In the News Today

AVON UNVEILS NEW COST CUTS
This article, in the Wall Street Journal (subscription required), reports that Avon is undergoing a restructuring initiative to reduce costs. It references that approx. $200 million of savings will come from product-line simplification and $250 million from "strategic sourcing initiatives, pushing the total from the previously announced restructuring moves to nearly $900 million a year, above prior expectations.

HEWLETT-PACKARD CUTS PAY AS SILICON VALLEY RETRENCHES
HP announced that they are going to reduce salaries across the board in order to maintain their workforce. This is obviously one tact that companies can take to avoid moving jobs outside or offshore.

NISSAN WANTS TO BUILD BATTERIES IN TENNESSEE.
Nissan is requesting a loan to build a Lithium Ion battery manufacturing plant for hybrid cars in Tennessee. They would move production from over seas to the US, a reverse form of offshoring

RUSSIA PLANS TO OUTSOURCE MANUFACTURE OF OIL TANKERS
Due to the shifting of Russia’s oil fields they need to find alternate manufacturers of their oil tankers. Their own ship building industry is focused on military vessels so they are offshoring this project.