As jobless claims drop, layoffs loom

Silicon Valley tech, hotel firms prepare to cut workforces

SAN JOSE » Unemployment claims in California fell to their lowest levels since coronavirus-linked business shutdowns began in March — but a few Silicon Valley tech companies and at least one big services firm that caters to the tech sector have prepped new layoffs.

In November alone, Hitachi Vantara, Boston Scientific, Marvell Semiconductor and PayPal have revealed plans for job cuts in Silicon Valley, according to official state filings.

Despite the improvement in unemployment claims in California, the tech industry layoffs and weekly jobless filings that remain far higher than what is typical are disquieting reminders that the economy in the state and the

Bay Area remains feeble.

“The California economy is in a suspended state,” said Michael Bernick, a former director of the state Employment Development Department and an employment attorney with law firm Duane Morris. “There is little new hiring and no economic uptick over the past two months.”

California workers filed 129,700 first- time claims for unemployment benefits last week, the U. S. Labor Department reported Thursday. That was down 38,500 from the prior week.

Last week’s totals were the lowest since 57,600 California workers filed for unemployment benefits during

the week ending on March 14, when state and local government agencies began to impose business shutdowns to combat the coronavirus.

Nationw ide, 7 12,000 workers filed or unemployment benefits during the week that ended on Nov. 28, which was down 75,000 from the prior week.

But more business shutdowns loom. On Thursday, Gov. Gavin Newsom announced a new regional stay-at-home order that will force additional restrictions in any of the five regions of the state where fewer than 15% of intensive care units remain available. Some regions could meet that standard in the next few days, Newsom said.

In the most recent round of tech layoffs, according to official filings that the state Employment Development

Department posted in November:

• Hitachi Vantara said it was eliminating 148 jobs in Santa Clara.

• Boston Scientific said it is closing an office in Menlo Park, resulting in job cuts for 126 workers.

• Marvell Semiconductor is cutting 120 positions at its head offices in Santa Clara.

• PayPal is cutting 56 jobs at one of its sites in north San Jose.

These disclosures come on the heels of other staffing cutbacks by Bay Area companies hit by the coronavirus-linked business restrictions and shutdowns. Slightly more than 2,000 workers in the Bay Area were affected by these layoff disclosures.

Hotel, resort, casino, staffing services, YMCA, air

lines, airport services, clubs, shared spaces, building services, food services and baseball team employees in the Bay Area were jolted by the employment cutbacks.

The layoffs by Marvell Semiconductor were slated to occur at the company’s headquarters on Marvell Lane in Santa Clara, according to an official notice Marvell filed with the EDD. Marvell said the layoffs would be effective beginning Jan. 4, 2021.

Recently, Marvell launched a restructuring of its operations in connection with changes in one of its product lines, although the company didn’t specify a reason for the layoffs in the filing. The semiconductor maker did suggest that the coronavirus has impacted its business.

“We have seen a reduc

tion in demand for products from customers in the enterprise networking, and enterprise server and storage end markets,” Marvell Semiconductor stated in a regulatory filing on Aug. 28. “We expect COVID-19 to continue to impact our business.”

Boston Scientific, a maker of medical devices, did explain its cutbacks.

“The company’s voluntary recall of the Lotus Edge Aortic Valve System from the market,” Nancy Duncan, human resources manager with Boston Scientific, stated in the letter to the EDD. “This will result in the closure of the entire facility” in Menlo Park. The job cuts are due to start in late January 2021 and will continue for a number of months.

Aramark, which provides

food and facilities services at locations such as office buildings or corporate campuses, has decided to lay off 128 workers, including 66 in Milpitas and 62 in San Jose.

The reason: San Josebased Cisco Systems, a networking titan, recently notified Aramark that Cisco would need Aramark’s services only in a limited capacity, if at all.

“Aramark has experienced unprecedented disruption to our business caused by the COVID-19 global pandemic,” Ildiko Agoston, director of human resources, told the EDD. “Our client, Cisco Systems, just informed us that it does not anticipate business improving in full for an undefined period of time.”