October 10, 2012
October 10, 2012
Update on Oregon layoffs and bankruptcies
See also “Who’s hiring in Oregon“
By Oregon Small Business Association
HP in Corvallis lays off 240
Hewlett-Packard which has major operations in Corvallis announced 240 local lay offs. The total global layoffs may reach 29,000 jobs by target date 2014. The lay-offs are part of a massive cost-cutting and refocus by Hewlett-Packard.
400 Providence workers accept job buyouts
About 400 employees have been accepted into a voluntary separation program at Providence Health & Services. The buyout program, part of a three-year effort to cut spending by $250 million, was announced in May and drew 800 volunteers.
In a July, 2011 article, Portland Business Journal’s Andy Giegerich reported that Providence expects less money in reimbursements as government reform programs attempt to cover more patients and Providence will likely need to provide more charity care and other community programs.
Providence employs 17,600 Oregon workers. The employees taking buyouts will leave their posts by the end of the year.
Gary Walker, a Providence spokesman recently told Giegerich, “Throughout this process, we are focused on finding new ways to deliver the highest quality and best care experience for our patients.”
Schnitzer Steel to lay off 300 workers
Schnitzer Steel Industries Inc. plans to lay off 300 workers, or 7 percent of its workforce, as part of a restructuring plan to battle falling metals prices.
The Portland-based maker of recycled metal products didn’t say how many of the job cuts would come locally. They indicated the restructuring would reduce costs by $25 million and would involve integrating parts of the metals recycling and auto parts business, streamlining some corporate functions, and reducing various organizational layers.
Sales prices for ferrous metals fell in early June by between $70 to $80 per ton from May levels. Global economic uncertainty and the stronger U.S. dollar have driven down prices, while slow U.S. economic growth constrained the supply of scrap metal
Schnitzer said it will incur $12 million in restructuring charges, mostly associated with layoffs and the cost of terminating contracts. More details on the restructuring will be made available in October.
Tigard Embassy Suites files for bankruptcy
The owner of Embassy Suites hotel in Tigard adjacent to Washington Square, and seven affiliated companies has voluntarily filed for bankruptcy, seeking Chapter 11 protection from creditors while it refinances. This group of Embassy Suites is owned by Windsor Capital Group of Santa Monica, Calif., which is owned by Patrick Nesbitt. The filing states the company has assets of $10 million to $50 million, and liabilities of more than $100 million.
Craig Spechman, senior vice president of sales, marketing and revenue for Windsor Capital Group, told Portland Business Journal’s Robert Goldfield that the debt that needs restructuring actually amounts to $175 million.
“Our hotels are stable,” Spechman said, “with no reduction in staff or services. We filed in order to restructure this debt and be able to come out as a stronger group of hotels, and also to fund renovation of the eight properties.”
The debt holder encouraged the filing, Spechman said, and is one of multiple lenders that could end up refinancing the debt. The other Embassy Suites hotels covered by the bankruptcy filing include properties in Lynnwood and Bellevue, Wash. The filing does not affect other Embassy Suites hotels in the Portland area, which are owned by other entities.
HP lays off hundreds
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