Mergers don’t help Oregon employment

| Print |  Email
Monday, December 01, 2008

STATEWIDE The sales of Tektronix and Longview Fibre were two of the biggest merger and acquisition deals cut in the Northwest in 2007, worth a combined $5 billion. They may have generated some nice bonuses around Portland, but they haven’t done much for the region’s employment forecast.

Tektronix’s recent elimination of 150 jobs is the latest in a string of downsizings to hit the Beaverton stalwart since it was sold to Danaher Corporation for $2.8 billion in October of 2007. The new owners had already cut10% of jobs companywide through the first three quarters of 2008.

Similarly, Longview Fibre of Southwest Washington has cut more than 300 jobs since being purchased for $2.15 billion by private equity investor Brookfield Asset Management.

So who will be next to cut jobs from afar? If the trend holds with recently purchased businesses, it will be the company formerly known as Oregon Steel, sold to Evraz Group and billionaire Russian Roman Abramovich for $2.3 billion in January of 2007.

The mill has performed well since being sold to the Russians, expanding rather than contracting. That was before the global slowdown, and the precipitous plunge of the Russian stock market. The other Russian giant to invest heavily in U.S. steel interests, Severstal, owned by a different billionaire oligarch, cut 800 jobs in October in West Virginia. Can Oregon expect similar treatment?

Evraz did not respond to emailed questions about its Oregon operations.

BEN JACKLET


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

More Articles

Urban renewer

Linda Baker
Wednesday, June 24, 2015
UnknownBY LINDA BAKER   

One year after he was appointed chair of the Portland Development Commission, Tom Kelly talks about PDC's longevity, Neil Kelly's comeback and his new role as Portlandia landlord.


Read more...

10 Innovators in Rural Health

July/August 2015
Monday, July 13, 2015
BY AMY MILSHTEIN | PHOTOS BY JASON E. KAPLAN

Telemedicine, new partnerships and real estate diversification make health care more accessible in rural Oregon.


Read more...

6 key things to know about summer baseball in Oregon

The Latest
Friday, June 05, 2015
basedthumbBY JACOB PALMER | DIGITAL NEWS EDITOR

As temperatures in Oregon creep into the 90s this weekend, Oregonians' thoughts are turning to — summer baseball.


Read more...

Quake as metaphor

Linda Baker
Tuesday, July 14, 2015
071515-earthquakia-thumbBY LINDA BAKER

The Big One serves as an allegory for Portland, a city that earns plaudits for lifestyle and amenities but whose infrastructure is, literally, crumbling.


Read more...

Best Foot Forward

July/August 2015
Monday, July 13, 2015
BY CHRIS NOBLE

Whether you're stepping out to work or onto the track, Pacific Northwest shoe companies have you covered.


Read more...

Wildcards

Guest Blog
Tuesday, July 28, 2015
China A SharesBY JASON NORRIS, CFA | OB GUEST BLOGGER

Uncertainty in Greece and China, along with potential interest rate hikes mean investors are looking at the market and nervously questioning where they should be invested.


Read more...

Reader Input: Road Work

March 2015
Wednesday, July 15, 2015

Oregon's roads are crumbling, and revenues from state and local gas taxes are not sufficient to pay for improvements. We asked readers if the private sector should help fund transportation maintenance and repairs. Research partner CFM Strategic Communications conducted the poll of 366 readers in February.

0315 input01 620px

 

Reader comments:

"I feel private enterprises are capable of operating at a higher efficiency than state government."

"This has been used in Oregon since the mid-1800s. It is not a new financing method. This form of financing may help Oregon close its infrastructure deficit by leveraging funds."


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS