Friday, March 21, 2003
Business digest
Compiled from wire reports
Continental Airlines to lay off 1,200
HOUSTON - Stock in Continental Airlines edged higher Thursday after the airline announced it will cut its work force by about 1,200 people by the end of the year to save $500 million.
The Houston-based carrier said it plans to eliminate the jobs of 125 pilots as well as 500 reservation agents, 350 airport agents and 225 other workers through voluntary exit programs, leaves of absence and attrition.
"We feel like a candle that is losing its oxygen supply and dimming slowly," Continental chairman and chief executive Gordon Bethune said.
HealthSouth CEO, CFO placed on leave
BIRMINGHAM, Ala. - Rocked by claims it faked at least $1.4 billion in profits since 1999, HealthSouth Corp. began cleaning house Thursday by placing chairman and chief executive Richard Scrushy on leave.
Meanwhile, the company's longtime auditing firm, Ernst & Young, sought to clear itself of any involvement in the alleged fraud, which regulators said Scrushy had orchestrated.
The health care giant said chief financial officer William T. Owens also was going on leave.
Director Robert P. May was named acting CEO. Directors are looking for an interim CFO, the company said. The Securities and Exchange Commission accused Scrushy and HealthSouth of massive accounting fraud.
Contractor Solectron to cut 12,000 jobs
SAN JOSE, Calif. - Solectron Corp., a leading contract manufacturer for high-tech companies, reported mixed second-quarter results Thursday and said it will cut 12,000 jobs and consolidate facilities to remain competitive.
The Milpitas, Calif.-based company also forecast a loss for the current quarter, saying business remains difficult.
Fleming settles $1.5B dispute With Kmart
The agreement spares Kmart, the largest retailer to file for Chapter 11 protection, from more legal fights with Fleming as it works get out of bankruptcy next month.
