A sampling of Virginia business stories during the bailout debate
- October 30, 2008
Editor’s note: The following stories, drawn from newspapers throughout Virginia, appeared between Sept. 23 and Oct. 14.
Computer chip maker Qimonda announced it would lay off 1,200 people from its Henrico County plant. The German computer chip manufacturer has faced an oversupply of memory chips and falling prices. (Richmond Times-Dispatch)
Major services cuts in Prince William County are expected this year as County Executive Craig S. Gerhart asked all department heads to submit proposals that cut their budgets by one-third.
(The Washington Post)
Gov. Tim Kaine ordered deep spending cuts and employee layoffs and proposed tapping Virginia’s “rainy day” fund in response to the state’s worst revenue shortage in six years. (Roanoke Times)
The Richmond area will lose almost 500 jobs with the loss of Reynolds Wrap aluminum foil. Reynolds Consumer Products said it would close its aluminum foil operations in Richmond by mid-2009 because of an increase in foreign competition. The company has said it will move some of the local manufacturing to other U.S. locations. (Richmond Times-Dispatch)
Tourism sales were generally flat this summer throughout Hampton Roads — but most hotel owners thought it would have been worse because of the weak economy. Fine dining, however, seems to have suffered. (The Virginian-Pilot)
Richmond electronics retailer Circuit City Stores reported a $239.2 million loss for the second quarter, compared with a loss of $62.8 million the same time last year. (Richmond Times-Dispatch)
Old Dominion University economists predict that Hampton Roads economy’s growth rate will be the slower this year than it has been in the past decade. ODU’s State of the Region report forecasts a 1.7 percent growth in 2008. Economists are predicting the growth rate in 2009 could be even slower. (The Virginian-Pilot)
Virginia’s unemployment reached 4.6 percent in August, the highest rate in the state since January 1997. William F. Mezger, chief economist at the Virginia Employment Commission, said the economy likely will slip into a recession at the end of this year that will continue through the first two quarters of 2009. (Richmond Times-Dispatch)
The Richmond area’s publicly traded companies lost about $16 billion in equity during the recent stock market turmoil. Companies on the Richmond Index saw their combined market capitalization fall from $113 billion on June 30 to $97 billion as of Sept. 30. (Richmond Times-Dispatch)
CarMax announced that it would cut 610 jobs, or 4 percent of its work force, because of slowing car sales. The cuts will come from the reconditioning departments in 60 of CarMax’s 90 stores. (Richmond Times-Dispatch)