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Teacher Tenure Bill Heads To Dayton

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ST. PAUL, Minn. (AP) — A bill making significant changes to the process for teacher layoffs is headed to Minnesota Gov. Mark Dayton, who has pledged a veto.

The legislation would eliminate so-called “last in, first out” rules that protect more senior teachers. The Senate voted 35-28 on Saturday to send the bill to Dayton, following a House vote a couple nights earlier.

Current law says that schools must only consider teacher seniority when making layoffs, unless districts negotiate different local policies. Under the bill, schools would be able to weigh teacher evaluations before seniority in layoff decisions.

Advocates say layoffs should put a premium on performance over classroom longevity, but opponents argue that teacher evaluations can be too subjective and that it’s an end-run around collective bargaining.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)



Fridley-Based Medtronic Announces Job Cuts

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MINNEAPOLIS (WCCO)– Fridley-based Medtronic announced Thursday morning it’s making some substantial job cuts.

Company officials told the St. Paul Pioneer Press they are laying off about 220 workers from their offices in Mounds View.

That division specializes in making pacemakers and implantable heart defibrillators. Medtronic officials said the layoffs are a part of what they call ongoing “belt tightening” because of weak sales reports.

Medtronic is one of the state’s largest employers with about 8,000 employees.


Minnesota Orchestra Announces Layoffs To Cut Costs

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MINNEAPOLIS (WCCO) – The Minnesota Orchestra has announced it is planning to cut the size of its staff to save money.

Officials with the orchestra said they are laying off nine full-time workers and seven part-time workers in the hopes of saving nearly $500,000 per year. The cuts represent 13 percent of the permanent staff, but do not affect any musicians.

Orchestra officials said the duties affected by the layoffs will be picked up by other staff members, and audience members will not notice the reductions. The orchestra announced last November that it’s facing nearly a $3 million deficit.


St. Jude Announces Layoffs In Restructuring Plan

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MINNEAPOLIS (WCCO) – In another blow to Minnesota’s work force, St. Jude Medical has announced layoffs as part of a restructuring plan to deal with slumping sales.

St. Jude Medical is laying off about 500 employees as part of its restructuring. According to a Star Tribune report, about 100 of those positions are from the company’s Minnesota office.

The move comes just three months after St. Jude made a different round of job cuts that eliminated about 300 workers.


Caterpillar Will Close Owatonna Plant, Cut 100 Jobs

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OWATONNA, Minn. (WCCO) – Officials with Caterpillar said Thursday they are planning to close their Owatonna plant and consolidating operations within their forestry business.

Caterpillar officials said the move will be done by March 1, 2013, and about 100 employees will be affected by the decision. Employees will be offered a severance package, and the company will help them work with agencies on getting placed in other jobs.

Caterpillar is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.

Officials said some engineering work will stay in the Owatonna area, but forestry products currently being made there will shift to other plants in Prentice, Wis., and LaGrange, Ga.


Boston Scientific Plans Up To 1,000 Job Cuts

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(AP) – Boston Scientific plans to cut as many as 1,000 additional jobs this year as the medical device maker expands a push to reduce operating expenses.

The company’s shares jumped in morning trading Tuesday, as it also reported a fourth-quarter profit and earnings outlook that topped Wall Street expectations.

The 900 to 1,000 cuts will include layoffs as well as the elimination of unfilled positions. They come on top of a restructuring plan, started in 2011, that included 1,200 to 1,400 job cuts. The Natick, Mass., employs roughly 24,000 people worldwide, so total cuts could amount to 10 percent of the company’s jobs. Boston Scientific hasn’t decided where the additional cuts will be made, said spokesman Steven Campanini.

The company said Tuesday that its fourth-quarter net income shrank 44 percent to $60 million, or 4 cents per share, as it absorbed charges for restructuring and litigation. Not counting these charges, earnings were 18 cents per share. Revenue slipped 1 percent to $1.82 billion.

Analysts forecast, on average, earnings of 11 cents per share on $1.76 billion in revenue, according to FactSet.

Boston Scientific expects to reduce annual operating expenses, before taxes, by about $340 million to $375 million by the end of this year. That includes expected savings of $100 million to $115 million from the additional restructuring measures announced Tuesday.

For the year, Boston Scientific expects adjusted earnings of 64 to 70 cents per share on revenue of $7.05 billion to $7.35 billion. Wall Street predicted profit of 43 cents per share on revenue of $7.11 billion.

In the current quarter, Boston Scientific expects adjusted profit of 14 to 17 cents per share on revenue of $1.74 billion to $1.82 billion. Analysts expected profit of 10 cents per share on revenue of $1.79 billion.

The company’s shares climbed nearly 6 percent, or 41 cents, to $7.27 in Tuesday morning trading. The stock peaked earlier in the morning at a 52-week high of $7.43.

(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)


MN Businesses, Lawmakers Lash Out Against Medical Device Tax

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MINNEAPOLIS (WCCO) — Minnesota’s medical device makers say a new tax to help pay for the federal health care law could cause cutbacks, and even layoffs.

The state is home to more than 700 medical device companies, and between 250,000 to 300,000 workers.

The nine employees left at Signus, a Chanhassen-based spinal implant company, took a 40 percent pay cut, and the owner isn’t getting paid at all.

He blames the new medical device tax.

“I look around and I don’t know how to explain it to everybody,” said Tom Hoghaug of Signus Medical. “Sorry, I have to lay you off because I have to pay tax to the federal government.”

Nationwide, the new 2.3 percent medical device tax will raise $3 billion dollars for the health care law known as “ObamaCare.”

And 20 to 25 percent of that tax could be paid for by Minnesota companies.

Minnesota Congressman Erik Paulsen is trying to repeal the tax — an effort that has bipartisan support from Minnesota Democrats and Republicans.

“There have already been thousands of layoffs across the country,” Paulsen said. “That means fewer jobs. It means less innovation.”

Not everyone is against this tax. The industry is profitable, and analysts predict it will get bigger.

President Obama told WCCO in December that he thinks it’s fair.

“The health care bill is going to provide those medical device companies 30 million new customers,” he said. “It’s going to be great for business, and they are doing really well right now.”

Minnesota companies say it will mean cuts for things such as research and development, the kind that developed Aaron Holm’s high-tech artificial legs.

“Computer talks to a hydraulic unit that allows it to check 50 times a second,” said Holm, of the Wiggle Your Toes Foundation. “And tells the legs what I am doing, and how I am doing it. It allows me to walk down steps, ramps, etc.”

Minnesota Democratic Senators Amy Klobuchar and Al Franken are sponsoring a medical device tax repeal in the Senate.


Best Buy Cutting 400 HQ Jobs

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MINNEAPOLIS (WCCO) – It’s hardly the kind of 10th anniversary surprise that Best Buy employees were expecting.

The sprawling campus at Penn Avenue and Interstate 494 stands as a shining beacon to the importance of retail.

Now, a decade after the company’s corporate headquarters were built, 400 Best Buy employees are out of jobs, and are the latest casualties in the company’s efforts to trim $725 million in costs.

Akshay Rao is a marketing professor at the University of Minnesota’s Carlson School of Business. He says Best Buy indicates it will engage in more cost cutting. He said to avoid going the way of former electronics retailer Circuit City, Best Buy has to redefine what it offers to the customer.

“This is the question people at Best Buy need to ask internally, both carefully and thoughtfully about, ‘Who is their customer,’ and ‘What is it they are offering that customer?’”

Best Buy launched a new ad campaign featuring NBC comedian Amy Poehler as its spokesperson. The ad debuted during the Super Bowl as millions of TV viewers watched.

It has also initiated a price match guarantee in stores as a way to keep customers from shopping elsewhere.

Both efforts are designed to win back loyal customers at the same time company managers struggle to cut hundreds of millions of dollars in overhead costs.

“It has to be price driven because that’s where Amazon’s success has been,” said customer Jerome Reutzel.

Tuesday’s mass layoff is just the first phase of the company’s cost cutting. In its news release announcing the layoffs, Best Buy said it expects “additional reductions to come during the year.”

Best Buy closed Twin Cities stores in Edina and Brooklyn Center last June, and reported a $10 million loss in revenue for the third quarter.

Best Buy employs 8,000 in Minnesota, but has not disclosed how many workers are at its headquarters.



Supervalu Eliminating About 1,100 Positions

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EDEN PRAIRIE, Minn. (WCCO) – Employees saw the writing on the wall last week when Eden Prairie-based Supervalu unloaded its massive debt and spun off half of its grocery businesses.

In a fight to turn around the grocery giant, Supervalu sold 877 of its retail grocery stores to AB Acquisition LLC for $100 million and the assumption of $3.2 billion in Supervalu debt.

Now, the other shoe has dropped as the company began issuing pink slips to 600 of its 2,700 corporate employees — the total nationwide layoffs will total more than 1,100.

“Today is difficult because of the impact it does have,” explained company spokesman, Mike Siemienas.

NewsRadio 830 WCCO’s Chris Simon Reports

Supervalu has been hit hard in recent years by the growing competition in the grocery business. Margins were already razor thin and retailers like Wal-Mart, Target and Costco are all slicing the grocery pie even smaller.

People leaving Supervalu’s Eden Prairie headquarters on Tuesday declined to discuss the cuts, which are hitting all levels and all departments.

Siemienas said the layoffs are “including human resources, marketing, merchandising and IT. And also affects all levels of the organization from entry level to Vice Presidents.”

The streamlined grocery chain will now concentrate on its flagship Cub Foods and Sav-A-Lot stores, as well as its grocery wholesale business. A spokesman made it clear that employees at the retail store level are not affected by the cuts.

“Our Cub Food associates, cashiers, bakers, butchers and deli clerks, are not affected by today’s announcement,” Siemienas explained.

In Supervalu’s news release, CEO Sam Duncan called the cuts, “the necessary next step in the rebuilding of our business.”

Supervalu has about 3,470 stores in the U.S. and approximately 35,000 employees, and the company’s shares fell 26 cents, or 5.2 percent, to $4.79 in premarket trading.


Officials: Wells Fargo Cutting More Than 2,300 Jobs

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MINNEAPOLIS (WCCO) – The Minnesota job market took a bit of a hit Thursday as the state’s largest bank announced job cuts that will affect thousands.

Wells Fargo, which has offices in Minneapolis, announced it is cutting more than 2,300 jobs. The layoffs include more than 150 jobs in its Home Mortgage division, which is based in Minneapolis.

Employees who were affected have been notified and were told their positions would be eliminated in the next 60 days.


Paulsen, Ellison Reassure Constituents About Gov’t Shutdown’s End

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MINNEAPOLIS (WCCO) – The federal government shutdown is now affecting Minnesota jobs. The state will lay off 105 health department workers immediately, and thousands of other federal workers in the state will face the same fate.

And Congress appears to be standing still.

According to Congressman Erik Paulsen’s office, he skipped out on his own event Monday to head back to Washington to work on ending the shutdown.

Some disappointed constituents, like Michael Waring of Edina, said they wanted to talk with him about ending the shutdown – even if it means joining with Democrats to do it.

“I think it’s very encouraging that the possibility exists,” Waring said. “And basically one of the things that I came and wanted to say to him in person was have courage. Do the right thing.”

Across town, Democratic Congressman Keith Ellison led a shutdown rally, saying he won’t negotiate with Republicans over the Affordable Care Act or vote for piecemeal government funding.

“These people are irrational,” Ellison said.

He promises to vote for re-opening the government all at once.

“Let me vote! I wanna vote! I’m voting to re-open the government,” Ellison said.

Meanwhile, former Minnesota Governor Jesse Ventura has an online petition to re-open the government. He even compared members of Congress to hostage-takers and terrorism.

He told CNN last week that taxpayers should rise up.

“They’re shut down, and I guess my question would be: since the government shut down, that should mean we shouldn’t have to pay any taxes, right?” Ventura said.

But two women at Paulsen’s event don’t think the shutdown is such a bad thing. They say they distrust President Obama, labeling him a “Marxist” and a “socialist.”

The 105 layoff notices sent to Minnesota workers is the first wave of up to 3,000 notices to will be sent to workers whose jobs are partly paid for by federal funds.

There are 18,000 federal workers who are furloughed, or working for no pay. And there seems to be no end in sight for now. The shutdown could get worse the longer it continues.

And it appears to be morphing into the next crisis: the debate over the debt ceiling in about a week.


Target Lays Off 150 Workers From Headquarters

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MINNEAPOLIS (WCCO) – Target said on Wednesday it let 150 employees go from its corporate headquarters.

The company said the cuts were necessary to “eliminate duplications” and because of shifting roles to focus on its top priorities.

Target said its goal is meeting its increasing number of digitally savvy customers. Target also said it will be aggressively seeking e-commerce and technology workers to help in areas like mobile sales, site merchandising and user experience.

Target wouldn’t detail specifically which department the layoffs were in.


Boston Scientific Plans To Lay Off 1,500 Workers

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(credit: Joe Raedle/Getty Images)

(credit: Joe Raedle/Getty Images)

MINNEAPOLIS (WCCO) – Another potential round of layoffs is looming over one of the Twin Cities’ largest employers.

Boston Scientific says it plans to let about 1,500 workers go over the next two years.

The company did not specify how many cuts were planned for Minnesota, where there are 5,000 employees.

This latest round of cuts comes just a few years after the heart device maker eliminated 1,000 jobs in order to reduce costs due to lagging sales.


Punch Pizza Raises Minimum Wage To $10 Per Hour

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MINNEAPOLIS (WCCO) – The same week thousands of workers protested across the nation to raise the federal minimum wage, one Minnesota company decided to do something about it.

John Puckett, co-owner of Punch Neapolitan Pizza, says all eight of their Twin Cities’ locations now have minimum wage set at $10 an hour.

“My business partner and I decided to invest in our people because we are growing our company in the Twin Cities,” Puckett said. “We really believe to have the best quality product and service, it’s the right thing to do.”

Minnesota’s minimum wage is $7.25. Puckett hopes the pay will keep good workers and attract valuable employees to their company.

Puckett and John Sorrano are both owners of Punch Pizza. Puckett is the founder of Caribou Coffee, which he and his wife sold in 2000. Punch Pizza was his favorite restaurant, so he decided to buy half of the company.

Puckett is modeling his increase in pay after successful companies like Costco and In-N-Out Burger, who offer higher salaries to workers.

Punch has around 230 employees, and 90 percent received the raise. Katie Beck-Esmay, a cashier at Punch’s northeast Minneapolis location, will be benefiting from the raise.

“It’s going to make me a bit more comfortable and a little less stressed with my financial situation, and that will make me better at my job,” Beck-Esmay said.

Nick Chute, one of the cooks at Punch, says the increase in pay makes him feel more valued, and it makes him want to work harder.

“I appreciate it, and it makes me feel like a bigger part of the company,” Chute said.

After Puckett put the news of the increase on their Facebook page, they received 20,000 views and more than 1,400 likes.

“Which is incredible to us because when we’ve given away free pizza, the most likes we’ve ever had in a day was 400,” Puckett said.

On Thursday, thousands of fast-food workers earning minimum wage went on strike across the nation, demanding the federal minimum wage be raised to $15 an hour.

The National Restaurant Association says the majority of its minimum wage workers are part-time employees who are there to earn extra cash. It says that raising the federal minimum wage would only lead to layoffs.


Thomson Reuters Cuts 184 Jobs At Eagan Location

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MINNEAPOLIS (WCCO) – Officials with Thomson Reuters announced this week it’s cutting a number of jobs at its Eagan location, resulting in the permanent loss of 184 positions.

The announcement was made this week to the employees whose jobs would be impacted by the decision. Thomson Reuters also filed a warn notification with the state on Thursday.

The legal publishing company announced in October that they’d be cutting 5 percent of all its workforce, for a total of 3,000 jobs worldwide.

Those cuts will go into effect in March.

The state filing made on Thursday said “there will be no subsequent round of layoffs.”



Target Corp. Lays Off Nearly 500 Workers

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MINNEAPOLIS (WCCO) – Target Corporation announced Wednesday that the company is eliminating about 475 positions and will not be filling 700 open positions.

It’s not yet clear how many positions will be eliminated in Minnesota, but Target spokeswoman Molly Snyder says the layoffs are “worldwide” and that the number of employees in Minnesota is a very small fraction of people they employ across the globe.

All employees with eliminated positions were notified Wednesday morning.

“As an organization, Target continually assesses our operating model to ensure we are well-positioned to adapt to changing business needs. Today we informed our team that approximately 475 positions are being eliminated worldwide,” the statement reads. “We believe these decisions, while difficult, are the right actions as we continue to focus on transforming our business. We will continue to invest in key business areas to strengthen our ability to compete and thrive well into the future.”

It was also reported recently that Target would be terminating health coverage for its part-time employees, instead offering them $500 toward purchasing their own plans through online marketplaces. This change would take effect on April 1.

The company said a historically low number of employees, less than 10 percent, were enrolled in the part-time insurance plan. Executives also say health care reform is providing new options that their employees may prefer.

The news of layoffs comes after more than a month’s worth of bad press over a data breach that Target initially said affected 40 million credit card accounts but more recently admitted involved the theft of 110 million customers’ credit card or personal data.

The personal information hackers stole includes names, addresses, phone numbers and email addresses.

Synder, however, says the layoffs are “absolutely not a response to or in any way related to the recent data breach.”

Target’s stock was down last week, and the retailer announced last week that fourth quarter sales, which included the big holiday shopping season, were down two percent.

As consumers continue to absorb the news that the data breach affected far more people than the chain originally announced, the company offered a year of free credit monitoring to customers.

More than three weeks after the first news of the breach, CEO Greg Steinhafel sat down with a reporter on CNBC last week.

“We are not going to rest until we understand what happened and how that happened,” Steinhafel said. “Clearly, we’re accountable and we’re responsible, but we’re going to come out at the end of this a better company.”

As for the affected employees, they will be on payroll for 45 days and will also get severance based on years of service.


Timetable Given On Remington Layoffs In St. Cloud

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ST. CLOUD, Minn. (AP) — Remington Outdoor Co. has provided a more concrete timetable on closing its military rifle factory in St. Cloud.

In a letter to the Minnesota Department of Employment and Economic Development, Remington says it will eliminate 34 jobs in September and another 34 early in January.

The company is consolidating manufacturing at a new factory in Huntsville, Alabama.

The St. Cloud factory produced AR-15 rifles for the military.

(© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Layoffs Expected At Minnesota Zoo

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MINNEAPOLIS (WCCO) – Future layoffs are expected at the Minnesota Zoo thanks to slumping attendance and rising operating costs.

Zoo officials confirm the layoffs are coming, but the exact time and how many people will be affected is not known.

Expense reductions like trimming the marketing budget and leaving vacant positions open hasn’t been enough to prevent layoffs.

Increased costs to employee salaries, animal feed and energy prices are also playing a factor.

Attendance at the zoo was down nearly five percent in all this summer.

General Mills Plans To Cut About 700 To 800 Jobs

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NEW YORK (AP) — General Mills plans to cut 700 to 800 jobs, the second time it’s trimmed its work force in a month, as the food company wrestles with a shift by U.S. consumers away from boxed or frozen meals.

The Minneapolis company expects about $135 million to $160 million in restructuring charges. It foresees annual cost savings of approximately $125 million to $150 million, starting in fiscal 2016.

General Mills Inc. anticipates the current restructuring to be completed by fiscal 2015’s end.

The company has said it’s begun a formal review of its North American manufacturing and distribution network, along with a pair of announcements in recent months about cost-cutting initiatives.

(© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Twin Cities Archdiocese Shaving $5M Off Budget

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MINNEAPOLIS (WCCO) — After a year filled with scrutiny and scandal, the Archdiocese of St. Paul and Minneapolis says cuts are coming.

The archdiocese will cut more than $5 million, or about 20 percent from its budget.

That will include job layoffs, starting this month.

Church officials say their current operational budget wasn’t sustainable on top of the legal fees surrounding dozens of allegations of child abuse by clergy members.

The archdiocese says individual parishes and schools will not be affected.

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