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Job cuts continue as economic crisis worsens

On the back of news that Pacific Brands will axe 1,850 jobs, phone companies Nokia and Vodafone and property developer Lend Lease have announced plans to shelve thousands of jobs, the latest companies to fall victim to the economic crisis.

Lend Lease yesterday announced plans to cut 2,000 jobs worldwide, with 20 percent of the cuts to take place in Australia. This comes off the back of news the company posted a $600 million half-year loss.

Treasurer Wayne Swan expressed his disappointment with the decision, and used the opportunity to push the Federal Government’s $42 billion stimulus package.

“It is just another demonstration why the government acted so decisively and so swiftly with our economic security package and our national building and jobs plan.”

He stated that many industries and services are under immense pressure in this current climate.

One such industry is the telecommunications industry, with mobile giants Nokia and Vodafone announcing plans to cut over 1,500 worldwide in an effort to adapt to the challenging economy.

Nokia has planned to cut 100 jobs in its mobile advertising business and 1,000 worldwide, while Vodafone plans to shelve 500 jobs in the UK.

According to a Nokia spokesperson, the company is encouraging people to resign along with taking unpaid leave in an effort to reduce its cost base.

The Federal Opposition has attached the Government over the increasing amount of jobs cuts, with Industry Minister Kim Carr claiming that the government is failing to protect jobs.

On Fairfax radio, Senator Carr told Neil Mitchell that there are tough times ahead and that no one’s job is safe.

Treasure Wayne Swan has urged Australians not to panic, claiming the government will do “everything within our power to support employment.”

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Jessica Stanic

Jessica Stanic

Jessica has a background in both marketing and journalism and is dedicated to making the website the leading online resource for small to medium businesses with ambitions to grow.

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