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Thousands of job cuts announced as economic crisis bites



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Published Date: 11 November 2008
THE jobs crisis worsened today with a spate of announcements signalling thousands of redundancies ahead of new figures expected to show the highest number of people out of work since 1998.
A number of household firms signalled more than 5,000 job cuts, adding to the worsening toll of redundancies spreading across manufacturing.

The biggest cuts were at cable group Virgin Media, which said it was axing around 2,200 UK jobs by 2012 un
der a sweeping restructure.

Yellow Pages directories firm Yell warned it expected to lose another 1,300 jobs from its business over the coming year, housebuilder Taylor Wimpey confirmed it had axed a further 1,000 jobs and it said property sales slumped by 27% since the beginning of July, and technology firm Psion announced more than 200 job cuts after the company warned on profits.

Pharmaceutical giant GlaxoSmithKline (GSK) added to the gloom by unveiling plans to close a factory with the loss of 620 jobs following a review of its activities.

The site in Dartford, Kent, is earmarked for closure in 2013 because two of its largest products have been hit by a "substantial" decline in forecast demand.

The company said the two products, for treating epilepsy and herpes, accounted for 60% of total manufacturing at the Dartford plant.

Virgin Media said it would not start cutting jobs until the fourth quarter of next year, with the majority of the role reductions taking place before the end of 2010.

The job losses come as part of a group-wide overhaul following a review this year made in the wake of the firm's formation by the merger of Telewest and ntl in 2006.

Virgin Media has 76 offices across the UK, with its major bases including sites in London, Edinburgh, Nottingham and Sheffield.

The Communication Workers Union said it was "shocked and disappointed" at the job losses.

The latest cutbacks at Yell will be felt across the company as the firm looks for annual cost savings of £100 million by the end of March 2010.

Reading-based Yell reduced its workforce by a similar amount in the past year, but the company said it hoped the majority of the new job losses could still be achieved by non-replacement of departing staff.

The owner of Yellow Book in the United States and Spain's Yell Publicidad employed 13,900 people in September.

It is likely Yell will look to shift more resources to the internet, which accounted for 15% of total revenues in the six months to September 30.

Chief executive John Condron said the job cuts were in readiness for continued tough trading conditions.

He added: "Global economic trends show no sign of improving; therefore, we are actively working on further cost reduction programmes that will primarily benefit next year."

The recent raft of job losses at Taylor Wimpey brings its total jobs cull to nearly 1,900 in the UK this year, with the firm offering little hope of better times as it warned there was no immediate end in sight for the property downturn.

Today's grim update came as figures suggested that the number of home sales in the UK had fallen to at least a 30-year low, according to the latest survey from the Royal Institution of Chartered Surveyors.

Taylor Wimpey reported net reservations of 165 on average a week since July 1, despite slashing prices to maintain sales.

Britain's biggest housebuilder said its order book stood at 6,607 homes – 40% less than at this time last year.

Psion, the hand-held computer and mobile phone software specialist, said companies shelving IT projects amid the economic slowdown had hit sales and was now expected to have an impact on full-year figures.

Psion is reducing its workforce by 15% in an attempt to save around £15 million a year, although this also includes aims to create 30 jobs by the end of 2008.

Paul Kenny, leader of the GMB union said: "The loss of jobs is accelerating rapidly every day and bodes terribly for tomorrow's unemployment figures, which are bound to be higher. The recession is well and truly upon us."

The jobless total is expected to top 1.8 million when new figures are released tomorrow (Wednesday), the highest level since 1998, a year after Labour came to power.

The number of people claiming jobseeker's allowance is predicted to jump by at least 40,000, increasing pressure on ministers to tackle the growing jobs crisis.

Economists expect both measures of unemployment to rise. Howard Archer, chief economist at Global Insight said the claimant count was in line to have risen for a ninth month in a row, leaving the total just short of a million.

Ross Walker, economist at the Royal Bank of Scotland, said: "Unemployment has been rising for most of this year, with data since the summer showing a significant acceleration. Given our expectations for negative GDP outturns into 2009, unemployment is forecast to rise by 900,000 to a peak of 2.7 million, a rate of 8.5% – levels not seen for over a decade."



The full article contains 859 words and appears in The Scotsman newspaper.
Page 1 of 1

  • Last Updated: 11 November 2008 5:46 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: Economic indicators
 
1

Finnzz,

11/11/2008 18:00:04
Yep. Thousands of job cuts are a sure sign Labour is working.

Back to the old Boom and Bust.

Thank you very much Mr Brown
2

Nevsky,

Moscow 11/11/2008 18:04:13
5000 jobs to go in one day? Well done Brown, great he was in charge to cushion the UK from the worst effects of the crisis.

Brown will be ok though, he won't be out of a job forward to a few million when he quits and financial director of poundstretcher.
3

JayDeeTee,

11/11/2008 18:59:29
Here Gordy, I have an idea. Why don't you borrow a squillion quid to shore up the economy? What! You've already done that? Think you are stuffed now mate. As indeed the country is. Well done.
4

,

11/11/2008 21:16:55
Comment Removed By Administrator
Reason:
5

You can stick your independence up your a***!!,

11/11/2008 21:20:34
In Fat Al's land of milk and honey none of this would happen.

As Jim Royle would say - my @rse!!
6

Phil C,

11/11/2008 21:32:06
#5

Jim's usually wrong and you show the signs of brain disorder by spouting meaningless drivel. Please get help.
7

Nevsky,

Moscow 11/11/2008 21:33:14
5 independence#

Don't see Ireland or Norway losing 5000 jobs in one day do you? All hail your great union, on it's belly.
8

Westcoaster,

perth 11/11/2008 21:45:35
What are you monkeys complaining about you'll still get your benefit, dam the snp for nearly putting up the price of your booze and fags. You muppets that decided to buy plaza tv's and cars on credit are the very cause of this problem not the uk government. they didn't make you spend money you didn't have, they didn't make your house go up in value. and yet its all their fault when you can't afford sky anymore. get a life and an education and you might have a job.
9

puskas,

East kilbride 11/11/2008 23:27:28
We ain't seen nothing yet.. Much worst to come sadly.

Heard on the news Iceland will come out of its problems early next year..

UK .. Maybe 5 years or worst.. Sadly.

Of course some sad case will blame the Scottish Government..

Maybe the people of Glenrothes are as puzzled as the rest of the country. Anyone know for sure the percentage vote per party and the difference between the ballot and Postal..

Sub-Prime Brown. What a disaster.. Sadly the serfs will pay for it all.
10

Yok Finney,

Ross-shire 12/11/2008 00:14:34
In a time of war, a government worth its salt would mobilise all the resources at its command. Scotland's suffered an economic war of atttrition for decades. We could assume the right, duty and neccessity for our government to issue new money (credit) -- a first for the UK -- solely for public works and essential new infrastructure. In effect we'd spend money into circulation (interest free) unlike Keynes' patch up job.

The bankers' mantra is that, he who controls a nations currency is above Law and Parliament. It doesn't have to be this way.

 

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