Tuesday, September 23, 2008
IT cos may cut 25K jobs
BANGALORE/NEW DELHI: The banking, financial services and insurance (BFSI) segment is the largest outsourcing vertical for Indian technology players. The space contributes up to 40 per cent of the revenues for some top IT firms. The industry employs around 3,50,000 people in the BFSI space of which the top six players alone account for 180,000 jobs. The domain accounted for $10 billion of the total $32 billion revenues the industry posted during the last fiscal. What’s happening in the global financial markets can result in the loss of as many as 20,000 to 25,000 jobs in India. That means, the likes of Cognizant, TCS, Infosys, HCL, Wipro and Satyam will announce huge lay-offs over the next couple of quarters. According to Dr Naresh Malhan, MD, Manpower India , about 9 per cent of the people employed in the BFSI, insurance, IT and ITeS sectors in India risk losing their jobs as a result of the financial meltdown. However, he says the overall market remains robust, with other sectors like manufacturing and construction still very promising. Not everyone shares this view. “Many firms will also use the present economic environment as an excuse to cut flab,” says Uday Chawla, managing Partner, Transearch, India. “Letting go of people in good times is not acceptable, but is sure to escape media scrutiny in the current climate,” he adds. But what is a threat for some, is an opportunity for others. “Merrill Lynch and Lehman are respected for the quality of talent they attract and train. It’s an opportunity for small firms desperate for quality leadership,” says Sanjiv Sachar, partner, Egon Zehnder. Source
Lehman Brothers issues 24-hour short notice to Indian employees
Mumbai: Following its bankruptcy filing, Lehman Brothers is planning to lay off thousands of employees worldwide. In India also, the company employees are sitting tight in the offices. An employee from the company's Mumbai office said that the investment banker issued 24-hour short notice asking them to leave. In this regard, the bank's offshore development center, which houses over 100 employees at Wipro is expected to close down. Sources said that Mumbai office also is expected to be shut down shortly. However, when contacted, the company's Mumbai based officials denied to comment on the issue. The global investment bank's move to file bankruptcy has already lead to a loss of nearly Rs 2,000 crore for Indian companies in which Lehman had made equity investments. Lehman Brothers currently employs about 2,500 people in India and most of them are likely to lose their jobs.
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India and China hoping to gain talent as Wall Street lays off bankers
Within hours of Bank of America's agreeing to buy Merrill Lynch this week, the Indian financial services firm Ambit hired five Merrill executives, a sign that Asia hopes to gain from the huge Wall Street layoffs.
For China and India, whose economies are still expanding at well over 7 percent, the global crisis in the financial industry makes it easier to recruit bankers.
The governor of New York reckons that, in a worst-case scenario, 40,000 Wall Street jobs could be eliminated, and talk is swirling of more bank deals and mergers.
Lehman Brothers, which has filed for bankruptcy protection, has about 2,000 staff members in India, including its back-office operation, while Merrill has about 500.
Ambit Holdings said n Monday that it had hired the five Merrill executives from a majority-owned local venture for its institutional equities and equity proprietary trading unit, including a 10-year Merrill veteran as head.
DREAMWORKS AND PARAMOUNT HAVE A MESSY BREAKUP
For quite a while now, DreamWorks has been due for some change. Its relationship with distributor Paramount had gone from shaky, to rocky, to in dire need of a life raft. Due to this tension, it was no surprise that as its contract with Paramount ended the company looked elsewhere to produce its films. Reliance, a company based mostly out of India, is helping to fund a stand-alone production company for DreamWorks.
The surprise that came was how much Paramount seems to have wanted to sever ties, or at least how much it wanted to vindictively sever ties after DreamWorks spurned the company. While Paramount gave a statement to Yahoo News saying, "To facilitate a timely and smooth transition, Paramount has waived certain provisions from the original deal to clear the way for the DreamWorks principals and their employees to join their new company without delay," this does little to change what actually happened. No DreamWorks employees were kept by Paramount, which is not quite a mass layoff, but certainly a cause for alarm to all employees whose jobs are now in jeopardy.Also thrust into turmoil by this deal are any projects DreamWorks had been working on before the split happened. Perhaps most importantly, this includes Steven Spielberg's own planned films such as Lincoln, The Trial of the Chicago 7 and The 39 Clues. A caveat to this is that if Paramount does decide to move forward with production, it will have to pay 7.5 percent of any picture's gross to DreamWorks. It's anyone's guess whether Paramount will agree to this, but if not then it likely means the projects are dead in the water.
Original Source
Layoff numbers decline in Colorado
The number and size of mass layoffs in Colorado dropped in August from the month before, the federal Bureau of Labor Statisticsreported Tuesday.
Three companies cut jobs through mass layoffs, defined as the elimination of at least 50 jobs at a single site. That’s down from four in July.
The number of initial claims for unemployment insurance in Colorado fell to 258 from 343 during the same period.
Nationally, the number of mass layoffs reached a high of 1,772, and initial claims involved 173,955 people, with the manufacturing sector particularly hard hit. Of the four census regions, the West had the highest number of initial claims — 45,837 — because of mass layoffs in August. But most of those, or 41,149, were from the Pacific states in the West, instead of from Colorado and other mountain states.
Wednesday, September 17, 2008
Satyam may sack 2,500 employees ? Is this True
India's fourth largest IT firm Satyam Computer Services is likely to give pink slips to 2,500 employees. The company's share price fell 9.5 per cent to Rs 368.15 on Monday.
Satyam had a total headcount of 52,000 as of June-end. The company has already put some of its employees under performance improvement plan.
S V Krishnan, global head (Human Resources), Satyam, said, "As part of our appraisal process, we identify around 5 per cent of our associates under the performance improvement category and put them through a structured performance improvement programme.
"Our experience says that about half of this group exits the system either voluntarily or involuntarily, while the others make credible progress internally. We have concluded our appraisal process a few weeks ago."
Satyam had a total headcount of 52,000 as of June-end. The company has already put some of its employees under performance improvement plan.
S V Krishnan, global head (Human Resources), Satyam, said, "As part of our appraisal process, we identify around 5 per cent of our associates under the performance improvement category and put them through a structured performance improvement programme.
"Our experience says that about half of this group exits the system either voluntarily or involuntarily, while the others make credible progress internally. We have concluded our appraisal process a few weeks ago."
McClatchy to cut 1,150 jobs, 10 % of work force
The McClatchy newspaper company announced its second major round of job cuts in three months Tuesday and blamed a sour advertising environment in trimming its payroll by 10 percent.
The McClatchy Co. said it expects half the 1,150 new reductions to come through voluntary buyouts and attrition and the rest through layoffs.
The company said the job cuts and other initiatives across the company would save $100 million over the next year, not including severance costs of about $20 million.
In June, McClatchy also announced a trim to its work force of about 10 percent, which meant the loss of 1,400 full-time jobs and savings of $70 million a year. Two months later, it announced a one-year pay freeze for remaining employees effective Sept. 1.
"It is painful to announce these staff reductions, but the continued restructuring of our company is necessary given the relentless economic downturn and its impact on our business," Gary Pruitt, McClatchy's chairman and chief executive, said in a statement.
He said the cuts should position McClatchy to grow as a digital company and to deliver "high-quality news and information in whatever medium our readers want to receive it."
The company said it would provide severance and continuation of benefits to affected employees.
The cutbacks already have begun as individual McClatchy newspapers offered voluntary buyouts in recent weeks. Additional reductions are to take effect over the next few months.
In Washington state, McClatchy owns The Bellingham Herald, The Olympian of Olympia, The News Tribune of Tacoma and the Tri-City Herald. In Idaho, it owns the Idaho Statesman.
"The announcement today from McClatchy was a nationwide announcement that included information that Tacoma already announced last week, but there are no specific numbers for Tacoma," said Karen Peterson, executive editor of The News Tribune of Tacoma, Wash.
The Tacoma paper is in the process of accepting voluntary buyout applications, with a deadline of Friday.
Last week, Olympian Publisher John Winn Miller said the paper is offering buyouts to 38 of the newsroom's 45 full- and part-time print and online employees. Tri-City Herald Publisher Rufus Friday has said voluntary layoff packages have been offered to about 60 of the paper's more than 200 employees. He did not immediately return a phone message for comment Tuesday.
Source: More
The McClatchy Co. said it expects half the 1,150 new reductions to come through voluntary buyouts and attrition and the rest through layoffs.
The company said the job cuts and other initiatives across the company would save $100 million over the next year, not including severance costs of about $20 million.
In June, McClatchy also announced a trim to its work force of about 10 percent, which meant the loss of 1,400 full-time jobs and savings of $70 million a year. Two months later, it announced a one-year pay freeze for remaining employees effective Sept. 1.
"It is painful to announce these staff reductions, but the continued restructuring of our company is necessary given the relentless economic downturn and its impact on our business," Gary Pruitt, McClatchy's chairman and chief executive, said in a statement.
He said the cuts should position McClatchy to grow as a digital company and to deliver "high-quality news and information in whatever medium our readers want to receive it."
The company said it would provide severance and continuation of benefits to affected employees.
The cutbacks already have begun as individual McClatchy newspapers offered voluntary buyouts in recent weeks. Additional reductions are to take effect over the next few months.
In Washington state, McClatchy owns The Bellingham Herald, The Olympian of Olympia, The News Tribune of Tacoma and the Tri-City Herald. In Idaho, it owns the Idaho Statesman.
"The announcement today from McClatchy was a nationwide announcement that included information that Tacoma already announced last week, but there are no specific numbers for Tacoma," said Karen Peterson, executive editor of The News Tribune of Tacoma, Wash.
The Tacoma paper is in the process of accepting voluntary buyout applications, with a deadline of Friday.
Last week, Olympian Publisher John Winn Miller said the paper is offering buyouts to 38 of the newsroom's 45 full- and part-time print and online employees. Tri-City Herald Publisher Rufus Friday has said voluntary layoff packages have been offered to about 60 of the paper's more than 200 employees. He did not immediately return a phone message for comment Tuesday.
Source: More
Silicon Valley Layoff Watch: Is eBay Next?
Out-of-work employees at Hewlett-Packard and evaporated investment banks like Lehman Brothers may soon have some company on the unemployment rolls. This week, the chatter among eBay insiders is all about the possibility of mass layoffs.
The talk was ignited Monday by an article in Barron’s, which cited a report by Wedge Partners, a small Colorado investment-research firm. Wedge suggested that eBay was preparing layoffs that could hit up to 10 percent of eBay’s 15,000 employees.
An eBay spokesman said that the company “does not comment on rumors or speculation.” But the Wedge report has the ring of truth. EBay, the leader in online auctions, has been rocked this year by greater-than-usual rancor from sellers in the wake of significant fee changes and stagnant traffic to the site. Many analysts say the San Jose, Calif., company’s third-quarter performance has so far shown little improvement.
A report last week from Jeetil Patel, a Deutsche Bank analyst, also suggested that a decrease in headcount could help offset declining profit from fee changes, flat sales and the negative impact of currency fluctuations on overseas revenue. Mr. Patel lowered his revenue estimate for eBay and said in his report that eBay’s core marketplace “continues to show deteriorating market share trends.”
Source
The talk was ignited Monday by an article in Barron’s, which cited a report by Wedge Partners, a small Colorado investment-research firm. Wedge suggested that eBay was preparing layoffs that could hit up to 10 percent of eBay’s 15,000 employees.
An eBay spokesman said that the company “does not comment on rumors or speculation.” But the Wedge report has the ring of truth. EBay, the leader in online auctions, has been rocked this year by greater-than-usual rancor from sellers in the wake of significant fee changes and stagnant traffic to the site. Many analysts say the San Jose, Calif., company’s third-quarter performance has so far shown little improvement.
A report last week from Jeetil Patel, a Deutsche Bank analyst, also suggested that a decrease in headcount could help offset declining profit from fee changes, flat sales and the negative impact of currency fluctuations on overseas revenue. Mr. Patel lowered his revenue estimate for eBay and said in his report that eBay’s core marketplace “continues to show deteriorating market share trends.”
Source
Oswego Wire plans to lay off more than half its workers
OSWEGO, N.Y. -- "Am I happy? No I'm not happy!" said Oswego resident Roy Villegas.
On Monday, Oswego Wire announced plans to move production of some bare wire products made in Oswego to Indiana in an effort to reduce cost. This change means the company will lay off more than half of its 93 employees by the end of the month.
The company, which is owned by Coleman Cable, will stay in operation and be left with about 40 workers.
In a statement, Executive Vice President Richard Carr said, "We believe these changes will allow Coleman Cable to control costs in these challenging economic times while at the same time allow us to focus on and improve our manufacturing practices and customer service for our valuable Oswego Wire customer base."
"I have a family and it will just be something that we have to accept due to our economy I would imagine," said Villegas.
Villegas has worked at Oswego Wire for 16 years. He was laid off on Tuesday and while he may be out of a job, he is grateful for the opportunity the company gave him.
“It wasn't the greatest job, but it was a job. I look forward to new adventures you might say," said Villegas.
The company's director of human resources says employees who have been laid off will receive pay and benefits through mid November as they look for other opportunities. But as Oswego Wire reorganizes its resources, it serves as the latest company to fall victim of rising costs and a slumping economy.
Source
On Monday, Oswego Wire announced plans to move production of some bare wire products made in Oswego to Indiana in an effort to reduce cost. This change means the company will lay off more than half of its 93 employees by the end of the month.
The company, which is owned by Coleman Cable, will stay in operation and be left with about 40 workers.
In a statement, Executive Vice President Richard Carr said, "We believe these changes will allow Coleman Cable to control costs in these challenging economic times while at the same time allow us to focus on and improve our manufacturing practices and customer service for our valuable Oswego Wire customer base."
"I have a family and it will just be something that we have to accept due to our economy I would imagine," said Villegas.
Villegas has worked at Oswego Wire for 16 years. He was laid off on Tuesday and while he may be out of a job, he is grateful for the opportunity the company gave him.
“It wasn't the greatest job, but it was a job. I look forward to new adventures you might say," said Villegas.
The company's director of human resources says employees who have been laid off will receive pay and benefits through mid November as they look for other opportunities. But as Oswego Wire reorganizes its resources, it serves as the latest company to fall victim of rising costs and a slumping economy.
Source
DELPHI: Company to lay off 100 trades workers
Delphi Corp. is placing about 100 skilled trades workers at its Lockport plant on indefinite layoff over the next few months.
The indefinite layoffs are due to a large decline in customer volumes and the completion of building consolidations at the Lockport plant, said Claudia Piccinin, a Delphi spokeswoman. Part of the layoffs are an effect of General Motors reduction in the number of vehicles assembled. General Motors is a large customer for Delphi, Piccinin said.
Some of the layoffs started a few months ago, and others will continue over the next several months, she said. Piccinin said the company has not set a date for the workers to be called back to their jobs.
The trades workers are represented by United Auto Workers Local 686 Unit 1. Delphi’s Lockport plant has about 2,600 hourly and salaried employees.
Source
The indefinite layoffs are due to a large decline in customer volumes and the completion of building consolidations at the Lockport plant, said Claudia Piccinin, a Delphi spokeswoman. Part of the layoffs are an effect of General Motors reduction in the number of vehicles assembled. General Motors is a large customer for Delphi, Piccinin said.
Some of the layoffs started a few months ago, and others will continue over the next several months, she said. Piccinin said the company has not set a date for the workers to be called back to their jobs.
The trades workers are represented by United Auto Workers Local 686 Unit 1. Delphi’s Lockport plant has about 2,600 hourly and salaried employees.
Source
Whirlpool to lay off 700 at Fort Smith
FORT SMITH, Ark. -
Whirlpool Corp. says it will lay off another 700 workers from its factory at Fort Smith.
The company said Monday that the layoffs would be effective in November and there is no timetable for calling the workers back.
The company had more than 4,000 workers in Fort Smith before opening a plant in Mexico that also makes refrigerators. Prior to Monday's announcement, the plant had about 2,000 workers.
Whirlpool Corp. says it will lay off another 700 workers from its factory at Fort Smith.
The company said Monday that the layoffs would be effective in November and there is no timetable for calling the workers back.
The company had more than 4,000 workers in Fort Smith before opening a plant in Mexico that also makes refrigerators. Prior to Monday's announcement, the plant had about 2,000 workers.
Infosys firing /Accenture firing
Well, it seems that big software as well as hardware giants as on firing spree. But, hang on before you jump to any conclusion. So far only Satyam Computers and HP’s news of firing its employees and giving pink slips are being confirmed. Till date there is no news from, I hope that there will not be any bad news, TCS firing| Infosys firing | HP firing | Accenture firing. Whatever news of firing and axing employees by TCS, Infosys, and Accenture are false and baseless. On the contrary there is news that Infosys is planning to hire about 1000 new people for its China project. As a matter of fact Infosys recruitment ad has also appeared in Times Ascent, dated September 17, 2008.
IBM, HP, INFOSYS, WIPRO, TCS, HCL, Satyam Firing's
Common blame for these IT FIRINGS seems to be pointing at the US Economy and a lowering consumer confidence. However, if one looks further into the firings at the IT Giants, one notices a common thread - India.
It seems consumer frustration with lack lustre Offshore IT Support is causing a shuffle in India's once booming IT Sector. I know for a fact, American Express recently axed their India Call centre. I have had nothing but problems with the off shore, particularly in India call centre's. Router companies are known for their cheap outsourcing. The most frustrating phrase I hear is "OK, so if I understand you correctly sir, you cannot..." Usually followed by something completely different than your actual problem.
It seems consumer frustration with lack lustre Offshore IT Support is causing a shuffle in India's once booming IT Sector. I know for a fact, American Express recently axed their India Call centre. I have had nothing but problems with the off shore, particularly in India call centre's. Router companies are known for their cheap outsourcing. The most frustrating phrase I hear is "OK, so if I understand you correctly sir, you cannot..." Usually followed by something completely different than your actual problem.
Wipro Tech puts 3000 staff under scanner
NEW DELHI: Wipro Technologies has put about 4-5% of its workforce, about 2,400-3,000 employees, under the scanner for non-performance. While some would be given counselling to improve their performance, others would be asked to leave.
Wipro’s corporate vice-president (human resources) Pratik Kumar confirmed the move. “It’s a regular annual exercise. As the appraisal cycle gets over, a multi-layer review happens. Following that, people who have fallen in the lower quadrants of performance are put on watch. Some are asked to pull up and others are asked to move on,” he said.
Asked how many employees had been asked to move on, he said the company did not disclose that number, but it was “significantly lower than 2,000”. Company sources said about 1,000 employees were being asked to leave. “I can’t comment on a particular number,” Mr Kumar said, when asked to comment. The review includes all the 60,000 global IT services employees from the senior leadership team down to the person with one-year experience.
Wipro’s corporate vice-president (human resources) Pratik Kumar confirmed the move. “It’s a regular annual exercise. As the appraisal cycle gets over, a multi-layer review happens. Following that, people who have fallen in the lower quadrants of performance are put on watch. Some are asked to pull up and others are asked to move on,” he said.
Asked how many employees had been asked to move on, he said the company did not disclose that number, but it was “significantly lower than 2,000”. Company sources said about 1,000 employees were being asked to leave. “I can’t comment on a particular number,” Mr Kumar said, when asked to comment. The review includes all the 60,000 global IT services employees from the senior leadership team down to the person with one-year experience.
HP to slash 24,600 jobs following EDS buy
Hewlett-Packard on Monday announced plans to cut tens of thousands of jobs over the next three years as it digests its recent purchase of EDS.
The company expects to replace roughly half of these positions over the next three years to create a global workforce that has the right blend of service delivery capabilities to address the diversity of its markets and customers worldwide.
HP announced plans in May to acquire the computer services firm for $13.9 billion. The deal closed in August. The company said that, once it has finished with the cuts, it expects the moves to save $1.8 billion in costs annually. It said it does plan to reinvest in other areas.
On the accounting side, HP said it will record a $1.7 billion charge in the fourth quarter of fiscal 2008 related to the restructuring program. The company said that, of that charge, $1.4 billion will be recorded as goodwill, and $300 million will be recorded as a restructuring charge that will be included in its financial results.
The company positioned the announcement as part of an effort to "streamline" its costs. It plans to discuss the move at an analysts' meeting, set to kick off shortly.
"HP now has the broadest technology capabilities in the market to meet customer needs today and in the future," CEO Mark Hurd said in a statement. "HP has a strong track record of making acquisitions and integrating them to capture leading market positions. We will deliver on the promise of HP and EDS for our customers and shareholders." HP discussed the job cuts as part of a meeting under way for financial analysts.
The company expects to replace roughly half of these positions over the next three years to create a global workforce that has the right blend of service delivery capabilities to address the diversity of its markets and customers worldwide.
HP announced plans in May to acquire the computer services firm for $13.9 billion. The deal closed in August. The company said that, once it has finished with the cuts, it expects the moves to save $1.8 billion in costs annually. It said it does plan to reinvest in other areas.
On the accounting side, HP said it will record a $1.7 billion charge in the fourth quarter of fiscal 2008 related to the restructuring program. The company said that, of that charge, $1.4 billion will be recorded as goodwill, and $300 million will be recorded as a restructuring charge that will be included in its financial results.
The company positioned the announcement as part of an effort to "streamline" its costs. It plans to discuss the move at an analysts' meeting, set to kick off shortly.
"HP now has the broadest technology capabilities in the market to meet customer needs today and in the future," CEO Mark Hurd said in a statement. "HP has a strong track record of making acquisitions and integrating them to capture leading market positions. We will deliver on the promise of HP and EDS for our customers and shareholders." HP discussed the job cuts as part of a meeting under way for financial analysts.
Wipro lay off 2500 ( 2,400-3,000 employees, under the scanner for non-performance)
Wipro Technologies has put about 4-5 per cent of its workforce, about 2,400-3,000 employees, under the scanner for non-performance. Company sources reveal that about 1,000 employees have been asked to leave.
While some would be given counselling to improve their performance, others would be asked to leave.
Wipro’s corporate vice-president (human resources) Pratik Kumar confirmed the move. Asked how many employees had been asked to move on, he said the company did not disclose that number, but it was “significantly lower than 2,000”. “I can’t comment on a particular number,” Kumar said, when asked to comment.
“It’s a regular annual exercise. As the appraisal cycle gets over, a multi-layer review happens. Following that, people who have fallen in the lower quadrants of performance are put on watch. Some are asked to pull up and others are asked to move on,” he said.
The review includes all the 60,000 global IT services employees from the senior leadership team down to the person with one-year experience.
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