One of its largest clients and a Fortune 500 company, State Farm Insurance Co., has terminated its contract with the Indian technology vendor. The US-based insurance service provider announced its decision to terminate its contract on Friday. Following a board meeting on Saturday in Hyderabad, Satyam had said the company has been “in conversation with customers” who had “expressed their continued support”.
While the value of the contract or its material impact on Satyam could not be immediately ascertained byMint, a US daily Pantagraph, based in Illinois, Chicago, where State Farm is headquartered, reported on Saturday that at least 400 on-site staff of Satyam may be unemployed in the wake of termination of the contract. State Farm could be one of Satyam’s largest clients but the size of the contract is not known. A Satyam spokesperson declined to comment on the size of the contract and the impact of its termination.
According to an analyst with a Mumbai-based domestic brokerage who does not want to be identified, State Farm Insurance is a $50 million (Rs244 crore) client and one of the top 10 clients for Satyam.
Monday, January 19, 2009
TCS to freeze lateral hiring; salary hike would be in single digit per cent
Source: Business Standard
Tata Consultancy Services (TCS), the country’s largest IT services provider, has plans to freeze its lateral hiring, or recruitment of experienced hands. The company, which expects to take a final call on its hiring strategy next month, also says the next year’s salary hike would be in single digit per cent range.
TCS, however, has assured it will honour its commitment on hiring 24,800 people during financial year 2009-10.
Ajoy Mukherjee, vice-president and head-global human resources, TCS, said: “We have almost frozen our lateral hiring. We have been very controlled about the numbers that we take from here. The focus is on trainees as from cost management perspective this will balance out.” He said that surprises are coming on a daily basis and one should be prepared for it.
Last quarter, the company had spoken about a hiring mix of 60:40 for trainees and laterals respectively.
For 2009-10, TCS has already made campus offers of 24,800 and the company says that it will honour all the commitments. For FY09, the company has a target of hiring 30,000-35,000, of which 30,430 are already on board. “Campus hiring is done at least a year in advance and we were not expecting the situation to be this bad,” he adds.
“It’s a business environment that is making the company look at such measures. But this will certainly help it manage cost as unlike its peers TCS did hire a lot of experienced people. But that is also because it has a higher component of R&D work. Two, we think it will help the company garner a good position in terms of credibility and branding in the long run,” said an analyst.
Meanwhile, the company is focusing on the bottom of the pyramid. Mukherjee says: “While I am not saying that we will not hire experienced people but it will be based more on domain expertise and business need. Besides, for off-campus recruitment, which we did in the fourth quarter to fill on gaps due to attrition, is also clearly ruled out this year. The other focus area also is shift from onsite to offshore.”
Of the total employee base of the company, about 20 per cent are onsite. However, so far almost one per cent people have returned offshore. The company has also agreed that the joining dates of trainees have been staggered by a few days.
Tata Consultancy Services (TCS), the country’s largest IT services provider, has plans to freeze its lateral hiring, or recruitment of experienced hands. The company, which expects to take a final call on its hiring strategy next month, also says the next year’s salary hike would be in single digit per cent range.
TCS, however, has assured it will honour its commitment on hiring 24,800 people during financial year 2009-10.
Ajoy Mukherjee, vice-president and head-global human resources, TCS, said: “We have almost frozen our lateral hiring. We have been very controlled about the numbers that we take from here. The focus is on trainees as from cost management perspective this will balance out.” He said that surprises are coming on a daily basis and one should be prepared for it.
Last quarter, the company had spoken about a hiring mix of 60:40 for trainees and laterals respectively.
For 2009-10, TCS has already made campus offers of 24,800 and the company says that it will honour all the commitments. For FY09, the company has a target of hiring 30,000-35,000, of which 30,430 are already on board. “Campus hiring is done at least a year in advance and we were not expecting the situation to be this bad,” he adds.
“It’s a business environment that is making the company look at such measures. But this will certainly help it manage cost as unlike its peers TCS did hire a lot of experienced people. But that is also because it has a higher component of R&D work. Two, we think it will help the company garner a good position in terms of credibility and branding in the long run,” said an analyst.
Meanwhile, the company is focusing on the bottom of the pyramid. Mukherjee says: “While I am not saying that we will not hire experienced people but it will be based more on domain expertise and business need. Besides, for off-campus recruitment, which we did in the fourth quarter to fill on gaps due to attrition, is also clearly ruled out this year. The other focus area also is shift from onsite to offshore.”
Of the total employee base of the company, about 20 per cent are onsite. However, so far almost one per cent people have returned offshore. The company has also agreed that the joining dates of trainees have been staggered by a few days.
Sunday, January 18, 2009
AMD announces 1100 layoffs, salary cuts
Silicon Valley chipmaker Advanced Micro Devices will eliminate 1,100 jobs - roughly 9 percent of its workforce - in the first quarter, according to a report on Marketwatch. The company also said it will suspend its 401(k) match for employees and that executive chairman Hector Ruiz and CEO Dirk Meyer each will temporarily take a 20 percent base salary cut.
There will be smaller percentage salary cuts for other employees, as well - 15% for vice presidents and other execs; 10% for nonovertime-eligible employees; and 5% for all overtime-eligible employees. The company also plans to take a $622 million goodwill impairment charge related to its 2006 acquisition of ATI Technologies acquisition and will also post a $62 million charge related to the purchase.
There will be smaller percentage salary cuts for other employees, as well - 15% for vice presidents and other execs; 10% for nonovertime-eligible employees; and 5% for all overtime-eligible employees. The company also plans to take a $622 million goodwill impairment charge related to its 2006 acquisition of ATI Technologies acquisition and will also post a $62 million charge related to the purchase.
Brutal job losses continue in 2009
According to CNN Money: “The job market is off to a terrible start this year, with companies announcing more than 80,000 job losses so far, in one of the most painful symptoms of the ongoing recession.”
Job cuts in January, 2009
| Circuit City | 34,000 | Microsoft | ? |
| Alcoa | 13,500 | TDK Corp. | 8,000 |
| Boeing | 4,500 | Motorola | 4,000 |
| Hertz | 4,000 | Honda | 3,100 |
| EMC Corp. | 2,400 | Barclay’s | 2,100 |
| Cessna | 2,000 | MeadWestvaco Corp. | 2,000 |
| WellPoint | 1,500 | Cigna | 1,100 |
| Saks Fifth Avenue | 1,100 | Walgreens | 1,000 |
| Schlumberger | 1,000 | ING Group | 950 |
| Macy’s | 900 | Cummings | 800 |
| Autodesk | 750 | Pfizer | 700 |
| Logitech | 500 | Oracle | 500 |
| Neiman Marcus Groups | 375 | Ethan Allen | 350 |
| New Yaork & Co. | 350 | Barnes & Noble | 100 |
| 100 | World Wrestling Entertainmnet | 60 |
Total: 91,735
Sony Ericsson Posts Loss on Sales Drop, Job-Cut Costs
Sony Ericsson Mobile Communications Ltd., the mobile-phone venture of Sony Corp. and Ericsson AB, reported a second straight loss as sales slumped and it took charges to cut jobs.
The fourth-quarter net loss was 187 million euros ($245 million), compared with a profit of 373 million euros a year earlier, the London-based company said in a statement today. Sales fell 23 percent to 2.91 billion euros. Sony Ericsson booked costs of 129 million euros in the quarter to trim its workforce.
The fourth-quarter net loss was 187 million euros ($245 million), compared with a profit of 373 million euros a year earlier, the London-based company said in a statement today. Sales fell 23 percent to 2.91 billion euros. Sony Ericsson booked costs of 129 million euros in the quarter to trim its workforce.
Saturday, January 17, 2009
The Bumper List of Windows 7 Secrets
Source: MSDN blogs
It’s great to see Windows 7 Beta finally released to the world! We're very proud of what has been accomplished over the last months; in many ways, it sets a new quality bar for a beta operating system release. Building on top of the Windows Vista foundation, Windows 7 adds a great deal of polish and refinement to both the user interface and the underlying architecture, while at the same time introducing many new features and improvements that support new hardware, give power users and casual users alike better tools to manage their digital lives, and enable new classes of application experience. Go to MSDN blog for complete Story.
It’s great to see Windows 7 Beta finally released to the world! We're very proud of what has been accomplished over the last months; in many ways, it sets a new quality bar for a beta operating system release. Building on top of the Windows Vista foundation, Windows 7 adds a great deal of polish and refinement to both the user interface and the underlying architecture, while at the same time introducing many new features and improvements that support new hardware, give power users and casual users alike better tools to manage their digital lives, and enable new classes of application experience. Go to MSDN blog for complete Story.
Circuit City to axe 34,000 more jobs, close 567 remaining US stores
Circuit City: Completely out of business
According to AP: “Circuit City became the largest retailer to fall victim to the expanding financial crisis Friday, announcing it will shut down its remaining 567 U.S. stores at the cost of 34,000 more jobs after failing to sell the business.”“Unfortunately, there won’t be a Circuit City after today,” Circuit City lawyer Gregg Galardi said Friday, January 16, 2009.
More information: go to http://www.circuitcity.com/
GE Capital May Cut as Many as 11,000 Jobs This Year
General Electric Co.’s finance arm may cut 7,500 to 11,000 jobs, or at least 10 percent of its workforce, because of the global financial slump, people familiar with the company’s plans said.
The reductions are part of GE Capital’s announced plan to reduce expenses by $2 billion this year, said the people, who didn’t want to be identified because the numbers aren’t public. The savings goal also includes expenses such as office closings.
The reductions are part of GE Capital’s announced plan to reduce expenses by $2 billion this year, said the people, who didn’t want to be identified because the numbers aren’t public. The savings goal also includes expenses such as office closings.
Top five technologies in Windows 7
Windows 7 will be the second release of Microsoft's Windows desktop operating system built on the Vista kernel.
With the beta release now available, IT departments and end users can start assessing whether it will be worth upgrading. Microsoft has made a number of changes to the Windows application programming interface, which could be used to create new types of application or improve the usability and speed of existing ones.
Microsoft says it should run on Vista-ready hardware without any problems, and should support Vista-ready applications without modifications
1. DirectWrite
Microsoft is introducing DirectWrite into Windows 7, an API which enables applications to use OpenType Font technology. Microsoft says this allows Windows application developers to improvethe readability, formatting and support of text for multiple languages.
John Curran, director for Windows at Microsoft, says, "NetBooks have relatively low-resolution screens, while other users will run the same application on large-screen monitors. DirectWrite allows application developers to support the different types of screens to improve readability. It also means people won't have to install fonts separately."
2. Direct2D
Microsoft has traditionally focused on 3D graphics through its DirectX technology, which is used to make animation in computer games run smoothly. Microsoft will now offer Direct2D, hardwareacceleration for 2D graphics API.
Microsoft says this will provides high performance and high quality rendering for 2D geometry, bitmaps, and text. Itclaims the technology will boost the performance of graphics in enterprise applications like Microsoft Office.
"The whole Windows GUI is 2D, so all applications are 2D," Curran says. "From a business perspective, to render [paint the screen] quickly is important in applications. So software developers can use the power graphics accelerators in PCs to improve enterprise applications."
3. Direct3D 10.1 Command Remoting
Microsoft is working on making its Terminal Services thin client protocol more efficient. One approach being developed in Windows 7 is to use graphics accelerator hardware on PCs that are being deployed as thin clients, to make the user interface display faster.
When Terminal Services is used today, the server transmits a bitmap of the Windows GUI down to the client machine. In Windows 7, Microsoft is planning to allow applications to use Direct3D 10.1 to provide hardware accelerated graphics on the remote PC's graphics processor, reducing the need to transmit bitmaps.
"In the past, PCs havenot been able to make best use of the new graphics accelerators on desktop PCs. Direct3D 10.1 Command Remoting can potentially speed up applications and improve network bandwidth," says Curran.
4. Multi-Touch
Multi-touch is one of the big features Microsoft is highlighting in Windows 7. Multi-touch takes touch screen technology up a notch by allowing users to drag and drop on a touch screen. It includes a gesture-recognition API that supports panning, zooming, and rotating, Curran says.
"I have seen a demo where a user resizea and manipulates screen images using hand motions. Certainly CAD/Cam applications and design software lend themselves to raw finger input."
Microsoft recommends application developers start assessing how a touch user interface can improve the usability of new applications. "Try to imagine them using these with touch rather than the mouse. How does that change the experience?"
There may be some features in an application,such as using a slider to change volume or brightness, that are performed with a mouse today, but would work more naturally using gestures.
5. Sensor API
Microsoft defines the term "light-aware UI" as any program that uses light sensor data to optimise its content, controls, and other graphics to cope with lighting conditions, ranging from darkness to direct sunlight.
The light aware function is one part of its senor API that hardware manufacturers can use to make PCs aware of their environment. So a laptop screen can automatically be made to change its screen colour, brightness and contrast levels based on the level of ambient light. Not only can light be controlled this way. Curran says. "Native support for sensor is built in to Windows 7 to support temperature, ambient light, and GPS."
With the beta release now available, IT departments and end users can start assessing whether it will be worth upgrading. Microsoft has made a number of changes to the Windows application programming interface, which could be used to create new types of application or improve the usability and speed of existing ones.
Microsoft says it should run on Vista-ready hardware without any problems, and should support Vista-ready applications without modifications
1. DirectWrite
Microsoft is introducing DirectWrite into Windows 7, an API which enables applications to use OpenType Font technology. Microsoft says this allows Windows application developers to improvethe readability, formatting and support of text for multiple languages.
John Curran, director for Windows at Microsoft, says, "NetBooks have relatively low-resolution screens, while other users will run the same application on large-screen monitors. DirectWrite allows application developers to support the different types of screens to improve readability. It also means people won't have to install fonts separately."
2. Direct2D
Microsoft has traditionally focused on 3D graphics through its DirectX technology, which is used to make animation in computer games run smoothly. Microsoft will now offer Direct2D, hardwareacceleration for 2D graphics API.
Microsoft says this will provides high performance and high quality rendering for 2D geometry, bitmaps, and text. Itclaims the technology will boost the performance of graphics in enterprise applications like Microsoft Office.
"The whole Windows GUI is 2D, so all applications are 2D," Curran says. "From a business perspective, to render [paint the screen] quickly is important in applications. So software developers can use the power graphics accelerators in PCs to improve enterprise applications."
3. Direct3D 10.1 Command Remoting
Microsoft is working on making its Terminal Services thin client protocol more efficient. One approach being developed in Windows 7 is to use graphics accelerator hardware on PCs that are being deployed as thin clients, to make the user interface display faster.
When Terminal Services is used today, the server transmits a bitmap of the Windows GUI down to the client machine. In Windows 7, Microsoft is planning to allow applications to use Direct3D 10.1 to provide hardware accelerated graphics on the remote PC's graphics processor, reducing the need to transmit bitmaps.
"In the past, PCs havenot been able to make best use of the new graphics accelerators on desktop PCs. Direct3D 10.1 Command Remoting can potentially speed up applications and improve network bandwidth," says Curran.
4. Multi-Touch
Multi-touch is one of the big features Microsoft is highlighting in Windows 7. Multi-touch takes touch screen technology up a notch by allowing users to drag and drop on a touch screen. It includes a gesture-recognition API that supports panning, zooming, and rotating, Curran says.
"I have seen a demo where a user resizea and manipulates screen images using hand motions. Certainly CAD/Cam applications and design software lend themselves to raw finger input."
Microsoft recommends application developers start assessing how a touch user interface can improve the usability of new applications. "Try to imagine them using these with touch rather than the mouse. How does that change the experience?"
There may be some features in an application,such as using a slider to change volume or brightness, that are performed with a mouse today, but would work more naturally using gestures.
5. Sensor API
Microsoft defines the term "light-aware UI" as any program that uses light sensor data to optimise its content, controls, and other graphics to cope with lighting conditions, ranging from darkness to direct sunlight.
The light aware function is one part of its senor API that hardware manufacturers can use to make PCs aware of their environment. So a laptop screen can automatically be made to change its screen colour, brightness and contrast levels based on the level of ambient light. Not only can light be controlled this way. Curran says. "Native support for sensor is built in to Windows 7 to support temperature, ambient light, and GPS."
Aegis plans to acquire Satyam's BPO arm
Eyeing big profile clients of Satyam Computers in the offshoring business, Aegis BPO, Essar Groups' outsourcing arm is planning to acquire Satyam's BPO operations. Aegis is expected to submit an expression of interest (EoI) to Satyam within two days, reported The Economic Times.
Satyam staff faces cut in variable pay
Source: The Economic Times
Employees at the troubled Satyam Computer Services who may have heaved a collective sigh of relief with the anticipated receivables position of Rs 1,700 crore, could be in for a cut in their variable pay packages. Till last week, there were huge uncertainties regarding payment of their salaries itself.
Satyam needs Rs 800 crore in January for payment of wages and debt obligations while the requirement is Rs 600 crore each for February and March. The company said it had paid $20 million towards January salaries (paid every fortnight) to its US employees. In all, the company needs up to Rs 1,500 crore till March to service wage bill and debt.
When asked about a possible dip in variable payouts, a Satyam spokesperson declined to comment.
The remuneration package for the 53,000 employees comprises of a variable and a fixed component. The variable component is 10% at the entry level, 20% at the middle level and 30% at the senior management level. Half of the variable pay is a guaranteed payment. The other half is linked to three parameters including the performance of the company, the individual and the business unit.
The proposal to cut variable pay was, in fact, on the cards even at the end of the second quarter when the company scaled down its hiring projections given the weakening demand for software services. The company had earlier talked about trimming its costs by re-assessing the variable payouts.
In fact, Satyam Computer had said it would review the guaranteed component of the variable pay given to its employees . Any cut could mean a lower take home pay for the employee. Currently, the company’s wage bill accounts for over 60% of its revenue.
Employees at the troubled Satyam Computer Services who may have heaved a collective sigh of relief with the anticipated receivables position of Rs 1,700 crore, could be in for a cut in their variable pay packages. Till last week, there were huge uncertainties regarding payment of their salaries itself.
Satyam needs Rs 800 crore in January for payment of wages and debt obligations while the requirement is Rs 600 crore each for February and March. The company said it had paid $20 million towards January salaries (paid every fortnight) to its US employees. In all, the company needs up to Rs 1,500 crore till March to service wage bill and debt.
When asked about a possible dip in variable payouts, a Satyam spokesperson declined to comment.
The remuneration package for the 53,000 employees comprises of a variable and a fixed component. The variable component is 10% at the entry level, 20% at the middle level and 30% at the senior management level. Half of the variable pay is a guaranteed payment. The other half is linked to three parameters including the performance of the company, the individual and the business unit.
The proposal to cut variable pay was, in fact, on the cards even at the end of the second quarter when the company scaled down its hiring projections given the weakening demand for software services. The company had earlier talked about trimming its costs by re-assessing the variable payouts.
In fact, Satyam Computer had said it would review the guaranteed component of the variable pay given to its employees . Any cut could mean a lower take home pay for the employee. Currently, the company’s wage bill accounts for over 60% of its revenue.
Sanyo cuts 1,200 jobs; 800 in Japan; 400 in overseas
Sanyo Electric Co. forecast zero net profit for the current financial year and announced 1,200 job cuts, saying the overhaul was needed to survive the economic crisis.
Sanyo, which is being bought by its bigger rival Panasonic Corp., scrapped a previous forecast for a net profit of 35 billion yen (US$394 million), predicting that its bottom line would just break even.
Sanyo will cut 800 jobs in Japan and 400 overseas, including both regular and temporary positions, Sanyo vice president Koichi Maeda said. The group will reduce the number of semiconductor plants abroad from seven to four.
Sanyo, which is being bought by its bigger rival Panasonic Corp., scrapped a previous forecast for a net profit of 35 billion yen (US$394 million), predicting that its bottom line would just break even.
Sanyo will cut 800 jobs in Japan and 400 overseas, including both regular and temporary positions, Sanyo vice president Koichi Maeda said. The group will reduce the number of semiconductor plants abroad from seven to four.
Xerox cuts 275 jobs
Xerox Corp. said it will cut 275 Rochester-area jobs as part of a plan announced in October. The local layoffs are part of a company-wide program to eliminate 3,000 jobs. Xerox had 7,320 employees in Monroe County at the end of 2008, so the cut will reduce Rochester-area staff by about 4 percent, said company spokesman Bill McKee.
The plan will not affect union employees, McKee said, and most sales positions will be retained. But otherwise, cuts will be across the board, he said. Xerox officials began meeting with affected employees today, a process that will continue over the next several weeks. Globally, the 3,000 job cuts are from a work force of 57,000.
The plan will not affect union employees, McKee said, and most sales positions will be retained. But otherwise, cuts will be across the board, he said. Xerox officials began meeting with affected employees today, a process that will continue over the next several weeks. Globally, the 3,000 job cuts are from a work force of 57,000.
Microsoft layoff rumours still going on
Analyst: 6-8% Microsoft layoffs:
Microsoft may be preparing for layoffs, but the cutbacks won't be as severe as the 15 percent predicted in some media reports, writes analyst Sid Parakh of Seattle-based McAdams Wright Ragen in a note to clients this morning.
"Checks indicate that Microsoft is likely to engage in headcount reductions to the tune of 6,000-8,000 employees, or ~6%-~8% of its ~95,000 workforce, a number much lower than cited in the media," Parakh wrote. "A notable portion of those cuts are likely to be in the Seattle area considering that over 40,000 of its employees are in this region. Our checks also revealed some speculation over the potential for a second round of cuts in some groups sometime later in the year, although this could not be substantiated."
Underperforming employees are likely to be most vulnerable, in addition to contractors, he wrote.
Separately, Parakh lowered his estimates for the company's upcoming quarterly results to $16.8 billion in revenue and earnings of 48 cents per share, down from the previous estimates of $17.4 billion and 51 cents.
Microsoft may be preparing for layoffs, but the cutbacks won't be as severe as the 15 percent predicted in some media reports, writes analyst Sid Parakh of Seattle-based McAdams Wright Ragen in a note to clients this morning.
"Checks indicate that Microsoft is likely to engage in headcount reductions to the tune of 6,000-8,000 employees, or ~6%-~8% of its ~95,000 workforce, a number much lower than cited in the media," Parakh wrote. "A notable portion of those cuts are likely to be in the Seattle area considering that over 40,000 of its employees are in this region. Our checks also revealed some speculation over the potential for a second round of cuts in some groups sometime later in the year, although this could not be substantiated."
Underperforming employees are likely to be most vulnerable, in addition to contractors, he wrote.
Separately, Parakh lowered his estimates for the company's upcoming quarterly results to $16.8 billion in revenue and earnings of 48 cents per share, down from the previous estimates of $17.4 billion and 51 cents.
Delta expects 2,000 more job cuts
Delta Air Lines Inc, which took over rival Northwest Airlines last year, said it expects about 2,000 staff to opt for an early retirement program as it aims to trim capacity as much as 8 percent this year.
In December, Delta, which has about 75,000 staff worldwide, said it would offer employees severance packages, but it didn’t say how many jobs it aimed to cut.
“We are expecting a number of around 2,000 because the capacity reduction is going to be around 6 to 8 percent,” Delta CEO Richard Anderson told reporters on the sidelines of a media briefing in Tokyo.
In December, Delta, which has about 75,000 staff worldwide, said it would offer employees severance packages, but it didn’t say how many jobs it aimed to cut.
“We are expecting a number of around 2,000 because the capacity reduction is going to be around 6 to 8 percent,” Delta CEO Richard Anderson told reporters on the sidelines of a media briefing in Tokyo.
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.
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.
Blue Cross to lay off 1,000
Blue Cross Blue Shield of Michigan announced major cutbacks today, including a workforce reduction of nearly 1,000 employees by the year’s end, cutbacks to executive pay and compensation, and a reduction in discretionary spending by 25 percent, the nonprofit health insurer confirmed in a press release this morning.
The state’s largest insurer will also seek to raise rates across all of its individual lines of insurance, which combined cover about 300,000 Michigan residents.
The state’s largest insurer will also seek to raise rates across all of its individual lines of insurance, which combined cover about 300,000 Michigan residents.
Hertz to cut 4,000 jobs
According to MarketWatch: “Hertz Global Holdings Inc. (NYSE:HTZ) shares were driven down as much as 12% Friday after the company said it will slash 4,000 jobs, or almost 14% of its workforce, in an effort to cut costs in the face of falling demand for its rental cars.”
More job cuts at AMD
AMD Chips Off Jobs, Salaries
On Friday (1-16-2009), Advanced Micro Devices (NYSE:AMD) said it would trim 1,100 jobs, or 9.2% of its global workforce, and would temporarily cut some employees’ salaries, including those for top executives, to help carry the chip maker through the soft environment for computer sales, according to Forbes
On Friday (1-16-2009), Advanced Micro Devices (NYSE:AMD) said it would trim 1,100 jobs, or 9.2% of its global workforce, and would temporarily cut some employees’ salaries, including those for top executives, to help carry the chip maker through the soft environment for computer sales, according to Forbes
Friday, January 16, 2009
Satyam on-site employees will get salary on-time
Employees at Satyam Computer Services Ltd’s US offices can breathe easy, as the beleaguered company has made arrangements for the January payroll, which is paid fortnightly.
An internal mail by the HR head to Satyam employees, says, “Extraordinary efforts by our finance team have helped us hit back at one more baseless ‘report’ that has been making the rounds in some parts of the media. We have just sent a confirmation to all our US associates that the payroll cycle for mid-January 2009 will go ahead as scheduled. This has been achieved despite the fact that additional holidays came in this period at both the India end (Pongal/Sankranthi) and the US end (Martin Luther King Day).”
There are reportedly around 11,000 Satyam associates at onsite locations outside India.
Satyam India employees are tensed about the Jan paycheck
On Thursday, a mail from HR head of Satyam, S V Krishnan, stating that the payroll cycle for mid-January 2009 for US associates would go ahead as
scheduled, couldn't lift spirits of the employees, who were scanning the mail for any mention of associates' salary in India.
Krishnan wrote in his mail, "In addition to relieving concerns of our associates, this news should also be reassuring to many of our customers, who were worried about the impact of the media reports on the morale and productivity of our associates." However, while some employees did agree that US associates getting their fortnight package was encouraging news since it indicated the company had some money, the conspicuous absence of January salary's mention had them worried.
"There is no mention about our salaries anywhere neither in the mail and we do not want such pleasant communications anymore. Tell us in black and white how the company would pay us this month, if at all it can," said a worried senior associate adding that after his colleagues read the mail, they frantically started calling their former colleagues, batchmates from engineering colleges and friends to figure out opening in other firms.
"Office atmosphere is tensed and mood of associates is very low," another employee said. The backslapping, jokes at the office corridors and even crowding around the television sets around the cafeteria have become activities that no
Satyamite seems keen on indulging in. The worried associates say they are preparing themselves for the worst, that is, a blank on January 31 when they are supposed to get their monthly pay cheques.
scheduled, couldn't lift spirits of the employees, who were scanning the mail for any mention of associates' salary in India.
Krishnan wrote in his mail, "In addition to relieving concerns of our associates, this news should also be reassuring to many of our customers, who were worried about the impact of the media reports on the morale and productivity of our associates." However, while some employees did agree that US associates getting their fortnight package was encouraging news since it indicated the company had some money, the conspicuous absence of January salary's mention had them worried.
"There is no mention about our salaries anywhere neither in the mail and we do not want such pleasant communications anymore. Tell us in black and white how the company would pay us this month, if at all it can," said a worried senior associate adding that after his colleagues read the mail, they frantically started calling their former colleagues, batchmates from engineering colleges and friends to figure out opening in other firms.
"Office atmosphere is tensed and mood of associates is very low," another employee said. The backslapping, jokes at the office corridors and even crowding around the television sets around the cafeteria have become activities that no
Satyamite seems keen on indulging in. The worried associates say they are preparing themselves for the worst, that is, a blank on January 31 when they are supposed to get their monthly pay cheques.
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
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.”
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.”
Borland to cut workforce by about 15 percent, CEO leaves, joins VMware
According to InfoWorld: “Borland Software’s CEO has resigned, taking a position at EMC’s VMware subsidiary. Tod Nielsen, who had served as Borland CEO since November 2005, has become the chief operating officer of VMware”.
“Borland, meanwhile, is undergoing a significant reorganization. It will reduce its workforce by about 15 percent, or 130 employees, most of whom will be dismissed by April, the application life cycle management tools company said in a statement. The company also announced its Section 16 officer Peter Morowski, senior vice president of research and development, will leave the company.”
“Borland, meanwhile, is undergoing a significant reorganization. It will reduce its workforce by about 15 percent, or 130 employees, most of whom will be dismissed by April, the application life cycle management tools company said in a statement. The company also announced its Section 16 officer Peter Morowski, senior vice president of research and development, will leave the company.”
Nortel bankruptcy: Another jolt for Indian IT firms; owes over $10m to Indian IT companies
Nortel owes over $10m to Indian IT companies. TCS, Wipro, Infosys, Sasken may feel the heat as Nortel files for bankruptcy protection.
Nortel Networks, the Canadian telecom equipment maker which filed for bankruptcy protection on Wednesday, owes $9 million to Indian IT
companies such as Wipro ($3.1 million), Infosys and TCS (both $2.9 million) as per court filings.
Additionally, Nortel, which is amongst the top 3 clients for tier-II software services firm-Sasken Communication, is said to owe an undisclosed amount to Sasken too.
Put together, this could amount to over $10 million as trade receivables.
Nortel Networks, the Canadian telecom equipment maker which filed for bankruptcy protection on Wednesday, owes $9 million to Indian IT
companies such as Wipro ($3.1 million), Infosys and TCS (both $2.9 million) as per court filings.
Additionally, Nortel, which is amongst the top 3 clients for tier-II software services firm-Sasken Communication, is said to owe an undisclosed amount to Sasken too.
Put together, this could amount to over $10 million as trade receivables.
Infosys working on Magic Mirror technology
IT major Infosys was working on a new technology "magic mirror" with a well-known retailer for its deployment. "We are working with a well-known retailer in deploying magic mirror technology and I do not want to disclose the name of the company now", Infosys Chief Mentor N R Narayanamurthy said and did not elaborate.
Satyam effect: Engineering aspirants ignoring IT
The Satyam scandal, which has shattered the dreams of the company's employees, has a worse effect on aspirants from Punjab and Haryana, as they are not only keeping the Hyderabad-based firm out of their options, some of them are also shunning jobs in the IT sector as well.
Engineering students from the two states, who were placed with Satyam Computer last year have now changed their minds and are aggressively looking for jobs in other IT firms as well as companies in other sectors following the disclosure of the biggest-ever corporate fraud by the company.
"I was offered a job as trainee employee at Satyam last year. But after the fiasco has happened at Satyam, I have changed my mind to get suitable job in other firm," said Divyadeep Goyal, a student Mechanical Engineering student of University Institute of Engineering and Technology (UEIT), who was offered an annual package of Rs 3.25 lakh in Satyam.
Echoing similar views, Sumant, another final-year student of the same college, said, "The impact of Satyam fraud has been so damaging that we now do not have any intention to join the IT company. Rather we will look for job in other sectors."
The total number of engineering students placed by Satyam from this region was not available but some colleges have shared their placement figures.
Almost 80 students from the Institute of Engineering and Technology were selected by Satyam last year, while 13 students were placed from Punjab Engineering College (PEC) and seven were from UIET.
Students were offered an annual package between Rs 3 lakh and 3.5 lakh.
Engineering students from the two states, who were placed with Satyam Computer last year have now changed their minds and are aggressively looking for jobs in other IT firms as well as companies in other sectors following the disclosure of the biggest-ever corporate fraud by the company.
"I was offered a job as trainee employee at Satyam last year. But after the fiasco has happened at Satyam, I have changed my mind to get suitable job in other firm," said Divyadeep Goyal, a student Mechanical Engineering student of University Institute of Engineering and Technology (UEIT), who was offered an annual package of Rs 3.25 lakh in Satyam.
Echoing similar views, Sumant, another final-year student of the same college, said, "The impact of Satyam fraud has been so damaging that we now do not have any intention to join the IT company. Rather we will look for job in other sectors."
The total number of engineering students placed by Satyam from this region was not available but some colleges have shared their placement figures.
Almost 80 students from the Institute of Engineering and Technology were selected by Satyam last year, while 13 students were placed from Punjab Engineering College (PEC) and seven were from UIET.
Students were offered an annual package between Rs 3 lakh and 3.5 lakh.
Vivek Paul(former vice-chairman of Wipro) leads race for Satyam CEO post
Vivek Paul, former vice-chairman of Wipro and CEO of its global IT business, has emerged as the front runner for the post of CEO of Satyam Computer Services. To sweeten the package, sources close to the development said that Paul was being offered a 5 per cent stock option in addition to an attractive remuneration.
Infosys to hire 27,000 people by March
Bangalore: Infosys Technologies said it will hire around 27,000 professionals by March this year, up from around 25,000 annual hiring the firm had projected earlier.
During quarter ending December 31, Infosys had a total headcount of 1,03,078. For the third quarter ending December 31, 2008, Infosys had made a gross addition of 5,997 with the net intake being 2,772.
"We will be honoring every offer that we have made, in fact for the incoming freshers we have sent letters telling them what period they would be joining," said TV Mohandas Pai, Head,HR, Infosys.
The firm has made offers to around 20,000 engineering graduates for the next year. The attrition rate for Infosys has come down to 11.8 percent at the end of Q3 as against 12.8 percent during the September quarter this year.
"The tolerance for non-performance has come down to zero," he added. The BPO number addition has dipped at the end of the Q3, with the total headcount number standing at 16,941 as against 17,327 at the end of the second quarter.
During quarter ending December 31, Infosys had a total headcount of 1,03,078. For the third quarter ending December 31, 2008, Infosys had made a gross addition of 5,997 with the net intake being 2,772.
"We will be honoring every offer that we have made, in fact for the incoming freshers we have sent letters telling them what period they would be joining," said TV Mohandas Pai, Head,HR, Infosys.
The firm has made offers to around 20,000 engineering graduates for the next year. The attrition rate for Infosys has come down to 11.8 percent at the end of Q3 as against 12.8 percent during the September quarter this year.
"The tolerance for non-performance has come down to zero," he added. The BPO number addition has dipped at the end of the Q3, with the total headcount number standing at 16,941 as against 17,327 at the end of the second quarter.
Thursday, January 15, 2009
Motorola Announces 4,000 More Layoffs
Motorola plans to lay off another 4,000 employees, mostly from its Mobile Device business, and to report revenue for the fourth quarter of 2008 that would fall short of analysts' current estimates.
The workforce cuts at the troubled handset, networking and enterprise wireless company will come in addition to the 3,000 layoffs announced during last year's final quarter. Motorola, once the world's second-largest cell-phone maker, has been struggling since its Razr handset faded from popularity.
About 3,000 of the jobs will be cut from the handset business, with the other 1,000 coming from corporate functions and other business units, Motorola said Wednesday. The cuts will slash Motorola's annual costs by an additional US$700 million in 2009. Along with the earlier announced layoffs and some other cost-cutting steps, the company said it will realize savings of $1.5 billion this year.
The workforce cuts at the troubled handset, networking and enterprise wireless company will come in addition to the 3,000 layoffs announced during last year's final quarter. Motorola, once the world's second-largest cell-phone maker, has been struggling since its Razr handset faded from popularity.
About 3,000 of the jobs will be cut from the handset business, with the other 1,000 coming from corporate functions and other business units, Motorola said Wednesday. The cuts will slash Motorola's annual costs by an additional US$700 million in 2009. Along with the earlier announced layoffs and some other cost-cutting steps, the company said it will realize savings of $1.5 billion this year.
Seagate Layoffs Grow From 800 to 3,000 [Update]
Seagate, a leading hard-drive maker, will conduct a far more drastic round of layoffs than the company had indicated earlier this week.
Close to 3,000 people, or 6 percent of Seagate’s global workforce, will lose their jobs in the next couple of months, the company said today in a regulatory filing. On Monday, Seagate revealed plans to lay off about 10 percent of its United States workforce, or close to 800 people, has now expanded those plans to include the broader layoffs which affect its workers across the globe.
Close to 3,000 people, or 6 percent of Seagate’s global workforce, will lose their jobs in the next couple of months, the company said today in a regulatory filing. On Monday, Seagate revealed plans to lay off about 10 percent of its United States workforce, or close to 800 people, has now expanded those plans to include the broader layoffs which affect its workers across the globe.
An email from a proud and mighty Satyamite.
Received on Jan12th
Dear Friends
Today I don’t know why but a thought came into my mind and refreshed the memory of a day down the lane…The day use to be “Tuesday” during my ELTP training days.
Inside – use to beat a heart-my heart and just a few millimeters above it,
Outside – use to shine a logo, carrying a glorified past of 21 years of excellence.
A scene passed by my mind that during the coffee breaks or lunch time when Our batches comes out, I use to see a lot of “little” Satyams flaunting here and there-proudly. I use to see a smile on each one of those faces, 23-24 years old in age.
Today, I thought and made up my mind that when our leaders are busy in retaining the confidence of clients, I would like to show my confidence in them by once again taking out that white shirt with a blue Satyam logo shining on the pocket, just above my heart, from the cupboard and come to office wearing it once again on the coming Tuesday.
Friends, as ELTPs, don’t you think that we really owe it to Satyam for being provided us with a golden opportunity to start our career, and launch us in this IT sector from a very strong platform. Didn’t Satyam really bring us up as its own children?
Friends its time to show our solidarity, our integrity and our loyalty and above all our faith in our Organization
May I appeal to all the ELTPs that friend lets start a revolution. This Tuesday on 13th of Jan, We will all wear that Satyam logo shirt and once again flaunt the little Satyam in the premises of campus.
This is our way to show that, “United We Stand” and tell our Leaders that Sir please go and say the clients, both existing and upcoming, that we are ready, to face any challenges and We will not let all those incidents that happened in last 48 hours, to affect your business, as our motto itself says, Business Transformation. Together.
And my respected seniors, Sirs/Madams, We are with you in all your efforts to win back our glory.
This Tuesday ELTPs@Satyam will stand united to give support to the leaders, working day and night to save our careers.
Every Satyamite is a leader and this Tuesday we will prove this…
Are you together?? Are you ready??
If yes than please circulate this mail to as many Satyamites as you know…and don’t forget to wear the Brand Satyam Shirt on Tuesday.
nd yea. . . . . . . . . . . . . . . . . . . . . .
The World Will Witness ‘The Rise Of-A faithful and hopeful Satyamite
Its sent to us by Ashish Jain from Gurgaon.
Its actually a email sent by him to all of us as an appeal.
you can reach him at Ashish_rkjain@satyam.com.
Dear Friends
Today I don’t know why but a thought came into my mind and refreshed the memory of a day down the lane…The day use to be “Tuesday” during my ELTP training days.
Inside – use to beat a heart-my heart and just a few millimeters above it,
Outside – use to shine a logo, carrying a glorified past of 21 years of excellence.
A scene passed by my mind that during the coffee breaks or lunch time when Our batches comes out, I use to see a lot of “little” Satyams flaunting here and there-proudly. I use to see a smile on each one of those faces, 23-24 years old in age.
Today, I thought and made up my mind that when our leaders are busy in retaining the confidence of clients, I would like to show my confidence in them by once again taking out that white shirt with a blue Satyam logo shining on the pocket, just above my heart, from the cupboard and come to office wearing it once again on the coming Tuesday.
Friends, as ELTPs, don’t you think that we really owe it to Satyam for being provided us with a golden opportunity to start our career, and launch us in this IT sector from a very strong platform. Didn’t Satyam really bring us up as its own children?
Friends its time to show our solidarity, our integrity and our loyalty and above all our faith in our Organization
May I appeal to all the ELTPs that friend lets start a revolution. This Tuesday on 13th of Jan, We will all wear that Satyam logo shirt and once again flaunt the little Satyam in the premises of campus.
This is our way to show that, “United We Stand” and tell our Leaders that Sir please go and say the clients, both existing and upcoming, that we are ready, to face any challenges and We will not let all those incidents that happened in last 48 hours, to affect your business, as our motto itself says, Business Transformation. Together.
And my respected seniors, Sirs/Madams, We are with you in all your efforts to win back our glory.
This Tuesday ELTPs@Satyam will stand united to give support to the leaders, working day and night to save our careers.
Every Satyamite is a leader and this Tuesday we will prove this…
Are you together?? Are you ready??
If yes than please circulate this mail to as many Satyamites as you know…and don’t forget to wear the Brand Satyam Shirt on Tuesday.
nd yea. . . . . . . . . . . . . . . . . . . . . .
The World Will Witness ‘The Rise Of-A faithful and hopeful Satyamite
Its sent to us by Ashish Jain from Gurgaon.
Its actually a email sent by him to all of us as an appeal.
you can reach him at Ashish_rkjain@satyam.com.
Sonus Networks to cut 4 pct more jobs
Telecommunication-equipment maker Sonus Networks Inc (SONS.O) said it would further reduce its workforce by 4 percent, or 40 employees, and take related pretax charges of about $750,000 to $850,000 in the first quarter. In December, the company had said it would cut about 50 jobs.
Ecolab announces 1,000 job cuts
Ecolab Inc. on Wednesday followed the beat of the drum of other large U.S. companies, announcing a large round of job cuts due to economic conditions.
St. Paul-based Ecolab (NYSE: ECL) said it’s restructuring its businesses and will cut 1,000 positions, or 4 percent of its 26,000 person workforce. It isn’t clear yet how many of the cuts are in Minnesota.
St. Paul-based Ecolab (NYSE: ECL) said it’s restructuring its businesses and will cut 1,000 positions, or 4 percent of its 26,000 person workforce. It isn’t clear yet how many of the cuts are in Minnesota.
Plantronics to layoff 18 percent of global work force
Plantronics will lay off 18 percent of its worldwide work force, cut management salaries and reduce other operating expenses, company officials announced today. Company officials did not release details about the timing or location of the layoffs.
Company officials said revenue and earnings per share for the third quarter of fiscal 2009 will be lower than originally expected. They had projected net revenues of $205 million to $220 million but now are expecting revenues to be $184 million for the third quarter. Final third-quarter earnings will be announced Jan. 27.
Company officials said revenue and earnings per share for the third quarter of fiscal 2009 will be lower than originally expected. They had projected net revenues of $205 million to $220 million but now are expecting revenues to be $184 million for the third quarter. Final third-quarter earnings will be announced Jan. 27.
After layoff from IT firms comes competition from Satyam employees
Source: ExpressIndia
Pune Industry says no reason to panic but IT professionals worry if any jobs will be left for them.
Vijay Kumar is not a Satyam employee, yet the collapse of the IT company has disturbed this 36-year-old professional. Kumar is one of the many IT professionals who have been recently laid off and are desperately looking out for jobs. He fears the already strained placement situation will only get worse once the market gets flooded with resumes of Satyam employees.
“There are 53,000 employees with the company. Even if 10 per cent of them decide to quit, it’s going to make our chances of landing a job very bleak,” says Kumar who had left his job in Pune in September and joined a Hyderabad-based firm for a Rs 15,000 joining bonus and a 100 per cent salary hike, only to be told in mid-November that his services had been terminated. Now back in Pune, the former project manager is busy scouting around for a job while trying to maintain his family of four and a home loan from his savings.
“We can already see a difference,” says Dipak Chavan, who has just gone through a similar harrowing experience. Last year when the postgraduate in physics from the University of Pune got a job offer from a Hyderabad -based IT firm that promised him a 200 per cent salary hike, he gave up his 12-year old job at Jayshree Electronics Pvt. Ltd in Pune. In August, Chavan joined his new job at Tanla Solutions Limited in as manager (R&D) ; in November, the HR head told him his services had been terminated. “It was all over in five minutes flat,” reminisces Chavan , who has now rejoined Jayshree, but on a 30 per cent salary cut. “The Satyam collapse will just add to the market woes. I know because I have colleagues there who have been sending feelers all over the place and are even willing to change industries.”
Ganesh Natrajan, president of NASSCOM, says there is no need to panic, as there should be no reason for Satyam employees to flood the market. “If a situation arises when thousands of people have to be relocated, we will support that too but I am not expecting such a situation to arise,” he said.
Partha Iyengar, vice-president (research) Gartner, however, says, “There will be some impact on the entry-level job market. In addition to the current number of 4,000-odd students with offers from Satyam — who don’t know if they have a job or not—- there is a relatively large number of further entry-level hires that will now not be made due to Satyam’s absence on campuses,” said Iyengar.
Deepak Shikharpur, president Computer Society of India adds that since Satyam is among the top 10 companies with its employees demanding a premium, it is unlikely that they would threaten those already jobless.
“If anything, the Satyam employees are likely to cause a dent in the market only after a few months when competitors like TCS and Infosys, who are already talking to Satyam clients, perhaps get those projects. They may then prefer hiring Satyam employees to handle these clients,” he says.
Pune Industry says no reason to panic but IT professionals worry if any jobs will be left for them.
Vijay Kumar is not a Satyam employee, yet the collapse of the IT company has disturbed this 36-year-old professional. Kumar is one of the many IT professionals who have been recently laid off and are desperately looking out for jobs. He fears the already strained placement situation will only get worse once the market gets flooded with resumes of Satyam employees.
“There are 53,000 employees with the company. Even if 10 per cent of them decide to quit, it’s going to make our chances of landing a job very bleak,” says Kumar who had left his job in Pune in September and joined a Hyderabad-based firm for a Rs 15,000 joining bonus and a 100 per cent salary hike, only to be told in mid-November that his services had been terminated. Now back in Pune, the former project manager is busy scouting around for a job while trying to maintain his family of four and a home loan from his savings.
“We can already see a difference,” says Dipak Chavan, who has just gone through a similar harrowing experience. Last year when the postgraduate in physics from the University of Pune got a job offer from a Hyderabad -based IT firm that promised him a 200 per cent salary hike, he gave up his 12-year old job at Jayshree Electronics Pvt. Ltd in Pune. In August, Chavan joined his new job at Tanla Solutions Limited in as manager (R&D) ; in November, the HR head told him his services had been terminated. “It was all over in five minutes flat,” reminisces Chavan , who has now rejoined Jayshree, but on a 30 per cent salary cut. “The Satyam collapse will just add to the market woes. I know because I have colleagues there who have been sending feelers all over the place and are even willing to change industries.”
Ganesh Natrajan, president of NASSCOM, says there is no need to panic, as there should be no reason for Satyam employees to flood the market. “If a situation arises when thousands of people have to be relocated, we will support that too but I am not expecting such a situation to arise,” he said.
Partha Iyengar, vice-president (research) Gartner, however, says, “There will be some impact on the entry-level job market. In addition to the current number of 4,000-odd students with offers from Satyam — who don’t know if they have a job or not—- there is a relatively large number of further entry-level hires that will now not be made due to Satyam’s absence on campuses,” said Iyengar.
Deepak Shikharpur, president Computer Society of India adds that since Satyam is among the top 10 companies with its employees demanding a premium, it is unlikely that they would threaten those already jobless.
“If anything, the Satyam employees are likely to cause a dent in the market only after a few months when competitors like TCS and Infosys, who are already talking to Satyam clients, perhaps get those projects. They may then prefer hiring Satyam employees to handle these clients,” he says.
Seagate Announces Layoffs, Pay Cuts
As expected, Seagate has announced layoffs, but they’re not as deep as previously reported. The disk drive maker said it will cut 6 percent of its work force — that’s 2,950 positions globally, including about 800 in the United States, according to Bloomberg.
In addition, Bloomberg says it’s cutting its new CEO’s pay by 25 percent and will reduce salaries of some managers. Meanwhile, irishtimes.com reports 450 Seagate employees’ pay will be cut by 10 percent. It says those cuts will affect management, sales and professional employees worldwide, while the pay of senior management — vice presidents and above — will be reduced by 15 percent to 25 percent.
In addition, Bloomberg says it’s cutting its new CEO’s pay by 25 percent and will reduce salaries of some managers. Meanwhile, irishtimes.com reports 450 Seagate employees’ pay will be cut by 10 percent. It says those cuts will affect management, sales and professional employees worldwide, while the pay of senior management — vice presidents and above — will be reduced by 15 percent to 25 percent.
Pfizer Plans Layoffs in Research
Pfizer Inc. is laying off as many as 800 researchers in a tacit admission that its laboratories have failed to live up to the tens of billions of dollars it has poured into them in recent years.
The world's largest pharmaceutical company by sales Tuesday told scientists and technicians at its labs around the world that it is eliminating their jobs, according to a person familiar with the matter. By year end, the New York drug maker expects to have laid off 5% to 8% of its 10,000 research employees, according to Martin Mackay, who heads Pfizer's research and development
The world's largest pharmaceutical company by sales Tuesday told scientists and technicians at its labs around the world that it is eliminating their jobs, according to a person familiar with the matter. By year end, the New York drug maker expects to have laid off 5% to 8% of its 10,000 research employees, according to Martin Mackay, who heads Pfizer's research and development
Barnes & Noble cuts nearly 100 corporate jobs
Barnes & Noble Inc. said Wednesday that it has eliminated nearly 100 positions in its corporate headquarters as the bookseller attempts to reduce overhead costs due to the sharp downturn in retail sales.
Wednesday, January 14, 2009
Layoffs in USA: Jan 13th Update
Seagate to lay off 10%
Seagate’s December sales were much worse than feared and the company is expected to respond to revenues falling off a cliff by sending up to ten per cent of its staff after them.
A restructuring could involve the closure of plants to reduce product capacity, reduction in research and development spending, and the loss of up to 5,400 jobs. It is expected to be announced later this month.
Lexmark Lowers Earnings Outlook, Will Cut 375 Jobs
Lexmark International Inc. shares fell as much as 11% Tuesday after the printing and imaging company Tuesday slashed its fourth- quarter earnings forecast and said it would trim nearly 400 jobs due to the effects of a deteriorating global economy.
ING Group to Cut 750 U.S. Jobs
Dutch financial-services company ING Group NV joined a growing number of employers to announce layoffs so far this year, saying it would cut 750 jobs in the U.S., or about 8% of the company's U.S. work force.
Barclays to Cut 2,100 Jobs
Barclays, the British banking giant, said on Tuesday that it would cut 2,100 jobs in its investment banking and wealth management units, a stark sign that the global financial crisis continues to deepen.
The cuts represent 7 percent of the bankers and back-office workers in what was once a big profit center at the bank but has become a drag as banking and investment activity has ground to a halt.
Cummins To Cut 800 'Professional' Jobs By End Of Feb
Cummins Inc. (CMI), following through on a warning of further cost cuts, said it will eliminate at least 800 "professional" jobs by the end of February and is freezing salaries for the year.
Hutchinson Tech sheds 1,380 workers
For Hutchinson Technology and the town that is its namesake, the deepening global recession has gone from bad to worse.
The disk drive parts maker said Monday it is shedding 1,380 workers, or 30 percent of its workforce. Just a month ago, Hutchinson said it expected cuts of 20 to 25 percent, or 1,100.
Mosaic to Lay Off 1,000 People in Saskatchewan
Mosaic Co. (NYSE:MOS), confirmed yesterday it will lay off more than 1,000 workers at its potash mines in Saskatchewan[, Canada] due to slow fertilizer demand, the global credit crisis and growing potash inventories.
The layoffs, which affect about 80% of the total workforce at the two mines, will take effect March 8 at Colonsay and Feb. 15 at Esterhazy. Mosaic employs about 1,500 people in Saskatchewan, including about 250 at its potash mine at Belle Plaine, west of Regina.
500 Best Buy Workers Take Layoff Package
About 500 Best Buy Co. (NYSE: BBY) workers, or about 12.5% of headquarters employees, have agreed to voluntary layoffs, including enough company officers that one Wall Street analyst said the move could create a “slight ‘brain drain’” at the consumer-electronics retailer.
Best Buy has 160,000 employees worldwide, but only corporate employees were presented with a voluntary separation package. Employees have until Friday to revoke their requests to participate, so the final number could change, Busch said.
California IT Layoffs Continue in 2009, may be linked to lawsuits
United Employees Law Group’s attorney Walter Haines suspects a correlation between California layoffs and California class action lawsuits regarding California meals and breaks and the failure to pay California overtime. “With an increase in the California unemployment rate in the computer sector, California IT layoffs are inspiring software employees to become more aware of California labor laws. Many are finding they may be entitled to back California overtime pay. If entitled these employees can go back and collect their overtime pay for up to four years, even if they do not have record of the hours they worked.”
United Employees Law Group, PC, continues to file California overtime pay class action lawsuits against some of the nation’s largest computer companies.
Mount Carmel announces 300 job cuts
Mount Carmel Health System said it will eliminate 300 positions from its payroll. The cuts include an unspecified number of layoffs.
Other Articles:
Answers to some questions from people laid off (Article by SanFrancisco Chronicle
10 things to do (or not do) if you're laid off
Seagate’s December sales were much worse than feared and the company is expected to respond to revenues falling off a cliff by sending up to ten per cent of its staff after them.
A restructuring could involve the closure of plants to reduce product capacity, reduction in research and development spending, and the loss of up to 5,400 jobs. It is expected to be announced later this month.
Lexmark Lowers Earnings Outlook, Will Cut 375 Jobs
Lexmark International Inc. shares fell as much as 11% Tuesday after the printing and imaging company Tuesday slashed its fourth- quarter earnings forecast and said it would trim nearly 400 jobs due to the effects of a deteriorating global economy.
ING Group to Cut 750 U.S. Jobs
Dutch financial-services company ING Group NV joined a growing number of employers to announce layoffs so far this year, saying it would cut 750 jobs in the U.S., or about 8% of the company's U.S. work force.
Barclays to Cut 2,100 Jobs
Barclays, the British banking giant, said on Tuesday that it would cut 2,100 jobs in its investment banking and wealth management units, a stark sign that the global financial crisis continues to deepen.
The cuts represent 7 percent of the bankers and back-office workers in what was once a big profit center at the bank but has become a drag as banking and investment activity has ground to a halt.
Cummins To Cut 800 'Professional' Jobs By End Of Feb
Cummins Inc. (CMI), following through on a warning of further cost cuts, said it will eliminate at least 800 "professional" jobs by the end of February and is freezing salaries for the year.
Hutchinson Tech sheds 1,380 workers
For Hutchinson Technology and the town that is its namesake, the deepening global recession has gone from bad to worse.
The disk drive parts maker said Monday it is shedding 1,380 workers, or 30 percent of its workforce. Just a month ago, Hutchinson said it expected cuts of 20 to 25 percent, or 1,100.
Mosaic to Lay Off 1,000 People in Saskatchewan
Mosaic Co. (NYSE:MOS), confirmed yesterday it will lay off more than 1,000 workers at its potash mines in Saskatchewan[, Canada] due to slow fertilizer demand, the global credit crisis and growing potash inventories.
The layoffs, which affect about 80% of the total workforce at the two mines, will take effect March 8 at Colonsay and Feb. 15 at Esterhazy. Mosaic employs about 1,500 people in Saskatchewan, including about 250 at its potash mine at Belle Plaine, west of Regina.
500 Best Buy Workers Take Layoff Package
About 500 Best Buy Co. (NYSE: BBY) workers, or about 12.5% of headquarters employees, have agreed to voluntary layoffs, including enough company officers that one Wall Street analyst said the move could create a “slight ‘brain drain’” at the consumer-electronics retailer.
Best Buy has 160,000 employees worldwide, but only corporate employees were presented with a voluntary separation package. Employees have until Friday to revoke their requests to participate, so the final number could change, Busch said.
California IT Layoffs Continue in 2009, may be linked to lawsuits
United Employees Law Group’s attorney Walter Haines suspects a correlation between California layoffs and California class action lawsuits regarding California meals and breaks and the failure to pay California overtime. “With an increase in the California unemployment rate in the computer sector, California IT layoffs are inspiring software employees to become more aware of California labor laws. Many are finding they may be entitled to back California overtime pay. If entitled these employees can go back and collect their overtime pay for up to four years, even if they do not have record of the hours they worked.”
United Employees Law Group, PC, continues to file California overtime pay class action lawsuits against some of the nation’s largest computer companies.
Mount Carmel announces 300 job cuts
Mount Carmel Health System said it will eliminate 300 positions from its payroll. The cuts include an unspecified number of layoffs.
Other Articles:
Answers to some questions from people laid off (Article by SanFrancisco Chronicle
10 things to do (or not do) if you're laid off
Satyam fallout: Onsite Employees lose credit cards and insurance coverage
US-based employees of the embattled Satyam Computer Services have been asked to return their credit cards by an American financial institution. Employees, who are still coming to terms with the uncertainty about the firm’s fate, have also found that their medical insurance is no longer valid.
Last week, employees in the US received a letter from Northwest Federal Credit Union that their credit card accounts had been terminated. In its communication, a copy of which is with ET, the financial co-operative said, “This decision is based upon our reinvestigation and reevaluation of your (employees’) credit information as it pertains to employment.”
Most Satyam employees in the US have an account with Northwest Federal Credit Union as it’s amongst the few financial institutions that offer credit cards and other services based on a letter from the employer and salary statement. American banks generally require either a proof of prior credit history or a one-year stay in the US before someone can avail a credit card, explained a Washington-based Satyam employee.
A Satyam spokeswoman, however, denied that employees in the US have been asked to return their credit cards. “As a matter of routine, banks re-verify funds and payment arrangements. That is underway now. Requests to return cards has not occurred,” she said in an e-mail statement. The company has thousands of onsite employees outside India but ET was not able to ascertain the exact number of employees in the US.
Similarly, employees in the US who were provided a health insurance cover by Great-West Healthcare, which has now been acquired by insurer Cigna, found that they were ineligible for the insurance. A New York Based employee alleged that the management had failed to inform staff that they were no longer eligible for health insurance. “We learnt of this when the family members of some of the employees were told by the hospitals that they would have to pay in cash as their claims could no longer be processed,” he added.
Some Satyam employees sought an explanation from Great-West. “We were told that our company has defaulted in paying the premium to the tune of over $4 million. When confronted with this evidence, the management said they would address the issue. One cannot survive in the US without credit cards and health insurance,” said the employee.
The Satyam spokeswoman said health insurance for US employees has not been cancelled and the insurer is just conducting a brief re-verification process. She refused to comment on the outstanding payments to Great-West.
Last week, employees in the US received a letter from Northwest Federal Credit Union that their credit card accounts had been terminated. In its communication, a copy of which is with ET, the financial co-operative said, “This decision is based upon our reinvestigation and reevaluation of your (employees’) credit information as it pertains to employment.”
Most Satyam employees in the US have an account with Northwest Federal Credit Union as it’s amongst the few financial institutions that offer credit cards and other services based on a letter from the employer and salary statement. American banks generally require either a proof of prior credit history or a one-year stay in the US before someone can avail a credit card, explained a Washington-based Satyam employee.
A Satyam spokeswoman, however, denied that employees in the US have been asked to return their credit cards. “As a matter of routine, banks re-verify funds and payment arrangements. That is underway now. Requests to return cards has not occurred,” she said in an e-mail statement. The company has thousands of onsite employees outside India but ET was not able to ascertain the exact number of employees in the US.
Similarly, employees in the US who were provided a health insurance cover by Great-West Healthcare, which has now been acquired by insurer Cigna, found that they were ineligible for the insurance. A New York Based employee alleged that the management had failed to inform staff that they were no longer eligible for health insurance. “We learnt of this when the family members of some of the employees were told by the hospitals that they would have to pay in cash as their claims could no longer be processed,” he added.
Some Satyam employees sought an explanation from Great-West. “We were told that our company has defaulted in paying the premium to the tune of over $4 million. When confronted with this evidence, the management said they would address the issue. One cannot survive in the US without credit cards and health insurance,” said the employee.
The Satyam spokeswoman said health insurance for US employees has not been cancelled and the insurer is just conducting a brief re-verification process. She refused to comment on the outstanding payments to Great-West.
Top 25 'most dangerous' coding errors revealed
Security experts from U.S. government agencies, multinational companies, and academia have released a list of what they consider to be the 25 most critical errors made while coding software.
Participants from more than 30 organizations worked together to agree on the 25 "most dangerous" errors, the SANS Institute said in a statement on Monday. They included experts from the U.S. National Security Agency, the U.S. Computer Emergency Response Team (US-Cert), Mitre, and the Sans Institute, as well as from Microsoft, Apple, and Oracle.
The list was released so programmers can check their code for the most common errors that produce security vulnerabilities. The full list of coding errors, and information on how to fix them, is available from the Sans Institute Web site.
Participants from more than 30 organizations worked together to agree on the 25 "most dangerous" errors, the SANS Institute said in a statement on Monday. They included experts from the U.S. National Security Agency, the U.S. Computer Emergency Response Team (US-Cert), Mitre, and the Sans Institute, as well as from Microsoft, Apple, and Oracle.
The list was released so programmers can check their code for the most common errors that produce security vulnerabilities. The full list of coding errors, and information on how to fix them, is available from the Sans Institute Web site.
Insurance companies offer job-loss cover to employees in India
Kolkata: Finally, some sort of relief measures comes to the employees who were layed off. Insurance companies are coming forward to offer insurance cover that guarantees payment of some EMIs on loans availed, reported The Economic Times.
Initially, ICICI Lombard has started to offer such schemes and other insurance majors like Bajaj Alliance General Insurance have also come up with similar insurances. International markets like U.S. has already witnessed such schemes as companies find it hard to survive due to recession and liquidity crunch. For instance, Hyundai Assurance in the U.S. is offering to cover up to $7,500 of the debt on a new Hyundai car in case of a job loss as well as personal bankruptcy if self-employed.
ICICI Lombard's insurance cover also includes a mediclaim policy that ensures the payment of EMI for three months after someone has lost the job. "The job loss may be due to a closure of a division or a department on account of poor financial health or action of any public authority resulting in the closure of the employer's firm. The job loss may also be termination from employment due to illness. The premium for such a job loss cover is a factor of loan amount, policy duration, loan tenure, and age," said Sanjay Datta, Head, health & personal accident insurance, ICICI Lombard.
According to an insurance analyst, the cover offers a shield against job losses for a limited period, but at least, a beginning has been made at a time when Satyam employees are facing uncertainty while the economy is in turbulent times.
Bajaj Alliance had launched a job-loss cover product in partnership with financial institutions. A senior official of the company said, "We have a product that offers a cover of up to three EMIs in case of job loss." Unfortunately, the company could not find many takers for the policy then.
Interestingly, Flybe, a U.K-based airline is also offering a cover to its customers which allow them to claim a full refund on their travel costs if they lose their jobs. The scheme is applicable to passengers who book flights, hire cars and book hotels in January, and are due to travel before October 24.
Initially, ICICI Lombard has started to offer such schemes and other insurance majors like Bajaj Alliance General Insurance have also come up with similar insurances. International markets like U.S. has already witnessed such schemes as companies find it hard to survive due to recession and liquidity crunch. For instance, Hyundai Assurance in the U.S. is offering to cover up to $7,500 of the debt on a new Hyundai car in case of a job loss as well as personal bankruptcy if self-employed.
ICICI Lombard's insurance cover also includes a mediclaim policy that ensures the payment of EMI for three months after someone has lost the job. "The job loss may be due to a closure of a division or a department on account of poor financial health or action of any public authority resulting in the closure of the employer's firm. The job loss may also be termination from employment due to illness. The premium for such a job loss cover is a factor of loan amount, policy duration, loan tenure, and age," said Sanjay Datta, Head, health & personal accident insurance, ICICI Lombard.
According to an insurance analyst, the cover offers a shield against job losses for a limited period, but at least, a beginning has been made at a time when Satyam employees are facing uncertainty while the economy is in turbulent times.
Bajaj Alliance had launched a job-loss cover product in partnership with financial institutions. A senior official of the company said, "We have a product that offers a cover of up to three EMIs in case of job loss." Unfortunately, the company could not find many takers for the policy then.
Interestingly, Flybe, a U.K-based airline is also offering a cover to its customers which allow them to claim a full refund on their travel costs if they lose their jobs. The scheme is applicable to passengers who book flights, hire cars and book hotels in January, and are due to travel before October 24.
Wipro did nothing wrong: Premji to employees
Hours after World bank made public that Wipro has been debarred from doing any business with the global lender, the company's Chairman Azim Premji wrote to its over 1,00,000 employees saying that the company had not done anything unethical.
Denying charges levelled by the World Bank that Wipro provided improper benefits to the bank staff, Premji said,
"Let me reaffirm that Wipro was right from a legal as well as ethical standpoint. We believe what we did what was right and we did it in the right manner."
The company, in 2000, had provided Bank staff option to purchase its American Depository Shares at IPO price through a Directed Share Programme. However, the Bank in June 2007 determined that this was a conflict of interest.
Denying charges levelled by the World Bank that Wipro provided improper benefits to the bank staff, Premji said,
"Let me reaffirm that Wipro was right from a legal as well as ethical standpoint. We believe what we did what was right and we did it in the right manner."
The company, in 2000, had provided Bank staff option to purchase its American Depository Shares at IPO price through a Directed Share Programme. However, the Bank in June 2007 determined that this was a conflict of interest.
TCS bagged WorldBank projects
In an unusually delayed disclosure, the World Bank said it has awarded Tata Consultancy Services a chunk of the projects that were earlier given to Satyam Computer.
The Bank had barred Satyam from doing business with it for eight years beginning September 2008, months before the IT company was shaken by a Rs 7,800 crore accounting fraud at home. "We have hired Tata Consultancy Services (TCS) to do much of the IT work that Satyam used to do," a World Bank spokesperson said. The projects were awarded to TCS the same month through competitive bidding an indication that the Bank is not specifically targeting Indian IT companies.
TCS spokesperson said, "We bagged the contract from World Bank a long time back... early September last year." However, he declined to give further details as the company is scheduled to announce its quarterly results on January 15.
The Bank had barred Satyam from doing business with it for eight years beginning September 2008, months before the IT company was shaken by a Rs 7,800 crore accounting fraud at home. "We have hired Tata Consultancy Services (TCS) to do much of the IT work that Satyam used to do," a World Bank spokesperson said. The projects were awarded to TCS the same month through competitive bidding an indication that the Bank is not specifically targeting Indian IT companies.
TCS spokesperson said, "We bagged the contract from World Bank a long time back... early September last year." However, he declined to give further details as the company is scheduled to announce its quarterly results on January 15.
Satyam on bailout with RS 2000-Cr by Govt.?
Government has calculated that it will need two thousand crore rupees to salvage Satyam Computer Services. This was part of the meeting held by the Prime Minister Manmohan Singh and top ministers and officials. However, it's not clear how this will be raised or disbursed.
The immediate concern is to pay the salaries of some 53 thousand employees. There's also the political cost that's weighing heavily on the government's mind. Losing over 50 thousand jobs is political suicide and the image of India after the Satyam fraud has taken a beating.
Shortly after the Prime Minister Manmohan Singh's review meeting on Satyam today, there was media speculation that government would be considering a financial assistance ranging between Rs 500 crore and Rs 2,000 crore but the PMO office declined to comment on it.
The immediate concern is to pay the salaries of some 53 thousand employees. There's also the political cost that's weighing heavily on the government's mind. Losing over 50 thousand jobs is political suicide and the image of India after the Satyam fraud has taken a beating.
Shortly after the Prime Minister Manmohan Singh's review meeting on Satyam today, there was media speculation that government would be considering a financial assistance ranging between Rs 500 crore and Rs 2,000 crore but the PMO office declined to comment on it.
Tuesday, January 13, 2009
Sources: 'Major' layoffs at Oracle, more to come
Oracle Corp. made "major" cuts in its global workforce on Friday and more are expected to come, say multiple sources and news reports.
Sales staff and consultants working for Oracle in North America were hit hard, say sources, as well as employees who had joined Oracle recently through its acquisitions of Hyperion Solutions Corp. and BEA Systems Inc.
The number of people let go on Friday is unclear. Tim Klasell, an analyst with Thomas Weisel Partners, told Computerworld he thought the layoffs were likely to be in the hundreds or low thousands, rather than the 8,000-figure buzzing about on some blogs and message boards.
Oracle employs 84,000 people globally. An 8,000-employee layoff would amount to about 10% of its workforce.
Based on Oracle's history of acquisitions and layoffs, as well as money the company has already publicly said it plans to spend this year on severance, it will likely keep trimming through Spring of 2009.
"I think they're doing this in waves," Klasell said. "It's not great for morale, but you want to make sure you don't cut into the meat."
One Oracle salesperson based in the U.S. said they were called into a meeting Friday and told the news then. More cuts are likely to come, said the salesperson, who asked to remain anonymous.
"They're going to have to. They're not going to sell any [customer relationship management software] in these times," the worker said. "BEA was very bloated and they've got to prune a lot of those people out."
According to a December 22 filing to the SEC (see page 12), Oracle expects to eventually spend a total of $148 million on severance packages for laid-off employees of BEA, which it bought in January 2008.
While trying to fight off Oracle, BEA changed the terms of its severance in late 2007 so that most employees would receive between 3 months and 12 months of pay and COBRA health insurance if they were laid-off within a year of an acquistion.
Oracle completed its $8.5-billion takeover of BEA on April 29 of last year.
Oracle has already spent $38 million on BEA severances, according to its Dec. 22nd filing, as it laid off 275 BEA employees in California, according to state records, and possibly more elsewhere.
Oracle has yet to file a notice with California's Employment Development Department regarding Friday's layoffs. Alerting the department with Worker Adjustment and Retraining Notifications (WARN) is required by California state law.
However, Oracle has a history of sending WARNs only after layoffs occur. When Oracle announced in January 2005 it would lay off more than 5,000 employees from the recently-acquired PeopleSoft Inc., the state only received WARNs for about 900 workers two weeks after the layoffs occurred.
Sales staff and consultants working for Oracle in North America were hit hard, say sources, as well as employees who had joined Oracle recently through its acquisitions of Hyperion Solutions Corp. and BEA Systems Inc.
The number of people let go on Friday is unclear. Tim Klasell, an analyst with Thomas Weisel Partners, told Computerworld he thought the layoffs were likely to be in the hundreds or low thousands, rather than the 8,000-figure buzzing about on some blogs and message boards.
Oracle employs 84,000 people globally. An 8,000-employee layoff would amount to about 10% of its workforce.
Based on Oracle's history of acquisitions and layoffs, as well as money the company has already publicly said it plans to spend this year on severance, it will likely keep trimming through Spring of 2009.
"I think they're doing this in waves," Klasell said. "It's not great for morale, but you want to make sure you don't cut into the meat."
One Oracle salesperson based in the U.S. said they were called into a meeting Friday and told the news then. More cuts are likely to come, said the salesperson, who asked to remain anonymous.
"They're going to have to. They're not going to sell any [customer relationship management software] in these times," the worker said. "BEA was very bloated and they've got to prune a lot of those people out."
According to a December 22 filing to the SEC (see page 12), Oracle expects to eventually spend a total of $148 million on severance packages for laid-off employees of BEA, which it bought in January 2008.
While trying to fight off Oracle, BEA changed the terms of its severance in late 2007 so that most employees would receive between 3 months and 12 months of pay and COBRA health insurance if they were laid-off within a year of an acquistion.
Oracle completed its $8.5-billion takeover of BEA on April 29 of last year.
Oracle has already spent $38 million on BEA severances, according to its Dec. 22nd filing, as it laid off 275 BEA employees in California, according to state records, and possibly more elsewhere.
Oracle has yet to file a notice with California's Employment Development Department regarding Friday's layoffs. Alerting the department with Worker Adjustment and Retraining Notifications (WARN) is required by California state law.
However, Oracle has a history of sending WARNs only after layoffs occur. When Oracle announced in January 2005 it would lay off more than 5,000 employees from the recently-acquired PeopleSoft Inc., the state only received WARNs for about 900 workers two weeks after the layoffs occurred.
Oracle India lays off over 40 people
More pink slips are being handed out in the IT sector. Enterprise software major Oracle laid off over 40 employees across its offices in India.
A company source said they were mostly in sales. "It's part of the global cost-cutting move. This is just the initial move and the numbers will definitely increase. By next week, we should get the actual figures," said an employee in the Bangalore office on condition of anonymity. When contacted by STOI, a company spokesperson speaking from Delhi said, "We will not comment."
Oracle has been operating in India since August 1993 and has about 25,000 employees in over 20 centres. It has three R&D divisions in Bangalore, Hyderabad and Noida. India accounts for the California-headquartered Oracle's largest R&D investment outside the US. Oracle India does global consulting, global support, Oracle on-demand, internet sales and financial accounting and analysis. It has an extensive network of more than 400 channel and alliance partners in India, which includes Infosys, Satyam, Sonata, Tata Consultancy Services and Wipro. The company also owns the majority stake in the Indian software company, iflex Solutions.
A company source said they were mostly in sales. "It's part of the global cost-cutting move. This is just the initial move and the numbers will definitely increase. By next week, we should get the actual figures," said an employee in the Bangalore office on condition of anonymity. When contacted by STOI, a company spokesperson speaking from Delhi said, "We will not comment."
Oracle has been operating in India since August 1993 and has about 25,000 employees in over 20 centres. It has three R&D divisions in Bangalore, Hyderabad and Noida. India accounts for the California-headquartered Oracle's largest R&D investment outside the US. Oracle India does global consulting, global support, Oracle on-demand, internet sales and financial accounting and analysis. It has an extensive network of more than 400 channel and alliance partners in India, which includes Infosys, Satyam, Sonata, Tata Consultancy Services and Wipro. The company also owns the majority stake in the Indian software company, iflex Solutions.
5 Ways to Protect Your 401(k) if You're Laid Off
Unexpected job loss can derail retirement plans in an instant. American employers shed 524,000 jobs in December, and 31 percent of employed adults ages 45 and up think it's likely that their job will be eliminated this year, according to a recent AARP survey. The good news is that if you do get laid off, you can still keep your retirement plan intact. Here's how to handle your 401(k) if you lose your job or your company goes under: For Complete Story Click Here.
Satyam scam: Infosys, IBM, Accenture may benefit most
Source: The Economic Times
Infosys Technologies is expected to gain the most among the top Indian IT players from Satyam’s loss of credibility. Although there will be no shift towards one single provider, Infosys’ reputation as a firm with high corporate governance standards as well as its US listing is expected to stand it in good stead when customers make a choice, said analysts.
On Wednesday, when Ramalinga Raju confessed to cooking Satyam’s books, Infosys was among the few IT stocks that ended higher. The stock was up 1.7% to Rs 1,187, as compared to Wipro and TCS that ended almost flat at Rs 243.30 and Rs 503.70, respectively. HCL Technologies, the other top player, was down 15%.
"The senior management of Infosys has come out quite aggressively in the media on maintaining high corporate governance standards," pointed out Ascendia Consulting principal analyst Alok Shende. However, the hitch to this could be Infosys’ premium pricing, which some analysts said was 10-15% higher than Satyam’s rates. This, along with a substantial customer overlap, could work in the favour of the number one IT exporter, TCS.
"It is not going to be as easy as that to say any one vendor will benefit. TCS probably has the largest overlap of clients. General Electric (GE), General Motors and Citigroup are all clients of TCS as well as Satyam. Citigroup is also a client of Infosys but it is small," said an analyst with a foreign brokerage. Infosys had stopped servicing GE because it was unwilling to compromise on its billing rates and provide services at the discounts GE was looking for. This one of the reasons why GE had moved more work to Satyam, recollected an analyst.
Apart from Infosys, the US-headquartered India-based Cognizant Technology Services is also well poised to take advantage of the situation.
Overseas brokerage Stifel, Nicolaus & Company, Inc said in a report that Cognizant could have an edge over Infosys if it emphasises its US domicile status, as opposed to Infosys which is domiciled in India. "In e-mails to employees, management is already highlighting its US-listed status, and compliance with Sarbanes Oxley laws," according to a report from brokerage firm CLSA. Wipro had also sent e-mails to all salespersons asking for aggressive messaging to customers that Wipro is ready to take on operations running at Satyam, according to CLSA.
IBM and Accenture, which have a significant offshore presence, will be the biggest gainers, said some analysts. IBM has around 75,000 employees in India and Accenture, around 35,000. "Best positioned to benefit from such a situation, we believe, are the large, global, well-known MNCs like ACN (Accenture) and IBM. We consider them of tier-1 calibre in terms of offshore capabilities, but their size, stature, brand, global reputation, and high-level client relationships (particularly ACN) differentiate them, in our view, and will make them more attractive to worried clients than even the tier-1 offshore firms like INFY and WIT (Wipro)," said an analyst at Stifel Nicolaus.
These analysts believe the MNCs stand to benefit more because they are large (with the ability to take on Satyam’s revenues), established and with "sterling reputations" and "recognisable brands" that put them in the best position to reassure worried clients.
Infosys Technologies is expected to gain the most among the top Indian IT players from Satyam’s loss of credibility. Although there will be no shift towards one single provider, Infosys’ reputation as a firm with high corporate governance standards as well as its US listing is expected to stand it in good stead when customers make a choice, said analysts.
On Wednesday, when Ramalinga Raju confessed to cooking Satyam’s books, Infosys was among the few IT stocks that ended higher. The stock was up 1.7% to Rs 1,187, as compared to Wipro and TCS that ended almost flat at Rs 243.30 and Rs 503.70, respectively. HCL Technologies, the other top player, was down 15%.
"The senior management of Infosys has come out quite aggressively in the media on maintaining high corporate governance standards," pointed out Ascendia Consulting principal analyst Alok Shende. However, the hitch to this could be Infosys’ premium pricing, which some analysts said was 10-15% higher than Satyam’s rates. This, along with a substantial customer overlap, could work in the favour of the number one IT exporter, TCS.
"It is not going to be as easy as that to say any one vendor will benefit. TCS probably has the largest overlap of clients. General Electric (GE), General Motors and Citigroup are all clients of TCS as well as Satyam. Citigroup is also a client of Infosys but it is small," said an analyst with a foreign brokerage. Infosys had stopped servicing GE because it was unwilling to compromise on its billing rates and provide services at the discounts GE was looking for. This one of the reasons why GE had moved more work to Satyam, recollected an analyst.
Apart from Infosys, the US-headquartered India-based Cognizant Technology Services is also well poised to take advantage of the situation.
Overseas brokerage Stifel, Nicolaus & Company, Inc said in a report that Cognizant could have an edge over Infosys if it emphasises its US domicile status, as opposed to Infosys which is domiciled in India. "In e-mails to employees, management is already highlighting its US-listed status, and compliance with Sarbanes Oxley laws," according to a report from brokerage firm CLSA. Wipro had also sent e-mails to all salespersons asking for aggressive messaging to customers that Wipro is ready to take on operations running at Satyam, according to CLSA.
IBM and Accenture, which have a significant offshore presence, will be the biggest gainers, said some analysts. IBM has around 75,000 employees in India and Accenture, around 35,000. "Best positioned to benefit from such a situation, we believe, are the large, global, well-known MNCs like ACN (Accenture) and IBM. We consider them of tier-1 calibre in terms of offshore capabilities, but their size, stature, brand, global reputation, and high-level client relationships (particularly ACN) differentiate them, in our view, and will make them more attractive to worried clients than even the tier-1 offshore firms like INFY and WIT (Wipro)," said an analyst at Stifel Nicolaus.
These analysts believe the MNCs stand to benefit more because they are large (with the ability to take on Satyam’s revenues), established and with "sterling reputations" and "recognisable brands" that put them in the best position to reassure worried clients.
World Bank bars Wipro, Megasoft from deals
The Indian IT industry’s reputation for good corporate governance took another knock today with the World Bank revealing that it had also barred Wipro Technologies and Megasoft Consultants from receiving direct contracts from the bank under its corporate procurement programme.
Subscribe to:
Posts (Atom)