In the news today, a new report suggestions that Canada's auto parts manufacturers will lose money in 2009, but will start to turn a profit in 2010, and should be back up to full speed, money-wise, by 2013. This will all come about due to some major structural changes, including shedding 36,000 jobs in 2009.
Read that slowly. Thirty-six thousand jobs.
Along with making more profit because they don't have to pay so many of those pesky wages, Canada's auto parts manufacturers will come back to the brink due to the anticipated rebound in car sales, according to the report.
But every time I turn around, there's a press release telling me how many jobs are being shed in the name of returning to viability. A few hundred here, a couple of thousand there, 36,000 in this particular release.
There's no question that many -- perhaps most -- companies in the auto industry have been overstaffed for many years, back when no one thought the gravy boat would ever run dry. But when your profitability depends on massive numbers of people buying items that can cost a year's salary or more, and you've taken away their jobs, well, just who is left to buy your product?
