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Tim Hortons made headlines with news that the donut and
coffee chain was laying off about 350 people from its corporate offices this
week. (CBC)
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Tim Hortons was back in the news this week, first denying, and then admitting that it was laying off hundreds of head office workers. The news came as a shock to long-time workers, some of whom described to CBC the spectre of seeing colleagues unceremoniously shown the door after years of service.
Tims was recently bought by the company that owns Burger King, and the combined firm says it is living up to all of its commitments of that deal, which included maintaining and even increasing staffing levels over time.
But it was certainly a very bitter jolt of coffee for Tims' workers and many of our readers this week.
Loonie plunges — again
Tims wasn't the only Canadian icon down in the dumps this week. TheCanadian dollar crashed below the 80-cent level on Wednesday and just kept going, flirting with 78 cents US as the week drew to a close.
The reason? Well, there's many, but a big one continues to be oil. The value of the loonie is closely tied to the price of oil, so just as it surged above $1.10 US when the world was worried oil was too expensive, so it plunged now that the main concern is how low oil can go.
The Bank of Canada move to cut rateswas another blow, as that makes our dollar less attractive as an investment because lower rates tend to lower investment returns for savers.
And gloomy GDP numbers on Fridaydidn't help the loonie's case, pouring cold water on the notion that strength in other parts of the economy would be enough to offset weakness in energy.
But one analyst told CBC this week the future isn't so bleak for the dollar. "What I think we're seeing with the Canadian dollar is more of a depreciation," ATB Financial economist Todd Hirsch said, "but not a free fall. It's not a really a fundamental problem with the Canadian economy."
DIY home buying
One industry that's had to stretch those dollars further in recent years is real estate. As home prices keep rising higher, consumers are getting pickier about the fees they have to pay. Two realtors, the buyer's and the seller's, typically pocket about five per cent of the price of any home sale. With the Canadian average over $400,000, that's $20,000.
So websites have sprung up to help cost-conscious buyers hook up with realtors who are willing to give them a deal — something like one or two per cent on a home sale, as opposed to the standard 2.5.
It means a little more legwork, and one Toronto realtor warned us this week that consumers should be wary of what they're buying. "What are you giving up as a consumer by taking this service at a lower price?" Andrew Lafleur told the CBC's Aaron Saltzman this week. "I think the answer is that you're not going to get the best result at the end of the day."
Coke's recipe change
There was another shakeup in the news this week, as Coca-Cola announced it would be slightly altering the recipe for its eponymous soft drink.
Canadian Coke drinkers may not have known it, but the taste of Coke here contained more sweetness than it did in other places, because of higher sugar content. The new changes, which will be rolled out in the coming weeks, give the cola eight per cent less calories. A standard 355-ml can of Coke will have 9.7 teaspoons of sugar, instead of 10.5 teaspoons.
The size of containers is also getting a makeover, with a pint-size 591-ml bottle slimmed down to half a litre, a 500-ml bottle.
It's a response to consumer demand, the company says, because customers have been getting more health conscious. And Coke clearly wants to help them — while ensuring they can still drink as much Coke as they did before.
Will it work? Time will tell. But one McMaster University professor said he expects it's the start of a growing trend. " I think both Coke and Pepsi will be doing more about reducing sizes, giving people less soft drink, and looking at the sweetness level," we quoted Marvin Ryder as saying in our story this week.
Other stuff
Those were some of our most popular stories this week. Be sure tocheck out our website often for more business news, and don't forget to follow us on Twitter here.
In the meantime, here's a day by day list of some of our most-read stories of the week.
Monday
- TD predicts Bank of Canada will cut interest rates again
- IBM says several thousand layoffs on the way
Tuesday
- Tim Hortons confirms layoffs at headquarters and regional offices
- Banks lower prime lending rates
- DON PITTIS: Why Europe is more afraid of a 'Grexit' than it is of a new bailout
Wednesday
- Long-time Tim Hortons employees escorted out the door
- Realtors offer cash to woo do-it- yourself home buyers
- Loonie drops below 80 cents for first time in almost 6 years
Thursday
- Tim Hortons layoffs blindsided workers, manager says
- DON PITTIS: Falling loonie a victim of a global race to the bottom
- CRTC gives thumbs up to Super Bowl ads here within two years
Friday
- CBC's Marketplace: 5 tips to keep more cash in your pocket
- CIBC confirms job cuts that reports claim are as high as 500
...manager says 2) Don Pittis: currency wars... 3) CRTC - new rules on Super Bowl ads.....
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