In August, employers slashed payrolls in the U.S. at their fastest rate since March, according to the latest figures from the Labor Department. U.S. employers cut roughly 93,000 workers from their payrolls during the month, the seventh consecutive month of reductions. The news took many economists by surprise, as they had been expecting the opposite.
The news was no surprise to telecom workers, many of whom are still getting pink slips as we speak. Or type. Or read. Whatever...
Anyway, it's time to have a look at some of the most interesting hirings and firings of the last several days:
"Procket is currently at the employement level we want going forward, and one that we believe is sustainable in the current environment," he wrote in an email to Light Reading. "If we perform as expected, we would expect to grow our workforce, not to shrink it."
The company’s last staff reduction was in May, leaving the company with 265 employees (see Headcount: Viva la Cinco de Mayo!). Company officials did not return calls for comment on this story. But considering that many of them had left the company before the cuts, it’s little surprise.
Matteucci took over in June after the former CEO, Randall Kruep, left (see Procket CEO Resigns). With a burn rate rumored to be $5 million to $6 million per month, Matteucci has his work cutting workers cut out for him (see Procket Plows On). But he claims that headcount reductions are only a small part of the company's strategy for slashing its burn rate.
While neither party hit a home-run in terms of the deal, each side seemed to have gotten a little bit of what it wanted. In exchange for the ability to limit wages and healthcare costs, workers took an immediate cash bonus of 3 percent, averaging $1,600, as well as guaranteed base wage increases in 2004 through 2007.
Verizon customers were the biggest winners of all, considering that 79,000 workers could have walked out on the job, which would likely have had some slight effect on service.
Here's a summary of other industry appointments (and disappointments) from the past several days:
- Agilent: Ipswich Lives!
- Kevin Kennedy Gets His Dream Job
- Aurora Hires 'Scotty' Flink
- Avanex Promotes Weinswig
- China's CECT Names CEO
- Sagitta VP Heads TIA Group
- Eagle Broadband Lands CEO, $10M
- MCI Adds Five to Board
— Marguerite Reardon, Senior Editor, Light Reading