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The Tampa Tribune

Published: January 29, 2009

Jabil Is Cutting Work Force, Has Lawsuit Dismissed

St. Petersburg electronics manufacturer Jabil Circuit Inc. said Wednesday that it is curtailing its capacity in parts of the world and will trim 3,000 jobs from its work force of 85,000 to match declining customer demand in the midst of the global recession.

The company expects to save $55 million annually.

In addition, Jabil said earlier this week that a judge has dismissed a securities class-action lawsuit filed after the company was accused of backdating stock options. The dismissal of the lawsuit, filed in Tampa in U.S. District Court for the Middle District of Florida, comes two months after the Securities and Exchange Commission dropped its investigation of how executives handled stock options.
Starbucks Is Eliminating Jobs And Stores Again
Starbucks reported that its profit dropped 69 percent in its fiscal first quarter and it plans to close 300 underperforming stores in addition to the 600 it already planned to close in the United States, possibly cutting an additional 6,000 store jobs. Starbucks will also lay off about 700 nonstore employees.

Fed Stays Steady On Record Low Rate

The Federal Reserve, acknowledging the economy has continued to deteriorate, signaled Wednesday that it will keep using unconventional tools to cushion the fallout, including keeping a key interest rate at a record low for quite "some time."

Specifically, the Fed said it is prepared to buy longer-term Treasury securities if circumstances warrant such action. The Fed also agreed - with one dissent - to keep the targeted range for the federal funds rate between zero and 0.25 percent. The funds rate is the interest banks charge each other on overnight loans.

A staff and wire report

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