Satyam loses Coke, GlaxoSmithKline deals too

Coke project to CapGemini
GlaxoSmithKline project to Cognizant

Satyam’s prized possessions, both clients and employees, are slowly slipping away. Coca-Cola and GlaxoSmithKline (GSK) are the latest to exit the company. While Capgemini has already bagged the $100-million seven-year Coca-Cola project, it is learnt that Cognizant will get the $35-million GSK contract.

Coca-Cola and Satyam refused to comment on the development, but Capgemini confirmed that it has bagged the order. On the other hand, both Cognizant and GSK said they do not comment on individual contracts. A few key employees who were critical to the implementation of the Coca-Cola project have quit Satyam to join Capgemini, an official at one of the companies told ET.

“Coca-Cola Enterprises has selected Capgemini for a seven-year arrangement to implement comprehensive finance and accounting (F&A) solutions in CCE’s North American business unit to create an efficient process in a cost-effective environment,” said a Capgemini spokesperson. However, the spokesperson refused to confirm or deny if some Satyam employees had been hired.

When companies change their software vendors, there is usually a clause in the client-vendor agreement that makes it binding on the exiting service provider to assist the new player during the transition period.

“In this case, it (enforcing the clause) wasn’t so easy due to the current circumstances, so Capgemini was asked to recruit some of the important (Satyam) employees,” said a consulting head who is advising some Satyam clients. Some Satyam employees may leave the organisation along with contracts, he said.

But there could be some legal disputes in the offing. “Most employees have a non-solicitation clause which prevents them from joining a rival company,” said Anoop Narayanan, partner law firm Majmudar & Co. “There could also be a non-competition clause, which does not permit the employees from working with any other company in the same field for a particular period of time,” Mr Narayan.

Lowe's plans salary freezes, lower store openings in additional cost cuts

Lowe's Cos., the No. 2 U.S. home-improvement retailer, said Friday that its fourth-quarter profit plunged a worse-than-expected 60%, after lower demand and intense competition forced it to cut prices more than it had planned.

As the company gave first-quarter and full-year forecasts that fell short of Wall Street expectations, Lowe's said it's freezing the salaries of all vice presidents and above for this year and reducing the level of its planned merit increases for the rest of the organization in combined actions that are expected to save more than $40 million in costs this year.

Embraer cuts 4,300 jobs

Embraer announced laying off nearly 4,300 workers as it slashed its 2009 delivery forecast by 28 aircraft, lowering revenue guidance for next year to $5.5 billion.

The job cuts amount to about 20% of the Brazilian commercial and business jet manufacturer's 21,362 employees. The layoffs will eliminate "one layer in the management structure" and be concentrated in production and administrative areas.

Harvard to offer early retirements to save money

Harvard University, the world’s richest, said on Wednesday that it will hold salaries flat for the next academic year, let staff retire early and slow construction of a new campus in Allston to save money. Harvard President Drew Faust wrote to students, faculty and staff on Wednesday, saying that the economic downturn will require “taking some difficult steps.

Comcast laid off 3,300 in the second half of last year

Comcast Corp. (Nasdaq: CMCSA,CMCSK) laid off nearly 3,300 people in the third and fourth quarters of last year because of a reorganization of its cable-television operations, its chief financial officer, Michael Angelakis, said in its earnings conference call Wednesday.

Comcast said last October that it was going to eliminate 300 positions in the eastern division of its cable operations as a result of the reorganization.

Boeing issues 1,100 layoff notices

About 700 Boeing workers in the Puget Sound area are set to receive 60-day layoff notices Friday morning as part of Boeing’s plan to reduce its commercial work force in the region by about 4,500 jobs this year. They are among 1,100 employees that will get the notices Friday, the company said.

Boeing has said it expects to reduce employment companywide by about 10,000 positions this year through layoffs, attrition and by not filling open positions. It will also cut back on contract labor.