if you want to work in fast food restaurants or construction.

-- Gayla (privacy@please.com), September 02, 1999.