After a night spent signing mounds of paperwork authorizing the transfer of cash, real estate, technology and other property, GM attorneys are expected to officially usher the new General Motors out of bankruptcy protection on Friday and onto a path toward a hopefully profitable future.
Once the world's largest and most powerful automaker, the troubled company is expected to emerge cleansed of massive debt and burdensome contracts that would have sunk it without federal loans. Spurred on by the Obama administration's support, the process took just 40 days, even slightly quicker than crosstown rival Chrysler Group LLC's 42-day timeframe.
On Thursday, a bankruptcy court order allowing GM to sell most of its assets to a new company went into effect. The new GM, 61% owned by the US government, will face a brutally competitive global automotive market in the middle of the worst sales slump in a quarter-century.
At a press conference on Friday, CEO Fritz Henderson will announce that GM will cut another 4,000 white-collar jobs, including 450 top executives. The company still employs 88,000 people in the US and 235,000 worldwide.
Agencies
Showing posts with label axe. Show all posts
Showing posts with label axe. Show all posts
Saturday, July 11, 2009
Tuesday, April 21, 2009
Oracle may layoff 10,000 jobs after Sun deal
Global IT giant Oracle's $7.4 billion acquisition of Sun Microsystems could terminate 10000 jobs, predicted a financial analyst, as per a report in IDG News Service.
Excluding charges related to the restructuring, Oracle expects the Sun deal to contribute $1.5 billion toward its earnings next year and $2 billion in the second year of the acquisition, making it more profitable in per-share contribution in the first year than the company had planned for the acquisitions of BEA, PeopleSoft and Siebel combined, according to Oracle President Safra Catz. Meanwhile, Tony Sacconaghi, a well-respected technology analyst with Sanford C. Bernstein & Co said, "That profitability will come via layoffs." Sacconaghi had been forecasting $800 million in operating profit for Sun's fiscal 2010, rather than the $1.5 billion predicted by Oracle.
"In order to deliver $1.5 billion in profit, Oracle would need to boost profits by $700 million assuming no material revenue erosion, which suggests incremental headcount reductions of 5,500 to 10,000 depending on timing," Sacconaghi wrote in a research note. But, Oracle declined to comment on any possible layoffs.
The acquisition was announced Monday, just two weeks after Sun's previous suitor, IBM, had walked away from the table after being unable to come to acquisition terms.
Analyst firm Technology Business Research (TBR) agreed that layoffs are coming, predicting that sales and marketing staff will be hit hardest. "Oracle will rapidly rationalize Sun's cost-base," the company said in a report on the deal. "This means general layoffs and a reshaping of cost centers such as services and support."
Sun is already in the process of slashing between 15 to 18 percent of its workforce, or as many as 6,000 employees.
Agencies
Excluding charges related to the restructuring, Oracle expects the Sun deal to contribute $1.5 billion toward its earnings next year and $2 billion in the second year of the acquisition, making it more profitable in per-share contribution in the first year than the company had planned for the acquisitions of BEA, PeopleSoft and Siebel combined, according to Oracle President Safra Catz. Meanwhile, Tony Sacconaghi, a well-respected technology analyst with Sanford C. Bernstein & Co said, "That profitability will come via layoffs." Sacconaghi had been forecasting $800 million in operating profit for Sun's fiscal 2010, rather than the $1.5 billion predicted by Oracle.
"In order to deliver $1.5 billion in profit, Oracle would need to boost profits by $700 million assuming no material revenue erosion, which suggests incremental headcount reductions of 5,500 to 10,000 depending on timing," Sacconaghi wrote in a research note. But, Oracle declined to comment on any possible layoffs.
The acquisition was announced Monday, just two weeks after Sun's previous suitor, IBM, had walked away from the table after being unable to come to acquisition terms.
Analyst firm Technology Business Research (TBR) agreed that layoffs are coming, predicting that sales and marketing staff will be hit hardest. "Oracle will rapidly rationalize Sun's cost-base," the company said in a report on the deal. "This means general layoffs and a reshaping of cost centers such as services and support."
Sun is already in the process of slashing between 15 to 18 percent of its workforce, or as many as 6,000 employees.
Agencies
Saturday, April 4, 2009
British insurer Aviva will layoff 1,690 jobs
British insurance giant Aviva said on Thursday it would cut 1,100 permanent jobs and 590 contract positions by the end of 2009 -- the latest British financial group to axe jobs amid the economic crisis.
"There is expected to be a reduction of 1,100 permanent roles by the end of 2009," Aviva said in a statement.
"In addition, 590 contract positions will be closed over the next few months," it added.
The leader of Britain's biggest union, Unite, said the announcement to shed 1,100 permanent roles "will cause alarm across the insurance industry."
"It is unacceptable that once again shareholders received their full dividends while the workers who brought the company this success are rewarded with job losses," said Unite boss Derek Simpson.
"The Aviva workforce is continuing to live under constant uncertainty about their future," he added.
Agencies
"There is expected to be a reduction of 1,100 permanent roles by the end of 2009," Aviva said in a statement.
"In addition, 590 contract positions will be closed over the next few months," it added.
The leader of Britain's biggest union, Unite, said the announcement to shed 1,100 permanent roles "will cause alarm across the insurance industry."
"It is unacceptable that once again shareholders received their full dividends while the workers who brought the company this success are rewarded with job losses," said Unite boss Derek Simpson.
"The Aviva workforce is continuing to live under constant uncertainty about their future," he added.
Agencies
Sunday, March 15, 2009
Will Creative Technology layoff 300 jobs?
Struggling Singaporean digital entertainment products maker Creative Technology is to cut 300 jobs globally, mostly in Europe and the United States, the company said.
It said in a statement the company said that there would be a restructuring charge of 10 million dollars for severance payments and headcount cost reductions in the current third quarter ending March.
The Singapore-listed firm has struggled to make inroads against Apple's iconic iPod in the MP3 or digital music player market despite pumping in massive investments.
In the second quarter ended December 2008, Creative Technology racked up a net loss of 32.4 million dollars compared with a profit of 7.6 million dollars for the same period in the previous financial year.
Agencies
It said in a statement the company said that there would be a restructuring charge of 10 million dollars for severance payments and headcount cost reductions in the current third quarter ending March.
The Singapore-listed firm has struggled to make inroads against Apple's iconic iPod in the MP3 or digital music player market despite pumping in massive investments.
In the second quarter ended December 2008, Creative Technology racked up a net loss of 32.4 million dollars compared with a profit of 7.6 million dollars for the same period in the previous financial year.
Agencies
Sunday, February 1, 2009
Will Glaxo SmithKline layoff 6,000 workers?
Glaxo SmithKline, Britain's biggest pharmaceuticals company, plans to axe around 6,000 jobs around the world as it faces up to the growing challenges in the industry, a media report said.
The cuts are expected to include hundreds of British jobs, The Sunday Telegraph claimed.
"Competition from generic manufacturers and doubts about company's (product) pipelines are posing a serious threat to the sector and, ING analysts warned of an intellectual property meltdown as top-selling products come off patent and sales slow dramatically", the newspaper stated.
The pharma major's British rival, Astra-Zeneca, told the newspaper that it would cut 15,000 staff by 2013, 6,000 more than earlier stated, while industry leader Pfizer has acquired US rival Wyeth for $68 bn as it seeks to secure its future.
Glaxo SmithKline, the world's second biggest drugs company behind Pfizer, employs about 1,00,000 people and, although yet to be confirmed, a proportion of the cuts are almost certain to be among its 18,000 staff at sites across the UK, which would strike another blow to the battered economy, the report said.
Agencies
The cuts are expected to include hundreds of British jobs, The Sunday Telegraph claimed.
"Competition from generic manufacturers and doubts about company's (product) pipelines are posing a serious threat to the sector and, ING analysts warned of an intellectual property meltdown as top-selling products come off patent and sales slow dramatically", the newspaper stated.
The pharma major's British rival, Astra-Zeneca, told the newspaper that it would cut 15,000 staff by 2013, 6,000 more than earlier stated, while industry leader Pfizer has acquired US rival Wyeth for $68 bn as it seeks to secure its future.
Glaxo SmithKline, the world's second biggest drugs company behind Pfizer, employs about 1,00,000 people and, although yet to be confirmed, a proportion of the cuts are almost certain to be among its 18,000 staff at sites across the UK, which would strike another blow to the battered economy, the report said.
Agencies
Thursday, January 8, 2009
Satyam likely to layoff 10,000 employees in 2009
With a big questions mark on its cash position and a minimum outgo on salary estimated at Rs 500 crore a month, Satyam may lay off over 10,000 employees next month, says a recruitment firm.
"It is most likely that Satyam will cut 10,000 jobs next month as the company is left with no cash to pay the salaries. The current fiasco is likely to put pressure on salaries, which may reduce by 10 per cent due to the surplus of about 20,000 people in the jobs market," Headhunters India CEO Kris Lakshmikanth said.
Satyam interim CEO Ram Mynampati while admitting that the cash position is not encouraging, the company, however, has taken care of salary for December.
Lakshmikanth said till Tuesday evening there were about 7,800 people from Satyam who had posted their resumes on job sites and by Wednesday afternoon, it has gone up to 14,000.
The uncertainty about jobs is killingly painful for the 53,000 employees of Satyam, especially when the industry is going slow on recruitment.
Further, possibility of a takeover too looks distant as the accounting fraud done by the company would make it difficult for any firm to evaluate its correct market value, which is compounding the worries of the employees.
IT-BPO union Unites Professionals general secretary Karthik Shekhar said, "In case of any lay off at Satyam, we may take legal action."
"We have received over 7,000 hits since the news break. Yesterday, in one hour we have seen over 800 hits (no of people visiting the site) from Hyderabad. People have been enquiries on how the union can help them," Shekhar added.
Agencies
"It is most likely that Satyam will cut 10,000 jobs next month as the company is left with no cash to pay the salaries. The current fiasco is likely to put pressure on salaries, which may reduce by 10 per cent due to the surplus of about 20,000 people in the jobs market," Headhunters India CEO Kris Lakshmikanth said.
Satyam interim CEO Ram Mynampati while admitting that the cash position is not encouraging, the company, however, has taken care of salary for December.
Lakshmikanth said till Tuesday evening there were about 7,800 people from Satyam who had posted their resumes on job sites and by Wednesday afternoon, it has gone up to 14,000.
The uncertainty about jobs is killingly painful for the 53,000 employees of Satyam, especially when the industry is going slow on recruitment.
Further, possibility of a takeover too looks distant as the accounting fraud done by the company would make it difficult for any firm to evaluate its correct market value, which is compounding the worries of the employees.
IT-BPO union Unites Professionals general secretary Karthik Shekhar said, "In case of any lay off at Satyam, we may take legal action."
"We have received over 7,000 hits since the news break. Yesterday, in one hour we have seen over 800 hits (no of people visiting the site) from Hyderabad. People have been enquiries on how the union can help them," Shekhar added.
Agencies
Wednesday, December 3, 2008
Credit Suisse, HSBC to axe 1,150 jobs
Switzerland’s Credit Suisse AG Britain’s HSBC Holdings are axing hundreds of banking jobs as the biggest financial crisis since the Great Depression continues to bite.
The cuts are the latest in a wave of job losses in which around 90,000 jobs have been axed at major global banks since September. Of these, more than 50,000 were at US bank Citigroup.
Credit Suisse said on Tuesday the bank was cutting 650 jobs, equivalent to roughly 3% of its investment banking workforce of about 21,300. “The cuts will be made mainly in investment banking,” a spokesman for the Swiss bank said.
The bank, which employed around 50,000 people globally at the end of September, has already slashed 1,800 jobs this year.
HSBC, Europe’s biggest bank, said it was cutting 500 jobs at its UK banking business following a review of the business. The bank employs 58,000 people in Britain.
“We deeply regret taking this step, but we consider it essential to ensure our business is operating as efficiently as possible and that we are best placed to deal with the economic downturn and maintain our levels of customer service,” HSBC UK Managing Director Paul Thurston said.
JP Morgan Chase & Co has said it will cut a total of 9,200 jobs at Washington Mutual, which it acquired September 25 after Washington Mutual became the largest US bank to fail amid the ongoing credit crisis.
Of the 9,200 jobs being eliminated as JP Morgan integrates Washington Mutual, 4,000 will be cut by the end of January. The remaining 5,200 employees will remain with JP Morgan through a transition period, but will lose their positions by the end of 2009. ArcelorMittal, the world’s biggest steelmaker, also plans to cut 1,400 support jobs at its French operations. The job cuts will take the form of voluntary redundancies, Daniel Soury-Lavergne, head of the steelmaker’s French business, said in an e-mailed statement.
European steel maker Corus, which was acquired by the Tatas, has said it will cut 146 jobs at one of its units. Corus in a statement said as part of the reorganisation process, the decision has been taken to reduce employment levels at Corus Tubes, a business division of the company, 146 jobs would be at risk.
Citi cuts package
American behemoth Citigroup, which is axing over 75,000 jobs this year to help cut costs and fight financial crisis, is now slashing the severance package, that too for staff having put 10 or more years with the bank.
Source: Agencies
The cuts are the latest in a wave of job losses in which around 90,000 jobs have been axed at major global banks since September. Of these, more than 50,000 were at US bank Citigroup.
Credit Suisse said on Tuesday the bank was cutting 650 jobs, equivalent to roughly 3% of its investment banking workforce of about 21,300. “The cuts will be made mainly in investment banking,” a spokesman for the Swiss bank said.
The bank, which employed around 50,000 people globally at the end of September, has already slashed 1,800 jobs this year.
HSBC, Europe’s biggest bank, said it was cutting 500 jobs at its UK banking business following a review of the business. The bank employs 58,000 people in Britain.
“We deeply regret taking this step, but we consider it essential to ensure our business is operating as efficiently as possible and that we are best placed to deal with the economic downturn and maintain our levels of customer service,” HSBC UK Managing Director Paul Thurston said.
JP Morgan Chase & Co has said it will cut a total of 9,200 jobs at Washington Mutual, which it acquired September 25 after Washington Mutual became the largest US bank to fail amid the ongoing credit crisis.
Of the 9,200 jobs being eliminated as JP Morgan integrates Washington Mutual, 4,000 will be cut by the end of January. The remaining 5,200 employees will remain with JP Morgan through a transition period, but will lose their positions by the end of 2009. ArcelorMittal, the world’s biggest steelmaker, also plans to cut 1,400 support jobs at its French operations. The job cuts will take the form of voluntary redundancies, Daniel Soury-Lavergne, head of the steelmaker’s French business, said in an e-mailed statement.
European steel maker Corus, which was acquired by the Tatas, has said it will cut 146 jobs at one of its units. Corus in a statement said as part of the reorganisation process, the decision has been taken to reduce employment levels at Corus Tubes, a business division of the company, 146 jobs would be at risk.
Citi cuts package
American behemoth Citigroup, which is axing over 75,000 jobs this year to help cut costs and fight financial crisis, is now slashing the severance package, that too for staff having put 10 or more years with the bank.
Source: Agencies
Sunday, November 23, 2008
Textile cos to axe five lakh employees
Even as the Indian government is getting ready to undertake a nationwide survey of over 800 companies to find out the exact job losses in India due to the global financial crisis, the first report of pink slips is out.
According to estimates of the textile ministry, there will be job losses of about five lakh in the next five months. This was disclosed by commerce secretary GK Pillai on the sidelines of a government-industry interaction organised by Ficci.
In a presentation made before the commerce secretary, Shishir Jaipuria, deputy chairman, Confederation of Indian Textiles Industry, said the growth of the textile sector fell from 5.2% in April-September 2007 to a minuscule 0.3% in the same period this fiscal.
He said the textiles and clothing industry employs 35 million workers directly, adding that already 7 lakh jobs are estimated to have been lost and another 5 lakh would lose jobs by March 2009.
Financial results of 50 major textile companies listed in the Bombay Stock Exchange shows that though turnover increased, profits became negative in the second quarter this year. In the remaining last two quarters, even turnover will decline, he warned. Smaller units are already suffering significant production loss, Jaipuria added.
For instance, the profitability of renowned companies like Bombay Dyeing fell from (-)370% in the first quarter over the same quarter last year, to (-)828% in the second quarter as against last year’s Q2.
Over 50% of textile products manufactured in the country is being exported. US, EU and Japan constitute over 60% of our textiles exports. All the three countries are in a recession mode.
US’s import of textile products from India during January-August 2008 declined by 1.56% in value terms, compared to the same period of 2007. For garments, the decline was higher at 4.8%. The imports demand of Indian textiles in EU and Japan is declining on similar trend, though data is not available yet.
To read on...click on the link below:
http://www.financialexpress.com/news/Textile-cos-to-axe-five-lakh-employees-in-next-five-months/389024/
According to estimates of the textile ministry, there will be job losses of about five lakh in the next five months. This was disclosed by commerce secretary GK Pillai on the sidelines of a government-industry interaction organised by Ficci.
In a presentation made before the commerce secretary, Shishir Jaipuria, deputy chairman, Confederation of Indian Textiles Industry, said the growth of the textile sector fell from 5.2% in April-September 2007 to a minuscule 0.3% in the same period this fiscal.
He said the textiles and clothing industry employs 35 million workers directly, adding that already 7 lakh jobs are estimated to have been lost and another 5 lakh would lose jobs by March 2009.
Financial results of 50 major textile companies listed in the Bombay Stock Exchange shows that though turnover increased, profits became negative in the second quarter this year. In the remaining last two quarters, even turnover will decline, he warned. Smaller units are already suffering significant production loss, Jaipuria added.
For instance, the profitability of renowned companies like Bombay Dyeing fell from (-)370% in the first quarter over the same quarter last year, to (-)828% in the second quarter as against last year’s Q2.
Over 50% of textile products manufactured in the country is being exported. US, EU and Japan constitute over 60% of our textiles exports. All the three countries are in a recession mode.
US’s import of textile products from India during January-August 2008 declined by 1.56% in value terms, compared to the same period of 2007. For garments, the decline was higher at 4.8%. The imports demand of Indian textiles in EU and Japan is declining on similar trend, though data is not available yet.
To read on...click on the link below:
http://www.financialexpress.com/news/Textile-cos-to-axe-five-lakh-employees-in-next-five-months/389024/
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