Orange County’s largest foreign-owned companies saw a slight gain in jobs in the past year, reversing a decline posted at the companies at this time a year ago.
The 40 largest foreign-owned companies here saw a 1% nudge in jobs in the past year, adding 308 people for a total of 22,081 workers, according to this week’s Business Journal list.
Hiring by a few larger players, including South Korea’s Hyundai Motor Co. and France’s Thales Group, offset declines at others.
Cuts at No. 1 Toshiba Corp. of Japan weighed heavy on the jobs trend. Without Toshiba, the 39 other companies posted a 3% gain in jobs, about twice the county’s job growth rate.
A year ago, the largest foreign-owned companies here cut employee rolls by 1%, a move led by Toshiba.
This year’s list included three additions. They helped drive the jobs total up 5% versus that posted by the companies on last year’s list.
|
|
At just more than 22,000 workers, the foreign-owned companies make up one of the biggest employer groups in the county.
Many of the entries on the list serve as U.S. headquarters for their parent companies. As the U.S. economy posted healthy gains last year, several stepped up hiring.
Asian and European businesses nearly had equal footing on the list, with 19 Asian and 18 European companies.
Japan once again led with 15 companies, though that’s down by one from last year. Five of the top 10 companies were from Japan, reflecting OC’s role as a hub for Japanese companies.
Other Asian countries represented on the list included South Korea, Taiwan and Singapore.
Britain led among European countries with eight companies. Germany had four and France three. Sweden had two and Switzerland one.
The Middle East counted entries with parent companies in Israel and Kuwait.
Japan’s Toshiba, which has U.S. headquarters for four companies here, held the top spot with an estimated 1,335 workers, a 16% drop from a year earlier.
Last year at this time, Toshiba cut 15% of its local workers. If the trend holds next year, No. 2 Union Bank of California, owned by Mitsubishi Tokyo Financial Group Inc., could take the No. 1 spot.
Toshiba Shrinks
Toshiba saw its biggest cuts at Toshiba America Information Systems Inc., its largest operation here. The Irvine-based unit, a maker of computers and other products, slashed its work force by more than 250 people, or 28%, to 648 workers.
Tokyo-based Toshiba now is a shadow of its former self here: In 2001, the company counted 2,024 local workers.
The bulk of the recent cuts came after Toshiba America Information Systems shed its wireless networking and cable modem businesses, eliminating 150 jobs.
The rest of the cuts came from “efficiency improvements” and other changes, the company said.
In 2000, Toshiba moved laptop computer production to Asia from Irvine, cutting 500 jobs from its local operation.
The other Toshiba units,Irvine-based Toshiba America Electronic Components Inc., a chip company, Irvine-based Toshiba America Business Solutions Inc., an office equipment provider, and Tustin-based medical device maker Toshiba America Medical Systems Inc.,posted flat numbers.
Experian No. 4 For Now
No. 3 B. Braun, a medical device maker that’s part of Germany’s B. Braun Melsungen AG, cut Irvine employment by 3% to 1,281 workers. The decrease cost the company a move down from No. 2 last year.
At No. 4: Experian Group in Costa Mesa with 1,200 employees. The company, which is owned by London-based retailer GUS PLC, has held its local employee count steady for the past few years while growing elsewhere through acquisitions.
Experian could leave the foreign-owned list in the years to come. Last spring, GUS said it could spin off Experian, though it’s unclear how the separation might play out or if the headquarters would stay in Costa Mesa.
One of the biggest gainers on the list was South Korea’s Hyundai with growth at its car companies, Hyundai Motor America Inc. in Fountain Valley and Kia Motors America Inc. in Irvine.
Overall, Hyundai and Kia added 152 jobs, a 17% gain, to 1,029 people. Hyundai moved up a notch from No. 6 last year.
Hyundai itself upped employment 19% to 866 workers. Kia grew 7% to 243 people.
Part of Hyundai’s gain was Kia’s loss. Last year, Hyundai and Kia combined their technology staffs under Hyundai. Kia lost about 16 people as part of the shift.
At No. 9 on the list this year was Japan’s Yamaha Corp., which expanded its workforce from 775 to 785 people, a 1% gain.
Yamaha Corporation of America in Buena Park, which sells musical instruments and related products, was flat at 375 workers.
Terry Lewis, a senior vice president at the Yamaha unit, blamed sluggish sales of musical instruments, except guitars. The company is looking to sales of sound systems and other commercial audio gear for growth, he said.
Yamaha Motor Corp. USA in Cypress, which sells motorcycles, expanded its employee count by 2.5% to 410 people.
Thales Boom
The biggest gainer on the list easily was Paris-based Thales’ Irvine unit.
The operation provides in-flight entertainment systems and is seeing a surge from recent jet sales.
Thales’ Irvine headcount soared from 300 to 700, helping it rise from No. 27 last year to a tie for the No. 11 spot.
The company has openings for another 140 people, spokeswoman Lori Krans said.
“The number of contacts we received in 2005 required the ramp-up,” she said.
Thales, now in 130,000 square feet of space, is looking to lease another 40,000 square feet within three miles of the main facility, according to Krans.
No. 16 Tokyo-based Mitsubishi Corp. fell out of the top 10 after losing 29% of its local headcount, to 611 people. It was No. 7 last year.
No surprise: The biggest drop came at the company’s auto unit, Mitsubishi Motors North America Inc. in Cypress. The automaker lost more than 250 people, or 34.5%, as it seeks to reverse a sales slump.
One of the bigger gainers on the list was Australia’s Billabong International Ltd.’s Billabong USA in Irvine. The surfwear maker, No. 2 in the industry behind Huntington Beach-based Quiksilver Inc., grew 48% to 385 workers.
Billabong rose from No. 31 last year to No. 23.
Newcomer Bax
At No. 24 was a new arrival, Irvine-based Bax Global Inc., which is set to become a unit of Deutsche Bahn AG in Germany this week.
Deutsche Bahn, which has extensive rail systems in Europe, is paying about $1 billion for the unit of Virginia-based Brink’s Co.
Bax, which offers delivery services by air and arranges sea shipments, saw a decline of 3% in its employee count to 375 people.
Some people were shifted from the Irvine headquarters to sales offices, spokeswoman Marie Connell said. Bax doesn’t expect layoffs as a result of the acquisition, she said.
