Results tagged “cutbacks”

With the City already staring down major cuts, the Department of Public Health could be adding to the cutbacks. The DPH could be forced to cut spending by 25 percent and layoff as many as 80 workers. The main culprit? The ongoing state budget crisis in Springfield right now. Dr. Terry Mason, DPH head, said yesterday at a press conference, “This is real. This is not something that is contrived. You cannot make bricks without straw and you cannot provide services without people. This political game which is being framed as an economic argument, but it’s a political game and it needs a political solution and it needs it now.” Other departments, such as the Department of Family and Support Services, also face double-digit cuts. [Chi-Town Daily News]

We mentioned it yesterday, but the numbers are in and they aren't pretty. In the first round of cuts meant to save money, the Chicago Public School System has cut 557 jobs. The cuts lower the CPS deficit by about $100 million, from $475 million to $375 million with even more cuts expected in the near future. According to the Sun-Times:

Chicago-based United Airlines announced today they're cutting 600 flight attendant positions due to lower-than-expected air travel and lower attrition than expected. United spokeswoman Megan McCarthy said, "We will again offer our flight attendants a voluntary package, and hope to receive enough responses to prevent any involuntary furloughs." The airline warned its investors last week that lower travel numbers in the second quarter of 2009 could lead to a 20 percent drop in revenue. United cut approximately 1,550 positions last year. [Tribune]

A few days ago, we mentioned a new deal struck by four local television stations that would enable them to share raw footage of non-exclusive events, i.e., sending one camera and mic to a press conference rather than four. Many have speculated - including our commenters - that this was simply a move to set the stage for cuts. And they were all right. In the wake of CBS 2's cuts last week comes word that both Fox 32 and NBC 5 are making cuts and alterations to local television schedules. a href="http://newsblogs.chicagotribune.com/towerticker/2009/05/wmaqtv-to-eliminate-local-sundaymorning-news-add-the-talk.html">According to the Trib's Phil Rosenthal, NBC 5's vice president and station manager Frank Whittaker said via a statement, "In this tough business climate, we must redirect our energies and resources to areas of highest impact and growth." Meanwhile, a Fox 32 source described the cuts to the Sun-Times Lewis Lazare as a "bloodbath."

The mayor plans to spend $260 million on education, for after-school programs and teacher recruitment and training, as well as expanding Head Start for some 10,000 children. Daley also plans to rebuild 43 miles of pothole-filled arterial streets, while upgrading the fleet of police cars, including the installation of more cameras and finance more police overtime. The mayor also plans to spend about $144 million to convert existing condominum stock into affordable rentals, and $31 million to rehabilitate the Altgeld Gardens and Phillip Murray Homes on the South Side. “There are many opportunities to create jobs and protect people in their quality of life,” Daley said.

This morning, Sears Holding Corp. announced a wider than expected quarterly loss - $146 million or $1.16 per share – resulting in the closing of eight more of its retail stores. This is a drastic difference compared to 2007’s third-quarter loss of $4 million, or three cents per share. These closings are in addition to 14 already in the third quarter. The Hoffman Estates-based company, which is controlled by hedge fund manager Edward Lampert, also approved a stock buyback plan of up to $500 million in common shares.

Revenue dropped eight percent to $10.66 billion from $11.62 billion as Sears' U.S. same-store sales slid 10.6 percent and Kmart same-store sales slipped seven percent. Total same-store sales – or sales at stores open at least a year, a key retail gauge – fell nine percent.

According to the company, the reason for the decline in sales is due to the trifecta of housing-related departments, lack of consumer spending and the shift in Sears’ promotion of certain goods.