LayoffBlog.com

March 26, 2009

HSBC to lay off 2,900

Filed under: banking,HSBC,outsourcing,UK — 7macaw @ 6:47 am
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HSBC yesterday said 1,200 UK jobs were under threat following a review of the banking business, which will see the closure of its Newport call centre.

But union leaders insisted 2,900 jobs will be axed at HSBC, including 500 being off-shored to India. The Unite union said a number of local communities would be “ravaged” as sites were closed and work moved abroad.

HSBC insisted that while 2,900 positions would be axed, some staff would be given different work and only 1,200 would lose their jobs.

Source: Wales Online, The Mirror

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 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.

March 11, 2009

Sprint network outsourcing deal not ‘imminent’

Sprint Nextel is not going to outsource its network management any time soon, according to an analyst from a firm that recently met with Sprint CFO Bob Brust. Brust met Monday with investors at a gathering sponsored by Robert W. Baird & Co.

Sprint is continuing with the 8,000 job cuts it announced in late January, and they appear to be on track to be completed by the end of March.

Source: FierceWireless

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 10, 2009

Lawsuit is filed over Qimonda layoffs

A laid-off Qimonda worker is suing the Munich (Germany) DRAM chip maker for two months’ pay and benefits in a federal class-action case. It is alleged that the worker – Carl Jackson – and others were not given the 60-day written notice of their terminations, or 60 days’ pay, that the federal Worker Adjustment and Retraining Notification — WARN — Act requires.

Court papers estimated the damages sought at $20 million but, said New York employment-rights lawyer Raisner, “it could be much less, it could be much more,” depending on the number of employees affected and their actual wages and benefits.

Qimonda announced 1,500 layoffs — including Jackson’s, the court papers said — at its memory-chip plant in Sandston[,VA] this week. Those came on top of 1,200 job cuts last fall.

Source: Richmond Times-Dispatch

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

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.”

January 28, 2009

Time Warner to Cut 10% of AOL Jobs, Halt 2009 Raises

According to Bloomberg: “Time Warner Inc.’s AOL online unit will cut as much as 10 percent of its workforce because the U.S. recession has forced advertisers to reduce spending.

Employees won’t receive merit pay increases in 2009, New York-based AOL said today in a memo to workers. The number of people fired will total 700, said a person familiar with AOL’s plans.”

“The Warner Bros. film and television unit is eliminating or outsourcing 800 positions. Publishing division Time Inc. said in October it would cut 600 jobs, or 6 percent of the workforce.”

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 15, 2009

IBM to open center in Dubuque, IA, create 1,300 jobs

Filed under: FYI,IBM,outsourcing,US — 7macaw @ 9:46 am
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International Business Machines Corp. said Thursday it plans to open a technology service delivery center in Dubuque, Iowa, creating 1,300 jobs in the northeast part of the state. The center will provide operational support, including maintenance and monitoring of computer hardware and software systems, to IBM clients in the U.S. and around the world.

IBM officials said they selected Dubuque because of the city’s strong reputation as a place that values public-private partnerships.

Source: AP

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

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