Hold onto your jobs – here comes more cutbacks

Financial Services company AXA has announced they will be slashing up to 120 jobs this month, in an effort to cut down on costs as the meltdown in global markets continue to affect their wealth management industry. The Age said that mostly operational roles were expected to be cut and the cuts are most likely to be made in Melbourne where the company’s head office is located.

The planned shake-up, understood to have been announced to staff this morning, follows around 90 positions – mostly among contractors – lost across AXA’s Australian operations late last year.

In Feburary AXA Chief Executive warned shareholders to brace themelves for another tough year as more than $700 million was wiped from it’s investment portfolio.

All we seem to keep hearing is numbers upon numbers of money. I find it hard to actually comprehend how much $700 million dollars is.

PMP also announced it will cut 67 permanent jobs at it’s printing centre in Melbourne as the recession slows the demand for printing. The Sydney Morning Herald said the announcement comes only 2 months after the company closed 2 presses in Adelaide and Brisbane to eliminate 76 jobs and remove some of it’s middle management.

But the company also warned its operating earnings would come in worse than previously forecast and fall below the $33.5 million reached in the first half, which means it is heading for a full-year slump in operating earnings of more than 21%.

With the unemployment rate getting higher and higher, and companies laying off workers left, right and centre, it’s any wonder how they can afford all these redundancy payments? The media has been critical of companies such as Qantas for making job cutbacks but who isn’t making necessary cutbacks these days? It seems most businesses are needing to, which is why the unemployment rate is so high, but why are these companies taking all the flack?

Published in: on April 21, 2009 at 8:19 am  Leave a Comment  

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