Layoffs from mergers.

Kiplinger Letter, The, February, 2001

Don't read doom into layoffs at DaimlerChrysler, AOL Time Warner, Lucent, Xerox. Many announced cutbacks won't have much economic bite... slowly phased in. DaimlerChrysler wouldn't even HAVE to pink-slip anyone. Normal attrition...retirements, job changes, etc...could do the trick.

No widespread pruning of payrolls is likely. Future job cutbacks will continue to occur mostly at struggling old-economy manufacturers, shaky upstart dot-coms and firms in the throes of post-merger downsizing. It's more of a typical industry shakeout than an economywide pullback.

We still expect the unemployment rate to drift modestly higher over the year, hitting a peak of about 4.5%, up from Jan.'s 4.2% rate.

Fact is, one firm's layoffs are another's...

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