tag:blogger.com,1999:blog-79073655928125144392024-02-08T10:59:27.892-08:00Fire n LayoffUnknownnoreply@blogger.comBlogger103125tag:blogger.com,1999:blog-7907365592812514439.post-27104414974341469832009-07-25T07:53:00.001-07:002009-07-25T07:53:32.645-07:00Bangalore's IT tribe fights to stay on the job<p>Till a few months ago, IT professional T V George was earning Rs 70,000 per month, plus perks. But after losing his high-paying job, and being unemployed for three months, George, 31, has started giving tuitions in mathematics and physics to aspiring engineering students. </p> <p>"Now, I am earning Rs 15,000 per month. It's been hard. I got married only a few months before losing my job. So, when I lost my job, I was in a difficult position. Thankfully, I had some savings. With the savings, I am paying my rent and for a few other necessities," says George, who was employed with a top US IT company. </p> <p>"After losing my job, I tried my best to get a new job. But I remained unlucky. So to help run my home, I decided to give coaching classes to aspiring engineering students." </p> <p>George is not alone. Recession has hit the IT sector in Bangalore, with scores of technology professionals losing their jobs. Some have been forced to take up low-paying jobs as they wait to bounce back when the recession ends. </p> <p>Dipankar Dutta, 27, working with an Indian IT company as software engineer, lost his job almost eight months ago. </p> <p>Today he has a job, but as a content writer in a tech firm. </p> <p>"Thankfully, writing has been my forte. So, I landed this job of a content writer. Otherwise I would have been in a soup. Since I cannot afford to stay in Bangalore without a job, I compromised and settled for the new job with a much lower pay package," said Dutta. </p> <p>Scores of IT and ITES professionals in Bangalore have lost their jobs in recent times, an effect of the global economic meltdown. But there is no precise count of the numbers. </p> <p>According to the latest employment and business outlook report by Bangalore-based staffing firm Teamlease, at 23 percent the attrition rate in this city is higher than in any other in India. </p> <p>The report was based on interviews with HR heads, CEOs and senior executives of 495 companies in Bangalore, Chennai, Hyderabad, Kolkata and Pune. </p> <p>"The city accounted for the highest attrition rate. IT accounts for over 80 percent of the city's total labour pool. The attrition rate was 23 percent in the last quarter, against the previous quarter's 16 percent. Much of the attrition could be involuntary attrition (or layoffs)," Teamlease general manager Surabhi Mathur-Gandhi said. </p> <p>India's Silicon Valley has seen thousands of people getting pink slips in recent months. And many more are under the threat of losing their jobs. </p> <p>"It's painful to lose your job, in today's expensive world. Those who have lost their jobs are desperate now, thus they are settling for low paying jobs," Karthik Shekhar, general secretary of UNITES-Professionals, an unrecognised union of IT/Call Centre/BPO employees, told IANS. </p> <p>"Every day we meet young men and women who have lost their IT jobs recently. All they want is a job. But getting a job in the IT sector is very difficult. So, they have no option but to settle for jobs outside their fields and that too with low paying packages," Shekhar added. </p> <p>"It's encouraging that today's youths are ready to move ahead in their lives. Instead of waiting for the economy to revive, IT professionals have started exploring other fields and this is a positive sign," said B.N. Gangadhar, professor of psychiatry at the National Institute of Mental Health and Neuro Sciences (Nimhans), Bangalore. </p> <p>"Initially it was difficult, but I am happy with my choice. After losing my job with an IT firm, now I am working as a sales executive. I am hoping the economy will recover soon and all the professionals who have lost their jobs will get new jobs in their field," says Mohammed Khan, a software engineer.</p> Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-7907365592812514439.post-51018255756911487072009-07-23T09:42:00.001-07:002009-07-23T09:42:39.732-07:00New jobless claims rise to 554K, total rolls fall<p>The number of newly laid-off workers seeking jobless benefits rose last week, though the government said its report again was distorted by the timing of auto plant shutdowns.</p> <p>Unemployment insurance claims have declined steadily since the spring, but most private economists and the Federal Reserve expect jobs to remain scarce and the unemployment rate to top 10 percent by year-end.</p> <p>Elsewhere, the housing market showed more signs of life as sales of previously occupied homes rose for the third straight month in June, according to the National Association of Realtors. That helped push the Dow Jones industrials above 9,000 for the first time since early January.</p> <p>The Labor Department said Thursday that its tally of initial claims for unemployment insurance rose by 30,000 to a seasonally adjusted 554,000. That was above analysts' estimates of 550,000.</p> <p>The increase follows two straight weeks of sharp drops largely because automakers didn't lay off as many workers as expected in early July. General Motors and Chrysler temporarily shut down many of their plants earlier than usual this year, in May and June, after filing for bankruptcy protection and restructuring their companies.</p> <p>A department analyst said the government's seasonal adjustment process expected claims to drop sharply last week, after the normal pattern of auto layoffs was complete. But that didn't happen, causing seasonally-adjusted claims to rise.</p> <p>Still, some economists saw positive signs in the report. The four-week average of claims, which smooths out fluctuations, dropped to 566,000, its lowest level since January.</p> <p>"The trend in jobless claims is still downward," Joseph Lavornga, chief U.S. economist at Deutsche Bank, wrote in a note to clients.</p> <p>But Lavornga also said the unemployment rate likely will keep rising as long as initial claims remain above 400,000. He expects the jobless rate to increase to 9.6 percent this month, from a 26-year high of 9.5 percent in June.</p> <p>The financial markets shrugged off the news. The Dow Jones industrial average added about 170 points in midday trading to 9,055. Broader indices also rose.</p> <p>Still, weekly claims remain far above the 300,000 to 350,000 that analysts say is consistent with a healthy economy. New claims last fell below 300,000 in early 2007. The lowest level this year was 488,000 for the week ended Jan. 3.</p> <p>The total jobless benefit rolls, meanwhile, fell by a more-than-expected 88,000 to 6.2 million, the lowest level since mid-April. And the four-week moving average of claims, which normally smooths out some volatility, fell by 19,000 to 566,000.</p> <p>But the number of people on emergency extended state and federal programs continued to rise. Unemployment insurance recipients can receive up to 53 weeks of additional benefits from the emergency programs, on top of the 26 weeks typically provided by the states.</p> <p>When the extended benefit rolls are included, more than 9.1 million people received jobless benefits for the week of July 4, the latest data available.</p> <p>On the housing front, home sales rose more than expected to a seasonally adjusted annual rate of 4.89 million last month, from a downwardly revised pace of 4.72 million in May. Home sales last rose for three straight months in early 2004, during the housing boom.</p> <p>But prices are expected to keep falling well into next year because of a backlog of foreclosures that have yet to come on to the market. The median sales price was $181,800 last month, down 15 percent from last year but up from $174,700 in May.</p> <p>The recession, which started in December 2007 and is the longest since World War II, has eliminated a net total of 6.5 million jobs. The unemployment rate in June rose to 9.5 percent, a 26-year high.</p> <p>More job cuts were announced this week, many by major airlines.</p> <p>Houston-based Continental Airlines Inc. reported a quarterly loss of $213 million and said it would slash 1,700 more jobs on top of 1,200 already announced. Southwest Airlines Co., which has never laid off workers, announced that 1,400 employees - about 4 percent of its work force - took offers of cash and travel benefits to leave the Dallas-based company.</p> <p>Among the states, New York reported the largest increase in initial claims, with 12,504, which it attributed to higher layoffs in the construction and transportation industries. The next largest increases were reported by North Carolina, Florida, Missouri and Tennessee. The state data lags initial claims by one week.</p> <p>Michigan reported the largest decrease, with 6,648, which it attributed to fewer layoffs in most industries. Massachusetts, New Jersey, Indiana and California reported the next largest drops.</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-6467539653839602352009-06-04T10:19:00.001-07:002009-06-04T10:19:25.407-07:00Microsoft Plans To Lay Off 1% Of Indian Workforce<p>Software giant Microsoft announced its plans to cut 1% of its Indian staff as its net income declined 11% during the December quarter because of worldwide economic slowdown.</p> <p>The declaration on this is part of the Redmond-based company's decision taken during January 2009 to slash around 5,000 jobs worldwide by June 2010 in order to save up to $700 million (Rs 3,500 crore).</p> <p>The job cuts in India are part of the second round.</p> <p>In India, the company's decision will impact around 55 people across Microsoft's six-business divisions spread across Bangalore, Delhi and Hyderabad.</p> <p>In a major declaration, the company said, "Due to a global realignment of our business priorities, about one percent of the net rolls across India are likely to be impacted. These adjustments reflect the necessary changes to ensure that the right resources are focused on the right priorities."</p> <p>When asked to give detailed information, the company's spokesperson declined to comment saying "We are currently working with the concerned employees to evaluate alternative positions internally and where applicable look at mutually favourable disengagement terms."</p> <p>In a 10-Q filing to the Securities Exchange Commission on April 23, Microsoft said that it had reserved around Rs 1,200 crore for severance for 3,400 laid-off employees, "all of whom are expected to leave the company by June 30, 2010".</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-11193954944043228572009-06-04T10:17:00.001-07:002009-06-04T10:17:25.607-07:00Satyam to cut cost, may lay-off 5,000 employees<p><img style="display: inline; margin-left: 0px; margin-right: 0px" align="left" src="http://ibnlive.in.com/pix/sitepix/06_2009/satyam-lay-off-313.jpg" /> Satyam is bulging with at least 10,000 employees who are not needed and half of them could lose their jobs.</p> <p>With Tech Mahindra as the new owner, it's wait and watch for Satyam employees as plans to rationalise cost is chalked out.</p> <p>"It is more than 10,000 people. Some form of less painful way of reduction of staff is an option which will have to be looked at," said Tech Mahindra CEO Vineet Nayyar.</p> <p>CNBC-TV18 learns Tech Mahindra may be forced to let go of 5,000 employees. Sources say that out of 12,000 employees on the bench 7,000 employees are currently in-between projects, 500 are on unpaid leave and sabbaticals, and the remaining 4500 are under training.</p> <p>"Satyam has the largest number of manpower. Compared to the billing, it has the largest number of manpower than any other IT company. So some amount of rationalisation is unfortunately absolutely necessary to make the company viable again," said Satyam board member Deepak Parekh.</p> <p>When contacted, Satyam said, "There is no official number that has been stated at this point and the information is speculative."</p> <p>Industry experts say that the lay offs are likely to start from Hyderabad, which has the largest number of employees.</p> <p>The number may go higher than 5,000 as well but Tech Mahindra is taking efforts to work out ways to reduce the number of lay-offs and use other methods like sabbaticals and increasing virtual bench.</p> <p>Meanwhile, the new Corporate Affairs Minister Salman Khurshid in an exclusive interview with Network18 spoke about the need to phase-out the government nominees from Satyam board.</p> <p>The Minister is also unhappy about the proposed lay-off in Satyam.</p> <p>"It is very easy to be on an extreme and say we won’t let you lay-off people. And it is very easy to say in an extreme tone that you can lay off if you like we have nothing to do with it. The government has to take a middle path to say, please lay off keeping in mind that this is a sensitive human issue. The government can’t, however, also say that it doesn’t matter if the company collapses, you don’t lay off anybody. The objective is survival of the company. They are hard decisions that are being taken and have to be taken," said Khurshid.</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-86864816112966725282009-03-28T09:10:00.001-07:002009-03-28T09:10:46.163-07:00IBM To Axe 5000 Employees In US<p>International Business Machines (IBM) plans to lay off about 5,000 US employees, with many of the jobs being transferred to India, a media report said today. The technology giant has been steadily building its work force in India and other locations, while reducing the number of employees based in the US. Foreign workers accounted for 71 per cent of Big Blue’s nearly 4.00,000 employees at the start of the year, up from about 65 per cent in 2006, the Wall Street Journal said. </p> <p>The latest round of cuts target the company’s global business-services unit, which does everything from running corporate data centers to managing HR for clients. Some jobs are being eliminated as customers have ended contracts or the company has automated tasks. But employees were quoted as saying that they have been training IBM workers from India to do work that will now be moved overseas.</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-46953153044824361372009-03-27T18:18:00.001-07:002009-03-27T18:18:30.912-07:00Google pays for 'over-investments', to cut 200 jobs<p>Google Inc is cutting its sales and marketing team by roughly 200 employees, saying it had over-invested in certain parts of the company. </p> <p>The move is the Web search leader's latest effort to cut costs in a tough economy and a broad slowdown in advertising spending. In January, Google laid off about 100 recruiters and it said up to 40 people would be laid off in February, when Google pulled the plug on its radio advertising effort. </p> <p>"When companies grow that quickly it's almost impossible to get everything right and we certainly didn't," said Omid Kordestani, Google’s Senior Vice President of Global Sales and Business Development in an announcement posted on Google's blog on Thursday. </p> <p>"In addition, we over-invested in some areas in preparation for the growth trends we were experiencing at the time," he added. Google has nearly 21,000 employees. The Mountain View, California-based company does not disclose how many staff work in sales and marketing. </p> <p>Sameet Sinha, an analyst with JMP Securities, said the cuts were in keeping with the agenda of Chief Financial Officer Patrick Pichette, who took the job last year and has made cost-cutting a priority. "His first line of attack was going after non-core expenses. Now he's looking at some of the major organizations there where you can cut costs," said Sinha, who rate Google's stock "market outperform." </p> <p>His company makes a market in the stock. In the wake of U.S. sales head Tim Armstrong's recent departure from Google to take the top job at Time Warner Inc's AOL, Sinha said the sales team was more vulnerable to cuts. </p> <p>Google is the No. 1 search engine in the United States, with a roughly 63 percent market share, according to comScore. In 2008, 97 percent of Google's $21.8 billion in revenue came from advertising. </p> <p>Google's strength in text-based search advertising has shielded it from the difficult conditions plaguing the online display ads that companies like Yahoo Inc and AOL depend on. Even so, Google's business has not been completely immune. </p> <p>Total sales grew 18 percent in the fourth quarter of 2008 versus 51 percent in the fourth quarter of 2007. A Google spokesperson said the company will seek new positions for affected employees, but it will not be able to place all of them. </p> <p>It did not disclose the number of open positions it has. Google shares finished regular trade up 2.68 percent, or $9.22, at $353.29 on Nasdaq on Thursday.</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-4160134141430388162009-03-10T11:15:00.001-07:002009-03-10T11:15:40.338-07:00United Technologies to fire 11,600 employees news<p>United Technologies Corp., which owns Pratt & Whitney jet engines and Sikorsky Aircraft, expects to cut 11,600 jobs and is lowering its 2009 forecast because of a deteriorating commercial aerospace market. </p> <p>As of December 2008, it employed about 220,000 people. Additional hourly work force adjustments may occur during 2009 based on market driven production volume changes, the company said in a statement. </p> <p>The world's largest maker of elevators and air conditioners said on Tuesday it expects to earn $4 to $4.50 per share in 2009, lower than the $4.65 to $5.15 per share it previously forecast. The new forecast includes 30 cents to 40 cents per share of restructuring charges, as well as some expected one-time gains. </p> <p>CEO Louis Chenevert had said in December that strong backlogs would temper the effects of a rising dollar and deteriorating economic conditions in the second half of 2008. ''The outlook for commercial aerospace and global construction markets has continued to deteriorate since UTC's December investor meeting and the economic recovery previously anticipated in the second half of 2009 now appears unlikely,'' he said in today's statement. </p> <p>The moves, part of an expanded $750 million restructuring program, are being driven by a decline in anticipated revenue, which is now expected to total $55 billion this year, down $2.7 billion from a December estimate. Analysts had expected $55.2 billion. The job cuts make up some of the more than $1 billion in cost savings generated this year. </p> <p>United Technologies' extensive portfolio includes Carrier air conditioners, Otis elevators, Pratt & Whitney and Rocketdyne aircraft systems, helicopter-maker Sikorsky and safety-equipment manufacturer UTC Fire & Security.</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-11216069277457106412009-03-05T10:35:00.001-08:002009-03-05T10:35:10.085-08:00IIM-A average salaries down 25%, but finance sector hires most students<p>Global slowdown has taken its toll on the country''s top B-School the Indian Institute of Management-Ahmedabad (IIM-A) with average salaries coming down by 25%. </p> <p>However, despite the Wall Street collapse leading to a financial meltdown, the finance sector recruited the highest number of students (39%) followed by consulting 24% and marketing 13% from the 265-strong batch. </p> <p>A press conference is being addressed by IIm-A director Dr Samir Barua in Ahmedabad. </p> <p>The placement week that had to be extended by 2-3 days because of the slowdown saw 109 companies coming in for placements with 95 of them picking up the country’s best management talent. </p> <p>Though the institute missed Lehman Brothers and other top i-banks, finance sector did not disappoint, with first time recruiter Union Bank of India recruiting 18 students, the highest number recruited by any company, followed by Jaypee Capital, again a first time recruiter, which hired 12 students. </p> <p>While Bain & Co hired 8 grads, McKinsey recruited 8 and Boston Consultants hired 7 students from the institute. Frost & Sullivan, again a first-timer recruited as many as 5 students. </p> <p>Although the highest offer is not known yet, the Slot Zero, the placement slot reserved for elite recruiters, hired as many as 34% of the 2007-09 batch. It is learnt that many students received crore-plus salaries in this slot. </p> <p>Last year, a record high salary of Rs 1.44 crore was offered to an IIM-A grad. The average salaries last year, were in the range of Rs 16-18 lakh. </p> <p>This year the domestic offers are in the range of Rs 12-17 lakh while average international offers stood at $83,000 (excluding bonus).</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-73808850798043815562009-03-05T10:34:00.001-08:002009-03-05T10:34:11.372-08:00Fullerton India lays off 3,000 employees<p>Temasek-backed NBFC Fullerton India has given pink slips to 3,000 employees, which is around 20% of its workforce in India. The Mumbai-based credit company is also learnt to have shut down 50 branches across the country owing to the liquidity crunch. </p> <p>A company spokesman said, "This is a consolidation exercise, under which branches have been merged and under-performers have been asked to leave." </p> <p>Another company official said those people laid-off were probationers and in the first year of their jobs. "Most of these employees were given six to nine months to develop their skills and were also provided with adequate training. Those who could not come up the learning curve have been asked to leave". </p> <p>A wholly-owned subsidiary of investment major Temasek Holdings, Fullerton specialises in lending to the mass market which consists of small & micro entrepreneurs, small shops and trading establishments, self employed segment (annual turnover of Rs 2.5 lakh to Rs 1.5 crore) and the lower level of salaried individuals (annual salary of Rs 36000 to Rs 3 lakh). <br />The credit company had 800 branches across the country and employed around 14,000 people. Singapore-based Temasek Holdings has invested $ 300 million in Fullerton India in the last couple of years, the last infusion was made in October last year. </p> <p>Fullerton India has disbursed close to Rs 5,000 crore since it started operations in 2006 and has an asset book of Rs. 2,500 crore at present. While 70% of its lending portfolio constitutes loans to the self-employed segment, the remainder consists of loans to salaried individuals and two-wheeler loans. Most of these loans are unsecured. The company has an exclusive tie-up with Hero Honda and Honda Motorcycles for two-wheeler financing. </p> <p>NBFC’s such as CitiFinancial and GE Money have also scaled down operations significantly in the past six months. While CitiFinancial has brought down its branch network from 450 branches to 170 branches, GE Money has reduced its network from 180 branches to less than 80 branches. </p> <p>Fullerton Holdings is also planning the launch of its subsidiary Fullerton Securities, which will provide retail broking and wealth management services to clients in the mass affluent segment. The team is spearheaded by Rajiv Kakar, formerly head of Citibank’s consumer banking business in Turkey, Middle East and Africa and thereafter member of the board of Visa International for Central Europe, Middle East and Africa and Pallav Sinha, formerly Head of Wealth Management at Standard Chartered Bank, India.</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-78505932128316155412009-03-05T10:33:00.001-08:002009-03-05T10:33:12.969-08:00Malaysia to lay off 15,000 foreign employees every month<p>In a bid to protect domestic workers from retrenchment following global financial crisis, Malaysian government has planned to recruit 15,000 locals every month by replacing foreigners, including Indian, working in various sectors in the country. </p> <p>The government has said that it is to identify a few sectors where its citizens could work replacing foreigners. </p> <p>The Human Resources Ministry is looking at turning over to locals 15,000 jobs a month currently held by foreign workers, local media said here today. </p> <p>At least 15 sectors could be identified, one of them being service industry, Star paper said. </p> <p>Malaysia relies on the services of foreign professionals for its constructions industry, plantations, restaurants, security and housekeeping. Most of them are sourced from India, Indonesia, Bangladesh, Nepal and Pakistan. </p> <p>The ministry would identify jobs suitable for locals to take over from foreign workers, Human Resources Minister S Subramaniam said. </p> <p>"The aim is to ensure that priority for these jobs is given to locals who have been retrenched," Subramaniam said, adding that both employers and employees must have a change of mindset.</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-43580722953899379212009-03-05T10:32:00.001-08:002009-03-05T10:32:14.642-08:00Hexaware cuts benched staff's pay<p>Mid-sized IT firm Hexaware Technologies on Wednesday said it has cut the salaries of about 350 employees, who are currently on the bench, as part of its cost control measures. The reduction in salary would entail a cut of up to 50% from the basic pay. </p> <p>In addition, employees above a certain designation will take salary cuts ranging from 2-10%, said the IT firm in a statement. </p> <p>The company also plans to give the 350 employees ‘time-off’ to improve their skills and get re-trained, which are in demand. It will also organise re-skilling and training opportunities for these employees and continue to give them provident fund and gratuity benefits, as well hospitalisation insurance and life cover, added the statement. </p> <p>“The employees will continue to be on the pay rolls of Hexaware, while the organisation will continue to identify opportunities for them and identification of projects, absorb them into the mainstream,” said the company. </p> <p>Hexaware is the second IT company to effect what is now being termed as a ‘virtual bench’ concept. Before this, another mid-size IT firm Mastek had put employees, who were not billable, on reduced salaries equivalent to their severance pay for one year. </p> <p>Apart from introducing a virtual bench, Hexaware will also reduce salaries for all the staff, barring those with less than three years of offshore experience. As a result, salaries of about 40% of employees will be unaffected, according to the company.</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-52091752832890355222009-03-02T18:25:00.001-08:002009-03-02T18:25:16.862-08:00HSBC to slash 6,100 jobs in US<p><strong>Europe's largest bank HSBC will be cutting as many as 6,100 jobs in America, as the entity has decided to close down majority of its business network for consumer finance segment. <br /></strong></p> <p>The job losses come as the bank would cease to write new consumer finance business through the HFC and Beneficial brands in the US. <br />Household Bank is a trading name of HFC Bank Ltd, which is a member of the HSBC Group. <br />"... We will close the majority of the HFC and Beneficial-branded US branch network, regrettably with the loss of 6,100 jobs. This will result in a restructuring charge of $265 million in the first half of 2009," HSBC today said in a statement while announcing its annual results. <br />The firm has reported a pre-tax profit of 9.3 billion dollars for the full year 2008, a decline of 62 per cent as compared to the year-ago period. <br />HSBC attributed the decision not to write new consumer business, to lack of home equity, the deteriorating outlook for house price appreciation and very limited refinancing opportunities available to this customer segment in the near term. <br />"... We will cease to write new consumer finance business through the HFC and Beneficial brands in the US, and will concentrate on running-off the outstanding real estate secured and unsecured portfolio of $62 billion," it added. <br />HSBC noted that the restructuring charge of $265 million would include closure costs and non-cash charges, and annualised cost savings of about $700 million. <br />"With downside risks for unemployment and residential real estate in the US, we expect credit provisioning to remain elevated and operating losses to continue in 2009 and 2010," the statement said. <br />For North America, the company reported a loss of $15.5 billion including the goodwill impairment charge of $10.6 billion in Personal Financial Services</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-2302293143060743232009-03-02T09:38:00.001-08:002009-03-02T09:38:13.615-08:00Layoffs possible, says TCS<p>As part of cost cutting-measures to tackle the global economic downturn, IT major TCS today said job-cuts are possible if the situation worsens, but said there are no immediate plans for lay-offs. </p> <p>The company has, however, ruled out salary hikes next year and frozen “lateral intake” besides increasing weekly working hours for employees. </p> <p>TCS managing director S Ramadorai said “there would be no hike in salaries in the forthcoming year” and added that “job cuts are possible if the situation worsens”. He added that the company is reviewing variable pay components of the staff salaries. The variable pay component of TCS employees differs between 22 per cent and 35 per cent of his/her gross salary, depending on an employee’s rank, he said. </p> <p>Variable pay represents 8 per cent of the total revenue of TCS, whose headcount is 1.4 lakh. “We have around 1,40,000 on our payroll. On an average, 20-35 per cent of an employee’s gross yearly salary is the variable pay component,” said Global Human Resources vice president Ajayendra Mukherjee.</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-68424964926384325902009-02-26T07:21:00.001-08:002009-02-26T07:21:39.149-08:00India to lose 15 lakh jobs by March: G K Pillai<div style="width:432px;height:402px;float:left;"><iframe src="http://www.ndtv.com/convergence/ndtv/video/videoplay.aspx?id=53012&pWidth=432&pHeight=402&autostart=false" scrolling="no" marginheight="0" marginwidth="0" frameborder="0" style="background-color:transparent;background-image:url(http://www.ndtv.com/convergence/ndtv/video/images/new_.gif);" height="402" width="432"></iframe> </div> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-22157977419193126122009-02-25T09:24:00.001-08:002009-02-25T09:24:25.472-08:00No jobs left<p>THE Indian financial sector, a relatively new industry when it took off post-economic reforms, generated a substantial amount of wealth and employment within a short span of time. Layoff was unheard of in the industry. But in the past six months, the word became the most dreaded one. With international financial services companies either collapsing or facing massive losses in the United States and the United Kingdom, Indian companies are beginning to feel the heat. The first area that is being “corrected” in order to streamline their operations is human resource. </p> <p>In Mumbai, India’s financial capital, the mood is sombre. Nobody is taking anything for granted. </p> <p>“When businesses begin losing money or services become redundant and you need to cut costs, the first target is employment,” said Miten Mehta of Bellwether Capital, a private broking and investment firm. “Of course, it is unfortunate and there could be other methods of cutting costs but with salaries at such staggering levels, by right-sizing, as it is now called, you get an immediate relief on costs.” </p> <p>Several private firms, including Indian companies Frontline spoke to, are of the opinion that layoffs are inevitable given the global crisis, but they are unwilling to divulge numbers or percentages of staff they could lay off. </p> <p>Among the figures that are in the public domain, banking juggernaut Citibank has laid off 37 top-level executives in India. It plans to axe 50,000 jobs worldwide, including 1,000 in this country. A leading investment bank in India, DSP Merrill Lynch, has let go of 40 executives from its private banking division, causing much angst in the financial community. Financial services major Barclays plans to layoff 2,100 people in investment banking and money management across the world. It has a presence in India. So the axe may fall here too. </p> <p>The only comment Citibank offered when contacted was that the attrition level was “natural”, and was in accordance with its annual average. With regard to hiring, it admitted that recruitment was not at the levels it was in the past three years. </p> <p>“The next 18 months look bleak. We are seeing just the beginning, and there is more pain to come. With several businesses in the financial services sector struggling to stay afloat, there is a freeze on hiring and hundreds of jobs are becoming redundant,” said a spokesperson for an international investment bank. “For us, the worst part is letting go of ‘performers’. Initially it was laying off those who were in any case on the brink because of non-performance or were at lower levels. Now, with businesses such as investment banking not doing well, we have had to reduce the head count and terminate the employment of some very good people from the middle to senior levels,” she said. </p> <p>According to an investment banker with a small Indian firm, investment banking, which includes areas such as mergers and acquisitions and raising capital, is down by almost 50 per cent. This is across the spectrum – from large-scale international companies to boutique firms. Private equity is another section that is struggling. There are few IPOs (initial public offering), and private placement of shares has dropped dramatically from 2007. </p> <p>Furthermore, new companies are not entering the market and so there are few job opportunities. In fact, the global finance leader Goldman Sachs was to bring its asset management division to India in 2008. It spiked the plan. A banker who was offered the job of heading this division said he had declined the opportunity as his company had made him a better offer. “It’s a twist of fate because no one declines Goldman. Yet I did, and now at least I still have my job.” </p> <p>According to a recent study by the Associated Chambers of Commerce and Industry of India, employment generation in the top six sectors, which include finance, fell from 35 per cent in the first quarter to 15.8 per cent in the second and 10.8 per cent in the third. In the financial sector, the share of job creation dropped from 7 per cent in the first quarter to 2 per cent in the third quarter. A headhunter who does placements in high corporate positions said his business had virtually come to a standstill. “There are very few openings and too many people are vying for these jobs. We got used to high pays and good jobs from the late 1990s. So it is difficult to face this discouraging situation.” </p> <p>But finance is cyclical, and this industry is known to have bounced back, says Mita Khanna, a director in a placement firm. A positive outcome will be that pay scales would become more rational. Besides, this is not the only sector in the industry to be suffering. Everyone is going through a rough time. Miten Mehta says India is primarily hit because of the problems of Wall Street. For instance, Lehman Brothers filed for bankruptcy and was subsequently bought by Barclays in the U.S. and Nomura in Asia. There will be job losses when acquisitions take place. Bank of America bought Merrill Lynch and caused a shake-up, he says. The effect will trickle into India. </p> <p>Moreover, India’s exposure to money from overseas was huge. It is largely owing to this that the financial sector saw such a spectacular boom. The Indian stock market became heavily dependent on international money. </p> <p>Explaining the crisis, Manish Sharma, an independent investment banker, says the Indian financial sector has witnessed many storms since liberalisation. It saw the Harshad Mehta and Ketan Parekh stock market scams and escaped almost unscathed from the Asian financial crisis in the late 1990s. “We averted the currency crisis, which afflicted several of the Asian tigers [Thailand, South Korea and Indonesia] primarily through our step-by-step approach and because we had not [and still have not] removed all controls on our currency policy.” </p> <p>KAMAL NARANG <br />AT BARCLAYS' 24X7 branch in New Delhi. </p> <p>However, the current crisis is different and we cannot escape its impact. India is more dependent on the global economy now than ever before. Although our banks had a very small exposure to sub-prime loans, we have been affected by the sub-prime crisis. Global liquidity dried up and Western markets started shrinking. This resulted in much lower capital flows to India, which in turn have knocked off more than 50 percentage points of the stock market index in less than a year, he says. </p> <p>Indian companies suffered a double whammy with the shrinking of export markets and access to capital. “The well-being of the financial services sector is directly linked to the stock markets and the health of domestic businesses. With both in some trouble, the short-term outlook for the sector is not very promising,” said Sharma. <br />Nowhere to go </p> <p>Preeti Singh (name changed), a corporate lawyer with a financial firm, lost her job recently as the company was downsizing. Earning close to Rs.30 lakh annually, she suddenly found herself straddled with monthly financial commitments but no assurance of an income to pay them. Preeti Singh cannot talk to the media as she has “gag orders”. </p> <p>She came from New York with her husband in early 2008 after they were both offered lucrative positions in corporate houses in Mumbai. The downturn in the U.S. had not yet escalated, and when it did, she was glad to have made the decision to come to India. The couple rented a flat in one of Mumbai’s most expensive areas and led a typical young professional corporate existence. Membership in clubs, holidays abroad and two cars. With her job gone and the market so gloomy, she has currently no idea when or where she is going to get work. Even her investments, which could be a fall-back option for a few months, are not doing well since the stock market is so low. Preeti Singh’s case is typical of the many that have been laid off. A postgraduate with a background of good education, she is a hapless victim of circumstances. </p> <p>“There is a lot of talent like hers out there but no one is willing to take them,” said Sharma.</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-77287437160155731192009-02-25T08:46:00.001-08:002009-02-25T08:46:32.142-08:00Obama to stop outsourcing, India Inc worried<p>President Barack Obama's latest stand on outsourcing is worrying India- with the US already in recession and the President's announcements against outsourcing, the US is in protectionist mode. </p> <p>“We will restore a sense of fairness and balance to our tax codes by finally ending the tax rates for corporation that ships our jobs overseas,” says President United States, Barrack Obama. </p> <p>A strong warning by President Obama that will discourage US companies from outsourcing jobs to cheaper countries like India. In his first Congressional address, President Obama says it's time for America to lead again. </p> <p>“We don’t accept that future where the jobs and industry of tomorrow take root beyond our borders and I know you don’t even, its time for America to lead again,” adds Barack Obama. </p> <p>The President's constant anti-outsourcing tirade is a worrisome for India Inc. The industry's worries are understandable especially since India gets more than 60 per cent, or $64 bn, outsourcing work from the US. </p> <p>This is not the first protectionist move the US has made since Obama took charge. Recently, it introduced an H-1B hiring ban for companies receiving bailout money. </p> <p>The ban is likely to hit India's techies hard. Of the 65,000 H1-B Visas issued annually by the US government, 21,667 are to Indian techies. </p> <p>For the Indian IT Industry, already hit by the recession, President Barack Obama's stand on outsourcing could not have come at a worst time.</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-10009151648925175712009-02-22T05:10:00.001-08:002009-02-22T05:10:32.862-08:00HP announces company-wide pay cuts to avoid layoffs<p>HP has followed up its lackluster Q1 financial disclosure with an internal memo announcing pay cuts for all employees, according to WebGuild. CEO Mark Hurd authored the memo, explaining that the company had to compensate for poor performance in several areas due to the ongoing economic recession. HP's desktop sales were hit particularly hard, with a revenue decline of 25 percent compared to the last quarter, while notebook sales were down 13 percent. </p> <p>The reduced pay will start from the top, with Hurd losing 20 percent and the Executive Council members facing a 15 percent cut. The remaining executives will see a pay reduction of 10 percent, while base pay for exempt employees will be cut by five percent and non-exempt employees will only see a 2.5 percent drop. </p> <p>"To give you a little insight into my world, after we report our earnings, we engage in a dialogue with analysts and investors. They’re going to ask what we’re doing in light of the current environment to right-size these businesses," Hurd said. He further explained that he considers the company "fundamentally sound" and that a company-wide workforce reduction is not the best solution for the current situation. </p> <p>The recession has affected a number of tech-industry giants. Intel recently announced plans to halt production at five facilities, potentially affecting 6,000 workers. AMD is set to cut 1,100 jobs, while also lowering the pay of remaining employees. Microsoft plans to reduce its workforce by 5,000 employees, while Motorola is expected to lay off 7,000 workers. </p> <p>"Again, there are no guarantees. If the environment gets worse, if the downturn lasts longer than we’re assuming, if our performance declines, we’ll have to reassess," Hurd said. "But for now I believe this is the right thing for the strength of HP."</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-342614087554568762009-02-22T04:45:00.001-08:002009-02-22T04:45:34.293-08:00Boeing issues 1,100 layoff warnings<p>Boeing issued its second batch of 2009 layoff notices Friday, and for the first time the cuts hit the assembly mechanics and electrical-system installers who actually build the airplanes. </p> <p>Last month, Boeing had said most of those laid off would be workers who are not directly involved in production. </p> <p>Of the 1,100 notices given by Boeing, about 700 employees in the Puget Sound region received 60-day layoff notices, including 452 Machinists union members and 40 members of the engineering union. In addition, Boeing said it is not filling nearly 1,000 open positions and will let go several hundred contract employees, most of those in support roles. </p> <p>Boeing sent layoff notices last month to 190 local Machinists, mostly workers who maintain the factory buildings. </p> <p>Boeing said in January that it intends to keep building jets at current rates. </p> <p>In light of that, the shift to cutting assembly workers "just doesn't make sense," said International Association of Machinists (IAM) District President Tom Wroblewski. </p> <p>"The company tells us they want to build 480 airplanes this year," he said. "They aren't going to do it by cutting these jobs." </p> <p>"We've got a 787 and 747-8 to build. We've told the company we'll do whatever it takes to roll those out. To get hit with this is just unbelievable." </p> <p>Bill Dugovich, spokesman for the Society of Professional Engineering Employees in Aerospace (SPEEA), said the white-collar union has identified 153 contractors in the job categories of those SPEEA members in the Puget Sound region who got layoff notices. </p> <p>"We monitor every one of these layoffs to ensure contractors go first," Dugovich said. </p> <p>Boeing spokesman Tim Healy said the company, in principle, agrees "that you should get rid of contractors before you get rid of employees with the same skills." </p> <p>And he said the layoffs aren't a form of retribution against the IAM for the two-month strike last fall. </p> <p>"We need to put the strike behind us," Healy said. "It wouldn't make sense to eliminate people you need to get the job done." </p> <p>But he said the company has evaluated the skills it needs in the assembly plants and believes it can still meet its commitments despite the cuts. </p> <p>Boeing Chief Executive Jim McNerney said in January his goal is to cut 10,000 positions companywide this year through a combination of layoffs and attrition. </p> <p>Of that total, 4,500 will come from the Commercial Airplanes unit, most of which is based here. The Puget Sound region can certainly expect to take more than half of the companywide Boeing cuts. </p> <p>The next wave of layoff notices will be issued March 20. </p> <p>The possibility that much worse could come by year-end was raised by the head of the International Air Transport Association (IATA), Giovanni Bisignani, in remarks to reporters Thursday in New York City. </p> <p>Trade magazine Flight International reported Bisignani "predicting Airbus and Boeing will fail to deliver more than half of the aircraft they will produce in 2009." </p> <p>He termed that alarming forecast "a guess," but cited the dire state of the airline industry, the lack of available financing, and also "conversations with several airline CEOs who have confessed that they do not think they will be able to take delivery of all the aircraft they are scheduled to take in 2009." </p> <p>Both manufacturers have committed to delivering about 480 airplanes this year. </p> <p>No other industry watcher has suggested that airline customers would be so strapped for funds that half the manufacturers' output could be left parked and unclaimed. The IAM's Wroblewski said such an outcome would be "devastating." </p> <p>Boeing spokesman Jim Proulx said the manufacturer is working closely with its customers to deliver firm orders and that, at this time, financing sources are sufficient to cover the needs of customers for the year.</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-42203629485630948362009-02-22T04:40:00.001-08:002009-02-22T04:40:56.535-08:00Restructuring for RBS; over 20K jobs to go<p>The Royal Bank of Scotland is all set to go for a dramatic rescue restructuring, wherein assets worth billions of pounds will be put up for sale and there will be more than 20,000 job cuts, media report says. </p> <p>"The Royal Bank of Scotland (RBS) is to be split into a "good bank" and "bad bank" in a dramatic rescue restructuring in which assets worth several hundred billion pounds will be put up for sale," the Sunday Times said. </p> <p>Besides, RBS chief executive Stephen Hester will cut costs by more than one billion pound a year, a move expected to lead to 20,000 job losses, more than half of which will be in Britain, the newspaper reported. </p> <p>The group still employs more than 1,80,000 people around the world, including 1,00,000 in Britain. RBS has already cut more than 12,000 jobs in the past year.      </p> <p>The report further said "the asset sell-off would be one of the biggest ever seen, and would lead to a substantial reduction of the banks one trillion pound balance sheet." </p> <p>Meanwhile, Hester is expected to outline his cost cutting plan of over one billion pound this week as he unveils Britain's biggest-ever corporate loss of up to 28 billion pound. </p> <p>This week's results are expected to confirm a loss of 7-8 billion pound and a further write-down of up to 20 billion pound on its acquisition of the Dutch bank ABN Amro.</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-75723192675047309062009-02-19T18:21:00.001-08:002009-02-19T18:21:12.178-08:00US jobless at 5 million amid recession<p>The United States on Thursday reported nearly five million people were collecting unemployment benefits, a record high amid the recession, while Britain sought to rally consensus in the battle against the global economic crisis. </p> <p>Data showed continuing claims for US unemployment benefits rose by 170,000 to 4.987 million for the week ending February 7, another all-time high, the Labour Department said. </p> <p>The rapid pace of layoffs in the world's largest economy, which has been in recession for more than a year, was evident in initial US jobless claims. </p> <p>Although initial claims for government unemployment benefits were unchanged at 627,000 for the week ending February 14, the closely watched four-week moving average has now increased in each of the last four weeks, experts said. </p> <p>Analysts said the continuing claims number spelled bad news for consumer spending, which drives nearly two-thirds of US economic activity. </p> <p>"Continuing claims are at a record high. They underscore the difficulty in finding a new job at this juncture and make it apparent for many people why they should be saving more money if possible," said Patrick O'Hare of Briefing.com. </p> <p>"The increased propensity to save bodes well for consumer balance sheets, but it will be a drain on GDP since increased savings means less spending by the consumer," he said. </p> <p>In further grim data, the first two US regional manufacturing surveys for February point toward a sharp contraction in production, investment and employment, said Ryan Sweet of Moody's Economy.com. </p> <p>"The surveys also heighten concerns the economy is headed for a deflationary trap," he said. </p> <p>Deflation occurs when prices decline on a sustained basis, prompting consumers to delay purchases because they expect prices to fall further. </p> <p>The reports on growing strains in the economy came a day after US President Barack Obama unveiled a 275-billion-dollar housing rescue plan aimed at staving off foreclosures at the heart of the global financial crisis that has morphed into a spreading world economic crisis. </p> <p>On Tuesday Obama signed into law a 787-billion-dollar stimulus package, another major round in government economic stimulus efforts across the globe that have sparked protectionism charges. </p> <p>Czech Finance Minister Miroslav Kalousek on Thursday denounced protectionism as "the road to hell" and launched a broadside at the US stimulus package. </p> <p>"We have to prevent populists from going on with the Buy Czech, Buy American, Buy French campaigns," added Kalousek, whose country took over the EU presidency from France at the beginning of the year. </p> <p>Both France and the United States have been criticised for their costly plans to help their struggling economies, which some observers described as protectionist. </p> <p>British Prime Minister Gordon Brown on Thursday met in Rome with his Italian counterpart Silvio Berlusconi as their countries prepare for upcoming Group of 20 crisis meetings. </p> <p>"We are going to see unprecedented global cooperation over the next few months," Brown said at a joint news conference with Berlusconi. </p> <p>The G20 finance ministers and central bank governors are to meet on March 14 in Britain, this year's head of the group of developed and developing countries that includes Brazil, India, China and Russia. </p> <p>The finance meeting will set the stage for a G20 leaders' summit on April 2 in London. </p> <p>Brown said the summit would aim to strike "a global bargain ... where each continent will make its contribution to the recovery of the world economy. </p> <p>He warned the new bargain "must include new arrangements for global financial regulation, but recognise that national supervisors are insufficient in a world where there are global capital flows." </p> <p>Major credit-boosting moves by Japan, which faces its worst recession in decades, underscored the size of the challenges facing the world's leading economies. </p> <p>The Japanese central bank announced plans to spend more than 10 billion dollars (7.9 billion euros) buying corporate bonds to tackle a credit crunch and painted a sombre picture of the world's second-largest economy. </p> <p>Bleak corporate news continued to weigh in. The world's biggest reinsurer Swiss Re reported a 2008 loss of 864 million Swiss francs (735 million dollars, 585 million euros) and French banking giant BNP Paribas booked a fourth-quarter loss of 1.366 billion euros (1.7 billion dollars). </p> <p>BNP Paribas attributed its results to "deterioration in the economic climate in the United States, Spain and Ukraine" as well as to the deepening global financial crisis. </p> <p>Brazilian aircraft manufacturer Embraer said it would lay off 20 percent of its 21,000 workers because of the "unprecedented crisis hitting the world economy."</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-29752390561193342972009-02-19T07:34:00.001-08:002009-02-19T07:34:27.506-08:00Federal-Mogul to lay off 600 workers at Bangalore plant<p>In what could turn out to be one of the largest retrenchments in the Indian auto sector, global auto parts major Federal-Mogul Corporation is undertaking a massive lay-off in one of its key plants in the country. </p> <p>The $7-billion US-based company plans to retrench over one-third of its 1,900-odd employees in its Indian subsidiary, Federal-Mogul Goetze, at its Bangalore plant. Initially, it plans to lay off 500 workers in the factory, which is engaged in the manufacture of pistons, piston rings and pins. During the last few months, the company retrenched a few of its key managers in the factory and over 600 contract and casual workers. The Indian arm of the company makes critical parts for Tata Motors’ Nano car and other vehicle manufacturers. <br />Downturn effect </p> <p>The spokesperson for Federal-Mogul Corporation, Ms Jennifer Rass, told Business Line that the lay-offs are due to the downturn in the automotive industry and reduction in customer orders. “As a result of the current economic climate and the downturn in the automotive industry, Federal-Mogul Corporation will be adjusting workforce schedules at its global operations to reflect the reduction in customer orders and the need to reduce costs. These schedule adjustments will impact employees in our Bangalore facility, as the company streamlines operations and adjusts to the industry outlook,” said Ms Rass. </p> <p>An employees’ union spokesperson claimed that the workforce reduction will not be confined to just Bangalore; similar measures are being planned for the company’s other factories in the country. According to him, there are plans to reduce one-third of the workforce from each of these factories. The company, which has about 43,000 employees across 35 countries, has 1,900 employees in its Bangalore plant. <br />May cut production </p> <p>Once the workforce is trimmed, the production is expected to come down by half, said company sources. They added that as per the notice filed with the local Labour Commissioner, Federal-Mogul Goetze also planned to cut down the working days by 15 days every month till December this year. It has also offered a voluntary retirement scheme to its employees, wherein Rs 2.5 lakh would be offered to workers who opt for this scheme. Besides, the workers have been asked to surrender their earned leave too. </p> <p>Federal-Mogul Corporation owns over 74 per cent stake in the publicly listed Federal Mogul Goetze (India), while the rest of the stake is with the public. The company’s shares closed at Rs 34.60 on Tuesday, nearly 1 per cent lower than the previous closing price.</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-1628809103686705692009-02-16T06:32:00.001-08:002009-02-16T06:32:39.003-08:00Sun Micro lays off 150 in India<p>The global layoffs by tech MNCs have started spilling to their Indian operations. IT giant Sun Microsystems reportedly laid off over 150 employees in India around late in January. </p> <p>According to a news report in a leading daily, most of the laid off employees were software developers working in the company's Bangalore office. </p> <p>The news report adds that the company may go for another round of lay offs in the last week of February. This round is likely to impact support staff from departments like marketing, human resources and sales. </p> <p>In November last year, Sun Microsystems announced that it plans to cut as many as 6,000 jobs as the company tries to cope with plunging sales of server computers to financial firms, market-share losses to bigger competitors, and a spiraling stock price. </p> <p>The reduction, which will eliminate as much as 18 per cent of the staff, will shave $700 million to $800 million from annual expenses, Sun said in an e-mailed statement. </p> <p>Last week, a Goldman Sachs analyst put the server and software maker's stock on Goldman's `Americas Conviction Sell' list. Goldman analyst David C Bailey said in a client note that Sun's heavy concentration of financial services, telecom and manufacturing customers put it at a disadvantage to its more-diversified competitors. Bailey said that Goldman expects a low double-digit revenue drop at Sun in 2009 due to weakness in several of the company's key verticals and accelerating deterioration of its Unix server market.</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-2631068809310557672009-02-16T06:31:00.001-08:002009-02-16T06:31:56.738-08:00Sharp to cut 1,500 jobs<p>Japan's Sharp Corp said that it would eliminate 1,500 domestic jobs as the </p> <p>electronics maker predicted its first-ever operating loss <br />this year due to the recession. </p> <p>"We have decided not to renew 1,500 contract workers in Japan," Tetsuo Onishi, the company's director for accounting, told a news conference. </p> <p>"By doing so, we shall build a human resource structure that meets the size of sales," he said. Top managers will also accept pay cuts and forego bonuses, he said.</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-59410508490796926272009-02-14T16:16:00.001-08:002009-02-14T16:16:03.773-08:00Sapient sacks 500 workers, reducing budgets<p>Technology major Sapient Corporational is latest to join the list of companies going in for large scale lay offs. </p> <p>In a surprise move it has sacked 500 of its employees in India. Infact no notices were issued to the employees and the company even deployed armed guards to prevent them from turning up for work. In a statement the company has notified the lay offs. </p> <p>"Businesses worldwide are feeling the impact of the economic downturn and, as a result, are reducing budgets and delaying projects. In order to adjust to this changing demand environment, Sapient has exited about 8 per cent of its people,” the company says. </p> <p>In fact this is the second time the company has sacked employees. 160 of them were removed just a few months ago. </p> <p>The senior management of the company refused to comment on the issue. They only said that the sacked employees would get due severance packages and the company would try its best to get them out placements, but they had no choice but to take this drastic step</p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7907365592812514439.post-10472784545243655192009-02-12T06:06:00.001-08:002009-02-12T06:06:17.743-08:00Apollo Tyres to lay off 1,500 jobs<p>Apollo Tyres on Thursday said it is looking at laying off about 1,500 of its workforce. </p> <p>"We are looking at about 15 per cent of contract and casual labours (for job cuts). We are not going to cut permanent jobs," Apollo Tyres CMD Onkar Singh Kanwar told reporters on the sidelines of the FICCI AGM. </p> <p>The company has about 10,000 workforce and are looking to cut roughly 1,500 jobs, he said. </p> <p>On the company's performance, Kanwar said in the current fiscal Apollo will be doing better than the industry average.</p> Unknownnoreply@blogger.com0