Friday, March 20, 2009

Layoffs at Company That Makes Money

Here's a news story I stumbled across today: Mass. company responds to decreased demand for personalized stationery by cutting 70 jobs

NORTH ADAMS, Mass. —

The Massachusetts company that makes paper for U.S. currency has laid off 70 employees in its personalized stationery division in response to a drop in demand for the product.

Officials at Crane & Co. also announced Tuesday that the roughly 200 remaining employees in the division would take a 9 percent pay cut.

Chief Executive Charles Kittredge called the layoffs "extremely difficult."

He says in a tough economy people do not have the discretionary income to buy personalized stationery.

Fifty of the eliminated positions were in Crane's personal design services facility in North Adams and 20 cuts were at the company's factory in Dalton.

The company, founded in 1801, also makes currency and passport paper, and water filters.



It doesn't surprise me at all that people are cutting back on personalized stationery... but what about all the increased demand they'll be getting for paper as the Fed prints more money?

12 comments:

Anonymous said...

I don't think "printing more money" really means printing more money.
The amount of banknotes on the market is pretty much stable, we are only increasing the money on our bank statments. They are replaced when they are damaged. So the demand for printing money has to do with the popularity of circulating cash, which has been in decline.

Moneysaver said...

Isn't terrible how people just keep getting laid off? Though it seems that with the Fed printing more money, shouldn't it mean there is more demand for the product and that they should've kept those 70 employees, and maybe even hired more?

mapgirl said...

Per NPR this morning, they don't actually run presses to make more money. The move some electrons and deposit money into the account of a bank to make more money. There's no actual physical cash created.

SJ said...

That headline is awesome =)

Bill McCollam said...

maybe they'll just add a zero to the bills.

Trevor @ Financial Nut said...

Haha... Glenn Beck said he could hear a strange sound the other day. He kept hearing it over and over and over again...

It was the fed printing more money!

Oh dear...

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mOOm said...

They'll only be printing more money than usual physically if there is higher inflation than there's been. But likely that would just be more higher denomination notes unless the US heads to hyperinflation which is rather unlikely I think even with this huge "money printing" operation. The short-term result is going to be an increase in bank reserves in all likelihood.

Anonymous said...

Bahahahahaha. . . . I looked at that Asav Patel guy's site. He doesn't even *have* a blogroll.

kim-free classified website said...

Recession is taking its toll and it is saddening that more and more employees are getting laid off.

Anonymous said...

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Giftsin24 said...

The story of this company laying off employees in its personalized stationery division has been everywhere lately. It should be noted, though, that the personalized stationery industry is still going strong. Many people still value the tangible paper and pen over the e-mail or “tweet.”