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TO ELIMINATE SIMILAR MODELS AND
IT WILL ALSO STOP MAKING THE
FOCUS.
>> CHALLENGER MAY JOBS DATA
HITTING THE WIRES.
THE NATION'S EMPLOYERS
ANNOUNCING PLANS TO CUT 62,000
WORKERS FROM THEIR PAYROLLS.
JOHN CHALLENGER JONES US NOW.
THE DETAILS, SIR.
>> IT WAS LED BY THE COMPUTER
INDUSTRY AND PARTICULARLY LED BY
HEWLETT PACKARD.
WE'RE SEEING THE LAY OFF OF
27,000 PEOPLE, MAYBE THE START
OF SOME OF THESE BIG MEGA
LAYOFFS.
WE HAVEN'T SEEN THOSE IN SOME
TIME.
USUALLY WHEN YOU SEE MEGA
LAYOFFS THAT POP UP HERE AND
THERE, YOU BEGIN TO WONDER IF
THEY'RE SIGNS OF A DETERIORATING
ECONOMY.
>> WE'RE SEEING SOME OF THE
LAYOFFS IN TECH LAND.
DOES IT CONTINUE THERE OR DOES
IT EXTEND ACROSS INTO OTHER
INDUSTRIES?
>> WELL, THERE'S ANOTHER BIG CUT
THAT'S OUT THERE, HASN'T BEEN
ANNOUNCED YET BUT HOSTESS BAKERY
THAT MAKES WONDER BREAD AND
TWINKIES AND ALL THOSE GREAT
PRODUCTS WE GREW UP WITH, THAT
BUSINESS IS NEARING CHAPTER 11,
MAY GO OUT OF BUSINESS AND THAT
COULD MAN LAYOFFS OF ANOTHER
18,000 PEOPLE, ANOTHER BIG
LAYOFF.
YOU WONDER WHETHER OR NOT SOME
OF THESE COMPANIES THAT HAVE
BEEN HIT BY NEWER KINDS OF
COMPETITION, CHANGES IN THE WAY
WE EAT IN TERMS OF THE HOSTESS
COMPANY, WHETHER OR NOT SOME OF
THESE BIG COMPANIES ARE STARTING
TO TOPPLE OVER BECAUSE THEY LOOK
INTO THE FUTURE, END OF THE YEAR
AND THEY DON'T SEE ENOUGH DEMAND
TO CONTINUE THEIR OPERATIONS.
>> MAYBE PRIVATE EQUITY WILL
COME IN, LAY OFF A THIRD OF THE
WORKERS AND GET VILIFIED FOR
LAYING OFF A THIRD OF THE WORKS
ARE TO SAVE THE COMPANIES.
>> WE ARE IN THE CROSS HAIRS.
>> THOSE PRODUCTS ARE OUTLAWED
ON THE ISLAND OF MANHATTAN
ANYWAY, AREN'T THEY?
>> HAVE YOU EVER SEEN ONE?
>> TWINKIES ARE NOT OUTLAWED IN
NEW YORK BUT THEY WILL BE.
WE'RE GOING TO GET THE ADP
NUMBER SHORTLY.
THE BIG NUMBER COMING TOMORROW.
WHAT'S YOUR EXPECTATION?
>> I THINK 150,000, 130,000 IS
PROBABLY RIGHT.
WE'VE SEEN NOW TWO CONSECUTIVE
MONTHS WHERE THE JOB CREATION
NUMBERS HAVE COME IN LOWER THAN
EXPECTED.
IT'S LIKE WE'RE BACK INTO ONE OF
THESE SPRINGS WHERE IT SEEMS
THAT THE ECONOMY STARTS TO SLOW
DOWN, A FISCAL CLIFF OUT THERE
CAUSING WORRY ON THE PART OF
CORPORATE AMERICA, IF THE
ECONOMY IS GOING TO SLOW DOWN AS
WE GET INTO 2013.
JOB CREATION IS NOT VERY STRONG
RIGHT NOW.
IF WE SEE UNEMPLOYMENT GO DOWN,
IT SEEMS TO BE A CASE MORE OF
PEOPLE LEAVING THE JOB MARKET
RATHER THAN ROBUST JOB CREATION.
>> ANY SILVER LINING?
ANY INDUSTRY POINTING UPWARDS?
WE WERE TALKING ABOUT CAREER
BUILDER SHOWING COMPANIES THAT
ARE HIRING.
>> SURE.
WE SAW HIRING PLANS FROM THE
NUMBER ONE INDUSTRY WAS
AUTOMOTIVE AND SECOND
MANUFACTURING.