Japan's Fujitsu Ltd announced plans to axe 1,750 jobs in the Philippines, blaming the global economic downturn.
Workers have been offered early retirement packages to leave Fujitsu Computer Products Corp, which makes disk drives, said Ernesto Espinosa, a manager.
"We launched a voluntary leaving programme and the reason for this is that because of the global recession," he said.
Labour Secretary Marianito Roque told reporters the government had been notified of the plan, which takes effect on April 18.
He said this brought the number of Filipinos who had lost their jobs since the financial crisis unfolded last year to about 45,000. The government expects 800,000 people to lose jobs, mainly in the electronics and clothing sectors, before the downturn eases.
About nine million Filipinos, or 10 per cent of the population, were without jobs or underemployed, the government announced.
Espinosa said Fujitsu failed to save the jobs despite earlier efforts to cut working hours and overtime pay, which drastically reduced employees' salaries.
"Because of that we have no other choice but to offer voluntary separation," he added. About 2,900 other workers will remain with the company, based in Calamba town, south of Manila, he said.
Fujitsu announced in Japan last month that it would sell an 80 per cent stake to Japanese rival Toshiba Corp.
Agencies
Showing posts with label global economic downturn. Show all posts
Showing posts with label global economic downturn. Show all posts
Wednesday, March 18, 2009
Saturday, February 14, 2009
Sapient lays off 300 employees in India
Software firm Sapient has laid off 300 employees at its offices in Bangalore, Noida and Gurgaon as a result of the global economic downturn, which has impacted several IT firms.
"In order to adjust to this changing demand environment, Sapient has exited about 8 per cent of its people. Sapient employs approximately 6,400 globally and as a result of this rationalisation, 300 people in India have been impacted," the company spokesperson said.
He said the exited employees have received severance packages and full outplacement services, and would be considered for rehiring on a fast track basis if the company finds that it again needs their skills and experience.
"These people were laid off to right size the company. They were at different levels of the management," he said, adding that Sapient has two-third of its workforce in India.
Businesses worldwide are feeling the impact of the economic downturn, and as a result, are reducing budgets and delaying projects. Despite the short-term softness in demand, Sapient remains well-positioned in two large markets - IT services and interactive marketing.
The company would continue to make strategic investments and targeted hires in several areas that are expected to drive success in 2009, including trading and risk management, marketing and government services, he said.
Agencies
"In order to adjust to this changing demand environment, Sapient has exited about 8 per cent of its people. Sapient employs approximately 6,400 globally and as a result of this rationalisation, 300 people in India have been impacted," the company spokesperson said.
He said the exited employees have received severance packages and full outplacement services, and would be considered for rehiring on a fast track basis if the company finds that it again needs their skills and experience.
"These people were laid off to right size the company. They were at different levels of the management," he said, adding that Sapient has two-third of its workforce in India.
Businesses worldwide are feeling the impact of the economic downturn, and as a result, are reducing budgets and delaying projects. Despite the short-term softness in demand, Sapient remains well-positioned in two large markets - IT services and interactive marketing.
The company would continue to make strategic investments and targeted hires in several areas that are expected to drive success in 2009, including trading and risk management, marketing and government services, he said.
Agencies
Saturday, January 31, 2009
2009 world unemployment could rise by 40 million, says UN
The global economic downturn could see 40 million more people lose their jobs by the end of the year, taking the unemployment rate to its highest in a decade, the U.N. labor agency said Wednesday.
The number of unemployed in 2009 will largely depend on how effective governments' economic stimulus measures are, the International Labor Organization cautioned.
Worldwide unemployment by the end of the year will range between 210 million and 230 million people, the agency said in its annual Global Employment Trends report.
That is a marked increase on the 179 million who were unemployed at the end of 2007 and the estimated 190 million at the end of 2008, the ILO said.
The worst case scenario assumes growth slows rapidly and that an economic recovery will be delayed into 2010.
This would boost the global unemployment rate to 7.1 per cent, a decade high and well above the 2007 rate of 5.7 per cent and estimates for a 2008 rate of 6 per cent. Over the last ten years, the rate has ranged from 5.7 per cent to a peak of 6.3 in 2003 and 2004.
ILO Director-General Juan Somavia said that although many governments have started to support their economies, ``more decisive and coordinated international action is needed to avert a global social recession.''
``Progress in poverty reduction is unraveling and middle classes worldwide are weakening,'' he said.
The latest predictions are based on an economic growth forecast of 2.2 per cent, published by the International Monetary Fund in November and expected to be adjusted downwards.
``Unemployment will rise with a downward revision, but I believe it will still fall within the range,'' said Lawrence J. Johnson, who heads the ILO's employment trends unit.
The report had originally forecast world unemployment would range between 198 million and 230 million people, but Somavia said the lowest estimate has probably been overtaken by events.
If the worst case scenario materializes, around 200 million more people would become working poor, unable to earn more than $2 per person a day.
In this outlook, the total number of working poor would be 812 million, or 26.8 per cent of the world's work force, the report said, using poverty estimates by the World Bank.
In 2007, some 609.5 million were working poor, 20.6 per cent of the world's work force at the time.
In addition to fiscal and monetary interventions, the world economy also needs creative measures improving the social situation of workers, the report said.
``There is a need to focus measures on vulnerable groups in the labor market, such as youth and women, who are most likely to be pushed into poverty and find themselves trapped there for many years,'' it said.
Governments should give special attention to small and medium companies because they provide the bulk of jobs and are most affected by the financial crisis, the report said.
Agencies
The number of unemployed in 2009 will largely depend on how effective governments' economic stimulus measures are, the International Labor Organization cautioned.
Worldwide unemployment by the end of the year will range between 210 million and 230 million people, the agency said in its annual Global Employment Trends report.
That is a marked increase on the 179 million who were unemployed at the end of 2007 and the estimated 190 million at the end of 2008, the ILO said.
The worst case scenario assumes growth slows rapidly and that an economic recovery will be delayed into 2010.
This would boost the global unemployment rate to 7.1 per cent, a decade high and well above the 2007 rate of 5.7 per cent and estimates for a 2008 rate of 6 per cent. Over the last ten years, the rate has ranged from 5.7 per cent to a peak of 6.3 in 2003 and 2004.
ILO Director-General Juan Somavia said that although many governments have started to support their economies, ``more decisive and coordinated international action is needed to avert a global social recession.''
``Progress in poverty reduction is unraveling and middle classes worldwide are weakening,'' he said.
The latest predictions are based on an economic growth forecast of 2.2 per cent, published by the International Monetary Fund in November and expected to be adjusted downwards.
``Unemployment will rise with a downward revision, but I believe it will still fall within the range,'' said Lawrence J. Johnson, who heads the ILO's employment trends unit.
The report had originally forecast world unemployment would range between 198 million and 230 million people, but Somavia said the lowest estimate has probably been overtaken by events.
If the worst case scenario materializes, around 200 million more people would become working poor, unable to earn more than $2 per person a day.
In this outlook, the total number of working poor would be 812 million, or 26.8 per cent of the world's work force, the report said, using poverty estimates by the World Bank.
In 2007, some 609.5 million were working poor, 20.6 per cent of the world's work force at the time.
In addition to fiscal and monetary interventions, the world economy also needs creative measures improving the social situation of workers, the report said.
``There is a need to focus measures on vulnerable groups in the labor market, such as youth and women, who are most likely to be pushed into poverty and find themselves trapped there for many years,'' it said.
Governments should give special attention to small and medium companies because they provide the bulk of jobs and are most affected by the financial crisis, the report said.
Agencies
Monday, January 26, 2009
TCS on a hiring spree; To hire 15,000 employees
Tata Consultancy Services (TCS) said on Friday that the company expects to add 15,000-18,000 people to its headcount over the next 12 months, compared with nearly 8,700 in the three months to December. TCS currently has about 144,500 staff.
However, CEO S Ramadorai said in an interview that the company expects to slow its rate of hiring new staff this year, as a broad economic downturn affects its global clientele.
Ramadorai said some contracts and projects were being delayed or cancelled, but the company expected to achieve some earnings growth in 2009 despite the worsening global economic outlook.
"We are confident of some growth, but what that amount is difficult to say," he said. "Yes, we are winning some contracts, but then there are delays in the decision making on a number of contracts," he said, adding there were hold-ups in implementing deals that had already been signed as well as several project cancellations.
"The slowdown is very obvious and very visible, and we think it will continue for the foreseeable future."
TCS, part of India's Tata Group, posted a lower-than-expected 1.6 per cent rise in October-December net profit on January 15.
Agencies
However, CEO S Ramadorai said in an interview that the company expects to slow its rate of hiring new staff this year, as a broad economic downturn affects its global clientele.
Ramadorai said some contracts and projects were being delayed or cancelled, but the company expected to achieve some earnings growth in 2009 despite the worsening global economic outlook.
"We are confident of some growth, but what that amount is difficult to say," he said. "Yes, we are winning some contracts, but then there are delays in the decision making on a number of contracts," he said, adding there were hold-ups in implementing deals that had already been signed as well as several project cancellations.
"The slowdown is very obvious and very visible, and we think it will continue for the foreseeable future."
TCS, part of India's Tata Group, posted a lower-than-expected 1.6 per cent rise in October-December net profit on January 15.
Agencies
Saturday, January 10, 2009
As airline demand falls Boeing likely to axe 4,500 jobs
Boeing Co., the world's second-largest airplane maker, is planning to cut about 3 percent of its work force as jetliner demand falls, hurt by the global economic downturn.
The Chicago-based company on Friday said it expects to cut about 4,500 positions from its passenger jet business, which has factories in the Seattle area. Many of the cuts will be in areas not directly associated with aircraft production.
The news comes a day after Boeing reported a 15 percent decline in passenger jet deliveries for 2008, when it faced an eight-week strike by union workers and shrinking airline demand. The lower deliveries ensured Boeing's archrival, Europe's Airbus, retained its rank as the world's top plane maker.
Orders for Boeing planes, meanwhile, plunged by more than half last year, following three straight years of exceptionally strong bookings, a grim reminder that carriers have been scaling back spending since the summer to cope with fewer air travelers.
Most of the job cuts announced Friday are expected to occur in Washington state in the second quarter of the year, the company said. Boeing says employees will receive 60-day notices starting in late February.
"We have made significant strides in recent years to achieve greater efficiency and productivity, but we still face challenges that we must address," Scott Carson, president and chief executive of Boeing's commercial airplanes division, said in a statement.
Boeing said the cuts will enable it to continue focusing on development programs, airplane deliveries, productivity improvements and quality, as well as customer support.
The company said this year's cuts will eliminate roughly the number of positions added to its commercial aircraft operation in 2008, lowering the total number to 63,500. Boeing employed a total of 162,191 people as of Dec. 31.
Agencies
The Chicago-based company on Friday said it expects to cut about 4,500 positions from its passenger jet business, which has factories in the Seattle area. Many of the cuts will be in areas not directly associated with aircraft production.
The news comes a day after Boeing reported a 15 percent decline in passenger jet deliveries for 2008, when it faced an eight-week strike by union workers and shrinking airline demand. The lower deliveries ensured Boeing's archrival, Europe's Airbus, retained its rank as the world's top plane maker.
Orders for Boeing planes, meanwhile, plunged by more than half last year, following three straight years of exceptionally strong bookings, a grim reminder that carriers have been scaling back spending since the summer to cope with fewer air travelers.
Most of the job cuts announced Friday are expected to occur in Washington state in the second quarter of the year, the company said. Boeing says employees will receive 60-day notices starting in late February.
"We have made significant strides in recent years to achieve greater efficiency and productivity, but we still face challenges that we must address," Scott Carson, president and chief executive of Boeing's commercial airplanes division, said in a statement.
Boeing said the cuts will enable it to continue focusing on development programs, airplane deliveries, productivity improvements and quality, as well as customer support.
The company said this year's cuts will eliminate roughly the number of positions added to its commercial aircraft operation in 2008, lowering the total number to 63,500. Boeing employed a total of 162,191 people as of Dec. 31.
Agencies
Saturday, November 29, 2008
Despite downturn VCs pour into India
The global economic downturn notwithstanding, venture capital investments have continued to flow into India and China, with both countries witnessing a significant surge in the third quarter this year.
According to a study by research firm Venture Intelligence, venture capital investment in India grew 36 per cent at 290 million dollars for the third quarter ended September 30.
Meanwhile in Mainland China, VC investments grew 22 per cent to 964 million dollars at the end of the third quarter, as per the data by Dow Jones VentureSource.
"It's clear that venture capital investors are still eager to put money into the emerging marketplace and, in many areas, they're actually accelerating the pace of their investments," Dow Jones VentureSource Global Research Director Jessica Canning said.
The increased investment by existing players and the entry of new funds contributed to the growth this quarter, the Venture Intelligence study stated.
"The pace of VC investments in India seems to be accelerating despite the turmoil in global financial markets," Venture Intelligence Founder and CEO Arun Natarajan said.
Meanwhile, as the number of VC deals nearly doubled in India to 49, China witnessed a saw the number dipping to 59 from 73 in the same period last fiscal.
"Larger deals drove investment in the third quarter as the median size of a venture deal in China remained at USD 10 million, which is the highest on record and the most out of any region we track, including the US," Canning said.
However, the venture capitalists shied away from investing in the Information Technology and IT-enabled Services (IT & ITeS) industry in China, the sector remained favourite among the VC firms invested in India.
Source: PTI
According to a study by research firm Venture Intelligence, venture capital investment in India grew 36 per cent at 290 million dollars for the third quarter ended September 30.
Meanwhile in Mainland China, VC investments grew 22 per cent to 964 million dollars at the end of the third quarter, as per the data by Dow Jones VentureSource.
"It's clear that venture capital investors are still eager to put money into the emerging marketplace and, in many areas, they're actually accelerating the pace of their investments," Dow Jones VentureSource Global Research Director Jessica Canning said.
The increased investment by existing players and the entry of new funds contributed to the growth this quarter, the Venture Intelligence study stated.
"The pace of VC investments in India seems to be accelerating despite the turmoil in global financial markets," Venture Intelligence Founder and CEO Arun Natarajan said.
Meanwhile, as the number of VC deals nearly doubled in India to 49, China witnessed a saw the number dipping to 59 from 73 in the same period last fiscal.
"Larger deals drove investment in the third quarter as the median size of a venture deal in China remained at USD 10 million, which is the highest on record and the most out of any region we track, including the US," Canning said.
However, the venture capitalists shied away from investing in the Information Technology and IT-enabled Services (IT & ITeS) industry in China, the sector remained favourite among the VC firms invested in India.
Source: PTI
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