Saturday, June 28, 2008

Downsizing: A Real Example

I had a difficult time searching for a company with a website that went through downsizing. *whew* At last, I found one but it's not even located in the Philippines... Here it is:

Valdosta Company Downsizing

“The demand for residential wood products continues to erode and this announcement is a direct result of the business environment we face,” said Scott Reed, plant manager at the facility.

On November 9, 2007, the Weyerhaeuser facility on Clay Road in Valdosta announced that they are going to layoff half of their workforce and totally close the mill in Valdosta for an indefinite period of time. They is what they called an indefinite layoff because it is unclear when they will recall the affected employees and reopen the facility.

There are approximately 245 people employed in their company who will be affected by the downsizing. After the downsizing, the number dropped to about 100. The company says that the reason for the layoff was because of the slow demand for engineered wood products in the housing market. They say that they only need to operate in order to balance supply with demand. Although, the company also pointed out that there are many available jobs out there.

“This was a very difficult decision, our associates have done an excellent job of executing that which has been asked of them. This announcement is in no way a reflection of the performance by our associates,” Reed said. “The indefinite layoff announcement of November 9th was a recent action in the strategic analysis to address current market conditions. Unfortunately, ongoing business conditions now require that we take this further action. We recognize the impact of this closure on our associates and the Valdosta community, and we will do our best to work with affected associates through this difficult period.”

As a sort of compensation to the laidoff employees or associates, the company made them undergo counseling on specific details about the benefits. They will still receive pay and benefits for 60 days, as provided by the Worker Adjustment and Retraining Notification (WARN Act).

Weyerhaeuser says it hopes to recall the laidoff employees as soon as business picks up again but this is not something that they're sure of.

However, the affected employees still had sentiments about the layoff because it was almost Thanksgiving and Christmas and they had no money to spend. Talk about wrong timing.

Additional Information: Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities.



  1. what a brilliant work...
    you're really a gifted child...
    your blog just prove it...
    be safe always...
    geh complito jud nmo among name sa list noh??
    wala jud paalang...
    pwd yhang nlng???

  2. hi kate!
    woooh...Same here! i also had a difficulty in searching on the net for a company who undergo downsizing..
    Actually, I don't know what is downsizing before but thanks to Sir. Gamboa's assignment..I know noW what is downsizing..
    I am not familiar with the company that you have searched but it's a great thing that you have found one!..
    keep on making great opus!