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Jan 27, 2009

More than 11,500 job cuts announced Tuesday

The bloodletting for the U.S. job market continues as companies across the economic spectrum announce a slew of work force reductions.

The job market continued to take a beating Tuesday, as six companies across several industries announced more than 11,500 job cuts Tuesday.

The huge number of job cuts pales only in comparison to Monday's statistics: seven companies issued job cut announcements totaling more than 71,400 layoffs.

In January alone, companies have announced more 211,500 job cuts.

High-tech glass and ceramics maker Corning Inc. (GLW, Fortune 500) announced it will cut 3,500 jobs, or 13% of the company's workforce, by the end of 2009. The company said its restructuring efforts will save the company between $150 million and $200 million a year.

At the close of trading Tuesday, Corning shares remained flat at $9.99.

Meanwhile, oil field services company Baker Hughes (BHI, Fortune 500) announced it will cut 1,500 employees worldwide. That's about 4% of its work force, and 850 of the cuts will be from the company's North American work force.

A Baker Hughes spokesman said the cuts are necessary because of the poor economy and credit crisis - plus, productivity from drilling rigs has fallen 25% since September's peak. The recent pullback in oil and gas demand in North America has hit the company hard, as the continent accounts for about 42% of revenue.

Baker Hughes is scheduled to report fourth-quarter and full-year 2008 earnings on Wednesday. The company's stock remained flat, closing at $32.77.

And Navistar International Corp. (NAV) said it will close its Indianapolis engine plant and Indianapolis Casting Corporation factory at the end of July. About 700 employees will lose their jobs as a result, a Navistar spokesperson said.

Meanwhile, specialty chemicals and office products company Avery Dennison (AVY, Fortune 500) announced it will cut approximately 3,600 employees worldwide over the next two years "in response to challenging economic conditions." Details were unclear, as the plan is still in development. Navistar's stock closed up 4.56%, to $28.66.

Volvo Trucks North America announced permanent layoffs of 650 hourly employees in March and April at its plant in Dublin, Va. A spokesman said declining demand caused the 40% workforce reduction at the plant.

The company laid off about 1,000 workers at the plant last May, and it had planned weeklong shutdowns during the first three months of 2009 in an effort to avoid additional job cuts.

Forest product company Weyerhaeuser (WY, Fortune 500) announced it will close two mills in Washington and cut approximately 220 jobs "due to weak market conditions." The company said 25 salaried positions and 196 hourly positions will be cut. Weyerhaeuser's shares closed at $28.71, up 2.32%

Target (TGT, Fortune 500), the second-largest U.S. discounter after Wal-Mart (WMT, Fortune 500), announced 1,500 job cuts. The Work force reduction affects 9% of employees at its headquarters, including the elimination of about 600 employees and 400 open positions, primarily in the Twin Cities area. The majority of those changes are effective today.

Target also announced it will close its Little Rock, Ark., distribution center, which currently employs 500 people, later this year. Target shares remained flat, at $33.34

Source : CNN
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