More Companies Cutting Jobs

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Includes: AZSEY, BHGE, BTU, CVS, DST, GE, GS, HAL, K, MAT
by: FX Metrix, LLC

Summary

On June 8th, we published an article titled "10 Companies That Are Cutting Jobs".

Since June 8th, there have been numerous more announcements of job cuts at various companies on our radar.

We have compiled a list and summary of 9 job-cut announcements made since June 8th.

Background

Since our last article on job cuts on June 8th, there have been many more companies popping up on our radar with job cuts coming, along with two companies who have announced further cuts since that last article.

General Electric Co. (GE)

Back on our list again, General Electric has announced that even more jobs are coming to a close. Earlier in June, GE was cutting Houston, TX area jobs to defend against a low-oil-price environment. This time, GE is cutting jobs as a part of synergy efforts following last year's acquisition of Alstom. GE will be cutting 235 from Chattanooga, TN operations and an additional 145 in Knoxville, TN.

Goldman Sachs Group, Inc. (GS)

Also returning to our list from June 8th, is Goldman Sachs with their third round of cuts this year. On Wednesday it was reported that another 98 jobs would be cut in further restructuring efforts by CEO Lloyd Blankfein. According to GS's filing with the NY Department of Labor, these cuts will take effect starting mid-July and will continue into the fall as the bank tries to boost profits.

GS Chart

Mattel, Inc. (MAT)

In Mattel's Fisher-Price unit, it was reported that there will be up to 75 jobs cut from the finance department at their East Aurora as the positions get outsourced abroad. Mattel has been consolidating Fisher-Price operations since it was acquired years ago.

Kellogg Company (K)

New equipment upgrades at the Kellogg's Eggo frozen waffles plant in Rossville, TN have increased plant efficiency, and the company has announced around 155 job cuts as a result. Although these job cuts will not start until fall, these cuts are over a third of the plant's total employees.

Baker Hughes Incorporated (BHI)

Announced earlier this week, BHI cut jobs from their Farmington, NM office to combat the low-price-oil environment. Although the number of jobs cut has yet to be disclosed, it is part of a larger restructuring effort following the failed Halliburton (NYSE:HAL) merger.

Peabody Energy (BTUUQ)

65 employees were cut this week at Peabody's New Mexico mining operations "as a result of continued difficult market conditions" in the coal industry. As oil and gas prices rebound, it is expected that the coal market will too.

CVS Health Coporation (CVS)

As part of a restructuring plan for its Coram financial services division, CVS will be cutting about 150 jobs at its Rancho Cordova, CA offices. CVS is currently working towards consolidating the existing four financial services centers into one single center in Phoenix, AZ.

DST Systems Inc. (DST)

DST recently trimmed its team by about 150 people as DST shuttered its DST Brokerage Solutions office in Baltimore, MD. Although this is only roughly 1% of DST's workforce, it is a notable cut for DST. DST Chart

Allianz SE (OTCQX:AZSEY)

Allianz's PIMCO asset management arm cut 68 people from its team in order to deal with dropping assets under management (AUM). According to an article from Bloomberg, AUM has dropped substantially since PIMCO founder, Bill Gross, left the firm 2 years ago.

Conclusion

We wanted to update readers on new job-cut developments following our June 8th article on the same topic. Two companies from our last article have cut even more jobs in the past weeks, and 7 new companies are added to our job-watch list. Be sure to check back for updates in the coming weeks.

References:

"Once home to 6,000 workers, Alstom facility will cease manufacturing operations by year's end"

"GE Power cutting 145 Knoxville jobs"

"Goldman Sachs to ax nearly 100 more employees"

"Fisher-Price plans to layoff up to 75 in East Aurora"

"Job cuts coming at Eggo plant"

"Baker Hughes lays off Farmington workers"

"Layoffs at Peabody's Mining Operations"

"CVS Health Cutting 152 Jobs At Rancho Cordova Finanical Services Center"

"DST lays off 1 percent of workforce, closes Baltimore office"

"Pimco Cuts Jobs After Decline in Assets Since Gross's Exit"

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

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