Everett-based Intermec Inc. will cut 7 percent of its work force, or about 150 people, around the world, the company reported Thursday. Officials said that they expect profits this quarter to fall into the low range of earlier estimates and that they will need to continue to cut costs. In 2008, the company announced major layoffs and outsourced its manufacturing to Asia. Intermec, which makes a variety of devices to help companies move and track inventory, said the cutbacks should save the company some $14 million to $16 million. “Intermec is taking steps to further reduce our costs consistent with our strategic intent and the current economic conditions and uncertainties,” Patrick Byrne, president and CEO, said in a news release.
Obama seeks digital TV delay
President-elect Barack Obama is urging Congress to postpone the Feb. 17 switch from analog to digital television broadcasting, arguing that too many Americans who rely on analog TV sets to pick up over-the-air channels won’t be ready. In a letter to key lawmakers Thursday, Obama transition team co-chair John Podesta said the digital transition needs to be delayed largely because the Commerce Department has run out of money for coupons to subsidize digital TV converter boxes for consumers. People who don’t have cable or satellite service or a TV with a digital tuner will need the converters to keep their older analog sets working.
Retailers report bad sales in December
Dismal sales figures for the holiday shopping season are probably a sign of worse to come for merchants in 2009 — not only more sharp discounts and cheaper groceries but probably fewer stores. Holiday spending was so anemic that even Wal-Mart didn’t escape unscathed: It posted a smaller sales gain than Wall Street expected and cut its earnings outlook for the fourth quarter. Same-store sales were down 1.7 percent for December, with many chains reporting declines of 10 percent and more, according to the International Council of Shopping Centers.
Construction firms fear broad layoffs
Construction companies that build roads, commercial buildings and public works projects could cut up to 30 percent of their workers next year because of an anticipated downturn in construction activity, an industry group said Thursday as it pushed for big infrastructure spending in President-elect Barack Obama’s economic stimulus plan. About two-thirds of the nation’s nonresidential construction companies plan layoffs this year.
Fed’s bank bailout hits $267 billion
The Treasury Department announced Thursday that it has disbursed $266.9 billion from the $700 billion financial rescue program. The new report included $187.5 billion provided to banks in an effort to get them to resume more normal lending and $19.4 billion for the auto industry. The support for the auto industry included $10.4 billion to General Motors Corp., $4 billion for Chrysler Holding LLC and $5 billion for GMAC LLC, the financing arm for General Motors.
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