Chicago Jobs Cut at Two Top Companies
Posted on April 14, 2009
Nearly 1,000 Chicago area jobs will be lost at two of the city’s top companies. Click here to see profiles of more top companies.
About 900 jobs total will be cut at Discover Financial Services and ArcelorMittal, according to an article by the Chicago Tribune.
Discover plans to cut about 500 jobs, mostly at the company’s headquarters, to help better align its cost structure. The layoffs are expected to effect all departments within the company, but not many will involve employees who deal with customers. The company currently employs less than 3,000 workers in Riverwoods, a Chicago suburb, and has about 12,000 workers throughout seven states.
Discover tripled its bad-loan set-aside during Q1, most likely because the economy has caused a higher amount of late or not-existent credit card and loan payments. The company also recently announced a dividend cut.
ArcelorMittal plans to indefinitely halt steel-bar operations in Chicago, which will cause about 400 employees to lose their jobs. The job cuts will amount to about 8 percent of the company’s total workforce. ArcelorMittal employs about 5,000 workers at its Indiana Harbor complex and produces about 10 percent of the world’s steel.
About 490 workers, or 10 percent of the company’s workforce, previously agreed to voluntary layoffs as part of a plan to reduce American steel production by 40 percent. Union workers who are laid off will receive unemployment benefits from the company for a limited time, which could put them at 80 percent of their salaries with government benefits. Find out more information about where to look for Chicago jobs.
The company, which can produce up to 10 million tons of steel each year, makes steel for the automotive, appliance, agricultural and construction industries. The Chicago plant makes steel for buildings, bridges and railroad tracks. ArcelorMittal saw a $2.6 billion loss on $22.1 billion of revenue during Q4 2008, compared to $2.4 billion in profit on $28 billion in revenue during Q4 2007.