LayoffBlog.com

February 1, 2009

AP Investigation: Banks sought foreign workers

According to AP Investigation: “Banks collecting billions of dollars in federal bailout money sought government permission to bring thousands of foreign workers to the U.S. for high-paying jobs, according to an Associated Press review of visa applications.”

The dozen banks receiving the biggest rescue packages, totaling more than $150 billion, requested visas for more than 21,800 foreign workers over the past six years for positions that included senior vice presidents, corporate lawyers, junior investment analysts and human resources specialists. The average annual salary for those jobs was $90,721, nearly twice the median income for all American households.”

It is unclear how many foreign workers the banks actually hired; the government does not release those details. The actual number is likely a fraction of the 21,800 foreign workers the banks sought to hire because the government limits the number of visas it grants to 85,000 each year among all U.S. employers.”

“During the last three months of 2008, the largest banks that received taxpayer loans announced more than 100,000 layoffs. The number of foreign workers included among those laid off is unknown.”

Source: Yahoo Finance

~News submitted by Ben

January 29, 2009

Indian Exporters Cut 1 Million Jobs as Orders Decline

Filed under: India,worldwide — 7macaw @ 1:49 pm
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Indian exporters have shed as many as 1 million jobs, more than 15 times a December estimate, amid the most protracted decline in overseas sales in a decade, the commerce ministry said.

“The job losses are very substantial and are likely to be of the order of 700,000 to 1 million, including temporary staff,” Commerce Secretary G.K. Pillai told Bloomberg News in an interview in New Delhi yesterday. Exports fell 1 percent in December and any recovery “is likely only by June,” he said.

Source: Bloomberg

January 28, 2009

SAP cutting 3,000 jobs worlwide

Filed under: Asia,Germany,India,SAP,Technology,US,worldwide — DF @ 11:19 am
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SAP AG said Wednesday it will cut a little more than 3,000 jobs in response to the worldwide economic downturn.

The Walldorf, Germany-based software giant said it will reduce its work force to 48,500 by the end of the year, down from 51,536 at the end of last year. The cuts will enable it to save 300 million to 350 million euros a year starting in 2010, SAP said.

Source: Philadelphia Business Journal

January 25, 2009

US senator asks Microsoft about job cuts, H1B visas

According to Reuters: “A U.S. senator has asked Microsoft Corp about its plans to slash up to 5,000 jobs, urging the world’s biggest software company to preserve the jobs of Americans ahead of foreigners working on visas.

“The letter asked Microsoft Chief Executive Steve Ballmer to provide a breakdown of the jobs to be eliminated, and how many of those are individuals with H-1B visas and how many are Americans. Grassley also wants to know what the breakdown will be when the layoffs are complete.”

“I am concerned that Microsoft will be retaining foreign guest workers rather than similarly qualified American employees when it implements its layoff plan […] Microsoft has a moral obligation to protect these American workers by putting them first during these difficult economic times”, said Sen. Charles Grassley, an Iowa Republican.

January 16, 2009

Accenture Philippines lays off 500 workers

Outsourcing firm Accenture said it is laying off at least 500 workers in the country due to a “redundancy” program.

This affects approximately three percent of its total workforce in the Philippines or approximately 500 out of a total headcount of more than 16,000 employees.

Source: INQUIRER.net

~LayoffBl0g.com: We have also received a report of Accenture layoffs in India coming February.~

January 14, 2009

Google to Lay Off 100 Recruiters

Google is laying off 100 recruiters and closing some engineering offices, as the downturn continues to take its toll. The layoffs, disclosed Wednesday in company blog posts, are a very rare step for Google, which said in October that it is still hiring, but much more cautiously. The company has also recently let go a significant number of contractors in areas ranging from public relations to engineering, according to Reuters and WSJ

Update 1 (1-14-2009): According to official Google blog: “Our first step to address this was to wind down almost all our contracts with external contractors and vendors providing recruiting services for Google. However, after much consideration, we have with great regret decided that we need to go further and reduce the overall size of our recruiting organization by approximately 100 positions.”

Update 2 (1-14-2009): Google’s Changes to Engineering in 2009

January 13, 2009

India: Infosys Q3 net rises 33% on higher earnings growth

Filed under: FYI,India,IT,IT consulting,News — DF @ 3:16 pm
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According to TheHinduBusinessLine (India): “Infosys posted better-than-expected earnings growth for the December quarter aided by a weaker rupee and improved operational efficiencies, but missed its forecast in dollar terms hurt by volatile currencies.”

Infosys added 30 new clients during the quarter, and the gross employee addition was 5,997. Mr T.V. Mohandas Pai, Member of the Board, said the number of employees joining during the fiscal has been increased to 27,000 from 25,000.”

Indian Exporters May Cut 10 Million Jobs

Filed under: India — 7macaw @ 7:26 am
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Indian exporters may fire as many as 10 million workers, a lobby group said, putting pressure on Prime Minister Manmohan Singh to cut taxes and protect the industry from the global recession.

The estimate by the Federation of Indian Export Organizations represent about 7 percent of those involved in overseas sales and about 20 times the Nov. 21 government estimate for job losses. The exporters don’t have orders beyond this month, A. Sakthivel, the lobby group’s president, told reporters today in New Delhi.

Source: Bloomberg

January 11, 2009

Indian IT union expects at least 50,000 job losses in India

Filed under: India,IT,IT consulting,outsourcing,worldwide — 7macaw @ 8:26 am
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The Union of Information Technology Enabled Services (UNITES) Professionals, India anticipates at least 50,000 job losses in the first half of the new year, owing to the global recession.

UNITES general secretary, Karthik Shekhar, a computer engineer, formerly with International Business Machines (IBM), says the prediction of another 50,000 job losses has been estimated from the uncertainty of U.S. president-elect Barack Obama’s new policy on outsourcing, the bail packages by the British government and financial institutions which may result in conditions being imposed on local jobs.

[I]ndustry’s economic links to the U.S. and Britain’s recessions have played havoc on the local scene, with at least 10,000 jobs in the industry being lost between September 2008 and December 2008. Others, mostly junior level executives, have taken salary cuts ranging from 25 percent to as high as 75 percent.

Source: Manufacturing Business Technology

January 9, 2009

Satyam’s Computer Services Chairman Arrested , Board Sacked, in Fraud Probe

According to Bloomberg: “Satyam Computer Services Ltd. chairman Ramalinga Raju and his brother Rama were arrested and the remaining directors of the software exporter sacked, as India started investigating an alleged $1 billion fraud.”

“Satyam, India’s fourth-largest software exporter, plunged for a second day in Mumbai trading on concern it may run out of money after Raju said he falsified the accounts “for several years.” The scandal, whose scope is being likened to the 2001 bankruptcy of Enron Corp., has shaken confidence in Indian companies and accounting standards.

“The Satyam case is an aberration,” Prem Chand Gupta, the Corporate Affairs Minister said. “The credibility of the Indian corporate sector in general, and IT sector in particular, should not be allowed to suffer because of this.”, according to BBC

Update (01-10-2009): “The chief financial officer of India’s Satyam Computer Services Ltd. was arrested Saturday, the third person taken into custody in a scandal that began when the company’s chairman admitted inflating profits with “fictitious” assets and non-existent cash.

Company founder B. Ramalinga Raju and his brother, Rama Raju, Satyam’s managing director, were arrested Friday in connection with the scandal. In a letter written to investigators, B. Ramalinga Raju admitted that he and his brother were responsible for cooking the books at Satyam”, according to CNN

Satyam founder B. Ramalinga Raju

Satyam founder B. Ramalinga Raju

Update 2 (01-10-2009): According to Naatmad: “Satyam Computer Services, [..] has said it will take fewer people on board to cut costs due to the unstable global economic environment. The company is planning to hire only 8,000-10,000 people this fiscal as against 15,000 that it had earlier planned to recruit. [..] Around 250 employees were given the pink slip last quarter.”

Update 3 (01-14-2009): According to BusinessStandard (India): Satyam may get full-time directors in a week

~ LayOffBlog.com: Please feel free to comment this info and/or send us your updates regarding scandal at Satyam. ~

January 7, 2009

EMC Will Reduce Work Force by 7 percent

Data-storage firm EMC Corp. (NYSE:EMC) will cut 2,400 positions (7% of its work force) as part of an effort to reduce costs by about $350 million in 2009 and $500 million in 2010.
The restructuring plan will streamline costs to its information infrastructure business and doesn’t include VMware Inc. VMware’s parent company, EMC, owns 85% of the company’s stock, according to WSJ

By rumors, the most job cuts are planned in the company’s IT sector

European investors unfazed by “India’s Enron” in IT

According to Reuters: “European investors remain upbeat about India despite an accounting scandal at IT company Satyam Computer Services (SATY.BO) that sent Indian markets tumbling on Wednesday.

Shares in the IT group fell almost 80 percent after founder and chairman Ramalinga Raju admitted inflating the company’s reported cash and bank balances by over 50 billion rupees ($1 billion).

While shaken by what has been dubbed “India’s Enron”, some investors say they will wait for signs of widespread malfeasance among Indian companies before deciding whether to change their investment policy on India.”

  • Satyam is the fourth largest of the Indian IT outsourcing firms
  • Satyam serves more than a third of the Fortune 500 companies
  • Satyam’s clients include multinationals such as Nestlé, General Motors (GM), and General Electric (GE)
  • Satyam’s auditor is PricewaterhouseCoopers, who endorsed the company’s accounts

Update: Ramalingam Raju, the chairman of troubled Indian IT outsourcing company Satyam Computer Services, resigned on Jan. 7, 2009, admitting the firm had falsified accounts and assets and inflated its profits over several years.

January 6, 2009

Union tries to organize IBM workers

According to Yahoo Tech: “One message states that IBM will announce 16,000 layoffs on Jan. 23, affecting workers worldwide. Similar predictions are made in other recent posts on the site, which is run by the Alliance@IBM/Communications Workers of America Local 1701, a union that is trying to organize IBM workers.”

“The union, while still in an organizing phase and not yet recognized by IBM, has about 6,000 members, including IBM employees and retirees, according to national coordinator Lee Conrad. But because the union has not reached an employment contract with IBM, there is “not an awful lot” it can do except raise awareness of the issue”.

LayoffBlog.com: Stay tuned for more info.

Air India has terminated 9 hostesses for being overweight

Filed under: aviation,India — DF @ 2:20 pm
Tags: ,

According to BBC: “The air hostesses were taken off flying duty two to three years ago and put on ground duty They say they have now been told by the airline that it no longer has positions for them in ground jobs”.

Air India spokesman Jitendra Bhargava said that the women were between 11kg and 32kg overweight and that “all efforts to get them to reduce weight had failed”.

January 5, 2009

Rumor: Massive layoffs are coming to IBM later this month

An unofficial online employee Web site, IBMemployee.com, says massive layoffs are coming to Big Blue later this month, according to Times Herald-Record.

“All divisions in IBM will be affected,” says one entry, adding the majority of those cuts will be announced Jan. 23.

“Several more posts say approximately 16,000 employees, mostly in the U.S., will be affected.”

  • IBM has more than 386,000 employees worldwide, according to its Web site. If the rumored 16,000 figure proves accurate, then, it would equal roughly a 4% reduction in headcount.

IBM’s been cutting people every couple of weeks, but they’re small, silent cuts. What we’re concerned about is a massive one, according to various insider sources.

Update: Union tries to organize IBM workers

Update 1 (Jan 06, 2008): IBM Employees Buzzing About Layoff Rumors

Update 2 (Jan 11, 2009): IBM approves Obama’s IT stimulus package; $30bn will create 900,000 jobs, healthy IBM

Rumor (Jan 19, 2009): Massive layoff packages offered on 1/27

Update 3 (Jan 19, 2009): Stress levels rise at IBM as word of job cuts swirls

Update 4 (Jan 20, 2009):

  • Several sources warn of imminent job cuts announcement.
  • IBM Profit Tops Forecast; Outlook Better than Expected, according to CNBC: “The guidance of $9.20 is awesome… looks like their outsourcing, packaging, cost containment strategy is working. They executed really well..”

Update 5 (Jan 21, 2009):

  • According to rumor, IBM started to cut sales and engineering positions in US.
  • The arguably more-important indicator of IBM’s performance — its top line — fell 6.4%, according to WSJ

Update  6 (Jan 22, 2008):

  • IBM confirms job layoffs: “28 out of 45 cut,” according to a another entry, from Austin, Texas. “Young and old, top and bottom performers. Never show me great 4Q numbers again.”, according to Betanews
  • IBM employees reported yesterday that the layoffs are already happening in IBM software and distribution divisions in the US and Canada, according to multiple news sources

Update 7 (March 11, 2009): Scattered layoffs in IBM can touch 4,600

Update 8 (March 25, 2009): IBM to Cut 5,000 U.S. Jobs, Shifting Work to India

~ LayOffBlog.com: Please feel free to comment this info and/or send us your updates regarding IBM layoffs. ~


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