Thursday, September 27, 2012

Random Note on Job Losses in California -- High Costs Cited

Two announcements out of California this week: Campbell Soup to close its Sacramento plant; Comcast to close three call centers. Campbell Soup and Comcast both cite high costs.

Campbell Soup: will cost 700 jobs in Sacramento; most of Sacramento’s production of soup, sauces and beverages will be shifted to Campbell’s three remaining thermal plants in North Carolina, Ohio and Texas.

Comcast: will cost 1,000 jobs at three call centers.
The announcement comes just two days after Comcast announced it will close all three of its call centers in Northern California, including one is Sacramento, because of the high cost of doing business in the Golden State.
I assume part of the high costs associated with the Campbell Soup facility had to do with an old, inefficient facility. Harder to make that same case for the call centers.

So many story lines. Very, very sad for the folks affected.

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Earlier I had come across a study of the California exodus but did not post it; it seemed too far afield of the Bakken, but after reading the above, a reader sent me the link. That story now seems very, very fitting and perfect for posting.

The link: http://www.manhattan-institute.org/html/cr_71.htm#.UGUErLT3D-Z

2 comments:

  1. The Manhattan Institute has published a recent article; The Great California Exodus: A Closer Look. For those interested:

    http://www.manhattan-institute.org/html/cr_71.htm#.UGUD3679WSo

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    1. I saw that article earlier; I debated whether posting it; it was getting far afield of the Bakken, but after the jobs report this morning, this seemed of more interest. Thank you for sending it. I'll add it to the main body for easier access for readers.

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