Sony exits PC business, warns of full-year loss
Howard University to cut about 200 staff positions
Howard University is cutting about 200 staff positions during the next several months, a university spokeswoman said, reducing its workforce by nearly 4 percent.
Howard spokeswoman Kerry-Ann Hamilton described the cuts, which began Thursday, as “enterprise-wide.” She said the university “worked carefully to ensure no changes in public safety” and to “preserve services in student-facing and clinical areas.”
There were no details available on what positions will be cut and how many layoffs might result. Howard, a 10,297-student university that also operates a teaching hospital in Northwest Washington, has faced several fiscal challenges during the past few years.
The university has 5,474 employees, including the hospital’s staff, Hamilton said.
WAMU (88.5 FM) reported Jan. 24 that some university maintenance workers staged a rally to protest outsourcing.
“The university continues to pursue comprehensive strategies to enhance and achieve operational efficiencies as we provide excellent educational, research and clinical environments,” Howard said in a statement issued through Hamilton. “This includes difficult but necessary actions as we realign and re-engineer our workforce at the university and the hospital.
“This is an ongoing effort as the university carefully implements our strategic plan to address quality and efficiency including workforce realignment, streamlining procurement processes and seeking partners to support our non-core functions.”
On Oct. 1, Sidney A. Ribeau announced his retirement as the university’s president. The interim president is Wayne A.I. Frederick, who was provost under Ribeau.
Radioshack Celebrates One Year Anniversary Of Closing 500 Stores By Closing 500 More
Submitted by Tyler Durden on 02/04/2014 13:37 -0500
If it seems like it was exactly a year ago that turmoiling retailer Radioshack shut down 500 stores due to lack of consumer interest in its wares (and or consumer disposable cash), it is because it was. So how does Radioshack demonstrate its morbid sense of humor on the one year anniversary of said announcement? Well, by closing another 500, or about 12% of the retailer's total 4500 outlets currently in existence.
The WSJ reports that the company which once was the butt of all LBO-rumor jokes (and still is, only this time in the context of an M&A-rumor with JCPenney and/or the Joseph A. Wearhouse joint venture), is "planning to close around 500 stores in the coming months as the electronics retailer continues working with advisers to restructure the company."
RSH's pre-bankruptcy operation problems are well-documented. And funded - "in October, RadioShack secured $835 million in loans to refinance about $625 million of debt. Those funds, from a group led by GE Capital, also freed up cash for RadioShack's overhaul." Of course, when said overhaul fails, the loans rolls into a DIP loan which funds the company's bankruptcy.
As was well-documented during the Super Bowl, the Fort Worth, Texas, retail chain has been working on transforming its image from an old-school electronics store into a destination for shoppers looking for entertainment gadgets, like headphones and smartphone cases. Sadly, it appears to not be working.
The retailer has struggled to reverse a string of losses deepened by a sales strategy focused around smartphones, which failed to improve revenue over the past two years.RadioShack executives last year suggested the company would resist downsizing its store footprint as they focused most of their attention on reinventing the brand's image. Stores might close in one section of a neighborhood to set up shop in more highly trafficked locales, but the number of outlets would stay the same, they had previously said."I think we're a 4,000-plus network," RadioShack Chief Executive Joe Magnacca said in a November interview. "My job is to make sure that we've got the market covered."
That, or a '0-precisely network.' And while the Shack struggles to find just what market it is that it covers, if any, the population will enjoy how it spends several months of cash flow on amusing Super Bowl gimmick ads such as this one which is a fitting - and hilarious - epitaph of what happens to every retailer that stop adapting to its current environment.
Finally, while the ultimate fate of Radioshack is quite clear to most, a far more important topic is what happens to all the commercial real estate secuiritizations and/or malls that currently have a RSH location which is about to shutter. Then again, this is the new normal, and things such a fundamentals and cash flows are merely an irrelevant footnote.
Dude, "It's Going To Be A Bloodbath": Newly Private Dell To Fire 15,000
Submitted by Tyler Durden on 02/03/2014 17:41 -0500
Curious why Michael Dell was so eager to take the company he founded private? So he could do stuff like this without attracting too much attention. According to the Channel Register, the recently LBOed company is "starting the expected huge layoff program this week, claiming numbers will be north of 15,000." Of course, with a private sponsor in charge of the recently public company, the only thing that matters now is maximizing cash flows in an environment of falling PC sales, a commoditisation of the server market and a perceived need to better serve enterprises with their ever-increasing mobile and cloud-focused IT requirements - things that do not bode well for Dell's EBITDA - and the result is perhaps the largest axing round in the company's history. But at least the shareholders cashed out while they could.
More on the upcoming layoffs:
We heard from people close to the Round Rock Dell HQ area that Dell management has every conference room booked, and every HR person and security staff member is at work. There are cuts in all departments, according to one of our sources, who says some of these have already been downsized and are now being told to cut 15 per cent more heads.We hear the worldwide layoff number is now greater than 15,000 people.Our insider commented: "It’s going to be a bloodbath.”
So what can those on the receiving end of said bloodbath expect? Not much. "The severance package is two months' pay plus an extra week of pay for each year of service, a bonus at 75 per cent, obligated COBRA health insurance for 18 months in the United States, and outplacement services (in the US at least)."
The internal justification for th move:
... Dell has started its Stateside layoffs this week. Internal company emails seen by The Reg mention “simplifying client support structure - both basic and up sell,” “client support structure combined - Consumer and Commercial come under one umbrella,” and “Up sell offers will align with Pro Support and will "evolve”. The “evolve” word could mean that further changes are coming.
Also known as trying to remain cash flow positive in a world that has long since moved on and left Dell in the dust....
We wish the company's billionaire founder well as he progresses with the bloodbathing, just as we wish the BLS the best of luck in the coming weeks as they use every seasonal adjustment gimmick known under the sun to make the 15,000 mass termination disappear. Wait, we know: it's all the weather's fault. And demographcs.