Warren Buffett's Berkshire Hathaway reported 21,000 fewer employees than it had at the end of 2008 amid a slump at the firm's manufacturing and retail units.
Berkshire and its subsidiaries have about 225,000 workers, the company said this week in regulatory filings. That is 8.6 per cent lower than the 246,083 disclosed in the 2008 annual report. Berkshire provided the jobs information in a document tied to its planned $26 billion takeover of railroad Burlington Northern Santa Fe Buffett did not reply to a request, left with an assistant, for comment on the cuts.
Buffett, Berkshire’s CEO, oversees a collection of more than 70 subsidiaries that sell products including Geico car insurance, Fruit of the Loom T-shirts and Dairy Queen ice cream. Profit at the firm's manufacturing, service and retail businesses plunged by more than half in the first nine months of the year, and Buffett replaced the CEOs of two operating units whose sales suffered in the recession.
"When times are good, you are going to have more people employed than when times are bad," Buffett, 79, said this month in a video address to the 37,000 railroad employees that Berkshire will take on next year with the completion of the Burlington Northern takeover.
Fruit of the Loom announced in March it would lay off 3,000 textile workers in El Salvador because of excess inventory, La Prensa Grafica reported, citing Jose Antonio Escobar, president of Camara de la Industria Textil y de la Confeccion de El Salvador.The newspaper reported on December 3 that the company plans to hire back 1,000 workers.
Fruit of the Loom had more than 34,000 workers at the end of 2008, according to Berkshires most recent annual report, the largest total among its operating units. John Shivel, a spokesman for Bowling Green, Kentuckybased Fruit of the Loom, declined to comment.
Buffett told shareholders at the firm's annual meeting in May that he expected more cuts at Berkshire following reductions last year at Clayton Homes Inc, which builds manufactured housing, and brickmaker Acme Building Brands. Berkshire reported its first quarterly loss since 2001 in the first three months of this year. The firm returned to profit in the second and third quarters, helped by an advance in the stock market.
"We will be adding people at some point, but we will not do it until we see the demand come back," Buffett said in a September interview conducted by the CEO of Business Wire. "It will be a little slow because we do not want to go through what we did before. Although, I will guarantee you that three years from now, our brick companies, our carpet company, and our insulation company will all be employing far more people than now."
Monday, December 28, 2009
Infosys, New Deals
Infosys bags $83 mn Karnataka project
Infosys Technologies, India's No. 2 software exporter, has been selected to implement a Rs 3.87 billion ($83 million) IT project for Karnataka's power distribution utilities, two government officials said.
"We have issued the letter of intent to Infosys," a source at the Bangalore utility said on condition of anonymity as he is not authorised to speak to the media.
"It will cover entire Karnataka," he said. The project was awarded by all five electricity distribution utilities in the state last week and will cover 100 towns in the state, he said.
Infosys outbid 10 other companies, including Tata Consultancy Services, for the contract, the source said.
The projects must be implemented within 36 months, the other source said.
Infosys officials could not be reached for comment. The project is part of a central government-funded programme to use information technology to cap electricity losses in the country.
Tata Consultancy and HCL Infosystems Ltd have won contracts for similar projects in West Bengal and Rajasthan, respectively.
"We have issued the letter of intent to Infosys," a source at the Bangalore utility said on condition of anonymity as he is not authorised to speak to the media.
"It will cover entire Karnataka," he said. The project was awarded by all five electricity distribution utilities in the state last week and will cover 100 towns in the state, he said.
Infosys outbid 10 other companies, including Tata Consultancy Services, for the contract, the source said.
The projects must be implemented within 36 months, the other source said.
Infosys officials could not be reached for comment. The project is part of a central government-funded programme to use information technology to cap electricity losses in the country.
Tata Consultancy and HCL Infosystems Ltd have won contracts for similar projects in West Bengal and Rajasthan, respectively.
H1-B, NRIs
Visa reforms on cards in the US?
Another Immigration reform seems to be on cards in the US. According to InformationWeek, a 600-page Comprehensive Immigration Reform for America's Security and Prosperity Act of 2009 proposes changes to visas provided to foreign students who get advanced tech degrees in the United States.
It aims to make it easier for foreigners with advanced degrees in science, technology, engineering, and mathematics from the US universities and who have worked in their field in the US for three years to get green card employment visas.
According to the news report, they would be fast-tracked to green cards, which provide foreigners with permanent residency status, rather than lingering in H-1B visa limbo.
The legislation would also require employers applying for H-1B visas to prove that no US workers are available to fill the positions. It may also bar companies that have recently laid off US workers from engaging in the visa programme.
Foreign students with advanced technology degrees are required to leave the US shortly after graduating from a US university if they're unable to obtain or renew an H-1B visa or get a green card. The annual cap on H-1B visas is 85,000. This includes 65,000 general H-1B visas and 20,000 H-1Bs set aside for foreigners with advanced degrees.
It aims to make it easier for foreigners with advanced degrees in science, technology, engineering, and mathematics from the US universities and who have worked in their field in the US for three years to get green card employment visas.
According to the news report, they would be fast-tracked to green cards, which provide foreigners with permanent residency status, rather than lingering in H-1B visa limbo.
The legislation would also require employers applying for H-1B visas to prove that no US workers are available to fill the positions. It may also bar companies that have recently laid off US workers from engaging in the visa programme.
Foreign students with advanced technology degrees are required to leave the US shortly after graduating from a US university if they're unable to obtain or renew an H-1B visa or get a green card. The annual cap on H-1B visas is 85,000. This includes 65,000 general H-1B visas and 20,000 H-1Bs set aside for foreigners with advanced degrees.
TCS
Employees want TCS passport project reviewed
The indefinite wait for the start of the Passport Seva Project -- an e-project for faster delivery of passports has got another sting in its tale.
The employees have now done a U-turn and asked for a "review" of the Rs 1,000-crore project outsourced to Tata Consultancy Services (TCS).
"We are of the opinion that there is a need to review afresh the whole project," said a letter from the All India Passport Employees Association (AIPEA) to Minister of State for External Affairs Shashi Tharoor.
The Passport Seva Project is an e-governance project of the Indian government which is supposed to streamline and bring efficiency in the process of distribution of passports.
The contract for implementing the project, worth Rs 1,000 crore (Rs10 billion or $21.4 million) was given to information technology major Tata Consultancy Services in October 2008, with an implementation timeline from June.
Since then, there have been multiple deadlines -- in October and November. But the project is yet to take off as TCS has been unable to provide fool-proof software.
Incidentally, AIPEA had earlier reached an agreement with the ministry before the contract was signed with TCS in 2008 for starting the project -- after long overdue promotions were given to a large number of employees.
The association consists of 2,400 employees located at regional passport offices around the country. Incidentally, there has been a freeze on the recruitment of new employees, despite the number of passports processed doubling in the last seven years.
The employees have now done a U-turn and asked for a "review" of the Rs 1,000-crore project outsourced to Tata Consultancy Services (TCS).
"We are of the opinion that there is a need to review afresh the whole project," said a letter from the All India Passport Employees Association (AIPEA) to Minister of State for External Affairs Shashi Tharoor.
The Passport Seva Project is an e-governance project of the Indian government which is supposed to streamline and bring efficiency in the process of distribution of passports.
The contract for implementing the project, worth Rs 1,000 crore (Rs10 billion or $21.4 million) was given to information technology major Tata Consultancy Services in October 2008, with an implementation timeline from June.
Since then, there have been multiple deadlines -- in October and November. But the project is yet to take off as TCS has been unable to provide fool-proof software.
Incidentally, AIPEA had earlier reached an agreement with the ministry before the contract was signed with TCS in 2008 for starting the project -- after long overdue promotions were given to a large number of employees.
The association consists of 2,400 employees located at regional passport offices around the country. Incidentally, there has been a freeze on the recruitment of new employees, despite the number of passports processed doubling in the last seven years.
IT market, new openings
2010 to bring 50K IT jobs
After a long hibernation of 18 months, headhunters are actively out in the market as talent requirements have started trickling in. The hiring momentum is expected to pick up from April onwards.
Even in a worst scenario, calendar 2010 will create around 50,000 fresh IT/ITES jobs against zero fresh jobs except a very thin campus hiring - in the previous year. The calendar 2007 had witnessed a bumper hiring at over 3 lakh while the growth got tapered off towards the third quarter of 2008 clocking a total hiring of only 1.8 lakh.
B S Murthy, CEO, Leadership Capital says the new year will usher in recovery and a wave of general optimism across segments. “This means a complete change from the current skeletal and need-based hiring. The large volume-hiring realm (services space) will warm up by the second quarter of calendar 2010. A 15% increment in hiring volumes is expected in the first two quarters while the growth could cross 20% or double towards third and fourth quarter.”
According to Nirupama V G, MD, AdAstra, requirements will start pouring in like tsunami, HR departments of many corporates have already geared up for large scale hiring after a long standstill. “Normalcy will return to the industry by April. In addition to domestic hiring , India is going to emerge as a huge sourcing ground for global jobs across segments, positions and profiles.”
“When we enjoy a vantage position in human resources, talent is still a scare commodity in global markets. The year 2010 is going to be bright year for India in terms of domestic and global placements,” adds Mohan Menon, CEO, Sentient Consulting.
Even in a worst scenario, calendar 2010 will create around 50,000 fresh IT/ITES jobs against zero fresh jobs except a very thin campus hiring - in the previous year. The calendar 2007 had witnessed a bumper hiring at over 3 lakh while the growth got tapered off towards the third quarter of 2008 clocking a total hiring of only 1.8 lakh.
B S Murthy, CEO, Leadership Capital says the new year will usher in recovery and a wave of general optimism across segments. “This means a complete change from the current skeletal and need-based hiring. The large volume-hiring realm (services space) will warm up by the second quarter of calendar 2010. A 15% increment in hiring volumes is expected in the first two quarters while the growth could cross 20% or double towards third and fourth quarter.”
According to Nirupama V G, MD, AdAstra, requirements will start pouring in like tsunami, HR departments of many corporates have already geared up for large scale hiring after a long standstill. “Normalcy will return to the industry by April. In addition to domestic hiring , India is going to emerge as a huge sourcing ground for global jobs across segments, positions and profiles.”
“When we enjoy a vantage position in human resources, talent is still a scare commodity in global markets. The year 2010 is going to be bright year for India in terms of domestic and global placements,” adds Mohan Menon, CEO, Sentient Consulting.
Thursday, December 17, 2009
new openings, Wipro
Wipro to invest Rs 1,000 cr in Bengal's second campus
Azim Premji-controlled Wipro Ltd will invest close to Rs 1,000 crore in its second IT campus near Kolkata that will employ 20,000 tech professionals. But the company proposes to start construction work after more than a year, especially since land handover and creation of allied infrastructure is expected to take time.
On Thursday, Wipro chairman Azim Premji met West Bengal chief minister Buddhadeb Bhattacharjee to assure him that his company had accepted the state’s offer price of Rs 1.5 crore per acre for the 50-acre plot in Rajarhat.
Confirming the development, a top source in the West Bengal government, who was privy to the discussions between Mr Premji and the chief minister, said: "Mr Premji has told the CM that his company will invest in a near Rs 1,000-crore IT campus in Rajarhat which will be equipped to house 20,000 IT/ITeS professionals once fully ramped up. Construction of the second Wipro campus in the city will start within 18 months and is expected to be operational by 2012."
While Mr Premji did not share details on the proposed investment in the Rajarhat campus, he did indicate that Wipro would fork out Rs 75 crore for the 50 acre plot. "We expect to start construction within 18 months, but before that the government needs to make the necessary infrastructure ready," he told reporters after his near 30-minute meeting with the chief minister at Writers’ Buildings on Thursday.
Significantly, Mr Premji inspected the campus site along with officials of the state IT department and Hidco, the government nodal agency that handles all land allotments in Rajarhat. Wipro’s new campus will be barely 15 minutes away from the Kolkata airport and will be right next to TCS’s upcoming 40-acre campus.
West Bengal IT minister Debesh Das said Wipro will pay the government the land price of Rs 75 crore in two installments. "The company will make the first tranche of payment of 25% of total land price in December 2009. The balance 75% will be paid subsequently. Wipro’s decision to invest in a second campus in Kolkata even during the downturn proves the state’s potential in the IT sector," he said.
Incidentally, Mr Premji also informed the chief minister that Wipro is significantly expanding headcount at its existing 20-acre IT SEZ in Sector V with growing business out of Kolkata. The headcount at its Kolkata campus will grow from 7,000 to 9,000 people shortly.
The much belated Wipro land allotment is a major breather of sorts for the Buddhadeb government, especially in the aftermath of the Vedic Village land scam that led to the scrapping of the mega IT township project in the vicinity where Wipro and Infosys were originally meant to receive 90 acres apiece. While the state managed has managed to make some headway in Wipro’s case, state IT department circles said Infosys was yet to respond to the government’s alternative land offer in Rajarhat.
On Thursday, Wipro chairman Azim Premji met West Bengal chief minister Buddhadeb Bhattacharjee to assure him that his company had accepted the state’s offer price of Rs 1.5 crore per acre for the 50-acre plot in Rajarhat.
Confirming the development, a top source in the West Bengal government, who was privy to the discussions between Mr Premji and the chief minister, said: "Mr Premji has told the CM that his company will invest in a near Rs 1,000-crore IT campus in Rajarhat which will be equipped to house 20,000 IT/ITeS professionals once fully ramped up. Construction of the second Wipro campus in the city will start within 18 months and is expected to be operational by 2012."
While Mr Premji did not share details on the proposed investment in the Rajarhat campus, he did indicate that Wipro would fork out Rs 75 crore for the 50 acre plot. "We expect to start construction within 18 months, but before that the government needs to make the necessary infrastructure ready," he told reporters after his near 30-minute meeting with the chief minister at Writers’ Buildings on Thursday.
Significantly, Mr Premji inspected the campus site along with officials of the state IT department and Hidco, the government nodal agency that handles all land allotments in Rajarhat. Wipro’s new campus will be barely 15 minutes away from the Kolkata airport and will be right next to TCS’s upcoming 40-acre campus.
West Bengal IT minister Debesh Das said Wipro will pay the government the land price of Rs 75 crore in two installments. "The company will make the first tranche of payment of 25% of total land price in December 2009. The balance 75% will be paid subsequently. Wipro’s decision to invest in a second campus in Kolkata even during the downturn proves the state’s potential in the IT sector," he said.
Incidentally, Mr Premji also informed the chief minister that Wipro is significantly expanding headcount at its existing 20-acre IT SEZ in Sector V with growing business out of Kolkata. The headcount at its Kolkata campus will grow from 7,000 to 9,000 people shortly.
The much belated Wipro land allotment is a major breather of sorts for the Buddhadeb government, especially in the aftermath of the Vedic Village land scam that led to the scrapping of the mega IT township project in the vicinity where Wipro and Infosys were originally meant to receive 90 acres apiece. While the state managed has managed to make some headway in Wipro’s case, state IT department circles said Infosys was yet to respond to the government’s alternative land offer in Rajarhat.
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