Responding to a blogger and the rumors of “thousands of layoffs” at Walt Disney’s Parks and Resorts division, Disney confirmed that at least 145 employees will be losing their jobs in the coming months. According to a company spokesperson “Disney does not expect the layoffs to affect guests, as the jobs being cut are not customer-facing and will come from several back-of-house operations. The jobs cut are part of a restructuring to realign with future needs and priorities.” Disney/ABC TV Group and ESPN has already started their layoffs to implement a restructuring program to respond to future consumer trends. Which makes perfect sense as salaried employees have a greater lasting impact on te bottom line than hourly part-timers.
NO LOVE AT GEORGIA-PACIFIC (05/15/24)
MAY 15, 2024 — PLANT SHUTDOWN IN MILAN, MICHIGAN, 119 EMPLOYEES IMPACTED
The company announced that it will permanently close its Milan, Michigan, plant and lay off all employees by July 6, 2024.
The closure will impact 119 employees, commencing on May 17, 2024.
According to a company spokesperson, “The decision ultimately came down to economics and the facility's ability to be competitive in the long term. We are working to support our employees during the transition with opportunities inside and outside the company and greatly appreciate their work over the years to make this plant safe and productive.”
NOVEMBER 17, 2023 — PLANT SHUTDOWN IN PERRY, FLORIDA; 525 EMPLOYEES IMPACTED
The company has announced that it has closed its Foley Cellulose Facility in Perry, Florida, which produces specialty and fluff, on November 17, 2023.
What wasn’t mentioned was that the plant was estimated to provide "more than a quarter of the tax base for Taylor County and supported nearly 2,000 community jobs until it was shut down."
The company’s statement…
September 18, 2023
Perry, Fla. – Georgia-Pacific employees at the Foley Cellulose mill in Perry, Florida, were informed today that Georgia-Pacific plans to permanently close the facility.
Various factors influenced this difficult decision. Ultimately, GP does not believe that the mill can competitively serve its customers in the long term despite the significant investments and commitment by GP Cellulose since the site was acquired in 2013. This is a strategic decision that was made prior to Hurricane Idalia and is not a reflection of the hard work and effort of the Foley team.
All the approximately 525 jobs at the mill will be impacted by this closure. Production will continue for a limited time as the site works to fulfill as many customer commitments as possible. The mill plans a safe and orderly shutdown.
Georgia-Pacific’s focus in the coming weeks and months is to continue to safely operate while supporting our employees during the transition.
Georgia-Pacific thanks its employees at Foley for their hard work and commitment and will work with them to provide access to local support agencies and job placement resources, including available opportunities within Georgia-Pacific or other Koch companies.
AN EXPRESSION OF HEARTFELT CONCERN OVER A COMMUNITY’S WELFARE AFTER THE CLOSURE OF A MAJOR PLANT
FEBRUARY 4, 2023 — CLOSURE OF QUANAH/ACME, TEXAS GYPSUM PLANT WITH 166 LAYOFFS
Georgia-Pacific has announced that it will close its gypsum plant near Quanah, Texas on March 1, 2023, and lay off 166 employees.
David Neal, President of Georgia-Pacific Gypsum noted, “Georgia-Pacific thanks all the employees who have worked at the Quanah facility throughout its history. Their contributions, dedication, and hard work have kept this facility running strong for many years and we sincerely appreciate them all. We understand the impact this will have on employees and the community.”
“Since the original announcement to retire the facility, we have collaborated with employees to enhance their careers by providing free college tuition, and to date, 44 employees have taken advantage of either in-classroom or online courses for various technical and skilled training education. Additionally, employees will have the opportunity to transfer to other Georgia-Pacific or its affiliates’ facilities during this transition. “We have worked closely with the Hardeman County Commissioner’s Court and the Economic Development Board to strengthen the area’s ability to enhance and recruit businesses by investing in the development of the Quanah Tourism and Community Center. We are proud to be part of this initiative that ultimately promotes economic growth within the area for many years to come.”
JANUARY 26, 2021 — GEORGIA-PACIFIC DIXIE PLANT SHUTDOWN WITH 190 LAYOFFS
The company has announced the shutdown of its DixieCup manufacturing facility located in Easton, Pennsylvania, citing the impact of the global pandemic, which affected entertaining, travel, and the use of portable throw-away beverage containers.
A company spokesperson noted, “At the end of the day, it was a strategic decision.” Our employees are outstanding; it has nothing to do with how they operate and do their work.”
JUNE 24, 2020 — 150 LAYOFFS AT THE FOLEY CELLULOSE MILL IN PERRY, FLORIDA
The company has announced that it will idle two production lines at the Foley Cellulose Mill in Perry, Florida which produces pine-tree specialty fibers used in fabrics and other products.
The scale-back will affect 150 employees and will commence on July 2, 2020. The decision was driven by a reduction in product demand, primarily as an impact of the COVID-19 pandemic.
According to a company spokesperson, “This was a very difficult decision to make. We are working to minimize the impact to our employees. ”We are confident that the economy is going to rebound at some point in the future, we just don’t know when.”
JUNE 4, 2019, LAYOFFS AND CLOSURES IN CROSSETT, ARKANSAS, HOPE, ARKANSAS, AND MONROEVILLE, ALABAMA.
In a company statement, “Georgia-Pacific announced today that it is shutting down the equipment and processes supporting the bleached board operations at its Crossett, Arkansas, facility as of October 2019. This decision was based on an assessment of the mill’s ability to compete effectively in the bleached board market. “
“As a result, the company will permanently shut down the bleached board machines, as well as the extrusion plant, woodyard, pulp mill, and a significant portion of the energy complex at the Crossett mill. The company also in July will shut down one of the mill’s older tissue machines that doesn’t support the long-term competitiveness of the tissue business.”
“Approximately 530 jobs at the facility will ultimately be impacted by these closures. About 25 business and sales jobs also will be affected by this decision.”
In addition, the company announced today that it will close two particleboard facilities in Hope, Arkansas, and Monroeville, Alabama, over the next couple of months and will not rebuild its Thomson, Georgia, facility, which experienced a catastrophic fire last week. Approximately 100 employees at each facility will be impacted. Georgia-Pacific’s particleboard production in Diboll, Texas, will remain in operation.”
APRIL 12, 2019 COOS BAY, OREGON LUMBER MILL TO CLOSE
The company has announced the closure of its Coos Bay, Oregon lumber and lay off 111 employees.
The decision was driven by Asian competition for logs harvested in Oregon and a logistics burden imposed by the closure of the Coos Bay swing railroad bridge.
A company spokesman noted, “It is an absolutely terrible thing to have to do. At the same time, you can’t keep operating if you’re losing money at the site.”
JANUARY 11, 2019 ANOTHER PAPER MILL, ANOTHER 700 EMPLOYEES
According to a spokesperson, Georgia-Pacific will be closing its Port Hudson, Louisiana facility and laying off approximately 700 workers. The company will permanently shut down all paper machines, as well as its wood yard and pulp mill. The decision was driven by a decline in the copy paper market as companies reduce their copying and activities in favor of electronic files. The company has said that they will be leaving the “communications paper business.”
NOVEMBER 21, 2017 — Original post…
Up to 300 employees will lose their jobs as paper manufacturer Georgia-Pacific reduces operations of its Camas, Washington mill. The cause of the downsizing is being disputed.
The company cites reduced demand for its office paper in the face of increasing computerization and the employees union, the Association of Western Pulp and Paper Workers, claims that demand remains high, but lower-cost imports from Asia are the real reason. It should come as no surprise that the paper industry is struggling and there is a spate of plant closures, downsizings, and employee layoffs.
“Georgia-Pacific is one of the world's leading makers of tissue, pulp, paper, packaging, building products and related chemicals. If you’re a consumer, you may recognize our household brands, such as Brawny® paper towels, Quilted Northern® bath tissue, and Dixie® cups and tableware.”
The mill, established in 1885, has seen employees reduced from approximately 2,400 in the 80s to about 120-140 after this round of layoffs. Georgia-Pacific is a subsidiary of Koch Industries. Georgia-Pacific’s tagline, “Great Products Made By Great People” appears to have been restructured into “Great Products Made By Fewer People.”
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
NO LOVE AT COCA-COLA
In May, Coca-Cola announced another 1,200 layoffs by the end of 2017. The iconic beverage company, Coca-Cola continues to cut jobs in a reorganization that is said, by CEO James Quincey, to be “critical for us to create an environment where we can accelerate growth and become the consumer-centric, total beverage company we need to be in a fast-changing world." Rather routine baffle-gab from a company facing hostile government initiatives to reduce the consumption of soda by raising taxes or limiting serving sizes. Characterizing reductions in force as “productivity savings,” it should be noted that Coca-Cola shed more than 20,000 employees by the end of 2016.
What could go wrong in the future?
Here are the “Risk Factors” contain in “ITEM 1A” of Coca-Cola’s 10K filing with the Securities and Exchange Commission. (Fiscal Year Ending 2016)
- Obesity concerns may reduce demand for some of our products.
- Water scarcity and poor quality could negatively impact the Coca-Cola system's costs and capacity.
- If we do not anticipate and address evolving consumer preferences, our business could suffer.
- Increased competition and capabilities in the marketplace could hurt our business.
- Product safety and quality concerns could negatively affect our business.
- Our success depends in large part on our ability to maintain consumer confidence in the safety
- Public debate and concern about perceived negative health consequences of certain ingredients, such as non-nutritive sweeteners and biotechnology-derived substances, and of other substances present in our beverage products or packaging materials, may reduce demand for our beverage products.
- If we are not successful in our innovation activities, our results may be negatively affected.
- Increased demand for food products and decreased agricultural productivity may negatively affect our business.
- Changes in the retail landscape or the loss of key retail or foodservice customers could adversely affect our financial performance.
- If we are unable to expand our operations in emerging and developing markets, our growth rate could be negatively affected.
- Fluctuations in foreign currency exchange rates could have a material adverse effect on our financial results.
- If interest rates increase, our net income could be negatively affected.
- We rely on our bottling partners for a significant portion of our business. If we are unable to maintain good relationships with our bottling partners, our business could suffer.
- If our bottling partners' financial condition deteriorates, our business and financial results could be affected.
- Increases in income tax rates, changes in income tax laws or unfavorable resolution of tax matters could have a material adverse impact on our financial results.
- Increased or new indirect taxes in the United States or in one or more of our other major markets could negatively affect our business.
- Increase in the cost, disruption of supply or shortage of energy or fuels could affect our profitability.
- Increase in the cost, disruption of supply or shortage of ingredients, other raw materials or packaging materials could harm our business.
- Changes in laws and regulations relating to beverage containers and packaging could increase our costs and reduce demand for our products.
- Significant additional labeling or warning requirements or limitations on the marketing or sale of our products may inhibit sales of affected products.
- If we are unable to protect our information systems against service interruption, misappropriation of data or breaches of security, our operations could be disrupted and our reputation may be damaged.
- Unfavorable general economic conditions in the United States could negatively impact our financial performance.
- Unfavorable economic and political conditions in international markets could hurt our business.
- Litigation or legal proceedings could expose us to significant liabilities and damage our reputation.
- Failure to adequately protect, or disputes relating to, trademarks, formulae and other intellectual property rights could harm our business.
- Adverse weather conditions could reduce the demand for our products.
- Climate change may have a long-term adverse impact on our business and results of operations.
- If negative publicity, even if unwarranted, related to product safety or quality, human and workplace rights, obesity or other issues damages our brand image and corporate reputation, our business may suffer.
- Changes in, or failure to comply with, the laws and regulations applicable to our products or our business operations could increase our costs or reduce our net operating revenues.
- Changes in accounting standards could affect our reported financial results.
- If global credit market conditions deteriorate, our financial performance could be adversely affected.
- Default by or failure of one or more of our counterparty financial institutions could cause us to incur significant losses.
- If we are unable to timely implement our previously announced actions to reinvigorate growth, or we do not realize the economic benefits we anticipate from these actions, our results of operations for future periods could be negatively affected.
- If we fail to realize a significant portion of the anticipated benefits of our strategic relationship with Monster, our financial performance could be adversely affected.
- If we are unable to renew collective bargaining agreements on satisfactory terms, or we or our bottling partners experience strikes, work stoppages or labor unrest, our business could suffer.
- We may be required to recognize impairment charges that could materially affect our financial results.
- We may incur multi-employer plan withdrawal liabilities in the future, which could negatively impact our financial performance.
- If we do not successfully integrate and manage our Company-owned or -controlled bottling operations or other acquired businesses or brands, our results could suffer.
- If we do not successfully manage our refranchising activities, our business and results of operations could be adversely affected.
- If we are unable to successfully manage the possible negative consequences of our productivity initiatives, our business operations could be adversely affected.
- If we are unable to attract or retain a highly skilled workforce, our business could be negatively affected.
- Global or regional catastrophic events could impact our operations and financial results.
As you can plainly see, it is far easier to reduce the number of employees to produce short-term results than deal with many of the root causes of poor performance. It should also be noted that one of the most significant risk factors are hedge funds and stock market speculators who simply are gambling on the direction of the market. I have seen cases where a company’s capitalization has been reduced by $500 MILLION without any significant change in the management or underlying operations of the company. All in the name of managing “sector risk” and shuffling holdings prior to a reporting period.
You may wish to review the informal or formal risk factors of your company when considering your next employment opportunity.