Red Cross Bleeds Jobs

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The American Red Cross in New York says it's cutting 23 percent of its paid workforce to compensate for a drop in donations. Terry Bischoff, the CEO of the New York chapter, says the layoffs will mean relying more on volunteers. Currently 95 percent of their workforce is volunteers, that will have to rise to 97 percent to meet the work demands.

Bischoff says preparations for major catastrophic disasters, like Katrina and 9-11 will have to slow down, but day-to-day relief for fires, building evacuations and other emergencies won't be affected.

We do have eight-to-10 emergencies and disasters in a day that we respond to and we will continue to do that.

Bischoff says cash donations are down, but pro-bono work and material donations at the Red Cross are up. She says the layoffs are meant to save $3 - $4 million.