LayoffBlog.com

January 7, 2009

Lenovo is losing ground, will slash 2,500 jobs

According to Forbes: “Three years after its ambitious acquisition of IBM’s PC unit, the Chinese computer maker is losing ground to U.S. and Taiwanese rivals.”

“Lenovo , the world’s fourth-largest computer maker by shipments, warned it incurred a material loss in the fiscal third quarter that ended in December, and it is cutting costs in response. The company will slash 2,500 jobs, or 11.0% of its work force, and reduce executive compensation by 30% to 50%, including merit-based pay and long-term incentives, according to a company statement. It will merge its China and Asia-Pacific operations into an Asia-Pacific and Russia unit.”

Update (Bloomberg): Asian Stocks Decline, Wiping Out 2009 Gains; BHP Slump, Lenovo plunged 22 percent

China vows to boost employment in 2009

Filed under: China,worldwide — 7macaw @ 9:08 am
Tags: , , , ,

China has embarked on active measures to minimize job cuts and has pledged to boost employment this year:

  • An early warning system is being set up to conduct monitoring of the job situation. The system is designed for regional labor and social security offices to collect employment information, such as the possible job cuts and the planned new recruits in the following week and the actual cuts.
  • Many cities are to encourage people to start businesses. Jiangsu and Zhejiang provinces pledge to kick in favorable measures including free skill training for laid-off workers.
  • The Shanghai government also encouraged business start-ups to increase jobs. The city pledged to limit the registered unemployment rate to below 4.5 percent

Source: China Daily

January 4, 2009

Asia: Slowdown takes a toll on industries

According to China Daily: “The financial tsunami has triggered panic around the world, with its impact taking a heavy toll on a variety of industries in Hong Kong. Turmoil in the global credit markets has severely weighted down earnings of the banking and finance industry, which triggered a wave of job cuts among local banks.”

  • Starting from September, Europe’s largest bank HSBC laid off 4 percent of its worldwide back-office staff, including 100 employees in Hong Kong
  • In November, HSBC axed 450 jobs in Hong Kong in its second round of layoff.
  • In early November, Southeast Asia’s biggest bank DBS trimmed its workforce by 6 percent, or 900 jobs, in its Hong Kong and Singapore operations
  • Standard Chartered Bank, a UK-based lender focused on emerging markets in Asia,shed 200 jobs – 4 percent of its staff – in Hong Kong in early December.
  • Banks in Hong Kong may further reduce their staff numbers in the first half of 2009
  • In early October, Hong Kong toy maker Smart Union Group closed down its two factories in Dongguan, throwing almost 7,000 workers into unemployment.
  • Around 5,000 factories in the region had already closed down amid the financial meltdown.
  • The Christmas sales in the US tumbled around 20 to 30 percent this year, which means the export market for the mainland has significantly shrunk
  • Hong Kong-funded factories in the PRD may close down in 2009
  • The bankruptcy of Lehman Brothers in September has also severely affected more than 40,000 holders of Lehman’s minibonds in Hong Kong

Stepping into 2009, economists expect it may take quite a while for the territory’s economy to bounce back, according to China Daily

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