Saturday, January 24, 2009
Satyam
Larsen & Toubro(L&T) has tripled its stake in Satyam Computer Services to 12%
Larsen & Toubro (L&T) has moved a step closer to acquiring scam-hit Satyam Computer. The engineering major on Friday bought 3.9 crore Satyam shares at a price of Rs 34.52 per share in a bulk deal estimated at around Rs 135 crore on the NSE. With this, the total shareholding of L&T in Satyam has increased from 4.48 per cent to 12.04 per cent.
Layoffs in USA
California jobless rate hits 9.3%
California's unemployment rate jumped to 9.3% in December from 8.4% in November and 5.9% a year earlier as job cuts swept across most industries, with recession tightening its grip on the most populous U.S. state, officials said Friday.
California's December jobless rate marked a 14-year high for the state and was significantly higher than the month's national average of 7.2%, underscoring a surge in job losses over the last three months of 2008, said Patti Roberts, a spokeswoman for the state's Employment Development Department.
California's December jobless rate marked a 14-year high for the state and was significantly higher than the month's national average of 7.2%, underscoring a surge in job losses over the last three months of 2008, said Patti Roberts, a spokeswoman for the state's Employment Development Department.
Layoffs in USA
Compass Bank to cut 10 percent of staff
Compass Bank says it is cutting 1,200 workers, or about 10 percent of its staff, as part of an overall reorganization.
The company said Friday the job cuts will spread across all of its business units in six states. Compass said the workers who will lose their jobs will be notified within the next few days and will receive severance.
The cuts include management and non-managment positions. The bank is the U.S. unit of Spain-based Banco Bilbao Vizcaya Argentaria SA, which bought Compass for $9.6 billion in 2007.
The company said Friday the job cuts will spread across all of its business units in six states. Compass said the workers who will lose their jobs will be notified within the next few days and will receive severance.
The cuts include management and non-managment positions. The bank is the U.S. unit of Spain-based Banco Bilbao Vizcaya Argentaria SA, which bought Compass for $9.6 billion in 2007.
Layoffs in USA
Microsoft Layoffs: Big Cuts At Flight Simulator Studio
Microsoft has confirmed the closure of ACES Studio. Former ACES developer Phil Taylor claims in a blog post that six employees were retained to fulfill contractual duties, and Flight Simulator may continue to exist as a franchise in some other form.
Redmond, Washington-based ACES Studio, the Microsoft-owned internal group behind the venerable Microsoft Flight Simulator series, has been heavily affected by Microsoft’s ongoing job cuts.
A large portion of the dev house’s staff has been let go - with multiple reports indicating that the entire Flight Simulator team has been axed.
Redmond, Washington-based ACES Studio, the Microsoft-owned internal group behind the venerable Microsoft Flight Simulator series, has been heavily affected by Microsoft’s ongoing job cuts.
A large portion of the dev house’s staff has been let go - with multiple reports indicating that the entire Flight Simulator team has been axed.
Cost cutting
Yahoo suspends employee pay raises
Yahoo has frozen employee salaries.
The company told employees Wednesday that it would stop all annual pay raises in 2009. Yahoo is trying to turn its fortunes around while it faces internal struggles, as well as the external challenges presented by the current economy. Despite the freeze on annual raises at Yahoo, employees who are promoted to higher positions within the company could still obtain increases.
Yahoo isn't alone in turning to salary freezes as a means to tighten spending. Several other companies, including Microsoft, are halting pay raises to reduce payroll costs. Others have come up with alternative means for reducing their payroll. For instance, media company Gannett has mandated its employees take one week of unpaid vacation. Google announced a new stock option plan for its employees this week. The methods won't necessarily halt layoffs.
Yahoo laid off about 1,500 people in December, and several blogs reported rumors that there may be more to come. However, those rumors are based on an anonymous inside source.
The company told employees Wednesday that it would stop all annual pay raises in 2009. Yahoo is trying to turn its fortunes around while it faces internal struggles, as well as the external challenges presented by the current economy. Despite the freeze on annual raises at Yahoo, employees who are promoted to higher positions within the company could still obtain increases.
Yahoo isn't alone in turning to salary freezes as a means to tighten spending. Several other companies, including Microsoft, are halting pay raises to reduce payroll costs. Others have come up with alternative means for reducing their payroll. For instance, media company Gannett has mandated its employees take one week of unpaid vacation. Google announced a new stock option plan for its employees this week. The methods won't necessarily halt layoffs.
Yahoo laid off about 1,500 people in December, and several blogs reported rumors that there may be more to come. However, those rumors are based on an anonymous inside source.
Layoffs in USA
Microsoft Layoffs: Steve Ballmer's email to staff
From: Steve Ballmer
Sent: Thursday, January 22, 2009 6:07 AM
To: Microsoft - All Employees (QBDG)
Subject: Realigning Resources and Reducing Costs
In response to the realities of a deteriorating economy, we're taking important steps to realign Microsoft's business. I want to tell you about what we're doing and why.
Today we announced second quarter revenue of $16.6 billion. This number is an increase of just 2 per cent compared with the second quarter of last year and it is approximately $900 million below our earlier expectations.
The fact that we are growing at all during the worst recession in two generations reflects our strong business fundamentals and is a testament to your hard work. Our products provide great value to our customers. Our financial position is solid. We have made long-term investments that continue to pay off.
But it is also clear that we are not immune to the effects of the economy. Consumers and businesses have reined in spending, which is affecting PC shipments and IT expenditures.
Our response to this environment must combine a commitment to long-term investments in innovation with prompt action to reduce our costs.
During the second quarter we started down the right path. As the economy deteriorated, we acted quickly. As a result, we reduced operating expenses during the quarter by $600 million. I appreciate the agility you have shown in enabling us to achieve this result.
Now we need to do more. We must make adjustments to ensure that our investments are tightly aligned with current and future revenue opportunities. The current environment requires that we continue to increase our efficiency.
As part of the process of adjustments, we will eliminate up to 5,000 positions in R&D, marketing, sales, finance, LCA, HR, and IT over the next 18 months, of which 1,400 will occur today. We'll also open new positions to support key investment areas during this same period of time. Our net headcount in these functions will decline by 2,000 to 3,000 over the next 18 months. In addition, our workforce in support, consulting, operations, billing, manufacturing, and data center operations will continue to change in direct response to customer needs.
Our leaders all have specific goals to manage costs prudently and thoughtfully. They have the flexibility to adjust the size of their teams so they are appropriately matched to revenue potential, to add headcount where they need to increase investments in order to ensure future success, and to drive efficiency.
To increase efficiency, we're taking a series of aggressive steps. We'll cut travel expenditures 20 percent and make significant reductions in spending on vendors and contingent staff. We've scaled back Puget Sound campus expansion and reduced marketing budgets. We'll also reduce costs by eliminating merit increases for FY10 that would have taken effect in September of this calendar year.
Each of these steps will be difficult. Our priority remains doing right by our customers and our employees. For employees who are directly affected, I know this will be a difficult time for you and I want to assure you that we will provide help and support during this transition. We have established an outplacement center in the Puget Sound region and we'll provide outplacement services in many other locations to help you find new jobs. Some of you may find jobs internally. For those who don't, we will also offer severance pay and other benefits.
The decision to eliminate jobs is a very difficult one. Our people are the foundation of everything we have achieved and we place the highest value on the commitment and hard work that you have dedicated to building this company. But we believe these job eliminations are crucial to our ability to adjust the company's cost structure so that we have the resources to drive future profitable growth. I encourage you to attend tomorrow's Town Hall at 9am PST in Café 34 or watch the webcast.
While this is the most challenging economic climate we have ever faced, I want to reiterate my confidence in the strength of our competitive position and soundness of our approach.
With these changes in place, I feel confident that we will have the resources we need to continue to invest in long-term computing trends that offer the greatest opportunity to deliver value to our customers and shareholders, benefit to society, and growth for Microsoft.
With our approach to investing for the long term and managing our expenses, I know Microsoft will emerge an even stronger industry leader than it is today.
Thank you for your continued commitment and hard work.
Steve
Sent: Thursday, January 22, 2009 6:07 AM
To: Microsoft - All Employees (QBDG)
Subject: Realigning Resources and Reducing Costs
In response to the realities of a deteriorating economy, we're taking important steps to realign Microsoft's business. I want to tell you about what we're doing and why.
Today we announced second quarter revenue of $16.6 billion. This number is an increase of just 2 per cent compared with the second quarter of last year and it is approximately $900 million below our earlier expectations.
The fact that we are growing at all during the worst recession in two generations reflects our strong business fundamentals and is a testament to your hard work. Our products provide great value to our customers. Our financial position is solid. We have made long-term investments that continue to pay off.
But it is also clear that we are not immune to the effects of the economy. Consumers and businesses have reined in spending, which is affecting PC shipments and IT expenditures.
Our response to this environment must combine a commitment to long-term investments in innovation with prompt action to reduce our costs.
During the second quarter we started down the right path. As the economy deteriorated, we acted quickly. As a result, we reduced operating expenses during the quarter by $600 million. I appreciate the agility you have shown in enabling us to achieve this result.
Now we need to do more. We must make adjustments to ensure that our investments are tightly aligned with current and future revenue opportunities. The current environment requires that we continue to increase our efficiency.
As part of the process of adjustments, we will eliminate up to 5,000 positions in R&D, marketing, sales, finance, LCA, HR, and IT over the next 18 months, of which 1,400 will occur today. We'll also open new positions to support key investment areas during this same period of time. Our net headcount in these functions will decline by 2,000 to 3,000 over the next 18 months. In addition, our workforce in support, consulting, operations, billing, manufacturing, and data center operations will continue to change in direct response to customer needs.
Our leaders all have specific goals to manage costs prudently and thoughtfully. They have the flexibility to adjust the size of their teams so they are appropriately matched to revenue potential, to add headcount where they need to increase investments in order to ensure future success, and to drive efficiency.
To increase efficiency, we're taking a series of aggressive steps. We'll cut travel expenditures 20 percent and make significant reductions in spending on vendors and contingent staff. We've scaled back Puget Sound campus expansion and reduced marketing budgets. We'll also reduce costs by eliminating merit increases for FY10 that would have taken effect in September of this calendar year.
Each of these steps will be difficult. Our priority remains doing right by our customers and our employees. For employees who are directly affected, I know this will be a difficult time for you and I want to assure you that we will provide help and support during this transition. We have established an outplacement center in the Puget Sound region and we'll provide outplacement services in many other locations to help you find new jobs. Some of you may find jobs internally. For those who don't, we will also offer severance pay and other benefits.
The decision to eliminate jobs is a very difficult one. Our people are the foundation of everything we have achieved and we place the highest value on the commitment and hard work that you have dedicated to building this company. But we believe these job eliminations are crucial to our ability to adjust the company's cost structure so that we have the resources to drive future profitable growth. I encourage you to attend tomorrow's Town Hall at 9am PST in Café 34 or watch the webcast.
While this is the most challenging economic climate we have ever faced, I want to reiterate my confidence in the strength of our competitive position and soundness of our approach.
With these changes in place, I feel confident that we will have the resources we need to continue to invest in long-term computing trends that offer the greatest opportunity to deliver value to our customers and shareholders, benefit to society, and growth for Microsoft.
With our approach to investing for the long term and managing our expenses, I know Microsoft will emerge an even stronger industry leader than it is today.
Thank you for your continued commitment and hard work.
Steve
Friday, January 23, 2009
Layoffs in USA
Story on "Open source's role in the recent software layoffs"
InfoWorld's Story on "Open source's role in the recent software layoffs"
By now, news of layoffs at IBM and Microsoft have been reported far and wide. Some may take this opportunity to predict victory for open source. However, I'm hard-pressed to reach this conclusion. Indeed, as an IBM Software employee, I have a biased view. But hear me out.
IBM reported a 10.5 percent year-to-year increase in 2008 Software revenue to $22.1 billion. Microsoft's Server & Tools business grew 15 percent year-to-year in Q2-FY09 to $3.74 billion. I call out the Microsoft Server & Tools business division because the majority of Microsoft's products that compete against open source (Windows Server, SQL Server, and Visual Studio) reside in the Server & Tools division. Yes, you could argue that Linux on the desktop was the driver behind the 8 percent year-to-year quarterly decline in Microsoft's Client division. But it's more likely, as InfoWorld's Tom Sullivan points out, that Vista's issues drove the decline in Microsoft's Client division business.
Nonetheless, when you look at the growth rates from IBM and Microsoft's divisions that could compete against open source, 10.5 and 15 percent are very healthy growth rates. This is doubly true when the size of the revenue (tens of billions) is taken into account. So it's difficult for me to see open source as the driver behind the layoffs.
I do, however, fear that these layoffs are a precursor to similar actions we'll see from open source companies. It's been argued that open source will do better during the belt tightening due to lower initial costs. However, what's lower than $0? I've had three discussions with friends whose companies have made the choice to go with open source solutions for projects that they've typically used commercial products. These companies have decided to save costs by asking their internal developers to shoulder the cost of supporting the open source products. So while commercial vendors were kept out of these three deals, so too were open source vendors. Clearly, three isolated examples don't make a trend. But I fear that we'll see a lot more of this in 2009.
What are you seeing out there?
p.s.: I should state: "The postings on this site are my own and don't necessarily represent IBM's positions, strategies, or opinions."
By now, news of layoffs at IBM and Microsoft have been reported far and wide. Some may take this opportunity to predict victory for open source. However, I'm hard-pressed to reach this conclusion. Indeed, as an IBM Software employee, I have a biased view. But hear me out.
IBM reported a 10.5 percent year-to-year increase in 2008 Software revenue to $22.1 billion. Microsoft's Server & Tools business grew 15 percent year-to-year in Q2-FY09 to $3.74 billion. I call out the Microsoft Server & Tools business division because the majority of Microsoft's products that compete against open source (Windows Server, SQL Server, and Visual Studio) reside in the Server & Tools division. Yes, you could argue that Linux on the desktop was the driver behind the 8 percent year-to-year quarterly decline in Microsoft's Client division. But it's more likely, as InfoWorld's Tom Sullivan points out, that Vista's issues drove the decline in Microsoft's Client division business.
Nonetheless, when you look at the growth rates from IBM and Microsoft's divisions that could compete against open source, 10.5 and 15 percent are very healthy growth rates. This is doubly true when the size of the revenue (tens of billions) is taken into account. So it's difficult for me to see open source as the driver behind the layoffs.
I do, however, fear that these layoffs are a precursor to similar actions we'll see from open source companies. It's been argued that open source will do better during the belt tightening due to lower initial costs. However, what's lower than $0? I've had three discussions with friends whose companies have made the choice to go with open source solutions for projects that they've typically used commercial products. These companies have decided to save costs by asking their internal developers to shoulder the cost of supporting the open source products. So while commercial vendors were kept out of these three deals, so too were open source vendors. Clearly, three isolated examples don't make a trend. But I fear that we'll see a lot more of this in 2009.
What are you seeing out there?
p.s.: I should state: "The postings on this site are my own and don't necessarily represent IBM's positions, strategies, or opinions."
Layoffs in USA
Game maker Sega confirms US layoffs
Today, Sega of America confirmed to GameSpot that it is the latest third-party publisher to cut its payroll. The news comes just weeks after a particularly brutal year that saw a worldwide economic downturn hit such third-party publishers as Electronic Arts, Midway, THQ, and PlayStation 3 maker Sony.
No layoffs
Microsoft won't cut jobs in India
Source: IndiaTimes
Starting with 1,400 job cuts, software giant Microsoft will slash 5,000 jobs over the next 18 months.
"Microsoft will eliminate up to 5,000 jobs in R&D, HR, marketing, sales, finance, legal, and IT over the next 18 months, including 1,400 jobs today," the company said in a statement.
The layoff, however, would not be impacting the Indian operations. "It's not going to impact us. No job cuts in India," a Microsoft India spokesperson said in New Delhi.
In light of further deterioration of global economic conditions, extra measures to manage costs are being taken, including the reduction of head-count-related expenses, vendors and contingent staff, facilities, capital expenditures and marketing, the company, which posted a 11 per cent decline in profit for the second quarter, added in the statement.
Microsoft's net profit declined 11 per cent to $4.17 bn for the quarter ended December 31, 2008. It had a net profit of $4.71 bn in the year-ago period.
The company has posted revenues to the tune of $16.63 bn for the second quarter. The entity's revenues stood at $16.37 bn in the corresponding period a year ago.
Starting with 1,400 job cuts, software giant Microsoft will slash 5,000 jobs over the next 18 months.
"Microsoft will eliminate up to 5,000 jobs in R&D, HR, marketing, sales, finance, legal, and IT over the next 18 months, including 1,400 jobs today," the company said in a statement.
The layoff, however, would not be impacting the Indian operations. "It's not going to impact us. No job cuts in India," a Microsoft India spokesperson said in New Delhi.
In light of further deterioration of global economic conditions, extra measures to manage costs are being taken, including the reduction of head-count-related expenses, vendors and contingent staff, facilities, capital expenditures and marketing, the company, which posted a 11 per cent decline in profit for the second quarter, added in the statement.
Microsoft's net profit declined 11 per cent to $4.17 bn for the quarter ended December 31, 2008. It had a net profit of $4.71 bn in the year-ago period.
The company has posted revenues to the tune of $16.63 bn for the second quarter. The entity's revenues stood at $16.37 bn in the corresponding period a year ago.
Layoffs in USA
Sony forecasts first annual net loss in 14 years
Sony said Thursday it plans to cut another 1,000 temporary workers in Japan and close one of two domestic TV plants.
Sony also will offer early retirement packages to its regular, full-time workers in an effort to cut 30 percent of its personnel costs in its TV business by March 2010. It refused to give a head count but said they are part of the 8,000 job cuts announced earlier, according to Yahoo Finance
Sony also will offer early retirement packages to its regular, full-time workers in an effort to cut 30 percent of its personnel costs in its TV business by March 2010. It refused to give a head count but said they are part of the 8,000 job cuts announced earlier, according to Yahoo Finance
Layoffs in USA
Comerica bank plans to lay off 5% of workforce.
Dallas-based Comerica Inc. earned a small profit in the last three months of 2008, set aside more money for credit losses and announced plans to cut 5 percent of its workforce, according to an earnings report released Thursday.
The bank, which moved from Detroit to Dallas in 2007 and still has a large employment base in Michigan, said it has already cut about 5 percent of its labor force since late 2007. The additional 5 percent cut announced Thursday will be largely completed by the end of March.
The bank, which moved from Detroit to Dallas in 2007 and still has a large employment base in Michigan, said it has already cut about 5 percent of its labor force since late 2007. The additional 5 percent cut announced Thursday will be largely completed by the end of March.
Layoffs in USA
New jobless claims rise more than expected to 589K
The Labor Department reported Thursday that initial jobless benefit claims rose to a seasonally adjusted 589,000 in the week ending Jan. 17, from an upwardly revised figure of 527,000 the previous week. The latest tally was well above Wall Street economists’ expectations of 540,000 new claims, according to AP.
Layoffs in USA
Sun notifies 1,300 people of layoffs
Sun Microsystems Inc. officials confirmed Thursday that the networking and storage company has notified 1,300 employees they would be laid off as part of a previously announced workforce reduction.
The reductions stem from a Nov. 14 announcement of “a series of changes designed to align (Sun’s) cost model with the global economy and accelerate the introduction of compelling open source innovations,” spokeswoman Dana Lengkeek said in an e-mail Thursday.
The reductions were made across “all levels,” including vice presidents and directors, she said.
The reductions stem from a Nov. 14 announcement of “a series of changes designed to align (Sun’s) cost model with the global economy and accelerate the introduction of compelling open source innovations,” spokeswoman Dana Lengkeek said in an e-mail Thursday.
The reductions were made across “all levels,” including vice presidents and directors, she said.
Layoffs in USA
Texas Instruments to cut up to 30% of it’s workforce
Rumours: “Things are really brewing here at Texas Instruments. We’re expecting a big layoff Jan 27 & 28. Internally we’re hearing as high as 30% (including early retirement).” Also, according to rumors, Texas Instruments expects a second wave of layoffs at their Phillipines office.
IBM, Infosys
IBM, Infosys in tug-of-war for Fidelity’s IT captive unit
Infosys Technologies and IBM are locked in a battle to acquire the Indian IT captive unit of the world’s largest mutual fund company, Fidelity Investments. The deal may involve $150-180 mn upfront transaction in return for an assured multi-year outsourcing contract, at least two people involved with the matter said.
Fidelity outsources around $50 mn worth of projects to Infosys every year. For IBM, Fidelity is an over $200-million customer.
Fidelity outsources around $50 mn worth of projects to Infosys every year. For IBM, Fidelity is an over $200-million customer.
Layoffs in USA
Mass layoffs hit Skate, Need for Speed dev Black Box
As many as 200 of the 350-plus employees of EA Black Box have been given their walking papers, according to a report on Gamasutra. Joystiq has confirmed with EA public relations that the Vancouver, BC based studio let a number employees go today, although the publisher was unable to provide us with a specific tally of the affected at present.
Layoffs in USA
Intel to Cut up to 6,000 Jobs
According to The New York Times: “Intel said Wednesday that it would lay off at least 5,000 people at some of its older chip manufacturing and test operations, as it grapples with a steep decline in demand for personal and business computers.
The company, based in Santa Clara, Calif., announced the cuts on Wednesday, less than a week after it reported a 90 percent drop in fourth-quarter net income to $234 million and a sharp drop in revenue.”
“Intel will close two test plants in Malaysia and one in the Philippines. It will also halt production at two chip plants in Oregon and California. As a result, 5,000 to 6,000 people will lose their jobs.”
Intel Corp.’s chief executive, Paul Otellini, told employees recently that conditions are uncertain.
At the end of 2008, Intel (NASDAQ:INTC) had 84,000 employees
Advanced Micro Devices, Inc. (NYSE:AMD) also recently revealed plans to cut nearly 9 percent of its work force.
The company, based in Santa Clara, Calif., announced the cuts on Wednesday, less than a week after it reported a 90 percent drop in fourth-quarter net income to $234 million and a sharp drop in revenue.”
“Intel will close two test plants in Malaysia and one in the Philippines. It will also halt production at two chip plants in Oregon and California. As a result, 5,000 to 6,000 people will lose their jobs.”
Intel Corp.’s chief executive, Paul Otellini, told employees recently that conditions are uncertain.
At the end of 2008, Intel (NASDAQ:INTC) had 84,000 employees
Advanced Micro Devices, Inc. (NYSE:AMD) also recently revealed plans to cut nearly 9 percent of its work force.
Layoffs in USA
Microsoft slashes up to 5,000 jobs; 1400 today - first time in its 34 yr history
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.
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.
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.
Layoffs in USA
Sony plans for more layoffs??
According to a Financial Times report, Sony chairman Howard Stringer is having serious difficulties in convincing the executives in the electronic division to accept the restructuring plans.
Sony had already announced back in December that around 10% of its staffers were to be fired and another such round would be hard to accept by the middle management.
Rumor has it that the new plans are especially aimed at Sony's US operations, such as Sony Pictures Entertainment, Sony Online Entertainment, Sony Electronics and Sony Computer Entertainment.
US restructuring plans wouldn't be much of a surprise. Previous reports had it that Sony had been thinking for long about a series “sacred cow-slaying” measures.
Sony had already announced back in December that around 10% of its staffers were to be fired and another such round would be hard to accept by the middle management.
Rumor has it that the new plans are especially aimed at Sony's US operations, such as Sony Pictures Entertainment, Sony Online Entertainment, Sony Electronics and Sony Computer Entertainment.
US restructuring plans wouldn't be much of a surprise. Previous reports had it that Sony had been thinking for long about a series “sacred cow-slaying” measures.
Layoffs in USA
Intel to lay off 5,000, close five plants
Source: SanJose Mercury News
Amid speculation it may be close to reporting its first quarterly loss in 22 years, Santa Clara computer chip maker Intel today said it will lay off at least 5,000 employees worldwide and shut five of its manufacturing operations.
As part of a corporate-wide restructuring, the world biggest chip maker said it will cease plant operations in Santa Clara, Hillsboro, Oregon, Penang, Malaysia and Cavite, Philippines.
The closures "when combined with associated support functions, are expected to affect between 5,000 and 6,000 employees worldwide," the company said in a prepared statement.
Although some of the affected employees may be offered positions at other Intel facilities, company spokesman Chuck Mulloy said at least 5,000 of the workers would lose their jobs.
About 400 Bay Area employees will be affected by the plant shutdowns; Mulloy said it's likely many of them would be laid off. Intel had 84,000 employes at the end of last year.
The last time the company laid off workers was in 2006, when it let go about 10,000 employees as part of a broad corporate restructuring.
Mulloy added that Intel executives have been considering making the changes for some time, but that "this whole thing has been accelerated by the current economic climate."
The company's statement said the changes are expected to take place over the course of the year.
Intel made the announcement after the stock market closed. Its shares rose 40 cents to $13.26 at the close and an additional 14 cents in early after-hours trading.
Amid speculation it may be close to reporting its first quarterly loss in 22 years, Santa Clara computer chip maker Intel today said it will lay off at least 5,000 employees worldwide and shut five of its manufacturing operations.
As part of a corporate-wide restructuring, the world biggest chip maker said it will cease plant operations in Santa Clara, Hillsboro, Oregon, Penang, Malaysia and Cavite, Philippines.
The closures "when combined with associated support functions, are expected to affect between 5,000 and 6,000 employees worldwide," the company said in a prepared statement.
Although some of the affected employees may be offered positions at other Intel facilities, company spokesman Chuck Mulloy said at least 5,000 of the workers would lose their jobs.
About 400 Bay Area employees will be affected by the plant shutdowns; Mulloy said it's likely many of them would be laid off. Intel had 84,000 employes at the end of last year.
The last time the company laid off workers was in 2006, when it let go about 10,000 employees as part of a broad corporate restructuring.
Mulloy added that Intel executives have been considering making the changes for some time, but that "this whole thing has been accelerated by the current economic climate."
The company's statement said the changes are expected to take place over the course of the year.
Intel made the announcement after the stock market closed. Its shares rose 40 cents to $13.26 at the close and an additional 14 cents in early after-hours trading.
IBM
IBM Layoffs Coming this week??
“The Alliance is strongly urging IBM not to go forward with a new round of job cuts and to stop the off-shoring of U.S. workers’ jobs,” said Lee Conrad, national coordinator of Alliance@IBM CWA Local 1701. o
The Alliance suggests that IBM take these steps:
1. IBM must make every effort to save jobs.
2. If cost cutting is needed, IBM should suspend its stock buyback program — the company has spent $26 billion since 2007 — instead of terminating workers.
3. If job cuts occur, IBM must divulge the number of job cuts, where they are taking place and whether any of these affected jobs are being shifted offshore.
4. Executive positions should be eliminated in divisions where job cuts occur.
5. Pay, bonuses and perquisites for executives should be slashed.
6. Work cannot be shifted from IBM workers in the United States to offshore locations.
7. Full disclosure of why individual jobs are being eliminated is essential.
8. Before any new hires are added to the payroll, IBM must recall and rehire employees terminated in past resource actions.
Will it happen?
The Alliance suggests that IBM take these steps:
1. IBM must make every effort to save jobs.
2. If cost cutting is needed, IBM should suspend its stock buyback program — the company has spent $26 billion since 2007 — instead of terminating workers.
3. If job cuts occur, IBM must divulge the number of job cuts, where they are taking place and whether any of these affected jobs are being shifted offshore.
4. Executive positions should be eliminated in divisions where job cuts occur.
5. Pay, bonuses and perquisites for executives should be slashed.
6. Work cannot be shifted from IBM workers in the United States to offshore locations.
7. Full disclosure of why individual jobs are being eliminated is essential.
8. Before any new hires are added to the payroll, IBM must recall and rehire employees terminated in past resource actions.
Will it happen?
Layoffs in USA
Ericsson Plans 5,000 Job Cuts worldwide
Swedish telecoms equipment giant Ericsson AB on Wednesday posted a 31% drop in fourth-quarter profit as restructuring charges and losses at its mobile phone venture took a toll on the bottom line, but its sales rose at a time when many competitors are struggling for survival.
Ericsson (ERICY) also unveiled plans to deepen its restructuring and eliminate about 5,000 additional jobs as it prepares to cope with a sharp fall in demand for telecoms equipment. The measures will cost 6 billion to 7 billion kronor and lead to annual savings of 10 billion kronor by the second half of 2010.
Ericsson (ERICY) also unveiled plans to deepen its restructuring and eliminate about 5,000 additional jobs as it prepares to cope with a sharp fall in demand for telecoms equipment. The measures will cost 6 billion to 7 billion kronor and lead to annual savings of 10 billion kronor by the second half of 2010.
Layoffs in USA
United Airlines to lay off 1,000 more
United Airlines parent UAL Corp. said its quarterly net loss widened to $1.3 billion as the third-largest U.S. carrier paid above-market rates for fuel after incorrectly betting prices would rise. United said it would cut 1,000 additional jobs.
United’s decision to cut additional management and salaried jobs reflects efforts by carriers to control costs and conserve cash as demand declines in the recession. The airline last year said it would eliminate 6,500 unionized positions and 1,500 management and salaried jobs by the end of 2009.
United’s decision to cut additional management and salaried jobs reflects efforts by carriers to control costs and conserve cash as demand declines in the recession. The airline last year said it would eliminate 6,500 unionized positions and 1,500 management and salaried jobs by the end of 2009.
Yahoo cuts 20% of French Staff
Yahoo is cutting about 52 staff from its 251-strong French operation under the group-wide reductions announced from the company’s Sunnyvale headquarters in October.
The engineering staff is taking a big hit from the restructuring, as Yahoo’s French sites carry proportionally more engineers than other locations, the company told AFP: “The category of engineers is the most affected by the cuts at the global level.” The cuts will come from both of Yahoo’s French sites, in Paris and Grenoble.
The engineering staff is taking a big hit from the restructuring, as Yahoo’s French sites carry proportionally more engineers than other locations, the company told AFP: “The category of engineers is the most affected by the cuts at the global level.” The cuts will come from both of Yahoo’s French sites, in Paris and Grenoble.
Android Engineering Director leaves Google for Coupons.com
“Coupons, Inc., the leading provider of interactive coupon marketing and technology solutions and owner of the Coupons.com DigitalFSI Network, has appointed Steve Horowitz as Chief Technology Officer.
Horowitz, 41, joins Coupons, Inc. from Google where he led the engineering team that built the Android mobile operating system and platform which launched with T-Mobile late last year. At Coupons, Inc., Horowitz will oversee all of the Company’s worldwide engineering, product management and technology efforts as it expands its digital coupons and promotions platform.”, according to the company press-release
According to WSJ blog: “Mr. Horowitz, remains enthusiastic about Android, which enables phones to run advanced entertainment and productivity services“
Horowitz, 41, joins Coupons, Inc. from Google where he led the engineering team that built the Android mobile operating system and platform which launched with T-Mobile late last year. At Coupons, Inc., Horowitz will oversee all of the Company’s worldwide engineering, product management and technology efforts as it expands its digital coupons and promotions platform.”, according to the company press-release
According to WSJ blog: “Mr. Horowitz, remains enthusiastic about Android, which enables phones to run advanced entertainment and productivity services“
Wednesday, January 21, 2009
Satyam
US insurer Cigna Corp puts Satyam on notice
The worst nightmare for Satyam Computers employees has started to unfold. Barely two days after State Farm Insurance announced its intention to terminate its contract with Satyam, US-based health insurer Cigna Corp, one of the biggest Satyam clients put the company on a three-month "notice".
This was widely interpreted by employees as a termination of the important contract and plunged the software professionals into a sense of despair. "We are alternating between hope and hopeleness in recent days. This news comes as a shock," confessed a senior Satyam manager.
This was widely interpreted by employees as a termination of the important contract and plunged the software professionals into a sense of despair. "We are alternating between hope and hopeleness in recent days. This news comes as a shock," confessed a senior Satyam manager.
Satyam
General Electric gives Satyam vote of confidence
General Electric (GE) has committed to continuing its work with IT services provider Satyam despite the $1bn internal fraud revealed at the Indian IT service provider earlier this month.
The vote of confidence from the world's third largest firm comes a day after US financial services company State Farm Insurance announced it had terminated its work with Satyam.
The companies work together in providing global healthcare infrastructures, with Satyam doing software development.
The announcement backs up Satyam's claim that most of its customers have said they will retain their contracts with the company.
The vote of confidence from the world's third largest firm comes a day after US financial services company State Farm Insurance announced it had terminated its work with Satyam.
The companies work together in providing global healthcare infrastructures, with Satyam doing software development.
The announcement backs up Satyam's claim that most of its customers have said they will retain their contracts with the company.
IT market
UK: IT jobs decline by 24% in three months
According to ComputerWeekly: “Compared to the previous quarter, there were 24.3% fewer jobs advertised from October to December than there were from July to September. Some job roles saw larger drops in demand than others. Skills still in demand include Oracle, Java, SQL, C#, .net and SAP.”
“Finance is still the most affected sector, with a drop of 32.1% in demand. Software houses saw demand fall 21.6%, and manufacturing, retail and media all saw falls. The public sector was the only one to buck the trend, with 9.5% more jobs being advertised since the previous quarter.” “Recruitment is down by 27.5% in the north east of England, 17% in Scotland, 22.1% in the south of England, and 10% in Wales and the west of England.”
“Finance is still the most affected sector, with a drop of 32.1% in demand. Software houses saw demand fall 21.6%, and manufacturing, retail and media all saw falls. The public sector was the only one to buck the trend, with 9.5% more jobs being advertised since the previous quarter.” “Recruitment is down by 27.5% in the north east of England, 17% in Scotland, 22.1% in the south of England, and 10% in Wales and the west of England.”
Layoffs in USA
Warner Bros. to cut 800 jobs as Hollywood down
Related: Warner Bros. is preparing to outsource jobs to India and Poland
According to Reuters: “Warner Bros. Entertainment plans to cut 800 jobs, or 10 percent of its worldwide staff, as Hollywood outsources and downsizes under the weight of the current recession. The job cuts at Warner follow staff reductions at other major media companies. General Electric Co’s NBC Universal and Viacom, owner of Paramount, have already cut jobs.”
According to Reuters: “Warner Bros. Entertainment plans to cut 800 jobs, or 10 percent of its worldwide staff, as Hollywood outsources and downsizes under the weight of the current recession. The job cuts at Warner follow staff reductions at other major media companies. General Electric Co’s NBC Universal and Viacom, owner of Paramount, have already cut jobs.”
Bank of America/Merrill Lynch, Layoffs in USA
Bank of America to announce 4,000 layoffs
Bank of America is getting ready to announce its next round of layoffs. According to the Financial Times, the bank is going to cut up to 4,000 employees. The layoffs will come from the capital markets business, which was recently merged with Merrill Lynch. Over the next three years, Bank of America is expected to cut about 35,000 jobs as a result of the Merrill Lynch merger. Officials have not said when the latest round of cuts will take place.
Layoffs in USA
State Street profit sinks, layoffs loom
Shares of State Street Corp., one of the world’s largest custodians of assets for financial institutions, plunged more than 50 percent Tuesday after the company reported a small quarterly profit and disclosed unrealized losses of almost $10 billion in its investment portfolio and commercial paper program.
MindTree net profit 48 percent down
Hit by a massive forex loss due to a weakening rupee, global IT services firm MindTree. Monday reported a lower consolidated net profit of Rs.103 million (Rs.10.3 crore) for the third quarter (October-December) of this fiscal (2008-09), posting a negative growth of 48 percent year-on-year.
Layoffs in USA
Ameriprise to cut 300 jobs
Ameriprise Financial said today it will lay off 300 of its Minneapolis workers. The news comes roughly one week before the financial advice company is scheduled to release its fourth quarter earnings. The cuts are part of a larger restructuring, but a spokesman for the Minneapolis-based company wouldn't say how many more people companywide are affected.
Layoffs in USA
Audio giant Bose cuts 1,000 jobs
Bose Corp., the audio giant known for Wave radios and noise-canceling headphones, is cutting 1,000 jobs, the company announced today. The Framingham-based firm said the layoffs amount to about 10 percent of its total work force and the cuts will come from “select areas, including manufacturing.” Bose’s restructuring is a reaction to the recession and a slowdown in consumer spending.
Tuesday, January 20, 2009
IT market
Why Google Employees Quit?
Source: Times Online and Tech Crunch
“In 2008 Google HR set up a private Google Group to ask former employees why they left the company. We’ve been forwarded what appears to be authentic posts to the thread by a number of ex-Googlers, which we reprint below minus identifying information other than their first names.
The thread shows a brutal honesty about what it’s like to work at Google, at least from the point of view of employees who were unhappy enough to resign. Top amongst the complaints is low pay relative to what they could earn elsewhere, and disappearing fringe benefits seemed to elevate the concern. Other popular gripes - too much bureaucracy, poor management, poor mentoring, and a hiring process that took months.”, writes Techcrunch.
Google takes particular pride in being considered one of the world’s best companies to work for. Employees are pampered at on-site massage areas, told to spend twenty per cent of their time doing whatever they want and enjoy free sushi and Häagen-Dazs ice cream for lunch.
But it seems this isn’t for everyone. A stream of emails from disgruntled ex-Google employees has emerged, revealing that even the most modern of workplaces faces the same old complaints from workers: low pay, too many hours, incompetent managers, a lack of fringe benefits and a hiring process that kept many in limbo for months.
Overall, the messages showed that many considered getting a job at Google akin to reaching the promised land, only to become bitterly disappointed at what they found there.
“You read so much about how amazing it is to work for Google and for the first two years it was,” wrote Scott who worked for the company in London.
“Before I left it just was a place full of quiet moans, talented people being undermined and a structure that created hostility and politics.”
The emails were sent to Google last year, when the company asked a number of ex-employees why they decided to quit. The private, often brutally honest, correspondence was leaked to the popular TechCrunch blog, where it was published edited only to avoid identifying the workers involved.
One former staff member alleged that employees were promised a better benefits package, only for Eric Schmidt, the Chairman and Chief Executive, to abandon this pledge when told how many millions it would cost.
“[Schimdt] fell back in his tired, familiar standby (“People don’t work at Google for the money. They work at Google because they want to change the world!). A statement that always seems to me a little Louis XIV coming from a billionaire.
“I still can’t recall all the moralizing postures without a shudder of disgust.”
Others, however, defended the company from these complaints, saying that practices at Google were considerably better than those at other firms.
But the reasons for leaving Google were many and various. Some said that they could have easily been paid more elsewhere, such as rivals Microsoft, but the kudos of having Google on their CV’s convinced them to stay on. Others said they left because their managers were “jerks”, while one worker said she left the company “exhausted and processing a lot of stress”.
“Google is supposed to be some kind of Nirvana, so if you can’t be happy there how will you ever be happy?” wrote Dan, a former employee. “The truth is that Google can be a really horrible place to work if you happen to run up against its shortcomings.”
The vast majority were left bitter by a hiring process that took months to complete and involved micro-management from the very top - with Larry Page, Google’s co-founder, still reviewing the resumes of all prospective employees.
A Google spokesman admitted the recruitment procedure did take time, but said: “We believe it’s worth it. If you hire great people and involve them intensively in the hiring process, you’ll get more great people."
Even the perks, such as a free canteen that offers everything from roast dinners to healthy salads, comes at a cost. “If you were staying for dinner, it better be because you were working afterwards,” warned one worker who claimed only workaholics were likely to be promoted.
The complaints are in sharp contrast to Google’s public image. Last year, the company was named best the UK’s best workplace by the Great Places to Work Institute and the Best Company to Work For in the US by Fortune magazine.
Google offices are legendary for their quirks and perks. In the plush London offices in Victoria, Google workers are given free massages every month and there is a games room and Yoga studio on site.
In Zurich, workers use a fireman’s pole to move between floors and hold meetings in “arctic pods”. In Mountain View, California, prominent speakers such as Barack Obama and Hilary Clinton have been known to pop by to give talks.
But lately, some of the shine has begun to come off the company. Last week, it axed 100 posts worldwide, the first significant job cuts in its 11-year history.
A Google spokesman said: “Of course there will always be a small number of ex-employees for whom Google may not have been a perfect fit but for the vast majority of employees this is not the case.”
“In 2008 Google HR set up a private Google Group to ask former employees why they left the company. We’ve been forwarded what appears to be authentic posts to the thread by a number of ex-Googlers, which we reprint below minus identifying information other than their first names.
The thread shows a brutal honesty about what it’s like to work at Google, at least from the point of view of employees who were unhappy enough to resign. Top amongst the complaints is low pay relative to what they could earn elsewhere, and disappearing fringe benefits seemed to elevate the concern. Other popular gripes - too much bureaucracy, poor management, poor mentoring, and a hiring process that took months.”, writes Techcrunch.
Google takes particular pride in being considered one of the world’s best companies to work for. Employees are pampered at on-site massage areas, told to spend twenty per cent of their time doing whatever they want and enjoy free sushi and Häagen-Dazs ice cream for lunch.
But it seems this isn’t for everyone. A stream of emails from disgruntled ex-Google employees has emerged, revealing that even the most modern of workplaces faces the same old complaints from workers: low pay, too many hours, incompetent managers, a lack of fringe benefits and a hiring process that kept many in limbo for months.
Overall, the messages showed that many considered getting a job at Google akin to reaching the promised land, only to become bitterly disappointed at what they found there.
“You read so much about how amazing it is to work for Google and for the first two years it was,” wrote Scott who worked for the company in London.
“Before I left it just was a place full of quiet moans, talented people being undermined and a structure that created hostility and politics.”
The emails were sent to Google last year, when the company asked a number of ex-employees why they decided to quit. The private, often brutally honest, correspondence was leaked to the popular TechCrunch blog, where it was published edited only to avoid identifying the workers involved.
One former staff member alleged that employees were promised a better benefits package, only for Eric Schmidt, the Chairman and Chief Executive, to abandon this pledge when told how many millions it would cost.
“[Schimdt] fell back in his tired, familiar standby (“People don’t work at Google for the money. They work at Google because they want to change the world!). A statement that always seems to me a little Louis XIV coming from a billionaire.
“I still can’t recall all the moralizing postures without a shudder of disgust.”
Others, however, defended the company from these complaints, saying that practices at Google were considerably better than those at other firms.
But the reasons for leaving Google were many and various. Some said that they could have easily been paid more elsewhere, such as rivals Microsoft, but the kudos of having Google on their CV’s convinced them to stay on. Others said they left because their managers were “jerks”, while one worker said she left the company “exhausted and processing a lot of stress”.
“Google is supposed to be some kind of Nirvana, so if you can’t be happy there how will you ever be happy?” wrote Dan, a former employee. “The truth is that Google can be a really horrible place to work if you happen to run up against its shortcomings.”
The vast majority were left bitter by a hiring process that took months to complete and involved micro-management from the very top - with Larry Page, Google’s co-founder, still reviewing the resumes of all prospective employees.
A Google spokesman admitted the recruitment procedure did take time, but said: “We believe it’s worth it. If you hire great people and involve them intensively in the hiring process, you’ll get more great people."
Even the perks, such as a free canteen that offers everything from roast dinners to healthy salads, comes at a cost. “If you were staying for dinner, it better be because you were working afterwards,” warned one worker who claimed only workaholics were likely to be promoted.
The complaints are in sharp contrast to Google’s public image. Last year, the company was named best the UK’s best workplace by the Great Places to Work Institute and the Best Company to Work For in the US by Fortune magazine.
Google offices are legendary for their quirks and perks. In the plush London offices in Victoria, Google workers are given free massages every month and there is a games room and Yoga studio on site.
In Zurich, workers use a fireman’s pole to move between floors and hold meetings in “arctic pods”. In Mountain View, California, prominent speakers such as Barack Obama and Hilary Clinton have been known to pop by to give talks.
But lately, some of the shine has begun to come off the company. Last week, it axed 100 posts worldwide, the first significant job cuts in its 11-year history.
A Google spokesman said: “Of course there will always be a small number of ex-employees for whom Google may not have been a perfect fit but for the vast majority of employees this is not the case.”
Layoffs in USA
Blue Cross Blue Shield to cut up to 1,000 jobs
Blue Cross Blue Shield of Michigan plans to cut up to 1,000 jobs and make other budget cuts this year in another blow to the state's economy. The nonprofit health insurance giant announced the cuts Friday.
The company hinted at possible layoffs last year after the Michigan Legislature did not pass changes to insurance rules sought by the company. Blue Cross says it wants law changes because it is losing millions of dollars each year on health insurance policies that cover individuals.
The company hinted at possible layoffs last year after the Michigan Legislature did not pass changes to insurance rules sought by the company. Blue Cross says it wants law changes because it is losing millions of dollars each year on health insurance policies that cover individuals.
cognizant, CTS, H1-B, Satyam
Satyam-State Farm insurance project: What will be the next step of Satyam on-site employees?
Related: State Farm Insurance terminates Satyam contract: affects 400 on-site employees
Among the 400 onsite employees working on client’s location at Bloomington, Illinois, U.S., 180 have H1-B Visas, sponsored by the company. The rest have L1 Visas.
Those with H1-B Visas have an option to resign from Satyam and take up another job, but the sponsor company will have to give an approval.
Those with L1 Visas have no option but to return to India for joining other projects.
Will Satyam grant approval to the H1B Visa-holders? Maybe yes. If State Farm Insurance chooses some of them to work with itself and “negotiates” with other vendors (software companies) to rebadge a few more (employing the associates on the project at their current levels of operation by the new vendor), while transitioning the project, there may not be a big problem.
But if Satyam wants to retain them even though some of them wish to join the new arrangement, the employees will have to get back to India and restart the process of securing Visas.
Among the 400 onsite employees working on client’s location at Bloomington, Illinois, U.S., 180 have H1-B Visas, sponsored by the company. The rest have L1 Visas.
Those with H1-B Visas have an option to resign from Satyam and take up another job, but the sponsor company will have to give an approval.
Those with L1 Visas have no option but to return to India for joining other projects.
Will Satyam grant approval to the H1B Visa-holders? Maybe yes. If State Farm Insurance chooses some of them to work with itself and “negotiates” with other vendors (software companies) to rebadge a few more (employing the associates on the project at their current levels of operation by the new vendor), while transitioning the project, there may not be a big problem.
But if Satyam wants to retain them even though some of them wish to join the new arrangement, the employees will have to get back to India and restart the process of securing Visas.
Satyam, TCS
Satyam clients have approached us: TCS
The country's largest software exporter, TCS, on Monday said some Satyam Computer clients have turned to the Tata company on their own, adding it would not approach the clients of the scam-tainted firm.
"We are not approaching the clients of Satyam pro-actively ... but some of them have approached us on their own," TCS CFO S Mahalingam said here on the sidelines of the CII Partnership summit.
According to reports, a US client has terminated its contract with Satyam following the disclosures, citing uncertainty in the company.
It is widely believed that Satyam Computers' clients will migrate to competitors such as Infosys, Tata Consultancy Services (TCS) and Wipro, and according to a broking house report, TCS is likely to gain the most from it because it has the highest number of common clients with the latter.
"We are not approaching the clients of Satyam pro-actively ... but some of them have approached us on their own," TCS CFO S Mahalingam said here on the sidelines of the CII Partnership summit.
According to reports, a US client has terminated its contract with Satyam following the disclosures, citing uncertainty in the company.
It is widely believed that Satyam Computers' clients will migrate to competitors such as Infosys, Tata Consultancy Services (TCS) and Wipro, and according to a broking house report, TCS is likely to gain the most from it because it has the highest number of common clients with the latter.
TCS
TCS sees up to 20% cut in IT budgets
Country's largest software exporter Tata Consultancy Services (TCS) today said it expects a five to 20 per cent cut in the IT processes outsourcing budget of its clients following the global economic slowdown.
"Clients are looking at cutting budget (amid the slowdown) ...certainly there will be a reduction, in some cases it could be 10 per cent and could go up to 15 or 20 per cent or could be five per cent also," TCS Executive Director and Chief Financial Officer S Mahalingam said on the sidelines of the CII Partnership Summit.
After the Satyam scandal, it was believed that other Indian IT companies would have to bear the brunt of it as the international clients have become wary of the corporate governance mechanism in the country.
"Clients are looking at cutting budget (amid the slowdown) ...certainly there will be a reduction, in some cases it could be 10 per cent and could go up to 15 or 20 per cent or could be five per cent also," TCS Executive Director and Chief Financial Officer S Mahalingam said on the sidelines of the CII Partnership Summit.
After the Satyam scandal, it was believed that other Indian IT companies would have to bear the brunt of it as the international clients have become wary of the corporate governance mechanism in the country.
Worst virus in years infects 6.5 Million computers
A computer virus attack that has infected more than 6.5 million Windows PCs this week is one of the worst in years, internet security firm F-Secure said Friday.
In total the worm, which is known as Downadup or Conficker, has infected nearly nine million PCs since its first version was unleashed two years ago.
Microsoft says the worm exploits a bug in the Windows Server service used by Windows 2000, XP, Vista, Server 2003 and Server 2008.
The worm works by searching for a Windows executable file called "services.exe" and then becomes part of that code. Once it's embedded in a PC, Downadup generates a list of possible domains, selects one, then uses that domain to reach a malicious server from which it downloads additional malware to install on the hijacked computer.
The latest version of the virus is particularly nasty since it uses a complicated algorithm to create hundreds of new domains, making it much harder for security experts to shut it down.
In total the worm, which is known as Downadup or Conficker, has infected nearly nine million PCs since its first version was unleashed two years ago.
Microsoft says the worm exploits a bug in the Windows Server service used by Windows 2000, XP, Vista, Server 2003 and Server 2008.
The worm works by searching for a Windows executable file called "services.exe" and then becomes part of that code. Once it's embedded in a PC, Downadup generates a list of possible domains, selects one, then uses that domain to reach a malicious server from which it downloads additional malware to install on the hijacked computer.
The latest version of the virus is particularly nasty since it uses a complicated algorithm to create hundreds of new domains, making it much harder for security experts to shut it down.
Satyam
Ramalinga Raju beats Obama on web popularity charts
Google's search volume index shows Raju and Obama were generating almost equal searches from India during the first six days of the year, with Obama leading by a small margin.
However, Raju jumped up the charts on January 7, when he admitted to a massive fraud of about Rs 7,800 crore.
The search volumes for Raju are estimated to have been over 10 times more than that of Obama on January 7, after which it has been declining consistently but Raju is still holding an edge over the US President-elect.
However, Raju jumped up the charts on January 7, when he admitted to a massive fraud of about Rs 7,800 crore.
The search volumes for Raju are estimated to have been over 10 times more than that of Obama on January 7, after which it has been declining consistently but Raju is still holding an edge over the US President-elect.
BPO employee accused of insurance fraud
A 30-year-old BPO employee working in Noida has been accused of diverting funds into bank accounts in Britain which he had opened under false names.
According to the police, Edward Burns has been arrested and booked under the 1966 IT Act, as well as for cheating his employer. Burns was an employee of BPO firm EXL Solutions.
He allegedly diverted a whopping £56,900 ($84,550) to bank accounts he was maintaining under false names.
Burns is an Indian citizen, and was working in the insurance process of British insurance company Aviva. He is accused of failing to transfer insurance claim amounts to the actual insurers.
His job, which involved a high level of client confidentiality, was to maintain clients’ data. The detailed list of Aviva’s customers is said to have helped him in tampering with claims and diverting funds illegally. EXL Solutions declined to comment.
According to the police, Edward Burns has been arrested and booked under the 1966 IT Act, as well as for cheating his employer. Burns was an employee of BPO firm EXL Solutions.
He allegedly diverted a whopping £56,900 ($84,550) to bank accounts he was maintaining under false names.
Burns is an Indian citizen, and was working in the insurance process of British insurance company Aviva. He is accused of failing to transfer insurance claim amounts to the actual insurers.
His job, which involved a high level of client confidentiality, was to maintain clients’ data. The detailed list of Aviva’s customers is said to have helped him in tampering with claims and diverting funds illegally. EXL Solutions declined to comment.
TCS
No off-campus hiring this year, says TCS
Tata Consultancy Services has discontinued ‘off-campus’ hiring for the current year, largely due to the slowdown in demand for IT services. “Generally every year we do off campus recruitments during the fourth quarter of the fiscal based on the business requirements and to fill gaps arising out of attrition. However this year, off-campus hiring is completely ruled out for the remaining part of the year,” Mr Ajoy Mukherjee, Vice-President and Head Global Human Resources of TCS, said in an interaction with Business Line. Through the off campus route, the city based firm had hired 6240 employees in fiscal 2008 and 5430 employees in fiscal 2007.
Monday, January 19, 2009
Layoffs in USA
Clear Channel expected to layoff 1,500
Clear Channel Communications Inc, which operates radio stations and outdoor advertising space, plans to lay off about 7 percent of its U.S. staff. The move will affect about 1,500 employees — mostly in ad sales — of the 20,000 work force in the United States.
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