Economy Keeps Bleeding Jobs

The announcement of thousands of new layoffs Monday underscored the challenges facing the U.S. economy and President Barack Obama's fledgling administration.

Mr. Obama pointed to job cuts at Microsoft, Intel, United Airlines and Home Depot as he pushed for his economic stimulus package Monday. Mr. Obama said the nation can't afford "distractions" or "delays" as the plan works its way through Congress.

Mr. Obama told reporters the government owes it to "every American" to act with a "sense of urgency" and "common purpose."

Senate committees are scheduled to take up the massive economic stimulus package Tuesday and the full House is expected to vote on its version of the $825 billion plan Wednesday. Republicans want the recovery package tilted more toward tax cuts.

The recent layoffs may foreshadow another lousy year for workers, with more companies expecting to cut payrolls in the months ahead.

That's part of the latest outlook from forecasters, in a survey released Monday by the National Association for Business Economics that depicts the worst business conditions in the United States since the report's inception in 1982.

Thirty-nine percent predicted job reductions through attrition or "significant" layoffs over the next six months, up from 32 percent in the previous survey in October. Around 45 percent in the current survey anticipated no change in hiring plans, while roughly 17 percent thought hiring would increase.

The recession, which started in December 2007, and is expected to stretch into this year, has been a job killer. The economy lost 2.6 million jobs last year, the most since 1945. The unemployment rate jumped to 7.2 percent in December, the highest in 16 years, and is expected to keep climbing.

"Job losses accelerated in the fourth quarter, and the employment outlook for the next six months has weakened further," said Sara Johnson, NABE's lead analyst on the survey and an economist at IHS Global Insight.

Here's the most recent bleak layoff news:

# General Motors Corp. said it will cut 2,000 jobs at plants in Michigan and Ohio, and it will halt production for several weeks at nine plants over the next six months due to slow sales.

GM spokesman Chris Lee said Monday that the company will eliminate the second shift at its Delta Township plant near Lansing, Mich., on March 30, and the second shift at its Lordstown, Ohio, plant will end April 6.

About 1,200 workers will be laid off at the Michigan plant, while 800 jobs will be cut in Ohio.

Lee says the cuts are part of the Detroit automaker's continuing efforts to "align production with market demand."

The plant shutdowns come about a month after GM temporarily closed 20 factories across North America due to dramatically weaker automobile demand. Some were closed for the entire month of January.

# Sprint Nextel Corp. is eliminating about 8,000 positions in the first quarter as it seeks to cut annual costs by $1.2 billion.

The nation's third-largest wireless provider said Monday it will complete the layoffs, which comprise about 14 percent of its 56,000 employees, largely by March 31. About 850 of the reductions are voluntary and the company said it expected a first quarter charge of more than $300 million for severance and other costs.

The company said it is also suspending its 401(k) match for the year, extending a freeze on salary increases and is suspending a tuition reimbursement program.

# Home Depot Inc. says it's cutting 7,000 jobs and closing its smaller Expo chain as the recession continues to batter the nation's housing market.

The nation's largest home improvement retailer says the cuts announced Monday morning will affect about 2 percent of its work force.

Under the plan, the Atlanta-based retailer will close its 34 Expo Design Centers, five YardBIRDS stores, two Design Center stores and a bath remodeling business that has seven locations. Those stores will close in the next two months.

Its core Home Depot stores won't be affected.

The company also plans to shed 2,000 non-store jobs and freeze the pay of its officers.

Home Depot will record a $532 million pretax charge in the fourth quarter related to the closures and layoffs.

# Caterpillar Inc., the world's largest maker of mining and construction equipment, reported Monday that its fourth-quarter profit plunged 32 percent. The Peoria, Illinois-based company expects sharply lower results this year as global economic problems cut into its business and said it had taken actions to remove about 25,000 workers, including Caterpillar employees, contract and agency workers.

# Farm-equipment maker Deere & Co. says it will lay off almost 700 workers at factories in Brazil and Iowa.

The Moline, Ill.-based company says it will fire 502 workers at an agricultural harvesting equipment plant in Horizontina, Brazil.

And 190 employees at a plant in Davenport, Iowa, which makes construction and forestry equipment, will be laid off or temporarily reassigned effective Feb. 16.

That's according to an e-mail sent Sunday to The Associated Press by Deere spokesman Ken Golden.

Employees were informed last week.

In November, Deere announced that South American market sales could drop by 20 percent and worldwide construction and forestry equipment sales could fall by 12 percent.

In the past six months, Deere has laid off 188 employees at the John Deere Dubuque Works in Iowa.

# Just last week, Microsoft Corp. said it will slash up to 5,000 jobs over the next 18 months. Intel Corp. said it will cut up to 6,000 manufacturing jobs and United Airlines parent UAL Corp. said it would get rid of 1,000 jobs, on top of 1,500 axed late last year.