LayoffBlog.com

April 6, 2009

Technology job losses mount in 2009

In 2009, technology companies have been cutting jobs at a rate not seen since the fallout from the dot.com bubble.

Companies in the technology sector announced planned job cuts totaling 84,217 in the 2009 first quarter, according to the report released Monday by global outplacement firm Challenger, Gray & Christmas Inc. That’s up 27 percent from 66,312 in the previous quarter, and the largest quarterly job-cut tally for the sector since the fourth quarter of 2002, when 133,511 layoffs were announced.

First-quarter tech sector job cuts were nearly five times higher than the 17,345 cuts announced during the same period a year ago.

Source: Austin Business Journal

March 26, 2009

Google cuts 200 jobs in Sales and Marketing in second round of layoffs

Google Inc. said Thursday, March 26, it will cut nearly 200 jobs in its global sales and marketing teams due to unchecked growth and “overlapping organizations.”
Google announced its first-ever cuts of full-time employees in January, when it said it would eliminate 100 positions from its recruiting organization.

Source: MarketWatch, Google

Related article: “Google slows acquisitions down to nothing

March 25, 2009

IBM Cutting More Jobs, Shifting Work to India

Weeks after slashing nearly 5,000 jobs, IBM is expected to shift the work of a large number of U.S. workers to IBM employees working in India, the latest example of a successful company that is continuing to slash costs and take advantage of cheap Asian labor, WSJ reported.

Source: WSJ, Fox Business News

Update (March, 25, 2009): IBM to cut 5,000 jobs in U.S: According to Reuters: “The job cuts will account for over 4 percent of IBM’s U.S. workforce, which totaled around 115,000 at the end of 2008. The sources, who were not authorized to speak publicly on the issue, said the cuts will mostly be in IBM’s global services business, which includes outsourcing and consulting services.”

BusinessWeek also reports (“IBM Cuts Jobs As It Seeks Stimulus Money“): “..the company would be cutting high-skill positions domestically as it and others jockey for new business from the $787 billion stimulus package Congress enacted in February”

March 18, 2009

Report: IT Employment Decline Moderates in February

Filed under: FYI,IT,IT consulting,US — 7macaw @ 11:06 am
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After dropping markedly in December (56,000 jobs or 1.4%) and January (46,000 jobs or 1.15%), the decline in IT employment moderated in February dropping by (17,000 jobs or .43%), according to the National Association of Computer Consultant Businesses (NACCB), which tracks monthly IT employment.

After peaking in November with over 4 million jobs and dropping the subsequent three months,
IT employment stands at 3,938,800. Despite the drop over the last three months, IT employment
was effectively flat (-.23%) year-over-year, outperforming the general employment marketplace
which shed more than 4 million jobs (-3.02%) over the same time period
.

Source: NACCB Report[pdf]

March 17, 2009

Kaiser to cut 860 information technology jobs

According to SFGate: “Kaiser Permanente is cutting 860 information technology jobs nationwide under a realignment that includes a $500 million deal giving IBM management duties at Kaiser’s medical records data centers.”

“The Oakland health maintenance organization, which has spent as much as $5 billion over the past five years building up its electronic records system, said Monday it has inked a seven-year deal with IBM to maximize the performance of its data processing units.”

“In a separate action, Kaiser is eliminating an additional 160 information technology jobs scattered across 30 locations as it pares back spending due to the impact of the economic downturn.”

“Of the 700 staffers affected by the IBM deal, 500 work at one of the California data centers, which are located in Pasadena, Corona, Napa, Walnut Creek and Irvine

~News submitted by Jack R.

February 27, 2009

Indian Firms, Microsoft Top H-1B List

Indian outsourcers, along with Microsoft and Google, again lead the list of companies bringing foreign workers to the U.S. on the H-1B visa program.

According to U.S. Citizenship & Immigration Service (USCIS), Four India-based companies topped the list:

Infosys Technologies (INFY, India): 4,559 H-1B visas approved in 2008, 4,559 in 2007
Wipro (WIT, India): 2,678 H-1B visas approved in 2008; 2,567 in 2007
Satyam (SAY, India): 1,917 H-1B visas approved in 2008; 1,396 in 2007
Tata (TCS.BO, India): 1,539 H-1B visas approved in 2008; 797 in 2007
Microsoft (NASDAQ:MSFT): 1,018 H-1B visas approved in 2008; 959 in 2007
Google (NASDAQ:GOOG): 248 H-1B visas approved in 2008
Lehman Brothers: 130 H-1B visas approved in 2008

In fiscal year 2007, six of the top 10 visa recipients were based in India; two others among the top 10, Cognizant Technology Solutions (CTSH) and UST Global, are headquartered in the U.S. but have most of their operations in India, according to BusinessWeek

  • The H-1B program, which started in 1990, was set up to allow U.S. companies to import the best and brightest in technology, engineering, and other fields when such workers are in short supply domestically.
  • The H-1B visa program is currently capped at 65,000 per year, with another 20,000 set aside for advanced-degree graduates of U.S. universities.

USCIS will begin taking H-1B applications for the next fiscal year on April 1 and will distribute the new visas on Oct. 1.

Source: U.S. Citizenship & Immigration Service (USCIS)

February 26, 2009

Yahoo CEO Carol Bartz Revamps Management

According to BusinessWeek: “New Yahoo CEO Carol Bartz just announced in a detail-free blog post the much-anticipated shakeup of Yahoo’s management ranks. Although she didn’t say what the reorganization would involve beyond making the setup simpler, some current executives clearly won’t be part of it. This morning, Yahoo said Chief Financial Officer Blake Jorgensen will be leaving, only a day after he made a presentation at a tech conference.”

Yahoo structure changes in breif:

  • Tech and Product groups will be combined
  • There are now two regions – North America and International
  • Mobile will continue to be a key priority for Yahoo
  • A Chief Marketing Officer (CMO) role has been created
  • A new group created: Customer Advocacy group
  • A new team created: Service Engineering & Operations (SE&O) team
  • Changes in HR led by David Windley, Legal led by Michael Callahan, Chief of stuff: Joel Jones, CFO position: vacant
  • This structure is designed to last two to four years

February 25, 2009

Cisco Confirms Global Job Cuts

According to Channel Web: “Cisco Systems (NSDQ:CSCO) confirmed to Channelweb.com that it has eliminated a number of positions in the U.S. and abroad as part of its realignment and restructuring initiative that will chop $1 billion out of its operating budget throughout fiscal year 2009.

Cisco would not confirm on Wednesday how many positions were cut. Sources, however, said employees started receiving notifications on Tuesday, and roughly 250 of the positions eliminated were based in San Jose, Calif. Overall, sources said, the number of employees affected was fewer than the 1,500 to 2,000 that Cisco CEO John Chambers hinted at on the company’s earnings call for the second fiscal quarter.”

February 23, 2009

Yahoo News Manager Neeraj Khemlani Is Leaving to Join Hearst

According to Bloomberg: “Yahoo! Inc.’s general manager of its news unit, Neeraj Khemlani, is leaving to join Hearst Corp. as a vice president handling digital media.

Khemlani, 38, will report directly to Chief Executive Officer Frank Bennack, helping the company shift toward digital content, Hearst said today in a statement. The job starts March 23. At Yahoo, he managed the site’s news, technology, weather and education content, along with Yahoo Finance.”

February 17, 2009

Tech Layoffs Surge to 300,000

Layoffs in the tech sector are accelerating. It took exactly three weeks for tech layoffs to surge to 300,000, according to the Washington Post’s Layoff Tracker. Since late January, when the tracker hit 200,000 layoffs, another 100,000 job eliminations have been announced or completed. In contrast, it took five weeks for layoffs in the tech industry to hit the 200,000 mark, and >=four months for layoffs to hit 100,000 last December.

The past few weeks have particularly brutal for the technology space, with substantial layoffs announced by Pioneer (10,000), Cisco (3,000), Panasonic (15,000), NEC (20,000), Electronic Arts (1100) and AOL (700).

Source: The Washington Post

February 14, 2009

U.S. announces arrests in several states alleging H1B visa fraud

According to ComputerWorld: ” Federal agents on Thursday said they arrested 11 people in six states in a crackdown on H-1B visa fraud and unsealed documents that detail how the visa process was used to undercut the salaries of U.S. workers.”

“The arrests were carried out by federal, state and local agents working in Iowa, California, Massachusetts, Texas, Pennsylvania, Kentucky and New Jersey. The government’s action “is the result of an extensive, ongoing investigation into suspected H-1B visa fraud, mail fraud and conspiracy,” said Matthew Whitaker, the U.S. attorney for the Southern District of Iowa, in a statement.”

“The company that seemed to get the most attention from federal authorities is Vision Systems Group Inc., which authorities said had its principal places of business in Somerset and South Plainfield, N.J., and an office in Coon Rapids, Iowa. The company was cited in a 10-count indictment.”

ComputerWorld worte on October, 2008: “An internal report by the U.S. Citizenship and Immigration Services (USCIS) examining the H-1B visa program has found evidence of forged documents and fake degrees, and even “shell” companies giving addresses of fake locations.”

Update: The government arrested on conspiracy and mail fraud Shiva Neeli in Boston, Ramakrishna Maguluri in Atlanta, Villiappan Subbaiah in Dallas, Suresh Pola in Pennsylvania, Karambir Yadav in Louisville, Ky., Amit Justa and Venkata Guduru, both in New Jersey, and Vijay Myneni in San Jose. Charged with conspiracy, mail fraud and wire fraud was Vishnu Reddy in Los Angeles and Chockalingam Palaniappan in San Jose, who operated a company named Pacific West Corp. in Santa Clara, Calif.

February 9, 2009

Yet Another Scandal for ‘India’s Enron’ (Satyam Computer Services)

According to FoxNews: “Satyam Computer Services Ltd., the Indian tech giant at the center of a $1 billion executive fraud and a World Bank ethics scandal, is involved in yet another kind of debacle — this time at the United Nations’ public health arm, the World Health Organization (WHO).

At issue is Satyam’s role in the development of a $55.5 million global business management system for WHO, which was slated to become the master control for staffing, financial payments and procurement by the organization by an initial deadline of September 2007.

That deadline has long since passed, and instead, according to documents obtained by FOX News, the project is far behind schedule, wallowing in glitches that have deeply affected WHO operations, and, despite management claims to the contrary, likely to end up far exceeding its budget.

Moreover, according to the documents, in the push to get at least part of the system up and running by last summer, Satyam ignored the instructions of the software’s manufacturer, Oracle, for implementing the complex system; ran user tests that validated the system without “being able to replicate a real-life situation,” provided little or no training to WHO employees; and failed to adequately involve health care professionals who see the system as a vital tool, among a host of other failings.”

February 4, 2009

Cisco Systems: possible large jobs cut in 2009

According to CNNMoney: “The global economic downturn will continue to hammer computer networking giant Cisco Systems Inc., chief executive John Chambers said Wednesday.

In its current quarter, Cisco expects to see revenue decline between 15% and 20%, he said in a conference call with analysts.”

“We are not going to consider (layoffs) at this time,” chief executive John Chambers said. But he added, that if Cisco was forced to cut jobs, it would likely be a large cut of about 10% of its workforce.

  • Cisco employed 67,318 workers worldwide at the end of the second quarter.

India: Software and service exports to grow 16-17% in 2009

Filed under: H1B,India,IT,IT consulting,Technology,US — DF @ 5:48 pm
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According to India Times: “IT-BPO industry association Nasscom on Wednesday said software and service exports will grow 16-17% in 2008-09 to $47 billion, lower than earlier estimates of $50 billion as the global economic slowdown dampened demand.

The association had also estimated total IT-BPO revenues to grow 21-24% in the current fiscal. As per revised estimates, the total IT soft-ware and services revenues, including domestic revenues, are poised to grow 15.3% in FY09 to $60 billion. The total IT- BPO industry, including hardware, will be worth $71.7 billion in FY09.”

India: IT vendors set to grow lean as contracts assume a fixed price

Filed under: India,IT,IT consulting,outsourcing,US — DF @ 5:35 pm
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According to IndiaTimes: “CHENNAI: The last quarter has seen IT service providers facing requests from clients to restructure their relationship contracts as well as statement of work. Some clients have sought a discount in pricing in return for assurance of projects for a given time period. A recent report from Zinnov management consulting has indicated that tier II vendors have had to offer 25% discount on pricing to obtain commitment from their clients through the year 2009.”

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