Abbott lays off 700
By: CHRIS BAGLEY - Staff Writer
Analysts cite weakened demand for stents but expect a rebound | ∞
Abbott employees enter the company's Temecula property after being checked by a security guard Tuesday morning.
DAVID CARLSON Staff Photographer
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TEMECULA -- Abbott Laboratories is cutting 700 jobs from its factory on Ynez Road, the largest-scale layoff in several years for an area whose economy is fighting to overcome a weakened construction industry and record numbers of foreclosures.
Abbott's cuts Tuesday follow weakened demand for stents, tiny wire-mesh tubes implanted in blood vessels to keep them from collapsing. Competition from three other stent producers is intensifying, even as the company's Temecula facility prepares a new generation stent for launch in the United States early next year, analysts said.
The cuts also are a response to improved manufacturing efficiency, Abbott spokeswoman Karin Bauer said. The company's vascular division is closing a sister facility in Galway, Ireland, where 500 people now work. Bauer said most of the cuts in California were among manufacturing workers at the Temecula plant, but include several dozen administrative employees in Redwood City and Santa Clara.
In Temecula, employees' reactions ranged from grief to shock to grudging acceptance. Employees who were given notice in a day-long series of meetings said those laid off include assembly-line workers earning $10 per hour through line supervisors making more than $50,000 per year. They included employees in fields as diverse as quality control and chemical storage, several said.
"I am aware of people across the board who have been let go today," one said. "It's a mess."
Like others, the Murrieta man, who earns $14 per hour, spoke on the condition that his name not be used: Information on severance pay included stipulations that employees not do anything to reflect poorly on the company.
Still, another employee who reviewed packets the company distributed said the severance packages appeared relatively generous for manufacturers that downsize. Abbott is holding informational meetings on severance pay and continuing benefits at the University of Redlands campus on Madison Avenue today. Employees will continue receiving paychecks into February, apparently with lump severance payments to follow, several said.
"That's nothing compared to losing your job and benefits," the Murrieta man said.
The bite was especially hard coming just three weeks before Christmas, several said.
The unexpected
Rumors of pending layoffs had been swirling within the company for months, even as the company expands its Temecula facility to the east side of Ynez Road. Those rumors intensified in September, when Abbott sent home 100 to 200 employees who assembled catheters, two employees said. The employees continued to receive regular paychecks and were called in to work once or twice each week to do janitorial work and other assorted tasks until they returned to their regular assembly lines last month, one of those employees said.
The cut represents 15 percent of the facility's workforce but a tiny fraction of Abbott Laboratories' 65,000 employees worldwide. The company's headquarters are 35 miles north of Chicago, near Lake Michigan.
Even after the cuts Tuesday, the Temecula facility remains the city's largest private-sector employer, with about 4,000 employees, approximately the same number as two years ago. Those numbers include a much smaller facility off Briggs Road in French Valley, which Abbott Vascular acquired in April 2006 along with Guidant Corp.'s vascular division on Ynez Road.
Guidant began in mid-2005 to beef up its work force for mass production of Xience, a chemical-coated stent designed to prevent blood clots. Abbott Vascular has been selling Xience in Europe since late last year. The company expects the U.S. Food & Drug Administration to grant final approval by June, following the recommendation of an FDA advisory panel last week.
Meanwhile, dozens of employees have worked in trailers at the Temecula site, while office workers have squeezed in two and three to a cubicle. That overcrowding and the anticipated demand for the new stent were behind the company's expansion to the east side of Ynez with two new buildings and a four-story parking garage. The garage is complete, meanwhile, and Bauer said the two buildings, totaling 300,000 square feet, are still on track for completion by the end of next year.
All of that made the sudden cuts all the more surprising for Lee, a Temecula woman who received notice Tuesday. The woman said she took the job with Guidant in 2003 after being laid off from a manufacturing job in the Southeast.
"I thought maybe because this is such a huge company that I would never have to worry about layoffs again," said Lee, who asked that she be identified by her middle name. "But here I am, four years later."
'A major blow'
Lee said a co-worker had it worse. The other woman and her husband bought a house in Menifee earlier this year and are already stretched making mortgage payments and feeding four children.
The layoffs, which several observers believed to be the Temecula area's largest in five years, come at a particularly delicate time for Southwest County. Though a state agency estimates the area's unemployment has edged up to just 5.1 percent, homeowners are wincing at real estate values that have fallen by 10 to 20 percent in the last year. A weak market also has made it difficult for homeowners to sell or refinance their way out of steeply rising mortgage obligations.
As a result, lending institutions have already seized 1,500 houses in Southwest County. Across Riverside County in the July-September period, the number entering the foreclosure process across exceeded the number of escrows closed for the first time in a decade.
"There's no good spin you can put on this," said John Husing, an economist who does consulting work for several city governments and economic-development organizations in Riverside County. "To lose 700 jobs is a major blow."
The layoffs also raise the hurdle for those cities' and organizations' efforts to right a massive imbalance between jobs and housing, Husing said. Tens of thousands of local residents cram the southbound lanes of Interstate 15 and the westbound lanes of Highways 74 and 91 on weekday mornings to reach jobs in places such as San Diego and Irvine. Husing said a sustainable local economy needs about 6 jobs for every 5 dwellings; Southwest County's falls far short with a ratio of 4 to 5, he said.
"The Temecula-Murrieta area is getting awfully dependent, economically, on a single company," Husing said he remembers thinking in 2005 when Guidant began preparing to manufacture Xience. "Any time that happens, it's a vulnerability that's a bit scary."
Rough competition
Xience is one of two drug-coated stents expected to be cleared for sale in the U.S. next year. Along with a similar stent being developed by Minnesota-based Medtronic Inc., Xience could overcome occasional side effects associated with existing drug-coated stents made by Johnson & Johnson and Boston Scientific, the two other large manufacturers in the industry, said Steve Halasey, editor of MX Magazine, a publication for executives in the medical-device industry.
But the side effects spooked many doctors and led industry analysts to wonder whether even a second-generation stent would succeed, Halasey said.
Still, several scientific studies released in the last three months have spurred hope for Medtronic's and Abbott's products and boosted their stock prices, Halasey said.
"Anybody that's in the market is going to get a bounce," Halasey said. "That makes it a little curious that they're laying off now."
Both Halasey and Erik Swain, who is editor-in-chief for Medical Device & Diagnostic Industry magazine, said they foresee no serious problems ahead for Abbott, whose shares have rebounded from a modest downturn since September. The company's stock rose 49 cents to close at $57.50 Tuesday.
Still, Swain said, for Abbott to cite better manufacturing efficiency as a primary reason to lay off so many workers is unusual. Like Halasey, Swain said the downsizing almost certainly was a delayed result of the acquisition from Guidant last year.
"Manufacturing technology certainly does get better and better every year," Swain said. "However, it's not common to attribute a layoff of this size to something like that. Companies are thinking about manufacturing issues right from the start of product design. I would have to think that this is related to the Guidant thing."
-- Contact staff writer Chris Bagley at (951) 676-4315, Ext. 2615, or cbagley@californian.com.
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GrlNSoCal wrote on Dec 4, 2007 1:42 PM:how nice and right before Christmas...great company
Could of least waited wrote on Dec 4, 2007 1:56 PM:until after Christmas, Scrooge!
kenny wrote on Dec 4, 2007 2:21 PM:"this great company sent a friend of mine to ireland, who would of guess 3months later her job is there now"
Concerned-1 wrote on Dec 4, 2007 2:22 PM:It amazes me what big public businesses will do. It's all about the bottom line all the time. What kind of message does this send? Not a good one that's for sure. There's also a complete lack of common sense at the corporate level. Look at all the construction they've been doing! Now they lay people off? It's no wonder people are losing faith in our economic system. There are no more people, only numbers.
Karl wrote on Dec 4, 2007 2:53 PM:First four bloggers here, if you were the CEO what would you do?
700 now wrote on Dec 4, 2007 3:04 PM:How many more in the coming months? If they found an efficient method to reduce the number of people it takes, I'd bet the farm there's more in the works. The bottom line can never be too big can it? So what will happen to the enormous parking lot and new buildings? Eysore city.
sunkidd wrote on Dec 4, 2007 3:36 PM:I'd vote for Ron Paul for President... For Sure!!!
One of the Lucky ones wrote on Dec 4, 2007 3:43 PM:at least Abbott is continuing full pay for 60 days to the laid off workers. That and a severance package, so they won't be hit as hard during the holidays. As hush hush as it was supposed to be, we have all been expecting it for some time. The 200 or so workers that have been off for the last couple of months were off with pay, and I don't know too many companies that would do that. As much as we all complain, I certainly didn't mind sitting at home for a week and drawing a full paycheck.Medical device companies nationwide are all laying off workers right and left, it's the nature of the beast.
Pappy wrote on Dec 4, 2007 3:49 PM:Pre-Christmas layoffs are a favor to employees if a company must do it. Do you think it's better to let these people run up hundreds or thousands of dollars of debt buying presents when the company knows they're not going to be giving them checks to pay the bills? There's no good time for layoffs and the big companies loose too, not just the people being laid off.
Me wrote on Dec 4, 2007 3:50 PM:You people are obviously ignorant. These people were given excellent severance packages, and as such they'll have plenty of money and time to find another job. Most of you apparently have no clue how to run a business.
UNemployed wrote on Dec 4, 2007 4:06 PM:I am one of those persons who just lost their job.For Karl of Number 4 if you were CEO would you put people out at X- Mas time? And of course we all know what kind of pay checks CEO's get.!!!And as far as the others who kept their job, yes you better go to work because if it happened to us it can happen to you.It was not just operators who got the Merry Christmas pkg. it was all phases.I saw a Supervisor of 12 yrs. crying because she got it to.And as far as "sunkidd" who the heck is Ron Paul??? If you can't voice a serious message here for all the persons without a job you should keep quite!!!We are talking about 700 familys without a future here!!!
Concerned-1 wrote on Dec 4, 2007 4:16 PM:Okay Karl, if I were CEO I'd apply management by walking around. Get in touch with the customers and my employees then use the information to formulate short term and long term plans. I would not be building larger buildings and increasing capacity before laying people off. What are these guys weathermen? They forcast with the same accuracy.
2-Karl wrote on Dec 4, 2007 4:23 PM:First, the Board of Directors should penalize the CEO for not monitoring that sector of the business, properly. Bonuses should not be so easily gained by headcount cutting rather than solid near, intermediate and long-term strategic planning. Second, if the CEO is allowed to stay, the cuts should be in the VP and Sr. VP level, first, and the middle level management level second. Abbott is way too top-heavy. Third, replace underperforming managers, directors, and VPs through promotions from within AND hiring from outside. Way too many people in management positions have little or no experience outside of Abbott. Incest is illegal in most states for practical as well as moral reasons. Fourth, stop trying to solve all $$$ problems by headcount reduction. Inefficiencies and ineffectiveness are not simply a worker level issue. Many times they are issues of poor management practices and neglect of infrastructure. Good R&D is of little value if it can't be implemented in order to turn a profit.
Guidant Castaways wrote on Dec 4, 2007 4:32 PM:I worked at the former Guidant now Abbott working there was great, leaving turned out good also. It's a great place to be from.
hey wrote on Dec 4, 2007 4:34 PM:the stints can always be built in China from inferior materials.
What? wrote on Dec 4, 2007 4:47 PM:There is never a good time to be laid off. Here is something to think about. Would you rather get laid off before xmas and know you need to be a little more careful with your spending or after xmas when you have already spent the money based on income you no longer have? Another question I would ask is what is a buisness suposed to do if not make as much money as possible? If you think profit is so bad why don't you take a pay cut to minimum wage?
Hey Karl wrote on Dec 4, 2007 4:50 PM:A compassionate CEO would at least keep in mind the time of year this is happening. You tell me that he wouldn't be able to convince the shareholders that such a move could wait until after the holidays?
So what? wrote on Dec 4, 2007 5:09 PM:There are no guarantees. Quit complaining and get another job.
sickofgreed wrote on Dec 4, 2007 5:45 PM:In response to "Me" I know how to run a business. Pay people a non-living wage of $11 an hour. Have them do more for less while reducing their benefits and then funnel more profits to the top 1% of the weathiest people in the country, the stockholders. Then I'd grease the politicians in Washington with "campaign contributions" to get my capital gains tax cut made permanent. Then I'd set up offshore "shell corporations" to hide even more of my wealth from taxation. That leaves the middle class and poor to pick up the $3 trillion dollar bill for the war in Iraq, for which they fight and die and benefits the likes of me, defense contractors and oil company executives. As I've heard countless times and hold dear to my heart: God Bless America, what a country!!!!
Debby wrote on Dec 4, 2007 5:46 PM:I did get to keep my job, but my best friend got laid off but she gets a servance pkg that is really good!!! I wonder who is lucky....All of the laid off employees get paid until Feb then 2weeks per year, a bonus pkg and insurance until feb at least...what other company pays all of that instead of just sending you to the unemployment line....I love my job so I am happy but sad at all of the friends and co-workers & supervisors that got laid off....& I too am glad they DIDN'T wait until after christmas that would be harder to figure out how to pay for what you spent at christmas...
Good luck wrote on Dec 4, 2007 6:04 PM:Nobody is gauranteed a job for life. Layoffs are unfortunate but that is the nature of capitalism. There are ups and downs in virtually every business. Good luck to the laid off. I'd write it in Spanish if I knew how.
JP wrote on Dec 4, 2007 7:03 PM:Does this mean Temecula can take over the parking structure and tear down that butt-ugly pedestrian bridge spanning Ynez Rd??
sickofgreed wrote on Dec 4, 2007 7:28 PM:I agree, but layoffs should be more equitable. If you're a CEO and get fired, much less laid off, you are given millions of dollars in severence. I read in Business Week that Tom Freston was CEO of Viacom for less than a year before being fired. Freston received $84.8 million in severance. Not bad for underperformance at a company for less than a year. Or how about Bruce Karatz, CEO of KB homes, he was forced to "retire" after an internal investigation found he manipulated stock-option grant dates, inflating value to himself and other executives. He walked away with $175 million in severance pay, pension benefits, and stock options. Not bad for unethical behavior. So before you grovel at the feet of human resources for the crumbs they throw you, think of the CEOs who walked away with millions at the expense of dedicated, hard working employees who only ask for basic benefits and a livable wage.
hmmm... wrote on Dec 4, 2007 7:36 PM:So many armchair quarterbacks here. I'm sure you could do better - why not go invest your millions and give it a whirl if it's so easy to run a company! As for those who were laid off, I'm glad to hear they got severance packages and hope you are able to find another job soon!
PHS wrote on Dec 4, 2007 7:49 PM:Does this mean Professional Hospital Supply(PHS)is next??? I saw this coming...
M.C. wrote on Dec 4, 2007 7:51 PM:Ron Paul is the only man running for President who wants the government out of your affairs. With fewer government regulations, there is no question that there would be more jobs available.
PHS wrote on Dec 4, 2007 7:51 PM:Our hospitals are in serious trouble too...
PHS wrote on Dec 4, 2007 8:18 PM:This should help out the housing industries in Temecula and Murrieta...
American Mike wrote on Dec 4, 2007 8:33 PM:"sickofgreed wrote on" You have it right! Why are gun control laws so popular now? Sure, inner-city crime is high, so a meth head shoots a retail clerk, or a high school kids caps 3 or 4 of their buddies. The people behind this administration, and their corporate bed partners think nothing of sending off thousands of young men and women to meet their fate on foreign soil. The scare tactics are trumped into American homes, to lock your doors, turn in your weapons, the stock market is falling! The economy is manipulated by the rich and powerful. It’s only a smoke screen to keep the American collective from seeing the real picture and taking back what has been worked hard for the last 231 years. Those countries have been killing each other for thousands of years. It’s far time we let them continue without our intervention, or blood.
matt wrote on Dec 4, 2007 8:46 PM:its funny cuz i always see ads for them hiring in the penny saver...glad i didnt apply there now!
Dawn wrote on Dec 4, 2007 8:59 PM:No one owes anyone anything. I feel bad for the people affected. Companies do hire & fire. It's business. People leave jobs for other jobs all the time - far more than getting laid off. How come it is ok for one to leave a job when THEY want to, but if a company is trying to keep in business for the larger good, then that company is the bad guy.
sickofgreed wrote on Dec 4, 2007 9:29 PM:American Mike I agree. We need to take this country back. We have lost sight of what makes a great nation. It's not the stock market, profits or material wealth. And it’s not about the size and power of our military. It's about the Constitution and the right of the INDIVIDUAL. It seems today you only have rights as long as that right doesn't infringe on corporate America's pursuit of profits. So many laws are written today limiting our freedoms and putting us under surveillance under the guise of "safety" and "homeland security" when in reality they are laws designed for the benefit of corporations. Do you think the government really cares about you getting cancer from cigarettes? They only care because its infringing on the insurance company's bottom line. And this goes for all of the nanny laws passed over the last thirty years. Profits trump freedom...our forefathers would roll over in their graves if they could see what is going on.
Been there wrote on Dec 4, 2007 9:32 PM:Whether I am classified as payrolled employee or not it is my belief that I am an independent contractor looking out after my own best interests. I'm going to market my talents much like a company markets it's own products, staying with the company as long as there is a beneficial return and continually improving on my marketability along the way. I will also give 100% to the company while I'm with them but I never assume the relationship is anything more than it is. We are no longer living in an era where company loyalty is respected or even expected since acquisitions, mergers, outsourcing and downsizing are so common. I'm set to retire in 10 years and have seen one or two mass layoffs in my years. Most employers give an average severance amount of one week pay per year of service. Sounds like this company did much better than that and I commend them for it.
Me wrote on Dec 4, 2007 9:49 PM:To JP: 740 layoffs from 4700+ employees. Still ~4000 left, and plenty of hirings still to come (this was a reorganizational layoff, nothing more), so you can forget the removal of the crosswalk, parking garage and new buildings. Besides, it can't get any uglier than the 4 Pechanga garages and the massive structure going up next to the MALL!
Still_there wrote on Dec 4, 2007 9:59 PM:Look, all you people who are ready to trash Abbott. They did what every other company would do. We didn't sell as much devices as we did last year and so they had to reduce the workforce. I was one of the lucky ones for now and I really feel bad for the ones who were let go. But at least they did it in a responsible way and gave the people great severance packages, unlike National RV for example, which closed it's factory in Perris on Friday and didn't give it's workers a penny except the paychecks they were owed. And who thinks that only the little guy got canned, you couldn't be more wrong. I know of several Directors and high level managers that were let go as well. Aside from what happened today, Abbott is a great company to work for and I believe most people who work or worked there will agree with that. And to the blogger that complained that line workers "only" made $11/h. How much would you pay somebody whose work consists of loading a part into a machine and push a button?? 20?? If you say yes, then think about that a worker in Mexico or Asia, doing the work as well as these people, probably would be happy with $20 a day. It was a bad day and I wish the best of luck to all that were let go.
sickofgreed wrote on Dec 4, 2007 10:18 PM:They can live quite well on $20 dollars a day in Southeast Asia. Actually, they would be considered very wealthy since the minimum wage is $3 a day. Much better off than $11 an hour in Temecula.
John wrote on Dec 4, 2007 10:30 PM:What goes up must come down. This is just part of a larger economic slump we are entering. I suspect the next few years are going to be brutal on a lot of peoples pocket books.
Dawn wrote on Dec 4, 2007 10:46 PM:To Sick of Greed. I am sick of you bashing the great white hope of the world here. Go to Mexico where there is not work or laws. Go to Canada where healt care is the pitts. Go to some of the Asian companies where you can get $20 day. Or to Europe where Islamaextremism is on the rise. Go to Sudan, Darfur. Bagdad (where my brother is fighting for your right to be a ... AMERICAN) You are an Ameica hater, please - go somewhere else. Yeah, I didn't think so. How many people in the world would gladly anyday, under any condition trade places with you.
MJ wrote on Dec 4, 2007 11:17 PM:There is an old adage .... the only way to avoid being laid off is to work for yourself --- often for less (substantially) than one would earn working for a company, with longer hours, no benefits and yielding a more modest lifestyle -- but every hour you work is for YOU, not someone else. In big business, people ARE a commodity, always have been, always will be, pure and simple -- if you do not want to be a "number" than do not work for a large corporation. What do you bet that this company "ramps up" through a temp agency when business picks up.
Frank wrote on Dec 4, 2007 11:52 PM:Pauma Casino is looking for security guards and are paying $14.xx an hour and they need them today.
Still-there wrote on Dec 5, 2007 12:00 AM:You may be right that in SE Asia they live ok on $3/h or maybe even better than they live here with $11/h, but whose fault is it that they didn't go to school and all they can get is an $11/h job? Believe me, a lot of other companies pay minimum wage for that type of work that Abbott pays $11/h. And just to clarify, there are a lot of line workers who make way more then that, because they perform difficult and high precision work and they deserve every penny they get paid. But the point is don’t blame the company if a worker makes only $11/h for pushing a button. It’s the workers fault for not getting better educated so they can get a better paying job.
Roberto1 wrote on Dec 5, 2007 12:08 AM:If you want a job that is secure and never worry about getting laid-off. Go work for the unemployment office.
ConcernedCtzn wrote on Dec 5, 2007 3:06 AM:UNemployed: Ron Paul is a Republican congressman from Texas running for president who promises to strengthen our economy and restore value to our currency.
jvc wrote on Dec 5, 2007 3:11 AM:This is a great tragedy that has befallen on these workers but I am sure they are taking comfort as long as and after all we are bringing democracy to Iraq!
JP wrote on Dec 5, 2007 6:11 AM:Gotcha, Me. My statement was more of a commentary on the total lack of architectural flair, and you couldn't be more right on the other examples around town.
Peter wrote on Dec 5, 2007 7:11 AM:I hope everyone who is concerned about the destruction of the middle class is registered to vote. If you do not like the transfer of wealth to friends of Limbaugh, Fox "News" and the "Decider" do something about it. Notice above the Republican answers to misery. No sympathy ever, it is your own fault for getting sick or laid off. As long as we cons have our sweet ride we do not give a darn about anyone else. Remember those answers above when election season comes in a few months. You want to find work and get decent health care, then go out and volunteer and help anyone running against a Republican for any national office. It will get you great contacts which might get you a job in the short term. In the long term it will force out the hate filled philosophy of greed that now runs my party--the Republican party. The party my great, great grandparents in Ohio helped to start. After five generations this Republican will not vote for any Republican in the upcoming election and the mean and nasty comments from Republicans above illustrate why I will not do so.
Sickening wrote on Dec 5, 2007 7:37 AM:Workers got a a great severance package PLUS they knew it was coming. How about looking for a job when you knew yours was about to go away? ???? If you knew, what the heck are you doing waiting for the axe to drop? Oh...your severance. Hmmm...Not such a bad company after all huh? Actually, a pretty darn nice company! You victim minded drones are un-American 100%. Sickening.
Tough Luck wrote on Dec 5, 2007 7:41 AM:People should live below their means and save money so they are prepared for this type of business decision, we are all at risk. Instead many choose to live large and take on massive credit card and morgage debt. If they had planned for this they would have plenty of cushion to have a good Christmas and money to re-educate themselves for the next phase of their employment lives. Sorry layoffs, no one to blame but yourselves.
Want a secure job? wrote on Dec 5, 2007 7:57 AM:Go work for Ted Kennedy. Just don't get a ride with him over any bridges.
Just a reader.... wrote on Dec 5, 2007 8:10 AM:About a year ago, the company I worked for was bought out by a New York based company. When it was announced no one knew who was going and who was staying. So I began my job search. Sure enough, I was not chosen to stay, so I was far enough in the game when I was let go that I ended up having a new job and collecting my severance as well. It turned out quite nice. Sometimes these types of changes work out for the better. A fresh start is how I looked at it. Now I am with a new great company and love it. Good Luck to all. Don't fall in a hole and go out there and find a new job!
American Mike wrote on Dec 5, 2007 9:14 AM:Dawn wrote..... Your opinion reflects your age. Not that it’s bad, every citizen in America has the right, and should voice their opinion and be heard. Unfortunately, many times the people have spoken, yet one person, a Federal Judge has the power to overturn all those votes. Did the people vote for that judge? No, they were appointed, by the same politicians whom big business and special interest groups have in their back pocket. It's not enough to be an individual, in these times one must be a member of a gang, no matter their social status. Wishing your brother a safe return from this madness. As far as severance packages go, one could also look at it as profit made from the employee in the first place. It’s just that the company was organized enough to bank for this event. You can be sure it’s figured into the “bottom line”, just like bonuses are. How one looks at the situation is an entirely different matter, and one for opinion. Most people now complain about unions, and what they have done to the cost of business. It's easily seen in today’s workforce what the demise of unions has caused. The person with a lower standard of living is allowed to "outbid" you for your job, medical benefits are at second world status because the federal government has allowed business to outsource work without tariffs to keep competition on a level field, and have allowed pharmaceutical and health insurance companies to control the health care system. They reduced a physician’s status now to merely a technician in the market. Personally I'd rather see a doctor than a lawyer any day.
FREE MARKET wrote on Dec 5, 2007 9:17 AM:Companies do what they need to do to survive. That's the FREE MARKET economy. It's also what makes our country strong. Consumers benefit from competition. As an alternative you can always go find a nice cushie government job. Good Luck.
Tracie wrote on Dec 5, 2007 9:36 AM:I know people are hurt and scared but you need to think beyond the shock before making comments about the Company. I work in Human Resources (not for Abott)and have been on BOTH sides of a layoff. I have been involved in the top meetings where companies agonize over what is the most responsible thing to do for both the employee and the Company. First of all, for all of you saying how could they do this right before Christmas...you need to know there is NEVER a good time to lay someone off - someone has always just bought a home or just had a baby or has someone sick in their home. Companies cannot make those decisions based on the best time. Secondly, for those saying "It's ALWAYS about the bottom line" - well your right in a big way. A Responsible company will always work on the bottom line to make a Company profitable enough to : Be an employer of choice, offer the best benefits, pay good salaries, and put themselves in a position to give generous severance packages if they need to downsize. When things are good, employees appreciate that their employer makes such a great workplace for them. - And for those talking about CEO salaries..I get so tired of this gripe. If you want to make a huge overinflated salary like they do, then spend years getting a higher education, get a management job and spend years working your way up so you can spend every day stressing about having the decisions of a billion dollar company on your shoulders. We may not like their salaries but MOSt of us would not ever want to be in their positions or have stamina or drive to do what it takes to get to the top - so maybe they deserve those salaries ?!?! I have worked for a good amount of companies - a couple of which had to close their doors alltogether and I can tell you...Not 1 of them EVER gave anything even close to this type of severance packagae and benefits to those who had to be let go. I have several friends in the homebuilding industry right now who got laid off with NO Notice and 2 weeks pay. Now THEY are having a hard time paying their mortgages and providing for Christmas - I'm sure they would LOVE to have a few months of pay and continued benefits. We need to wake up and stop feeling entitled as workers !! Companies owe us nothing - they owe us a paycheck for doing our jobs. If we can walk away from an employer at any time, without any notice...then why do we think that they should not be allowed to do the same. Thank Goodness most of them don't !! But the fact is, they CAN. So I am SO SORRY that so many people lost their jobs but we need to realize that it is a part of life and we need to stop bashing the companies and move on.
u-guys don't know jack wrote on Dec 5, 2007 9:48 AM:its not about the corporation, its not about the board of directors, its not about the CEO, ITS ALL ABOUT STOCK HOLDERS, and as a stock holder, I applaud their actions!
Jeremy wrote on Dec 5, 2007 10:07 AM:WOW this is shocking... and terrible for all those people. 700 is a HUGE number for a local layoff. I'm wondering what Temecula's leaders are going to do. You know what this means. Jobs aren't that easy to find in Temecula, so a lot of people are going to be moving elsewhere. And moving means lots and lots of houses are going to be going on the market. It's a market that's already saturated, no one can seem to sell anything. What a terrible time to lose your job.
AA wrote on Dec 5, 2007 10:26 AM:I doubt if many of the laid off live in Temecula. I'm sure most are assembly workers that drive in from towns like Perris and Escondido.
Joe wrote on Dec 5, 2007 10:37 AM:I used to work for different companies where layoffs were a fact of life. If you are a hard worker, have a viable talent, keep a positive attitude, don't overbuy (cars, homes etc.), save money for a rainy day (hardly anyone does this today), you will be just fine. But if you are looking for a job handout, all you will do is pout and complain about how bad things are. Such is life, if you have to complain about the layoff and no job, see about starting your own company. If you have the talent, guts and street smarts, you will make it. If you have to rely on others for a job, then there is ALWAYS that possibility of a layoff. If you have your own company, you will have also the possibility of the company going out of business, especially if you keep employees that you can’t afford.
Roy wrote on Dec 5, 2007 10:48 AM:Ron Paul is a weird persona and take it from me, a Republlican, that man comes across as too unstable to be President even if his policy positions are liked.
Dave wrote on Dec 5, 2007 11:01 AM:I was a contract employee (QC) with Aerotek. I was fortunate to have a wonderful supervisor. I left Abbott in October after the death of a relative. But in September, my Superviser had said to me "Hope for the best, plan for the worse." These layoffs probably would not have come as too painfull of a shock if the upper management, including area and line supervisors, were honest and up front with letting the line operators know what was going on. Too many secrets. I was fortunate to get a new job immediately. These layoffs are going to hurt for a long while. Hey Miles, keep building buildings that won't be used. Good luck and God Bless all who were laid off.
What? wrote on Dec 5, 2007 11:10 AM:MJ nice myth. Working for yourself means that everyone of your customers is your boss. No layoffs? Ha! What about all the self employed contractors out there right now? Sure some are still working but not all of them. There is no sure thing. Period. I am not saying self employment is better or worse than working for others. But it sure isn't for everyone. Like you mentioned, long hours. I would argue the low pay claim you made. Higher taxes. Self employed people pay 50% taxes. But they get to write off more things.
Something to think about wrote on Dec 5, 2007 1:38 PM:To Karl CEO.... According to a study done... "CEOs and Layoffs: Sometimes the CEO Suffers Similar Fate" Kevin F. Hallock, Cornell University Sherrilyn M. Billger, Illinois State University ... Mass layoffs have become an all too familiar occurrence in the United States; statistics indicate that an average of 5.7% of all employees lose their jobs in a typical year. And while many cutbacks were once meant to be temporary � that is, until demand picked up or the plant was retooled for a new model or new product � these days they more often have a permanence intended to reduce costs and boost efficiency. Companies may expect certain outcomes from workforce realignments, such as higher profits and greater productivity, but sometimes the future of the company�s chief executive is also at stake. Previous academic studies have found links between CEO tenure and company performance. For example, researchers have shown that the probability of management turnover decreases as a company's stock price increases. In a slight variation on this theme, researchers have also shown that CEO resignations/firings tend to rise as a company�s prospects deteriorate. This particular study goes a step further and explores the relationship between layoff announcements (another indicator of company performance) and chief executives' term in office.
long timers wrote on Dec 5, 2007 1:38 PM:Quit suckling on the the company payroll teet. Production jobs and assembly have always been a job that suffers massive lay offs. Don't work these types of jobs if you don't like it. Its usually the non documented employees that complain the most.
Hey Abbott wrote on Dec 5, 2007 1:40 PM:Actually, Abbott seems kinder than most to employees to send people home with full pay, plus giving laid-off employees checks through February AND a severance package. Still, it will be tough finding work in this sinking economy.
Responsibility wrote on Dec 5, 2007 1:41 PM:As I read all these comments, I cannot help but notice a theme - What is "x" going to do about this? That thinking is what is wrong with our country from the federal government, to our local issues, including our schools. We all need to take RESPONSIBILITY for our choices and decisions. If you choose to work in a manufacturing job and not pursue further education or training, you cannot blame others when your job becomes obsolete. If you choose to buy a house you cannot afford, then you cannot blame the government, the banks, or others. If you choose to spend more than you make and leave nothing in savings, you cannot blame your employer when you don't have money for your basic needs, let alone holiday gifts. Why would this even be a concern? If we suffered the same fate in our house, I can assure you the LAST thing that would occur to us is that it is the holidays. If your children are disappointed in the lack of gifts, you cannot blame others for failing to teach your children the meaning of the holiday, or how to get by with less. We all are responsible to take care of ourselves. Yes, when you lose your job, it can be difficult. But, if you planned, saved and prepared, it will not be a tragedy, but an opportunity. Our area has plenty of jobs. Our residents need to take responsiblity for learning or acquiring the necessary skills for those jobs. There are many options for those who want to learn and work hard. From what I know, Abbott will even rehire people in other positions, it may be less money, or require training/education, but as the earlier post said - they are still advertising. So, those that lost your jobs, good luck to you as you go forward to make a new path. For those that have not yet been faced with this challenge, take a look at what you are doing and take responsibility for your choices, past, present and FUTURE.
JIM wrote on Dec 5, 2007 2:33 PM:WHO DO U THINK IS GOING TO WIN BETWEEN THE CHARGERS AND TITANS THIS WEEKEND?
JOHN wrote on Dec 5, 2007 2:35 PM:WHO DO YOU THINK IS GOING TO WIN BETWEEN THE CHARGERS AND TITANS THIS WEEKEND?
sickofgreed wrote on Dec 5, 2007 2:50 PM:I think Dawn is suffering from "cul-de-sac" disease. She's never traveled outside her cul-de-sac and has only seen the world through CNN. Yes, there are problems around the world but that doesn't mean our country is beyond criticism. You are so quick to criticize other countries but somehow your country is beyond reproach. This is why we are losing respect from our closest allies. And what the hell is this "great white hope of the world" comment. For your information, I am white, and in my travels I've noticed that most of the world is not white. I belive Asians are the majority. It may also shock your sensibilities to learn that, no, most of the world doesn't want to move here. When was the last time you met an immigrant from Australia? New Zealand? Netherlands? Norway? Germany? Sweden? Switzerland? I can go on, but I wouldn't want to bore you.
AntiComi wrote on Dec 5, 2007 2:55 PM:There are no entitlements in life except taxes and death. We are not entitled to a job. People need to start preparing THEMSELVES; through education, so that things like this do not hurt so much. Businesses, big or small, are not social wlefare programs. Business is about making money. If you start to lose money today you might not have a company tomorrow. Get a grip people.
What wrote on Dec 5, 2007 2:58 PM:Hey Unemployed! What have you done to prepare yourself to minimize an impact like this? From what you wrote I would venture a guess 0 NOTHING! Sit on your laurels and rely on the company - How Stupid!
gone wrote on Dec 5, 2007 3:07 PM:Yeah, they tried to be as human as possible in laying the people off but it still stings because it made no sense or logic in seeing who were some of the people that they were letting go. And yes, the severance pay is nice but after Feb. there will be a great concern about some of those benefits that we were paying for such as insurance. I really hope that all those who survived "terrible Tuesday" will enjoy their Christmas Parties at Pechanga and Claim Jumper. Those of us who were released will be gathering at the Mission
Concerned-1 wrote on Dec 5, 2007 3:23 PM:Even though Abbot seems to have been generous in the severance packages, the timing sucks. Not just the holidays, but the economy in general. It's like we didn't have enough to deal with and now we have 700 unemployed people. Meanwhile fat-cat upper level management goes along their merry way.
ModernRock wrote on Dec 5, 2007 3:43 PM:I agree, the timing for these layoffs is very sad. I wish all of them luck in finding a new job. I've been there, it's no fun. But things will get better. Hang in there.
to "long timers" wrote on Dec 5, 2007 4:03 PM:this is NOT a Mexican thing. how dare you even suggest that in this hightly sensitive time for these works.. It's people like you who cause layoffs like this...
Karl wrote on Dec 5, 2007 5:06 PM:Sorry folks, I'm late on this one. What does Abbott produce and how many are they laying off?
Still_there wrote on Dec 5, 2007 5:40 PM:Abbott is a company with 65000 employees worldwide. They produce almost everything that has to do with healthcare (drugs, nutritional products, medical devices, etc) In Temecula we produce mainly Guide wires, catheters and stents. They laid off around 730, mostly production workers but also engineers, managers and directors. They will also close a manufacturing plant in Ireland, laying about 500 off. Based on the meetings we had today, there is a big re-organization going on
one of the lucky? wrote on Dec 5, 2007 5:41 PM:well last night a bunch of us went out to TGIF's and you couldnt tell which were the laid offs and who wasn't.. The laid off employees I worked with were happier than those of us who got to stay..And Karl, 700 were laid off from abbott Temecula,and the Galway Ireland plant which employs 500, was completely shut down I heard.Abbott manufactures cardiovascular devices. stents, guidewires, catheters,and accessories.
Greed wrote on Dec 5, 2007 5:45 PM:I saw that Abbott made $6 BILLION; $771 MILLION was PROFIT!
Karl wrote on Dec 5, 2007 5:55 PM:"one of the lucky?" Thanks for the info. I wish the best for you.
still there wrote on Dec 5, 2007 5:57 PM:I was there yesterday, witnessed the carnage of Terrible Tuesday. I was spared and can only think... how long until it is repeated? Many of the people who were released were old timer Guidant employees who made very good money. I think Abbott believes they can get those same jobs performed by another employee for a lot less pay. I think this is fallout from the purchase of Guidant. They are cleaning house. Just too bad that so many had to go. I will miss you all.
What? wrote on Dec 5, 2007 6:00 PM:I am sick of sickofgreed. Did anyone else notice that all of the countries sickofgreed listed as not imigrating to the USA were predominently white and european countries? I know Australia isn't in europe but the people are from there. Kind of funny after questioning her great white hope comment. Not that the great white hope comment doesn't deserve questioning. The way I see it is America sucks but it is the best place in the world. By the way I personally know Austrailian, Norwegian, English, Italian, Irish, Iranian, Iraqi, Cambodian, Vietnamise, Chinese, white south african, and tons of hispanic immigrants. I say hispanic because they are from Mexico and all over central and south America from too many countries to list. In contrast I don't personally know of a single American who left America for another country. One last thing, America doesn't have a monopoly on greed. We do however have a near monopoly on oportunity. Anyone willing to WORK hard enough can earn as much as they want.
Curt wrote on Dec 5, 2007 6:25 PM: You think 700 is something. Get a load of this: "5:47 p.m. December 5, 2007 NEW YORK – Pharmaceuticals maker Bristol-Myers Squibb Co. on Wednesday said it would lay off about 4,300 employees and close more than half of its manufacturing plants, part of a broad restructuring aimed at cost savings of $1.5 billion by 2010." The Bush spin economists will have to really crank up the "birth/dath" model to cook the books on the job creation numbers!
vistaguy wrote on Dec 5, 2007 8:17 PM:Corporate America doesn't believe in anything but profits. you are worth nothing more than machinery to them. The CEO's job is to show profits and cutting costs creates profits, so they get there $?? million bonus. Sick nut true.
sickofgreed wrote on Dec 5, 2007 8:35 PM:To What: You said "The way I see it is America sucks but it is the best place in the world." So you are saying the whole world sucks? Hmmmmmm And I am astounded that you are such a worldly person. To "personally know" people from 11+ countries from around the world, including tons of Hispanic immigrants. WOW. You must be the friendliest, most generous person on the planet. You've probably more friends in Southeast Asia than Angelina Jolie and Bradd Pitt. If I wasn't such a skeptical person, I would probably believe you. I've been to all of the continents except Antarctica and I've found that most people can't imagine leaving their home country, their families, and their culture behind. Sure, the most destitute leave for a better life. But they don't leave just for the United States. Europe has a big immigration problem too. But thanks for reminding me that the only people who want to move here are starving to death. Makes me proud.
jvc wrote on Dec 5, 2007 8:59 PM:We will never be the America of old, the America of hope, the America of greatness and the Amewrica of the driver of our true democracy, the great middle class, until we bury REAGANOMICS! The Reaganomics wall of voodoo economics must be torn down! CONSERVATIVES tear down the wall of a tax system for and by the rich!
Thanks to the BIA & associates wrote on Dec 5, 2007 9:00 PM:The greedy Building Industry with their building to the max under the phony pretense that it's for our children's children and their some housing shortage! Yeah, right. Such shortage they had their partners in crime, mortgage lenders and real estate pro's sell this overbuild to anyone with or without money to pay. Now the effect from their greed hits us all. Next taxpayer bailouts. What a bunch of crapola. Thanks for destroying our economy builders. Lining their pockets at everyone elses expense. Got houses now? Everywhere. But they will pound the same drum and continue to build.
jvc wrote on Dec 5, 2007 9:04 PM:This is a great tragedy that has befallen these workers but I am sure they are taking comfort as long as and after all we are bringing democracy to Iraq !
Unemployed wrote on Dec 5, 2007 9:50 PM:To all of the jerks who have been bashing anyone who works on an assembly line for $10 to 12 , it is not by choice that we are paid that. I have been going to college for the last 3 yrs., so I CAN DO BETTER! But it cost money if you ever went to college you would know that. Also there are SOME supervisors who have jobs with the co. that act like the evaluations and raises they give comes out of their pocket. but the truth is what they can save from their dept.per yr. goes into their pockets as BONUS, so you keep people down by only giving 15 cents, or 20 once yr. and keep them hoping it will get better.All operators work very hard,it is not as some others described sticking a part into a machine, YOU!!! are responsible for every aspect of that production, from set-up of the machine to the actual finished product. I was on a line that worked 12 hr. days on your feet in one spot. I skipped breaks lots of time to HELP production, and my reward was after 4 yrs. GOOD BYE- GOOD LUCK! And Yes, I am sure there will be temporary people brought in, as soon as the dust settles.If the FDA does approve Zience they will be working overtime. There are some lines there right now working overtime. Yet 700 were shown the door, and it was not a racial thing, or age thing or attendance thing. Only those CEO's who are getting profits from that $771 million profit will really know.For all of you who kept your job ,you better go in and work and SAVE as one person said to do, because unless FDA approves, you might be next.Also unless you have been there don't judge anyone for being upset about loosing a job.The operators there are not stupid , they are making devices that save lives. It is not like selling Pizza. There were people working there from Perris, Moreno valley, Oceanside, and as far away as San Bernadino, but there are alot of people who do live here in Temecula & Murietta. So we will not have as much money to spend.This will pass, I am sure we will all in time find jobs.
I am for wrote on Dec 5, 2007 10:42 PM:Huckabee for President!
Mixed W/ Emotions wrote on Dec 6, 2007 10:17 AM:I too was laid off, had many years in the co. W/great attendance , always there , people W/ the sunny outlook W/ CEO type feedback must still be working there or defending there actions, yes , I got the pay mentioned , but it doesn't match having the same amount of pay ,going to work . Some people that are still there , have really bad attendance ,and poor work habits , which means no production output . the co. may have shot themselves in the foot . they should've cleaned house .
I am woman wrote on Dec 6, 2007 10:41 AM:Where's Hillary Clinton when we need her the most????
Blah, Blah,Blah, wrote on Dec 6, 2007 12:57 PM:Some of you people are talking about issues that don't even pertain to the issue of Abbott's layoff, You just want to hear (read) yourself speak , put your political speal elsewhere, except for the comment on companies moving , the fair trade issues in the late 70's . there I agree about the gov. & companies going out of the country , that's how issues are created like sweat shops , child labor, people being chained to thier work stations . other than that stay on the topic of layoff . Thank You
Restructure ? wrote on Dec 6, 2007 1:14 PM:If Abbott was restructuring , thats a good one , people that have attendance issues , bad work habits , who voice that they dont't care about making their goals , on final warnings , are still working , and operators , that did care were let go , ( can't speak for everyone that was let go .) What is wrong with this picture . Some very responsible workers were let go ,These cared about the success of the company , if the the people care , then the company can be successful .
In Reply ! 2 Resposible wrote on Dec 6, 2007 1:31 PM:To your comment on working for manufactureing and not persueing further education , maybe there are some really good reasons why some people can't , It takes everyone to make companies a success , all worker Bees are needed to make the colony move , they're are differant groups w/in the colony , but they all have jobs , differant ones, not all are doing the same job. Even the ants have their own positions .Not all can be the Queen .
No one said that wrote on Dec 7, 2007 10:43 AM:being RESPONSIBLE means that you have to be the "Queen". Of course there are reasons why people are in manufacturing positions and of course there need to be people in those positions. But, it does not take much to realize that if you are in those positions, you are historically much more likely to be laid off. No one blames you, just don't ask what "somebody" is going to do about it. The question that every person laid off, or facing layoff, or other financial difficulty is "What is HE/SHE going to do about it?" Our government provides incredible job training and assistance programs that cost alot. That is enough. People have to take responsibility and do something about their situation.
Confidential wrote on Dec 12, 2007 2:07 PM: I was a Temporary Quality Engineer Employee who worked for Abbott for more than six months and they laid me off last Friday. I did not get a severence package.They laid off more than 700, because last Friday there were more lay offs...
DannyBoy wrote on Jan 5, 2008 6:01 PM:all i can say is that the Chargers will win the Super Bowl. That would make up for the lost of my job at abbott. I am Lucky to have had my job for 3 years with abbott. I just hope to find another job as serious as building a device to save someones life. Being able to help those in need with my hands for three years has been a really big success in my life. I guess being laid off doesnt feel good for anyone. But the devices that i helped build for those 3 years will make a difference after and beyond dec. 4th 2007.
eross wrote on Nov 3, 2008 9:56 PM:u-guys don't know jack
[-] wrote on Dec 5, 2007 9:48 AM:its not about the corporation, its not about the board of directors, its not about the CEO, ITS ALL ABOUT STOCK HOLDERS, and as a stock holder, I applaud their actions!
As a stockholder, you SHOULD be concerned, they are slitting their own throats by let's see.. throwing out parts of the engine but giving it a new paintjob and a steering wheel.. yea, this company should drive alot better now.
As a stockholder, you SHOULD be trading your stock to a more stable company, or selling it off. Of course it's almost a year later now with it's a bad economy, are you now bankrupt?
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