Russel Metals Layoffs Job Cut: fires 500 employees

The news is not good for the employees of Russel Metals Corporation, the firm in the business of steel products. The recession is taking a toll on all sectors. The latest additon to the list of companies going for layoffs is the Russel Metals. No one seems to be shielded from the effect of recession. It the Russel Metals Company, which have decided to go for the layoff. Not only that, the company has also slashed the dividend to 50%

How many employees will be fired in the Russel Metals layoffs?
There could be around 500 job cuts by the company. This will be around 16% of the total employee workforce.

What is the total no. of employees of Russel Metals?
Total No. of employees of Russel Metals is around 3000 as of now.

When will the Russel Metals layoffs happen?
Though the dates of layoff are not certain, it is learnt that the layoffs will be done by end of March 2009

Which location will be affected by the layoffs?
No information is available location wise.

How much savings can be made by the company from the layoffs?
Around $25 million a year can be saved in operating costs.

What is the primary reasons for Russel Metals layoffs?
Major reason are the bad financial results of the company. Declining demand, no fresight of economic revival is the main reason quoted by the company for layoffs. The company cited lower steel prices, rising energy costs and the rapidly plunging steel market in the last two months for the moves.

Any other measures taken by the company?
Yes. There will be a pay cut or salary cut - 10 per cent cut to executive and white collar pay

Any other news about Russel Metals layoffs
As per Toronto CTV, Monday's cuts came as Russel Metals reported higher profits in the fourth quarter ended Dec. 31, when it earned $29 million or 48 cents a share. That was up from $25.3 million or 38 cents a share for the same year-ago period. Three-month revenues soared to $842.7 million from $598.4 million. For the full 2008 year, the company more than doubled its profits to $228.5 million from $111.2 million while annual revenues increased to nearly $3.4 billion from just under $2.6 billion. President and CEO Bud Siegel said the company is "proud of our record earnings for 2008."
Let's hope that alternative jobs are available to the affected employees of Russel Metals Layoffs Job Cut