The Latest Thing in Fashion: Pink Slips

Despite its inviting, feminine-sounding name, the latest thing in fashion and retail is not a new kind of undergarment from Victoria’s Secret. It’s a good bit more ominous—the pink slip—and an awful lot of people are going to be getting them.

It is estimated that one in every five Americans works in retail, or a subsidiary retail-oriented job. It is predicted that the U.S. retail industry will cut jobs and layoff employees in unprecedented numbers in 2009. In 2008, retailers eliminated more than 500,000 jobs, which is a notable 20 percent of the 2.6 million layoffs that occurred in the United States overall.

Here’s an abbreviated list of who’s already handing out pink slips…
30,000 Circuit City; 10,915 KB Toys; 9,000 Goody's; 7,000 Macy’s; 7,000 Home Depot; 7,000 Starbucks; 2,200 Office Depot; 1,150 Bon-Ton; 1,400 Williams-Sonoma; 1,140 Target; 1,100 Saks; 1,000 Walgreens; 1,000 Bose; 800 Talbots; 500 Best Buy; 375 Neiman Marcus; 350 Ethan Allen; 332 Yankee Candle; 310 New York & Co.; 300 Sears; 225 Charming Shoppes; 209 Stein Mart; 200 J.C. Penney; 193 Eddie Bauer; 180 Chico's; 180 Ann Taylor; 100 Barnes & Noble; 100 Google; and 51 Wet Seal.

These are not numbers…these are people—real people, our friends and our families.

I feel for the corporate offices who need to let go of employees who they know have worked hard, demonstrated their loyalty, devoted their lives and help drive sales. I’ve never heard of any company looking forward to letting talent go.

I feel for the remaining staff whose corporate morale may be sacrificed. For the additional toll that “picking up the slack” will entail, and the doubtful chance that they will be better compensated despite the additional responsibilities lodged upon their shoulders. A staff constantly looking over their back, and set on the guard to see if the sword of Damocles will fall on them next.

But mostly, I feel (as we all do) for the thousands and thousands of workers who will be clearing off their desks. Some training their assistants to take over their positions. Then tearfully saying good-bye to friends and surrogate family, to face an uncertain world, where they will be competing with others more or less qualified for any job, doing any menial task, so that they can pay their rent and keep food on their families’ tables.

Most surveys confirm that the general mood of Americans is optimistic, and while there is no “quick fix” to quell the economic crisis, that we believe that things will turn around soon, in a year or two. That may seem (for some) a very long way off. However, time does fly by.

Back in the 1940s, coming out of the Great Depression and heading into the war years, Americans rationed food, bought war bonds when they went to the movies, recycled aluminum, tin and nylons, planted Victory gardens and rolled bandages for the Red Cross. They had little, but they still came to the fore and contributed to the best of their abilities. They too believed that better times were just around the corner.

We, by comparison, are so spoiled! If we really are committed to a better future, I wish there was some way that we could all actively participate in reducing more layoffs, like a penny tax--a one cent surcharge for every dollar spent to be used (set aside) in a fund to underwrite salaries. I do not have deep pockets, but one percent of a $100 purchase is just one dollar. If my grandmother could do it, I know I can.

Maybe you have an idea to help stem the tide, if so, please share it with the Diva.

--Ron Knoth, Guest Blogger

Comments

[Hdtex]

Around our office the anxiety is palpable. We close our fiscal 2008 books tomorrow and there's more than a little gloom over the complex. We are a very sound company financially, but when evaluating 2009 expense and capital budgets things were put into the perspective of "I could do this project for $X for a possible $Y return, or I could keep 10 people on the payroll for another year".
My industry peers and friends are dropping like flies....Talented, dedicated professionals who as we know are often the first to go (those creative types dontcha' know).
Mentally I keep my nose to the grindstone while mentally planning a plan B that doesn't really exist.I anguish over the smallest mistakes, slips in budgets or timelines....There is no room for error.
There's not much blood left in this turnip, but being something of a vetran I know that some of the best companies emerge out of the ashes of just this sort of adveristy.
So...that's my hope. God bless and God speed to those of you in those "pink slip" blues....I may soon be amongst you.

[jerry herschman]

this also effects the architects, engineers, designers, construction,real estate,material mfg.,etc., etc......the hit is huge, but because it is fragmented by area or catagory, it doesn't always show on the screen...we are in big trouble