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Entries in Lay Offs (3)

Thursday
Oct112012

CEO Says He May Lay Off Employees if Obama Re-elected

Jupiterimages/Thinkstock(NEW YORK) -- Outspoken time-share mogul David Siegel surprised his thousands of employees in an email this week that indirectly stated that layoffs could be likely if President Obama is re-elected, which some analysts say have crossed the line as a CEO.

Siegel founded Westgate Resorts in Orlando in 1982.  In an recent email to employees, he said he did not want to tell them how to vote, but wrote:

"You see, I can no longer support a system that penalizes the productive and gives to the unproductive.  My motivation to work and to provide jobs will be destroyed, and with it, so will your opportunities.  If that happens, you can find me in the Caribbean sitting on the beach, under a palm tree, retired, and with no employees to worry about."

Siegel closed the email with: "Signed, your boss."

The Orlando Sentinel received an anonymous email about Siegel's message by someone who said, "I feel like my boss is threatening me."

Siegel confirmed with the newspaper that that he wrote the email, saying he felt "an obligation to keep them informed."

Siegel did not respond to ABC News' multiple requests for comment.

"Four years ago when Obama got elected we were doing a billion dollars a year in sales with 12,000 employees," he told the Orlando Sentinel.  "As a result of the last four years, we are down to 7,000… We're still a viable company, but if they start taking money out of my pocket with higher taxes and ObamaCare, there's going to be less money to build resorts."

Stephen Bronars, chief economist with Welch Consulting, said it is unlikely the letter violated any labor law, but as a CEO who is responsible to stakeholders and employees, "people would view it as unwise."

"One of the toughest tasks for the owner of a company is to deliver a message that things aren't going well and that there will be cutbacks," Bronars said.  "If you panic your employees you are most likely to lose the ones with the best outside options -- exactly the ones you would hate to lose."

Though it is a private company, firms with 100 or more employees must tell employees at least 60 days in advance of a mass layoff or plant closing.

"But not like this," Bronars said.

Bronars added that his "only caveat" is that Siegel may know his employees "better than critics on the outside looking in."

Copyright 2012 ABC News Radio

Wednesday
Jun062012

Are Layoffs Wall Street's Answer to Down Stock Markets?

Hemera/Thinkstock(NEW YORK) -- The industry that America loves to hate or envy may have a tough summer ahead, especially for its highest paid executives.

Reports indicate Wall Street firms are far from recovering the numbers lost during the financial crisis and may impose additional layoffs this summer or in coming months.

Due to uncertainty from the European fiscal crisis, the stock market has seen much of its gains from the year disappear.  Goldman Sachs and Morgan Stanley may lay off workers in the coming weeks as the European financial crisis continues to affect U.S. markets, the New York Post reported.

Though the Dow Jones Industrial Average closed up 0.22 percent on Tuesday to 12,128, the index had four prior days of declines as world leaders discussed the possibility that Spain and Cyprus will need financial aid.

Brian Foley, pay consultant and managing director of Brian Foley & Co. in White Plains, N.Y., said the recent reports of 50 layoffs at Goldman and 100 at Morgan Stanley, "if true, are certainly very tough on those laid off, but they are too small at present to make for a broad significant new downturn by themselves, given the size of the firms in question."

Morgan Stanley, which has about 62,000 employees, already cut its staff by 2,935 in the year that ended on March 31.

Mary Claire Delaney, spokeswoman for Morgan Stanley, declined to comment.

Goldman Sachs reportedly laid off 50 employees last week, many of whom were managing directors who make a base of $500,000 and receive an annual bonus, the New York Times reported.  Goldman Sachs reported it had 33,300 employees, including consultants and temporary staff, at the end of 2011.

At this stage, Foley said layoffs "will continue to generally be done on an 'opportunistic' basis here and there" in "smaller lower-profile waves," with some exceptions.

Copyright 2012 ABC News Radio

Tuesday
Feb012011

As Economy Improves, More Employees Quitting Jobs

Photo Courtesy - Getty Images(WASHINGTON) -- Employees are starting to say two words bosses haven't heard in years: "I quit!"

Numbers released by the Bureau of Labor Statistics show that in November, the last month for which data are available, more workers voluntarily left their jobs than were laid off.  Some 1.849 million people quit, compared to 1.657 million who were laid off.

What's more, this was the fourth consecutive month to see quitters come out on top.  The number quitting, says Bureau of Labor economist John Wohlford, is an indication of worker confidence. You don't leave a job, even a crummy one, unless you think you can find another.  And you don't leave a good job unless you think you can find a better one.

"It's an important number," says John Challenger, president of executive outplacement firm Challenger, Gray & Christmas.

"When unemployment is high, employers are in the driver's seat.  Now job insecurity is dissipating; people are starting to vote with their feet," he said.  "This may signal there's some shift beginning to occur."

Challenger says the uptick in people quitting is good news for star performers, whom management will have to work harder to retain.

"You should be identifying your key players," he advised bosses.  "Companies still are very thinly staffed, so losing people can really leave gaps.  It's important for employers to get out in front of this issue."

Lauren Herring, president and CEO of Impact Group, a global career management firm, said employers are making a mistake if they think they can "bribe" employees into staying.  It's not that money is unimportant.  It's just that other considerations may matter more than compensation.

She cites as proof an employee survey done by Towers Watson that finds salary to be the fourth most important guarantee of worker retention.  Employees ascribed greater importance to such intangibles as having a boss who champions their career and opportunities for advancement.  They said their employer's reputation also matters highly to them.

Copyright 2011 ABC News Radio







ABC News Radio