Downturn Means Layoffs All Around

Today, the NY Times looks at how layoffs are beginning at a "broad array of businesses across the New York region." Basically, it distills everything you've been hearing, thinking and fearing.

One data point: For the week ending October 11, "New York led all states with an increase of 5,224 first-time unemployment claims." The job reductions are not only at Wall Street firms, but at law firms, publishing companies, digital media, construction, and more. Conde Nast just announced a 5% cut of magazine staffs, which, the Observer reports, "will affect every title, including the company's most successful."

Another data point: For the first nine month of 2008, the Times reports "60,000 New York City residents collected unemployment checks"--an increase of 7,000 (13%) over the same period in 2007. The CEO of Alleycorp, Kevin Ryan, says of online businesses, "Already, a lot of conversations about consolidation are happening," and believes more layoffs--in advertising and retail--"will come in January."

The Times has an interesting graphic showing unemployment, 2007 vs 2008, in different industries. And over the weekend, the AP had a story about Wall Street workers leaving the city for smaller firms in places like " Florida, Chicago, Milwaukee, Virginia and Asia." A headhunter said, "I'm noticing that people are willing to work places that they would have hung up on me if I had suggested it a year ago."

Update: American Express announced it's cutting 10% of its global workforce (about 7,000 jobs) in 2009, in order to lower costs by $1.8 billion.

Contact the author of this article or email tips@gothamist.com with further questions, comments or tips.

By Jen Chung in News on October 30, 2008 10:00 AM

Comments [rss]

Future Taliban

Poor guys now that the RE & stock embezzlement is finally over I guess you'll all have to go back to your previous jobs: namely dick sucking.

matty

"will bundle mortgage derivitives for food"

Shinobi Shaw

My question is, what the hell will all the yuppies do? This economy is going to get worse, and there is nothing worse then a starving yuppie!

matty

Who needs jobs when you have pizza?

Trilby16

#14- Pizza, yes, but what about jobs?

EastRiver

#10- barclays save lehman, So far most have been retained bu are on probation status.

Didn't really answer my question. I wasn't implying everyone at Lehman was fired. I was using that at as a reference point to when the meltdown started to accelerate.

matty

Chicago welcomes you with open arms and deep dish pizza.

babyhitler

#10- barclays save lehman, So far most have been retained bu are on probation status.

JacqueMehoff

found out a friend was getting laid off till the last moment his old boss saved his job. it's all about connections. he's been with the co. for 3 months and a kid who's been with them for 6 yrs was let go.

I can't even afford to get drunk anymore, I'm taking the painkillers I've hoarded instead.

rhonda718

Hugo Mego to blame this on Barack Obama... in three... two... one...

EastRiver

At least through the Lehman fiasco I had heard anecdotally that companies were laying people off one at a time i.e. not yet a repeat of 2001-2002 when they would bring 50 people into a conference room and everyone was fired at once. Is the pace picking up because I don't know a single person that has been laid off.

kcin122

i worked at a record label.

ha

snessnyc

The 200-person non-profit I work for just had a major contract with the State cancelled. We had to fire 5 full-time staff and several part-time, and reallocate other staff to vacant positions. I am the Executive Assistant, and my position is being eliminated which will make raising more money that much more difficult. Luckily I will be able to move into a vacant position, but with a $10,000 pay cut. And this is only the beginning of the State cuts. About half of our funding is at stake - we provide drug treatment, prison reentry, family reunification, legal advocacy and many other services. Without the sort of help that we provide, many of our clients will end up costing the State even more money down the road in increased prison costs, increased social services payouts, a higher crime rate and other ills.

ab_bklyn

My husband and a friend got laid off last week on the same day. Then I found out that another friend is laid off as of tomorrow. Two are in finance, one is in retail. It's going to hit hard...

kcin122

thank you for your sympathy nannystate.

I'll be fine though. I wasnt making much money and my rent is low enough that I could make 10 bucks an hour and get by. Just with more ham sandwiches tho.

NannyState

Best wishes to you, #1. If this recession gets really bad, we're going to be saying goodbye to a lot of friends here. NYC is a very tough town to be out of work in.