After Hurricane Ike, its layoffs for Galveston

Galveston, November 16: The decision by the University of Texas to lay off 3,800 employees came as a shocker to people of Galveston Island. Still reeling under the aftermath from Hurricane Ike, the economy of Galveston is in shambles.

Jim Yarbrough, the Chief Executive of Galveston County said, "It’s a gut shot. It has longer term ramifications than Hurricane Ike, for sure."

On Sept. 13, the medical branch buildings were inundated as hurricane Ike struck the island. The work at the 550-bed John Sealy Hospital came to a grinding halt. Since then the hospital has been incurring a monthly loss to the tune of $40 million a month.

Given the circumstances, a decision was made to lay off 3,800 employees out of the total strength of 8,000. To the employees, the news came as no surprise.

McKnight, a systems analyst at the University of Texas Medical Branch rued, "It’s sad, but I can understand where they’re coming from. I know they need to cut down on expenses, and we can’t count on the state legislature."

David Herndon, a professor of surgery was optimistic about the future and said that the layoffs were a "momentary downswing" and was an outcome of the hurricane, which resulted in $710 million of unplanned expenditure. "I’m confident they will rebuild back up" he said.

The hurricane destroyed the hospital’s main pharmacy, the blood bank, the radiological department and the kitchens. The maternity ward was the lone survivor, but after the hurricane, it too saw very little activity.

Mayor Lyda Ann Thomas said, "To rebuild our economy after Ike was difficult enough, and this just compounds the economic impact."

The layoffs will have an immediate effect on hundreds of janitors and other menial laborers. However, the only way for the medical school and hospital to survive in the long run is to take this bitter pill now and start the process of restoration gradually.