April 14, 2009 archive

Time after time we see layoffs as the solution to a company’s woes.  For example, of the 598,000 newly unemployed individuals in the US in January of 2009, 163,000 of these were laid off from the 500 largest US companies.  Some lowlights:

Jan. 26: Following the acquisition of the small drug outfit Wyeth for $68 billion, Pfizer closes five factories and cuts 15% of total workforce (19,000 workers).

Jan. 26: Sprint Nextel pink-slips 8,000 workers–recording more than $300 million in severance charges but saving $1.2 billion a year in labor costs.

Jan. 30: Caterpillar increases previous layoffs from 20,000 to 22,110, and share price hits 52-week low.

Here’s the question: does this really help a company?

Here’s the answer: probably not.

Another question:  what would help these companies?

Another answer: replace the management!

We’ve heard some whining about President Obama forcing out GM CEO Waggoner.  Maybe he’s onto something?

The Sunday editorial in the New York Times was highly critical of the recent decision of the Obama administration to appeal the D.C. Federal Appeals Court ruling allowing habeas rights to some prisoners at Bagram.

The government furthermore asked for a stay in the proceedings of any cases under this ruling:

In sum, the extensive harms to the Government and the public interest involved in further proceedings envisioned by the Court in these cases, and the likelihood of respondents’ success on the merits of appeal, strongly warrant a stay pending appeal.

The NYT editorial, “The Next Guantánamo,” put it this way: