The Trump Effect? Macy’s to Shed 10,000 Jobs and Close Stores

Posted in BioBusiness, BioJobBuzz

Over the past few weeks, President-elect Donald Trump has taken much credit for saving several hundred US manufacturing jobs in Indiana. Also, he has excoriated car marker executives ranging from General Motors to Ford to Toyota for planning to build manufacturing facilities in Mexico. While it is not clear how many jobs Trump actually saved or whether his twitter rants prevented car manufacturers from setting up production plants in Mexico, it is clear that he cannot or will not save large numbers of American jobs in the retail/service sectors. To that point, Macy’s, last week, announced that it was shedding 10,000 jobs and closing 100 stores to cut costs to improve its bottom line.

You may ask why saving a few hundred air conditioning jobs at taxpayer expense more important than saving 10,000 American retail jobs? As you may recall, in the summer of 2015 Macy’s CEO Terry Lundgren  said that he would stop selling Donald Trump’s clothing line in all of its stores.  Lundgren decided to take this action because then candidate Trump said many Mexican immigrants were rapists or murderers. Shortly after Lundgren announced his decision, Trump called on his supporters to boycott Macy stores.

While it is unlikely that the Trump boycott was responsible for Macy’s decline (all department stores are are getting hammered by online retailers), I do not expect Trump to help Macy’s (like he helped Carrier) save any of the 10,000 jobs that will be lost.  This is because Trump is a vindictive and hateful man who will not help anyone unless they shower him with adulation or do as they are told. Further, he likely considers Terry Lundgren a “loser’ because his business is failing. And, if Donald was in charge,  Macy’s would be a HUGE and GREAT success. Put simply, Macy’s got what it deserves for dropping Trump’s clothing line and not reinstating it after Trump was elected President. And, as for Lundgren, he said

“We made our decision about a year and a half ago, and stand by our decision,”

It’s going to be a rocky ride for the next 4 years.  So buckle in and hold on for your life!

Until next time…..

Good Luck and Good Job Hunting!!!!!!!!!!

Trump and Manufacturing Jobs

Posted in Articles, BioBusiness, BioJobBuzz, Career Advice

The big news today is that Donald Trump and Mike Pence negotiated a deal with United  Technologies (owner of the big air-conditioner company Carrier) to keep 1000 of the 2,000 Indiana-based jobs that were slated to be moved to Mexico.  Of course, the terms of the deal were not announced (and possibly will never be). That said, it is likely Trump promised Carrier management tax breaks and incentives and other perks to keep 50% of the announced jobs in the US (why not all of them?).

While Trump supporters may see this as fulfillment of a campaign promise made by the Donald, it is nothing more than a PR stunt to suggest that Trump is able to keep jobs in the US and not move jobs to lower cost manufacturing markets like Mexico, Vietnam, Malaysia, Bangladesh, Indonesia and others. Notice that I did not mention China in the list of lower cost manufacturing destinations. That’s because, over the past 10 years, labor and manufacturing costs have skyrocketed in China and manufacturing there no longer makes fiscal or economic sense. Anyway, the Carrier story will be used to show that Trump unlike President Obama is able to stem or reverse the loss of US manufacturing jobs to foreign countries.

The reason for the post is twofold.  First,  most of the manufacturing jobs in the US have already been lost and they will not be coming back home anytime soon.This is because moving these jobs to lower cost markets has increased corporate profits and elevate public company stock prices. Nevertheless, it is important to note that over 200,000 US pharmaceutical manufacturing, marketing and sales jobs have been lost since 2001 because of outsourcing to lower cost foreign markets. Despite bleeding job losses, neither the Bush nor Obama administrations directly intervened to keep these jobs in the US. Both Bush and Obama likely believed that the US government ought not meddle with or tell private companies how to run their businesses.

Second, despite all of the hoopla, Trump/Pence were only able to save 50% of the 2000 jobs slated to be moved to Mexico. And, putting things in perspective saving 1,0000 “blue collar” jobs is peanuts as compared with the lost of over 200,000 pharmaceutical and life sciences jobs.  While saving 1,000 Indiana jobs may seem like a “win” for Trump supporters, I think the whole deal was really designed to distract said supports from other campaign promises that Trump has failed to live up to. For example, his decision to not investigate and possibly jail Hillary Clinton, his appointment of Washington lobbyists and Wall Street insiders to cabinet posts and advisory positions (whatever happened to “cleaning out the swamp?) and considering Mitt Romney for Secretary of State.

Finally, in my opinion, Trump’s personal involvement in negotiations with private companies sets a dangerous precedent because the Executive branch ought not be able to directly manipulate or negotiate private business transactions. To that point, I believe that oversight of US corporate transactions and business deals are best left to regulatory agencies like the Federal Trade Commission and the Justice Department rather than President of the US.  That said, President-elect Trump ought to be focused on running the US government; not negotiating business deals with private US corporations.

Until next time,

Good luck and Good Job Hunting!!!!!!

 

US Pharma Jobs: Some Good and Bad News

Posted in BioJobBuzz

Let me begin with the good news. The Indianapolis Business journal reported today that Schwarz Pharma Manufacturing, Inc is planning a $12 million expansion of its Seymour, Indiana manufacturing plant and distribution center. When completed the expansion is expected to increase the company’s employment in the southern Indiana city from 366 to 516 by 2011. The drug maker-a unit of Schwarz Pharma AG of Monheim, Germany-said it plans to begin hiring managers, business associates and production staff later this month.

And now, the bad news. The Pharmalot Blog reported today that the New Jersey-based generic manufacturer Par Pharmaceuticals is eliminating 26 percent of its workforce expected to save from $45 million to $55 million a year. Jobs will be lost in manufacturing, research and development, and other departments. How much more downsizing and job elimination can New Jersey take before it goes bankrupt? Maybe Icelanders can shed some light on that?

Until next time….

Good Luck and Good Job Hunting

 

Eli Lilly Sheds over 100 Clinical Jobs

Posted in BioJobBuzz

Indianapolis-based Eli Lilly & Co announced today that it will transfer its clinical trial monitoring and data management operations to Quintiles and i3.  About half of the affected 265 Eli Lilly employees will lose their jobs.

Like other pharma companies, Lilly is looking at ways to cut costs. And as everyone knows, the best way to save money is to outsource operations and lay-off full time employees who are expensive because of high salaries and benefits.

Until next time….

Good Luck and Good Job Hunting!!!!!!

Roche Announces It Will Move 300 Jobs from Indiana to Germany

Posted in BioJobBuzz

Roche Diagnostics plans to transfer about 300 jobs from its Indianapolis facility to Germany over the next three years as part of a consolidation plan.

A Roche spokesperson announced yesterday that transfers will start in October and most will be completed by 2011. A limited number of employees will be offered transfers to Germany, but most will be laid off.

Most of the positions are in research and development of reagents, which are chemicals used in test kits for HIV, West Nile virus and other diseases. The company says about 85 percent of production for the unit affected by the transfers is already in Germany. Roche has about 2,800 employees in Indianapolis.

Like other sectors of the US economy, the pharmaceutical sector is getting whacked.

Until next time…

Good Luck and Good Job Hunting??????