Source: Wall Street Journal
J.P. Morgan Chase & Co. announced plans to lay off about 21% of Washington Mutual Inc.'s employees by the end of 2009 as it weaves the thrift's operations into its retail-banking network.
J.P. Morgan, which acquired WaMu in September for $1.9 billion after it was seized by the government, told employees yesterday that it will lay off 4,000 workers by the end of January, according to J.P. Morgan spokesman Tom Kelly. Another 5,200 are being asked to stay on through various dates in 2009 to help with the deal's integration.
Seattle-based WaMu had 43,198 employees as of June 30. J.P. Morgan Chief Executive Officer James Dimon and Charles Scharf, who runs the bank's retail operations, met with employees and local officials in Seattle on Monday.
Many of the layoffs come from WaMu's home town of Seattle and two operations centers in California. Some 1,500 workers in Seattle received notice on Monday that they will be laid off in 60 days.
That came on the heels of 1,600 employees in Pleasanton, Calif., and San Francisco who received notice last week that they will be laid off by next spring. Workers who are being asked to stay on for a period of time will receive double their usual salary.
The rest of the layoffs will be sprinkled throughout WaMu's presence across the country.
The cutbacks announced on Monday aren't likely to be the end of the layoffs that will be associated with the WaMu deal. That is because the figures don't take into account the hundreds of retail branches that are expected to be shuttered in coming months. Shares of J.P. Morgan fell $5.54, or 17.5%, to $26.12 in 4 p.m. composite trading on the New York Stock Exchange.
Wednesday, December 3, 2008
Job Cuts at Recession Levels, CEO Exits Spike
Source: eWeek
Challenger, Gray & Christmas, the outsourcing consultant company, alerted reporters and analysts today, Nov. 24, that its November jobs report, due Dec. 3, put the number of jobs lost "even closer to the 172,373 job cuts per month averaged during the last recession."
The October report saw planned job cuts soar 19 percent to 112,884, but significant layoff announcements from Citigroup, Sun Microsystems, Circuit City and others will push November's numbers close to 177,000, according to Challenger, Gray & Christmas.
The numbers in Challenger's November CEO turnover report, to be released Dec. 8, are expected to exceed the 2007 total one month early. In October, 125 CEOs abandoned ship.
Challenger, Gray & Christmas, the outsourcing consultant company, alerted reporters and analysts today, Nov. 24, that its November jobs report, due Dec. 3, put the number of jobs lost "even closer to the 172,373 job cuts per month averaged during the last recession."
The October report saw planned job cuts soar 19 percent to 112,884, but significant layoff announcements from Citigroup, Sun Microsystems, Circuit City and others will push November's numbers close to 177,000, according to Challenger, Gray & Christmas.
The numbers in Challenger's November CEO turnover report, to be released Dec. 8, are expected to exceed the 2007 total one month early. In October, 125 CEOs abandoned ship.
IT market, jobs, Layoffs in USA, Recession
Will Technology Job Losses Be Worse than 2001?
Source: eWeek
It will not because there has not been a large quantities of technology hiring as there were during the Internet bubble buildup in the late 1990s, according to what Tom Silver, the CMO of the technology jobs' website Dice told CIO.com.
Given that U.S. government data came out today that now shows the recession began a year ago in December of 2007, it seems a little premature to be calling the game when we have not finished 2008 (as much as we'd all love it to be over). Evidently, there are some key indicators that you cannot see when a recession is going on, one of which is that "gross domestic product remained positive until the third quarter this year," according to a Reuters article from today.
Silver told CIO.com that job postings for technology jobs are down across the board about 20 percent, but are particularly bad in regions you'd expect like Silicon Valley. Here are some of the specifics from the CIO.com article including Dice's numbers about technology-heavy regions of the U.S.:
[Silver] says that the number of IT jobs advertised on his site had been holding steady at between 85,000 and 90,000 jobs until the September-October time frame, when the number of ads for IT jobs dipped significantly. "We've seen a drop of roughly 20 percent versus where we were last year," he says. "We're now around 70,000 jobs on the site." The big markets for tech jobs--NYC, Silicon Valley, Chicago and Dallas--are experiencing the most significant declines in IT job opportunities, says Silver. Job opportunities are down 30 percent in Silicon Valley year over year, 25 percent in New York, 24 percent in Dallas and 21 percent in Chicago, according to Dice.com's data.
Given the information I've seen over the last few weeks with IDC cutting its forecasts for nearly everything technology related (in tech services and tech infrastructure), to research Ed Cone of CIO Insight pointed out recently showing corporate IT spending to be a "historic collapse," the economic data on the technology sector is not good, but as Dice's Silver pointed out (with little consolation to those affected), it's better than other industries.
Researcher Paul Carton of ChangeWave sums it up like this in his post on the spending collapse (make sure to look at his charts for the wider historic view):
U.S. corporate IT spending is in the midst of a huge nose-dive, the likes of which hasn't been seen before in a ChangeWave survey dating back to 2001. In short, the current ChangeWave survey findings virtually guarantee that we'll be seeing the technology sector get hammered with pre-announcements before the January earnings season gets underway. I want to believe that 2009 will not be the bubble-bursting of 2001, but I have a feeling, much like Eric Lundquist of CIO Insight, that a big portion of work in technology over the near future will be for systems integrators, contract project management and other programming and business analyst skills that can be outsourced (and not necessarily offshored) using existing or low-cost infrastructure. As Lundquist points out, the CTOs and CIOS of companies he is talking to are dealing with internal customer and financial data issues. These guys need as close to real time numbers for budgets that they can get, and are looking for easier ways to make data consistent, and they need it--like now.
Don't we all.
It will not because there has not been a large quantities of technology hiring as there were during the Internet bubble buildup in the late 1990s, according to what Tom Silver, the CMO of the technology jobs' website Dice told CIO.com.
Given that U.S. government data came out today that now shows the recession began a year ago in December of 2007, it seems a little premature to be calling the game when we have not finished 2008 (as much as we'd all love it to be over). Evidently, there are some key indicators that you cannot see when a recession is going on, one of which is that "gross domestic product remained positive until the third quarter this year," according to a Reuters article from today.
Silver told CIO.com that job postings for technology jobs are down across the board about 20 percent, but are particularly bad in regions you'd expect like Silicon Valley. Here are some of the specifics from the CIO.com article including Dice's numbers about technology-heavy regions of the U.S.:
[Silver] says that the number of IT jobs advertised on his site had been holding steady at between 85,000 and 90,000 jobs until the September-October time frame, when the number of ads for IT jobs dipped significantly. "We've seen a drop of roughly 20 percent versus where we were last year," he says. "We're now around 70,000 jobs on the site." The big markets for tech jobs--NYC, Silicon Valley, Chicago and Dallas--are experiencing the most significant declines in IT job opportunities, says Silver. Job opportunities are down 30 percent in Silicon Valley year over year, 25 percent in New York, 24 percent in Dallas and 21 percent in Chicago, according to Dice.com's data.
Given the information I've seen over the last few weeks with IDC cutting its forecasts for nearly everything technology related (in tech services and tech infrastructure), to research Ed Cone of CIO Insight pointed out recently showing corporate IT spending to be a "historic collapse," the economic data on the technology sector is not good, but as Dice's Silver pointed out (with little consolation to those affected), it's better than other industries.
Researcher Paul Carton of ChangeWave sums it up like this in his post on the spending collapse (make sure to look at his charts for the wider historic view):
U.S. corporate IT spending is in the midst of a huge nose-dive, the likes of which hasn't been seen before in a ChangeWave survey dating back to 2001. In short, the current ChangeWave survey findings virtually guarantee that we'll be seeing the technology sector get hammered with pre-announcements before the January earnings season gets underway. I want to believe that 2009 will not be the bubble-bursting of 2001, but I have a feeling, much like Eric Lundquist of CIO Insight, that a big portion of work in technology over the near future will be for systems integrators, contract project management and other programming and business analyst skills that can be outsourced (and not necessarily offshored) using existing or low-cost infrastructure. As Lundquist points out, the CTOs and CIOS of companies he is talking to are dealing with internal customer and financial data issues. These guys need as close to real time numbers for budgets that they can get, and are looking for easier ways to make data consistent, and they need it--like now.
Don't we all.
Friday, November 28, 2008
Airways
Jet proposes 5-10% salary cut for employees
Forward by Srilaxmi
Facing the heat of economic slowdown, the Jet Airways management was on Sunday understood to have suggested a five to ten per cent salary
cut for its employees drawing monthly salary above Rs 75,000 and a voluntary retirement scheme for older staff.
A meeting of the management, presided by Jet Chairman Naresh Goyal at a five-star hotel here, has decided to have a graded salary structure for all employees but kept a threshold for it saying those drawing Rs 75,000 per month would not face any cut in their salary, sources said.
The graded structure would be applicable to those getting above Rs 75,000 per month, they said.
The management is also understood to have set up a committee to study the graded structure.
However, the management was unable to convince its domestic pilots to accept salary cuts ranging from 10 to 20 per cent, sources said.
The airlines management is understood to have suggested a ten per cent slash in pay packets of junior pilots and a 20 per cent cut for senior pilots.
But the pilots suggested that Airlines should do away with the expatriate pilots as they were a “huge burden” on the airlines because of their high salary packages,” a source close to the development told PTI.
The Airlines has currently 1,000 pilots with 200 expat pilots.
A proposal was also mooted to provide Voluntary Retirement Service (VRS) to some of the older employees to cut cost, the source said.
“However, Goyal did not accept the proposal, saying the Airlines did not have money to offer such a package,” the source said.
Facing the heat of economic slowdown, the Jet Airways management was on Sunday understood to have suggested a five to ten per cent salary
cut for its employees drawing monthly salary above Rs 75,000 and a voluntary retirement scheme for older staff.
A meeting of the management, presided by Jet Chairman Naresh Goyal at a five-star hotel here, has decided to have a graded salary structure for all employees but kept a threshold for it saying those drawing Rs 75,000 per month would not face any cut in their salary, sources said.
The graded structure would be applicable to those getting above Rs 75,000 per month, they said.
The management is also understood to have set up a committee to study the graded structure.
However, the management was unable to convince its domestic pilots to accept salary cuts ranging from 10 to 20 per cent, sources said.
The airlines management is understood to have suggested a ten per cent slash in pay packets of junior pilots and a 20 per cent cut for senior pilots.
But the pilots suggested that Airlines should do away with the expatriate pilots as they were a “huge burden” on the airlines because of their high salary packages,” a source close to the development told PTI.
The Airlines has currently 1,000 pilots with 200 expat pilots.
A proposal was also mooted to provide Voluntary Retirement Service (VRS) to some of the older employees to cut cost, the source said.
“However, Goyal did not accept the proposal, saying the Airlines did not have money to offer such a package,” the source said.
Thursday, November 20, 2008
Layoffs in USA
November Layoff Stats! - American 86,795
Forward by Ramana
Nov. 17: Citigroup raises the interest rates on its credit cards and cuts 53,000 jobs.
Nov. 14: Computer network builder Sun Microsystems hopes to save $800 million a year with a 6,000-person reduction in workforce.
Nov. 13: United States Steel pink-slips 675 workers (2% of its staff). Stock down 80% from July to November.
Nov. 12: Las Vegas Sands is putting several billion-dollar Macau-based projects on hold. As many as 11,000 workers will be laid off.
Nov. 12: Morgan Stanley announces 2,000 job cuts. This includes a 10% cut in the company’s institutional securities group and a 9% cut in its asset-management group.
Nov. 12: Liberty Media’s home shopping channel QVC announces a 910-worker layoff.
Nov. 12: Cessna Aircraft, a subsidiary of conglomerate Textron , fires 665.
Nov. 10: General Motors lays off 1,900 employees from its powertrain and stamping division. An additional 3,600 assembly employees were already getting pink-slipped.
Nov. 7: Ford Motor cuts 2,600 hourly employees in the U.S.
Nov. 6: Toy producer Mattel announces 1,000 job cuts globally in preparation for a tough holiday season.
Nov. 6: Five-year-old Atlantic City establishment the Borgata Hotel Casino and Spa–a joint venture between Boyd Gaming and MGM Mirage –sacks 400 employees.
Nov. 17: Citigroup raises the interest rates on its credit cards and cuts 53,000 jobs.
Nov. 14: Computer network builder Sun Microsystems hopes to save $800 million a year with a 6,000-person reduction in workforce.
Nov. 13: United States Steel pink-slips 675 workers (2% of its staff). Stock down 80% from July to November.
Nov. 12: Las Vegas Sands is putting several billion-dollar Macau-based projects on hold. As many as 11,000 workers will be laid off.
Nov. 12: Morgan Stanley announces 2,000 job cuts. This includes a 10% cut in the company’s institutional securities group and a 9% cut in its asset-management group.
Nov. 12: Liberty Media’s home shopping channel QVC announces a 910-worker layoff.
Nov. 12: Cessna Aircraft, a subsidiary of conglomerate Textron , fires 665.
Nov. 10: General Motors lays off 1,900 employees from its powertrain and stamping division. An additional 3,600 assembly employees were already getting pink-slipped.
Nov. 7: Ford Motor cuts 2,600 hourly employees in the U.S.
Nov. 6: Toy producer Mattel announces 1,000 job cuts globally in preparation for a tough holiday season.
Nov. 6: Five-year-old Atlantic City establishment the Borgata Hotel Casino and Spa–a joint venture between Boyd Gaming and MGM Mirage –sacks 400 employees.
Tuesday, November 18, 2008
Layoffs in USA
Citigroup set to cut 75,000 jobs
Forward by Soni
US bank Citigroup has announced plans for about 53,000 new job cuts, on top of a previously announced 22,000.
Citigroup said the 75,000 job cuts represented a reduction of about 20% of its staff, leaving it with 300,000 jobs worldwide “in the near term”.
The cuts will come from redundancies, the sale of units and natural wastage, the bank said.
Citigroup has lost more than $20bn (£13.6bn) in the past year because of the global financial crisis.
It has posted four straight quarterly losses and some analysts believe the bank will not make a profit again until 2010.
Turnaround plan
Certainly [the job cuts] will fall particularly heavily on London and New York
Win Bischoff, Citigroup chairman
“Underlying business remains strong and revenues have been stable,” the bank said.
Citigroup also said its capital position was “very strong”.
The bank expects its expenses to be down 20% from peak levels, to about $50bn in 2009, after the job cuts have taken effect.
“Certainly [the job cuts] will fall particularly heavily on London and New York,” Citigroup chairman Win Bischoff said at a business forum in Dubai.
Citigroup’s chief executive Vikram Pandit has come under pressure from critics who have doubted his ability to turn around the company and weather the financial crisis.
Shares in Citigroup dropped 4.4% to $9.10 in early trading. They are down almost 70% this year.
Citigroup, one of the largest US banks, is one of nine financial institutions benefiting from the US government’s bail-out programme.
The Treasury announced last month that it would be providing cash injections worth $125bn to be shared between Citigroup, JP Morgan Chase, Bank of America, Goldman Sachs, Morgan Stanley, Wells Fargo, Bank of New York Mellon, State Street and Merrill Lynch.
US bank Citigroup has announced plans for about 53,000 new job cuts, on top of a previously announced 22,000.
Citigroup said the 75,000 job cuts represented a reduction of about 20% of its staff, leaving it with 300,000 jobs worldwide “in the near term”.
The cuts will come from redundancies, the sale of units and natural wastage, the bank said.
Citigroup has lost more than $20bn (£13.6bn) in the past year because of the global financial crisis.
It has posted four straight quarterly losses and some analysts believe the bank will not make a profit again until 2010.
Turnaround plan
Certainly [the job cuts] will fall particularly heavily on London and New York
Win Bischoff, Citigroup chairman
“Underlying business remains strong and revenues have been stable,” the bank said.
Citigroup also said its capital position was “very strong”.
The bank expects its expenses to be down 20% from peak levels, to about $50bn in 2009, after the job cuts have taken effect.
“Certainly [the job cuts] will fall particularly heavily on London and New York,” Citigroup chairman Win Bischoff said at a business forum in Dubai.
Citigroup’s chief executive Vikram Pandit has come under pressure from critics who have doubted his ability to turn around the company and weather the financial crisis.
Shares in Citigroup dropped 4.4% to $9.10 in early trading. They are down almost 70% this year.
Citigroup, one of the largest US banks, is one of nine financial institutions benefiting from the US government’s bail-out programme.
The Treasury announced last month that it would be providing cash injections worth $125bn to be shared between Citigroup, JP Morgan Chase, Bank of America, Goldman Sachs, Morgan Stanley, Wells Fargo, Bank of New York Mellon, State Street and Merrill Lynch.
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