How-not-to guide to jobs survival
Darwin's survival-of-the-fittest theory helps explain many of the 5,297 larger-scale corporate layoffs in the Tampa Bay area in 2004.
By ROBERT TRIGAUX
Published December 8, 2004
Barring some major severance in the next few weeks, the 1,400 layoffs at Eckerd Corp.'s headquarters in Largo will top this year's regional list of job cuts. Eckerd's layoffs - the result of owner J.C. Penney selling the drug store chain to rivals CVS and the Jean Coutu Group - made up 26 percent of this metro area's larger-scale pink slips.
Right behind Eckerd was Virginia's Capital One Financial Corp., which built a swank Tampa credit card call center campus only to abandon it - for the lure of cheaper outsourcing - and eliminate 1,100 area jobs.
Eckerd and Capital One accounted for nearly half of the area's major layoffs in 2004. The layoffs were compiled from the reports companies must disclose for larger-scale staff reductions under the federal Worker Adjustment and Retraining Notification Act, better known as the WARN Act.
To be sure, the Tampa Bay area is growing and added more jobs than it lost this year. But it is revealing to look back at 2004 and examine what types of businesses trimmed jobs, what prompted those reductions and what lessons might be learned from such downsizing.
But first, some national perspective. U.S. employers in November announced plans to reduce their work forces by 104,530. That's the third straight month in which planned job layoffs surpassed 100,000, putting the nation on pace to have 1-million layoffs for 2004, according to job tracker Challenger, Gray & Christmas in Chicago.
In Tampa Bay, Eckerd is a classic Darwin tale. In a country bloated with too many drug stores fighting for the consumer dollar, the company failed to compete effectively against better focused industry leaders such as Walgreen and CVS.
Capital One - best known for its slogan "What's in your wallet?" - came to Tampa with great intentions but felt compelled by the ultracompetitive credit card industry to shift its call center to less expensive turf. For this region, it was a good lesson in recruiting with incentives. Enjoy the relocation while it's here. Just don't overpay for the short-term visitor.
If there's a message in the remaining major layoffs of 2004, it involves the sheer variety of affected industries. Pasco Beverage in Dade City racked up 459 layoffs, making it No.3 in cuts this year, as the juice and beverage company shut down parts of its business and sold off the remaining pieces.
Right behind Pasco were two businesses that faltered while providing health and social services to area counties. Largo's American Medical Response lost the contract to provide ambulance service in Pinellas County, while Pinellas Park's Family Continuity Programs became overextended and went out of business trying to help children the state considers abused or neglected. Combined job loses: 786.
Most of the rest in the top 10 occurred at financial institutions involved in mergers. And last among the top 10 was Westminster Shores, which cut 121 jobs when it closed its nursing home in St. Petersburg.
Nationwide, the telecommunications industry suffered the largest number of jobs cuts in 2004. It was a trend modestly represented in this area, with 190-plus job cuts announced by Tampa's Z-Tel Communications and 58 layoffs at Verizon Media Ventures in Pinellas Park.
Struggling Z-Tel remains busy trying to raise its share price through a reverse stock split. Perhaps hoping for a fresh start, the company plans to change its name to Trinsic Inc. (and change its stock ticker to TRIN) in early January.
The good news is the Tampa Bay economy is diversified and not overly vulnerable to big cuts in a few industries. The bad news is the area's larger jobs cuts are just as diversified.
In airlines, ATA Airlines and Southeast Airlines have had recent local layoffs. In manufacturing, companies ranging from Tampa's Westship World Yachts and Tropical Sportswear International to Seminole's Superior Uniform Group announced jobs cuts.
In retail, upscale-but-unfocused Lord & Taylor closed its doors at International Plaza in Tampa, laying off 59, as part of the company's 31-store exodus from Florida and the Southeast.
Throw in shrinkage at Tampa's Laser Leasing, a real estate rental and leasing firm, as well as Wachovia, Colonial Bank and RBC Dain Rauscher, and voila : more than 300 more job cuts.
Companies were once hesitant to fire and eager to hire.
Now, as 2005 looms, it's often the other way around.
Business surveys generally say the economy is picking up. Expectations for 2005 are on the rise.
A friendly tip: Beware if you see a consultant named Darwin poking around your department.
Robert Trigaux can be reached at trigaux@sptimes.com or 727 893-8405.