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American Morning
Minding Your Business: More Job Cuts to Come After Labor Day
Aired August 20, 2003 - 07:56 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Let's check economic news right now. For workers, Labor Day this year could carry a cruel irony. Andy Serwer explains that, the first shot of minding our business this morning.
Good morning.
ANDY SERWER, "FORTUNE" MAGAZINE: Good morning, guys. Yes, this might not be so good as summer winds down.
As you've noticed, probably, the layoff picture has been quiet lately. We haven't heard about massive layoffs over the summer months. That's sort of typical, because what happens after Labor Day usually is those pink slips start flying. In fact, the months right after Labor Day, the weeks and months right after Labor Day, you are 25 percent more likely to lose your job than in the previous part of the year. Why? Because companies are putting together their budgets for the next year. Now, that's the bad news.
The good news is if the layoff picture remains flat, that's good, because it means it hasn't picked up that much. But this really could be something to watch as we go forward.
Of course, the president and people in Washington are going to be watching this very closely as well.
HEMMER: Some peculiar locations, too, are getting hit with layoffs as well, you've seen.
SERWER: Yes, down in Virginia and North Carolina, RJR, the cigarette company, is talking about layoffs in September. And also for the folks in Virginia, Colonial Williamsburg, of all places, we're looking at layoffs there. You know, this could really not be a very nice situation. All of those costumed folks, Soledad. See? I mean, there are about 600 people who wear the costumes around there.
But here is the wrinkle. They say -- is that Bill? No, the hair is too...
HEMMER: That's me on the left.
SERWER: They say that they've got 3,000 to 3,500 workers. I mean, there is the problem right. You only have 3,000 or 3,500 people, maybe you do have layoffs. Anyway, they've got a $35 million budget deficit, and it's a big nonprofit, so, you know, it's a sad thing. But all across the country are those problems. HEMMER: Market-wise yesterday, I was quite surprised to see the strength, the markets hanging in there with all of the news out of the Middle East and Iraq.
SERWER: I was very surprised, too. There is still some strength in retails, but today I don't think we're going to have an up-market. Hewlett-Packard looking weak especially.
HEMMER: OK, thank you, Andy.
SERWER: OK.
HEMMER: Talk to you a bit later.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
Day>
Aired August 20, 2003 - 07:56 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Let's check economic news right now. For workers, Labor Day this year could carry a cruel irony. Andy Serwer explains that, the first shot of minding our business this morning.
Good morning.
ANDY SERWER, "FORTUNE" MAGAZINE: Good morning, guys. Yes, this might not be so good as summer winds down.
As you've noticed, probably, the layoff picture has been quiet lately. We haven't heard about massive layoffs over the summer months. That's sort of typical, because what happens after Labor Day usually is those pink slips start flying. In fact, the months right after Labor Day, the weeks and months right after Labor Day, you are 25 percent more likely to lose your job than in the previous part of the year. Why? Because companies are putting together their budgets for the next year. Now, that's the bad news.
The good news is if the layoff picture remains flat, that's good, because it means it hasn't picked up that much. But this really could be something to watch as we go forward.
Of course, the president and people in Washington are going to be watching this very closely as well.
HEMMER: Some peculiar locations, too, are getting hit with layoffs as well, you've seen.
SERWER: Yes, down in Virginia and North Carolina, RJR, the cigarette company, is talking about layoffs in September. And also for the folks in Virginia, Colonial Williamsburg, of all places, we're looking at layoffs there. You know, this could really not be a very nice situation. All of those costumed folks, Soledad. See? I mean, there are about 600 people who wear the costumes around there.
But here is the wrinkle. They say -- is that Bill? No, the hair is too...
HEMMER: That's me on the left.
SERWER: They say that they've got 3,000 to 3,500 workers. I mean, there is the problem right. You only have 3,000 or 3,500 people, maybe you do have layoffs. Anyway, they've got a $35 million budget deficit, and it's a big nonprofit, so, you know, it's a sad thing. But all across the country are those problems. HEMMER: Market-wise yesterday, I was quite surprised to see the strength, the markets hanging in there with all of the news out of the Middle East and Iraq.
SERWER: I was very surprised, too. There is still some strength in retails, but today I don't think we're going to have an up-market. Hewlett-Packard looking weak especially.
HEMMER: OK, thank you, Andy.
SERWER: OK.
HEMMER: Talk to you a bit later.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
Day>
