Europe's biggest military contractor BAE Systems said Thursday it would close three UK sites and cut 500 jobs in response to falling orders and reduced work for the Army.
"The announcement follows the UK decision to postpone the FRES - Future Rapid Effects System - Utility Vehicle acquisition and a downturn in work supporting British Army operations in Iraq and Afghanistan," the British company said in a statement.
BAE said it would close sites in Guildford, Leeds and Telford, resulting in the loss of 330 jobs. It will axe a further 90 posts in Barrow due to slowing production of its M777 lightweight towed howitzer for the United States military.
Further jobs will also be lost in Newcastle and Leicester.
Friday, May 1, 2009
Recession
U.S. Economy: Consumer Spending Slows, Job Cuts Mount
Source: bloomberg
Consumer spending in the U.S. fell more than forecast at the end of the first quarter as mounting job losses threatened to weigh on a projected economic recovery later this year.
Purchases decreased 0.2 percent in March, the first drop this year, the Commerce Department said today in Washington. Other reports showed wages and benefits rose at the slowest pace on record and firings continued, straining American workers.
Consumer spending in the U.S. fell more than forecast at the end of the first quarter as mounting job losses threatened to weigh on a projected economic recovery later this year.
Purchases decreased 0.2 percent in March, the first drop this year, the Commerce Department said today in Washington. Other reports showed wages and benefits rose at the slowest pace on record and firings continued, straining American workers.
Layoffs in India
Indian Cos freeze short-term hiring, rules out layoffs
Source: TheEconomicTimes
Grappling with the economic downturn, most Indian companies have frozen their hiring plans for the short term, even as majority of them still rule out layoffs as a way of controlling costs, a PricewaterhouseCoopers survey released on Thursday said.
Over three-fourth (76%) of the respondents are reviewing their recruitment strategy to manage their costs in these unprecedented times, the survey by global consultancy firm said. The report stated that most companies have frozen or deferred hiring and are adopting a “wait-and-watch” policy.
However, most companies are shying away from employee layoffs as a way of controlling costs, with as much as 84% of the respondents voting against it. The survey, carried out across 12 sectors and over 100 respondent companies, found that the IT/ITeS sector is severely conservative in hiring plans.
Grappling with the economic downturn, most Indian companies have frozen their hiring plans for the short term, even as majority of them still rule out layoffs as a way of controlling costs, a PricewaterhouseCoopers survey released on Thursday said.
Over three-fourth (76%) of the respondents are reviewing their recruitment strategy to manage their costs in these unprecedented times, the survey by global consultancy firm said. The report stated that most companies have frozen or deferred hiring and are adopting a “wait-and-watch” policy.
However, most companies are shying away from employee layoffs as a way of controlling costs, with as much as 84% of the respondents voting against it. The survey, carried out across 12 sectors and over 100 respondent companies, found that the IT/ITeS sector is severely conservative in hiring plans.
HCL
HCL signs outsourcing deal with UTi
Technologies has announced signing a five-year, multi-million dollar outsourcing deal with supply chain services firm UTi Worldwide. The Indian IT firm will provide applications support and maintenance and infrastructure management services to the Dutch firm.
HCL will also operate a global service desk in nine languages for UTi. The Indian IT firm didn’t disclose the value of the deal or the number of employees to be deployed on the contract. A few UTi employees will also be transferred to HCL as part of the deal but both firms refused to divulge details.
HCL will also operate a global service desk in nine languages for UTi. The Indian IT firm didn’t disclose the value of the deal or the number of employees to be deployed on the contract. A few UTi employees will also be transferred to HCL as part of the deal but both firms refused to divulge details.
Layoffs in India
Freescale to lay off 250 at Bangalore centre
Freescale Semiconductor, Texas-based computer chipmaker, has decided to retrench around 250 professionals at its Bangalore centre, as the company seeks to lower its operational costs by shutting down several manufacturing units across the globe and trim its payroll.
The impacted staff at the Bangalore centre worked at Freescale’s cellular product group (CPG), which is being rationalised by the company. When contacted by ET on Thursday a Freescale spokesperson confirmed the developments. “As part of Freescale’s 1Q09 earnings announcement, the company is finalising the strategic transformation of Cellular Product Group (CPG). Given these actions, the size of the CPG organisation will be much smaller than it is today,” said Gloria Shiu, Freescale’s spokesperson for Asia.
Without giving any specific details about the number of employees being asked to quit, the company added that it will offer an appropriate severance package to the affected staff. “We are notifying the CPG employees in India that would be separated from the company. We stated earlier that the global actions would likely impact approximately 20% of our global workforce, and would not disclose additional details beyond that,” she added.
Freescale has around 1,400 people in India spread across three centres - Noida, Bangalore and Hyderabad.
The impacted staff at the Bangalore centre worked at Freescale’s cellular product group (CPG), which is being rationalised by the company. When contacted by ET on Thursday a Freescale spokesperson confirmed the developments. “As part of Freescale’s 1Q09 earnings announcement, the company is finalising the strategic transformation of Cellular Product Group (CPG). Given these actions, the size of the CPG organisation will be much smaller than it is today,” said Gloria Shiu, Freescale’s spokesperson for Asia.
Without giving any specific details about the number of employees being asked to quit, the company added that it will offer an appropriate severance package to the affected staff. “We are notifying the CPG employees in India that would be separated from the company. We stated earlier that the global actions would likely impact approximately 20% of our global workforce, and would not disclose additional details beyond that,” she added.
Freescale has around 1,400 people in India spread across three centres - Noida, Bangalore and Hyderabad.
Google: World's first $100-billion brand
Internet search engine giant Google has emerged as the world's number one brand and is also the first one to touch the $100 billion value mark, despite the tough economic environment.
According to the fourth annual BrandZ top 100 most valuable global brands ranking, Google is the number one brand with a value of $100 billion and is way ahead of Microsoft which is at the second rank with a value of $76.2 billion.
Coca-Cola has entered the top three league for the first time with a value of $67.6 billion.
The study further said in a year of global financial turmoil, when every key financial indicator plummeted, the value of brands remained strong.
The total value of the top 100 most valuable global brands has increased by 2 per cent to $1.95 trillion and among the top 100 brands, 85 remain from last year's listing, the report published by research firm Millward Brown Optimor said.
Commenting on the findings Millward Brown Optimor CEO Joanna Seddon said: "In the current environment, where the value of many businesses has fallen, brand has become even more important because it can help to sustain companies in tough times".
Seddon further said "those who continue to invest in their brand will be better positioned for business growth as the economic situation starts to improve than those who have cut spend".
According to the fourth annual BrandZ top 100 most valuable global brands ranking, Google is the number one brand with a value of $100 billion and is way ahead of Microsoft which is at the second rank with a value of $76.2 billion.
Coca-Cola has entered the top three league for the first time with a value of $67.6 billion.
The study further said in a year of global financial turmoil, when every key financial indicator plummeted, the value of brands remained strong.
The total value of the top 100 most valuable global brands has increased by 2 per cent to $1.95 trillion and among the top 100 brands, 85 remain from last year's listing, the report published by research firm Millward Brown Optimor said.
Commenting on the findings Millward Brown Optimor CEO Joanna Seddon said: "In the current environment, where the value of many businesses has fallen, brand has become even more important because it can help to sustain companies in tough times".
Seddon further said "those who continue to invest in their brand will be better positioned for business growth as the economic situation starts to improve than those who have cut spend".
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