Source Interlink Distribution- 6,000 Layoffs in Florida
Bonita Springs-based Source Interlink Distribution shut down Friday, laying off as many as 222 people here and 6,000 nationally.
Source Interlink Distribution, which delivered magazines and other publications to grocery stores, book stores and other retailers, is one of two major divisions of Source Interlink Cos. and had been based in Lee County since 2003. The other division, a magazine publisher of titles such as Motor Trend, Hot Rod and Outdoor, was acquired in May 2007. It was rebranded Friday as The Enthusiast Network.
"It is with deep regret that we had to make this decision especially due to the impact it will have on our customers and the 6,000 employees and their families that have supported us over 20 years," Source Interlink Distribution CEO Michael Sullivan said in a written statement. "We will certainly do everything we can to provide resources during this difficult time."
many companies are laying off because it's the only way to boost profitability during lack luster sales
same thing with the mega mergers.....when two huge companies become one, they don't need all the people, so they lay off, which boosts profitability
trouble is, when we add those people either to the unemployed ranks, the early retirement ranks or the "less earnings than I'm used to" ranks those same people will spend much less than before which will reduce those companies earnings again....feeding their own fire
the inflation adjusted earnings trend is and has been downward for about a decade now (from memory, don't have the chart in front of me....it may have stared a bit longer than a decade ago)
hard to imagine the pond getting bigger when the rivers leading into it are getting smaller
(or as soros said, watch the flow of blood in the capillaries....if you wait till you see it reverse in the aorta, you've waited too long!.......the blood has been flowing backwards from the extremities so long that the patient's fingers and toes are numb!)