Santa Claus to Lay Off Staff

Gifting Industry Hurt by Sluggish Economy

Santa Claus ©, inc. today announced a 15% cut in staff in a pre-Christmas budget cuts. CEO (Chief Elf Officer) S. Claus made the announcement amid the backdrop of increasingly hostile labor relations and projected decreases in revenue of 20% from this time last year. The layoffs will begin in the coming week and will continue through the beginning of the new year. Acknowledging the awkward timing of the announcement, Mr. Claus noted that the company wanted to give as much notice as possible so that it's line staff did not over extend themselves over the holidays.

Over the past few years, Santa Claus ©, inc has seen a deteriorating working relationship with the United Elf Workers (UEW) over such economic issues as pay and health care, as well as working conditions, an increased reliance on outsourced services and a questionable diversification of business strategy.

"The North Pole facility hasn't been significantly updated in over 100 years," said UEW President Hermie the Elf, "we have many workers who have put off needed surgery because they can't get the time off work and because they couldn't afford to be out of work even if the time was available. The work day is long, the conditions "industrial revolution" era and the company mis-managed. It is outrageous that the company has taken this step well before examining it's own fiscal policies."

Meanwhile, Santa Claus © has also been ratcheting up its anti-union campaign - as elves report to work at the main facility each day, they're greeted with a "Say No to the UEW" banner and the company has now been slapped with a court order ordering reinstatement of two UEW leaders terminated earlier in the year for their union activities. Hermie notes that the actual per-capita labor costs associated with production and delivery of S. Claus goods has actually decreased over the years - that their wages are not the cause of the current economic problems the company is facing.