Microsoft slashed 1,400 jobs already today, and another 3,600 more over the next six months.
Software maker Microsoft Corp. announced Thursday it will cut up to 5,000 jobs in the next year and a half, or 5.5% of its global workforce, citing further deterioration of global economic conditions.
The company also posted lower fiscal second-quarter earnings that missed analysts' forecasts. Microsoft will slash 1,400 positions immediately, with the rest of the cuts coming by June 2010. The company also said it will freeze employees' pay in 2009.
Microsoft said it will save about $1.5 billion in operating expenses and $700 million in 2009 capital expenditure from the job cuts and pay freeze.
Friday, January 23, 2009
Layoffs in USA
Digg to cut workforce 10%, hire new sales team
Digg CEO Jay Adelson on Thursday morning is announcing that the social media site is laying off a "very small" portion of its workforce, but will also be hiring a new direct sales force and head of sales to drive the company to profitability this year.
The overall job cuts at the 75-person company will be "microscopic in size," Adelson said to me, later confirming a figure of "about 10 percent." He reiterated that Digg this year is focusing on profitability and growth, and for the first time is building out its own advertising support structure, "which we've never really focused on before." Adelson posted a brief item about the news on the Digg blog.
The overall job cuts at the 75-person company will be "microscopic in size," Adelson said to me, later confirming a figure of "about 10 percent." He reiterated that Digg this year is focusing on profitability and growth, and for the first time is building out its own advertising support structure, "which we've never really focused on before." Adelson posted a brief item about the news on the Digg blog.
Layoffs in USA
Sad Day For Microsoft: 5,000 Laid Off, Earnings And Revenues Down
First broad layoffs in the company’s history:
In the midst of declining earnings, Microsoft announced today that it will be laying off up to 5,000 people over the next 18 months, or about five percent of its total workforce. Of that amount, 1,400 are losing their jobs today. Microsoft also says that it will continue to hire and that the net headcount reduction over the next 18 months should amount to between 2,000 and 3,000. The layoffs, along with salary freezes, the elimination of contract workers, lower marketing spending, and other measures are expected to reduce operating expenditures by $1.5 billion this fiscal year.
The company reported revenues of $16.6 billion in the quarter, a two percent increase but $900 million lower than it had expected. The stock is down 7 percent on the news. Also, in an admission of the great economic uncertainty facing all companies, Microsoft is no longer giving guidance for future earnings.
In the midst of declining earnings, Microsoft announced today that it will be laying off up to 5,000 people over the next 18 months, or about five percent of its total workforce. Of that amount, 1,400 are losing their jobs today. Microsoft also says that it will continue to hire and that the net headcount reduction over the next 18 months should amount to between 2,000 and 3,000. The layoffs, along with salary freezes, the elimination of contract workers, lower marketing spending, and other measures are expected to reduce operating expenditures by $1.5 billion this fiscal year.
The company reported revenues of $16.6 billion in the quarter, a two percent increase but $900 million lower than it had expected. The stock is down 7 percent on the news. Also, in an admission of the great economic uncertainty facing all companies, Microsoft is no longer giving guidance for future earnings.
Thursday, January 22, 2009
IBM, Layoffs in USA
Employees: IBM layoffs to happen in three-day wave
IBM employees fear the worst as Friday, Tuesday and Wednesday actions near
The workers, who requested anonymity, say “a huge layoff” will come in three waves – office workers and engineers on Friday, and factory workers on Tuesday and Wednesday.
Alliance@IBM, the union-backed group representing Big Blue employees, was also flooded on Wednesday with reports of job cuts at sites nationwide.
“Austin, (North Carolina’s) Research Triangle Park, and the Boston area, pretty much all over the country,” said national coordinator Lee Conrad. “We expect further cuts the rest of the week and next week.”
The widely anticipated resource action was hinted at during IBM’s buoyant earnings announcement Tuesday, when Chief Financial Officer Mark Loughridge said 2009 would bring an “acceleration” of “workforce rebalancing” during the first quarter.
“The Systems Technology Group is going to get hit,” Conrad said, referring to plants in East Fishkill and Burlington, Vt.
The workers, who requested anonymity, say “a huge layoff” will come in three waves – office workers and engineers on Friday, and factory workers on Tuesday and Wednesday.
Alliance@IBM, the union-backed group representing Big Blue employees, was also flooded on Wednesday with reports of job cuts at sites nationwide.
“Austin, (North Carolina’s) Research Triangle Park, and the Boston area, pretty much all over the country,” said national coordinator Lee Conrad. “We expect further cuts the rest of the week and next week.”
The widely anticipated resource action was hinted at during IBM’s buoyant earnings announcement Tuesday, when Chief Financial Officer Mark Loughridge said 2009 would bring an “acceleration” of “workforce rebalancing” during the first quarter.
“The Systems Technology Group is going to get hit,” Conrad said, referring to plants in East Fishkill and Burlington, Vt.
TCS
TCS bags multi-million Ducati deal
Tata Consultancy Services, India's No 1 software exporter, today said its has signed a multi million dollar, multi-year agreement with Italy-based Ducati Motor Holdings to deliver technology-based services to the company. As a first step, TCS would do the enterprise resource planning (ERP) engagement for Ducati and its subsidiaries in Europe, the software major said in a statement.
Layoffs in India, TCS
Indian IT clients to cut IT spends to 20 percent: TCS
Indian IT firms seem to be foreseeing tough times ahead. "Deepening financial crisis may force the clients of IT services firms to cut their IT budgets, and IT spend is likely to be declined by 5 to 20 percent this year," according to S Mahalingam, CFO, Tata Consultancy Services (TCS).
At the same time, offshoring turn to be a major area of revenue for Indian IT firms as most the foreign companies shift focus towards offshoring to cut the cost amidst slowdown. "Clients are cutting budgets but I don't think the demand for our services needs to come down. There will be more offshoring. It may affect revenues to some extent but we have said we would like to increase the extent of offshoring," said Mahalingam.
On Satyam scandal, Mahalingam demanded speedy action to bring the perpetrators to book. He believes that foreign institutional investors had a large holding, and therefore one needs to identify the guilty and take corrective action quickly or it may lead to a credibility gap on the global stage.
Mahalingam pointed out that TCS have been approached by some of Satyam clients to see if the company is ready to take more work. "Some wanted us to hire their team at Satyam and we have said no," mentioned the TCS CFO.
After the Satyam fraud, some of the TCS' own clients had approached the company for information about its corporate governance, checks and balances within the firm, separation of duties and authority levels.
TCS' salary hike this year may not go up to the 2008 level of 10 percent and Mahaligam said that the hike would largely be in the variable component of the salary.
At the same time, offshoring turn to be a major area of revenue for Indian IT firms as most the foreign companies shift focus towards offshoring to cut the cost amidst slowdown. "Clients are cutting budgets but I don't think the demand for our services needs to come down. There will be more offshoring. It may affect revenues to some extent but we have said we would like to increase the extent of offshoring," said Mahalingam.
On Satyam scandal, Mahalingam demanded speedy action to bring the perpetrators to book. He believes that foreign institutional investors had a large holding, and therefore one needs to identify the guilty and take corrective action quickly or it may lead to a credibility gap on the global stage.
Mahalingam pointed out that TCS have been approached by some of Satyam clients to see if the company is ready to take more work. "Some wanted us to hire their team at Satyam and we have said no," mentioned the TCS CFO.
After the Satyam fraud, some of the TCS' own clients had approached the company for information about its corporate governance, checks and balances within the firm, separation of duties and authority levels.
TCS' salary hike this year may not go up to the 2008 level of 10 percent and Mahaligam said that the hike would largely be in the variable component of the salary.
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