Unlike IT majors TCS, Infosys, and Wipro, MindTree Ltd, a global IT and R&D services company, will not layoff even a single employee (minds), said COO N. S. Parthasarathy.
IT companies are currently among the largest sectors impacted by the global recession resulting in layoffs and salary cuts over the last few months.
Talking to CXOtoday at 'Awaaz', an event of the Amrita School of Business (ASB), Parthasarathy said, "Till date we have not sacked any staff in the history of MindTree despite having seen some impact due to the recession." The recession has hurt MindTree especially during the fourth quarter of the last fiscal. "We have felt the impact of the slowdown in the form of pricing pressure with companies now asking for a price reduction. Also, many companies are now offshoring their jobs to cut costs," said Parthasarathy.
The closest MindTree came to layoffs was in 2001, when the company was only two years old and had a manpower of only 400 employees. "There were 35 non-performers who were listed to be sacked, but our leadership team took the decision of a pay cut rather then layoff then," said Parthasarathy.
Since then the company came out with a policy not to layoff any 'minds', as MindTree terms their staff instead of manpower or employees.
The company has grown over the years and currently has over 8,000 'minds' with the acquisition of Aztecsoft in May 2008.
MindTree is hopeful of seeing the economic slowdown improve during quarter two and three this financial year.
CXOtoday.com
Showing posts with label layoff. Show all posts
Showing posts with label layoff. Show all posts
Monday, April 13, 2009
Thursday, February 12, 2009
Will General Motors layoff 10,000 salaried jobs?
General Motors Corp. said on Tuesday it will cut 10,000 salaried jobs, citing the need to restructure itself with a government deadline looming and amid some of the worst sales in the auto industry's history.
The Detroit-based automaker said it will reduce its total number of salaried workers to 63,000 from 73,000 this year. About 3,400 of GM's 29,500 salaried U.S. jobs are expected to be eliminated.
The company's statement said that the separations would be done through GM's severance plan, so there would be no buyout or early retirement packages as GM had offered in the past.
In its plan to Congress submitted late last year, GM said work force reductions would be necessary in order for it to be viable for the long term. Most of the cuts are expected to take place by May 1.
GM said the cuts will vary by global regions depending on staffing levels and market conditions.
In addition, GM said it will cut the pay of most of its salaried U.S. workers beginning May 1 and continuing at least through the end of the year at which time the pay cuts will be evaluated.
The pay of U.S. executive employees will be cut by 10 percent, while other salaried workers will see cuts of 3 percent to 7 percent, GM said.
GM faces a Feb. 17 deadline to present to the government a plan showing it can become viable. The plan is required by the terms of $9.4 billion in low-interest government loans to the wounded automaker, which is seeking another $4 billion from the Treasury Department.
The automaker is negotiating with bondholders and the United Auto Workers union for concessions and it is planning to close several factories. To prove its viability, it must show an ability to repay the loans and prove "positive net present value."
Agencies
The Detroit-based automaker said it will reduce its total number of salaried workers to 63,000 from 73,000 this year. About 3,400 of GM's 29,500 salaried U.S. jobs are expected to be eliminated.
The company's statement said that the separations would be done through GM's severance plan, so there would be no buyout or early retirement packages as GM had offered in the past.
In its plan to Congress submitted late last year, GM said work force reductions would be necessary in order for it to be viable for the long term. Most of the cuts are expected to take place by May 1.
GM said the cuts will vary by global regions depending on staffing levels and market conditions.
In addition, GM said it will cut the pay of most of its salaried U.S. workers beginning May 1 and continuing at least through the end of the year at which time the pay cuts will be evaluated.
The pay of U.S. executive employees will be cut by 10 percent, while other salaried workers will see cuts of 3 percent to 7 percent, GM said.
GM faces a Feb. 17 deadline to present to the government a plan showing it can become viable. The plan is required by the terms of $9.4 billion in low-interest government loans to the wounded automaker, which is seeking another $4 billion from the Treasury Department.
The automaker is negotiating with bondholders and the United Auto Workers union for concessions and it is planning to close several factories. To prove its viability, it must show an ability to repay the loans and prove "positive net present value."
Agencies
Wednesday, January 14, 2009
Barclays likely to layoff 2,100 jobs
Financial services major Barclays is to layoff 2,100 in investment banking and money management, as part of its cost cutting measures.
"Barclays is cutting about 2,100 jobs worldwide in investment banking and money management as it slashes costs to cope with the fall-out from the credit crisis", The Financial Times said.
According to FT, the company is cutting 1,300 people from Barclays Capital, the debt-focused investment banking business, 500 from the Barclays Wealth private banking arm, and 330 in asset management business Barclays Global Investors. Overall, the cuts amount to 7 per cent of the three divisions' staff, it added.
Noting that Barclays declined to reveal where the job cuts would come, the newspaper said that the axe is expected to fall heavily in London and New York.
However, the bank would continue to hire in areas such as equities, the report published online said.
Last year, Barclays had acquired the US operations of bankrupt Lehman Brothers.
Financial Times reported that at Barclays Wealth, cuts are expected in London, Glasgow and the Channel Islands. Quoting Unite, which represents staff at Barclays Wealth's division, the daily said, "We cannot continue with this situation of daily job cuts without any justification or explanation of the broader strategy for the bank."
"The bank, which built the units aggressively over the past five years to account for almost half of revenue, said it wanted to be 'appropriately sized', given the current market conditions," it added.
The move is likely to spark fears of further cost-cutting in Barclays' retail and corporate banking division, which includes its bank branch network, the report noted.
Agencies
"Barclays is cutting about 2,100 jobs worldwide in investment banking and money management as it slashes costs to cope with the fall-out from the credit crisis", The Financial Times said.
According to FT, the company is cutting 1,300 people from Barclays Capital, the debt-focused investment banking business, 500 from the Barclays Wealth private banking arm, and 330 in asset management business Barclays Global Investors. Overall, the cuts amount to 7 per cent of the three divisions' staff, it added.
Noting that Barclays declined to reveal where the job cuts would come, the newspaper said that the axe is expected to fall heavily in London and New York.
However, the bank would continue to hire in areas such as equities, the report published online said.
Last year, Barclays had acquired the US operations of bankrupt Lehman Brothers.
Financial Times reported that at Barclays Wealth, cuts are expected in London, Glasgow and the Channel Islands. Quoting Unite, which represents staff at Barclays Wealth's division, the daily said, "We cannot continue with this situation of daily job cuts without any justification or explanation of the broader strategy for the bank."
"The bank, which built the units aggressively over the past five years to account for almost half of revenue, said it wanted to be 'appropriately sized', given the current market conditions," it added.
The move is likely to spark fears of further cost-cutting in Barclays' retail and corporate banking division, which includes its bank branch network, the report noted.
Agencies
Wednesday, December 31, 2008
Motorola to layoff another 400 employees
Mobile phone maker Motorola Inc said it will lay off 400 more employees in the fourth-quarter than it originally planned, resulting in additional charges.
In October, Motorola announced a cost-reduction plan that included cutting a total of 3,000 jobs, with 1,500 coming in the fourth quarter. The change means 1,900 will be in the fourth quarter although the overall total will not change.
The plan is intended to save the company $800 million in 2009. The fourth-quarter job cuts, primarily from the mobile devices segment, were expected to result in charges totaling $104 million.
In a filing with the US Securities and Exchange Commission, the company said it has since approved plans to cut another 400 jobs in the quarter. Motorola now expects $189 million in charges in the period related to its cost-cutting initiative.
In the filing, Motorola said "all of the company's business segments, as well as various corporate functions, are impacted by these plans."
Earlier this month, Motorola said it would suspend contributions to its 401(k) worker retirement plan, freeze its pension plan, stop some pay increases and cut the salaries of its two top executives.
Shares of Schaumburg, Illinois-based Motorola closed up 11 cents at $4.16.
Source: Agencies
In October, Motorola announced a cost-reduction plan that included cutting a total of 3,000 jobs, with 1,500 coming in the fourth quarter. The change means 1,900 will be in the fourth quarter although the overall total will not change.
The plan is intended to save the company $800 million in 2009. The fourth-quarter job cuts, primarily from the mobile devices segment, were expected to result in charges totaling $104 million.
In a filing with the US Securities and Exchange Commission, the company said it has since approved plans to cut another 400 jobs in the quarter. Motorola now expects $189 million in charges in the period related to its cost-cutting initiative.
In the filing, Motorola said "all of the company's business segments, as well as various corporate functions, are impacted by these plans."
Earlier this month, Motorola said it would suspend contributions to its 401(k) worker retirement plan, freeze its pension plan, stop some pay increases and cut the salaries of its two top executives.
Shares of Schaumburg, Illinois-based Motorola closed up 11 cents at $4.16.
Source: Agencies
Friday, December 12, 2008
Are Indian companies still high on hiring?
Despite weaker forecast, employers in India remain among the most optimistic, according to a Manpower Employment Outlook Survey.
Though moving at a slower pace, the employers now report the second strongest hiring intentions globally, with a Net Employment Outlook (NEO) of 19 per cent. However, this Outlook represents a considerable decrease of 24 percentage points quarter-over-quarter and 27 percentage point’s year-over-year, the survey finds out.
Of the 33 countries and territories surveyed globally this quarter, employers in Peru are the most optimistic, with an NEO of 24 per cent. The NEO is derived by taking the percentage of employers anticipating total employment to increase and subtracting from this the percentage expecting to see a decrease in employment at their location over the next quarter.
“Though hiring intentions remain positive, Indian employers are reporting a much slower hiring pace, compared to the last quarter and year, says Manpower India MD Naresh Malhan. Employers in all the seven industry sectors and four regions have reported considerable decline in anticipated hiring activity for the first quarter of the New Year, its weakest since Q3 2005.
“The times may seem challenging, but the employment scenario in the country is not as gloomy as the rest of the world, and according to the survey, India will be one of the actively hiring nations for Q1 of 2009.”
Hiring-confidence of employers in India is the strongest of all the eight countries and territories across the Asia-Pacific region for the first quarter of 2009. Of the 3,557 employers surveyed, 22 per cent expect an increase in staffing levels in the quarter, 4 per cent anticipate a decrease, and 63 per cent are expecting no change.
Employers in mining & construction sector, for the third consecutive quarter, reported the most optimistic hiring intentions with an NEO of 23 per cent, though the Outlook shows a steep decline in employer hiring-confidence of 31 and 30 percentage points quarter-over-quarter and year-over-year, respectively.
Employers in services sector and mining & construction sector are expecting the most active hiring environment in the coming quarter with a Net Employment Outlook of 23 per cent.
Wholesale & retail trade employers reported the least optimistic hiring intentions with a Net Employment Outlook of 11 per cent.
Source: Times of India
Though moving at a slower pace, the employers now report the second strongest hiring intentions globally, with a Net Employment Outlook (NEO) of 19 per cent. However, this Outlook represents a considerable decrease of 24 percentage points quarter-over-quarter and 27 percentage point’s year-over-year, the survey finds out.
Of the 33 countries and territories surveyed globally this quarter, employers in Peru are the most optimistic, with an NEO of 24 per cent. The NEO is derived by taking the percentage of employers anticipating total employment to increase and subtracting from this the percentage expecting to see a decrease in employment at their location over the next quarter.
“Though hiring intentions remain positive, Indian employers are reporting a much slower hiring pace, compared to the last quarter and year, says Manpower India MD Naresh Malhan. Employers in all the seven industry sectors and four regions have reported considerable decline in anticipated hiring activity for the first quarter of the New Year, its weakest since Q3 2005.
“The times may seem challenging, but the employment scenario in the country is not as gloomy as the rest of the world, and according to the survey, India will be one of the actively hiring nations for Q1 of 2009.”
Hiring-confidence of employers in India is the strongest of all the eight countries and territories across the Asia-Pacific region for the first quarter of 2009. Of the 3,557 employers surveyed, 22 per cent expect an increase in staffing levels in the quarter, 4 per cent anticipate a decrease, and 63 per cent are expecting no change.
Employers in mining & construction sector, for the third consecutive quarter, reported the most optimistic hiring intentions with an NEO of 23 per cent, though the Outlook shows a steep decline in employer hiring-confidence of 31 and 30 percentage points quarter-over-quarter and year-over-year, respectively.
Employers in services sector and mining & construction sector are expecting the most active hiring environment in the coming quarter with a Net Employment Outlook of 23 per cent.
Wholesale & retail trade employers reported the least optimistic hiring intentions with a Net Employment Outlook of 11 per cent.
Source: Times of India
Wednesday, December 10, 2008
Were Jet officially responsible for sacking 1000 workers in September?
Much before its sack order to 1,900 employees turned into a publicity nightmare, Jet Airways had handed marching orders to 1,000 workers and even managed to keep it under wraps.
According to informed sources, Jet Airways CEO Wolfgang Prock-Schauer had told investors that the company was able to synergise better between full service Jet Airways and budget airlines JetLite after trimming its staff.
"On the staff numbers, we have reduced the headcount in September by further 1,000 entries and now able to synergise the operations between Jet and JetLite," the sources said quoting Prock-Schauer.
Despite repeated attemps to elicit comments, Jet Airways spokesperson did not respond.
During September, Jet Airways had anounced that JetLite offered voluntary separation scheme to 687 employees.
In the same month, Jet and JetLite executed a codeshare agreement aimed at offering better connections and wider connectivity, besides having a common reservation system.
The carrier, which has a total of 13,000 employees, played out the sacking-and-reinstatement drama of 1,900 employees in October, with Chairman Naresh Goyal 'overruling' its Board decision to fire the employees.
"I apologise for all the agony you had to go through for two days. You can all come back to work from tomorrow. We have decided to take back all the employees," Goyal had said in a midnight press conference.
Jet came under attack from various ministers and agitating employees for the sudden decision to sack so many people immediately, especially ahead of Diwali. It, however, defended itself stating that the decision was taken to save the jobs of the other 11,100 employees and would result in savings of $1million a month.
Source: Agencies
According to informed sources, Jet Airways CEO Wolfgang Prock-Schauer had told investors that the company was able to synergise better between full service Jet Airways and budget airlines JetLite after trimming its staff.
"On the staff numbers, we have reduced the headcount in September by further 1,000 entries and now able to synergise the operations between Jet and JetLite," the sources said quoting Prock-Schauer.
Despite repeated attemps to elicit comments, Jet Airways spokesperson did not respond.
During September, Jet Airways had anounced that JetLite offered voluntary separation scheme to 687 employees.
In the same month, Jet and JetLite executed a codeshare agreement aimed at offering better connections and wider connectivity, besides having a common reservation system.
The carrier, which has a total of 13,000 employees, played out the sacking-and-reinstatement drama of 1,900 employees in October, with Chairman Naresh Goyal 'overruling' its Board decision to fire the employees.
"I apologise for all the agony you had to go through for two days. You can all come back to work from tomorrow. We have decided to take back all the employees," Goyal had said in a midnight press conference.
Jet came under attack from various ministers and agitating employees for the sudden decision to sack so many people immediately, especially ahead of Diwali. It, however, defended itself stating that the decision was taken to save the jobs of the other 11,100 employees and would result in savings of $1million a month.
Source: Agencies
Tuesday, November 18, 2008
Citigroup to fire 52,000 jobs globally
Citigroup Inc revealed plans to cut 52,000 jobs by early next year in a dramatic move to restore the No. 2 U.S. bank to health as it combats mounting debt losses and sagging economies worldwide.
The cuts announced by Chief Executive Vikram Pandit on Monday affect 15 percent of Citigroup's workforce, and are in addition to 23,000 jobs eliminated between January and September.
Citigroup plans to slash expenses by as much as 20 percent, and spend a total of $50 billion to $52 billion in 2009. That compares with $61.9 billion over the last four quarters.
The cuts will be global, affecting many regions and business lines, including the retail and investment banks, a person close to the matter said. About one-half will come from layoffs and attrition, and the rest from the sale of units, such as the German retail banking business.
Pandit became Citigroup's chief executive last December, and has faced much criticism from investors and others for failing to implement a workable turnaround plan. The New York-based bank has lost $20.3 billion in the last year, and some analysts do not expect it to make money before 2010.
"As the economy continues to weaken they will have greater credit losses," said Michael Holland, founder of money manager Holland & Co in New York. "Cuts will lessen the losses, but they in no way guarantee profitability."
Pandit told employees in a memo that Citigroup has spent the last year "getting fit," and projects a "difficult" 2009 for clients and customers.
Citigroup's latest cuts are the most by any U.S. company since the global credit crisis began last year. They are also the second most ever, trailing the 60,000 that International Business Machines Corp IBM announced in 1993, according to outplacement firm Challenger, Gray & Christmas Inc.
The latest cuts would leave Citigroup with about 300,000 employees, down 20 percent from the end of 2007 and about the same number it had at the end of 2005. People at the bank said the cuts should be made by the first couple of months of 2009.
The cuts announced by Chief Executive Vikram Pandit on Monday affect 15 percent of Citigroup's workforce, and are in addition to 23,000 jobs eliminated between January and September.
Citigroup plans to slash expenses by as much as 20 percent, and spend a total of $50 billion to $52 billion in 2009. That compares with $61.9 billion over the last four quarters.
The cuts will be global, affecting many regions and business lines, including the retail and investment banks, a person close to the matter said. About one-half will come from layoffs and attrition, and the rest from the sale of units, such as the German retail banking business.
Pandit became Citigroup's chief executive last December, and has faced much criticism from investors and others for failing to implement a workable turnaround plan. The New York-based bank has lost $20.3 billion in the last year, and some analysts do not expect it to make money before 2010.
"As the economy continues to weaken they will have greater credit losses," said Michael Holland, founder of money manager Holland & Co in New York. "Cuts will lessen the losses, but they in no way guarantee profitability."
Pandit told employees in a memo that Citigroup has spent the last year "getting fit," and projects a "difficult" 2009 for clients and customers.
Citigroup's latest cuts are the most by any U.S. company since the global credit crisis began last year. They are also the second most ever, trailing the 60,000 that International Business Machines Corp IBM announced in 1993, according to outplacement firm Challenger, Gray & Christmas Inc.
The latest cuts would leave Citigroup with about 300,000 employees, down 20 percent from the end of 2007 and about the same number it had at the end of 2005. People at the bank said the cuts should be made by the first couple of months of 2009.
Wednesday, October 29, 2008
India Inc may lay off 25pc jobs in 10 days
ASSOCHAM said the job cuts would be across the steel, cement, construction, real estate, aviation, IT-enabled services and financial services sectors Indian firms are likely to lay off a quarter of their employees in the next 10 days, as part of steps to contain costs in the face of shrinking margins amidst the economic turmoil, an industry body said on Wednesday.
Trade body Associated Chambers of Commerce and Industry of India (ASSOCHAM) said the job cuts would be across the steel, cement, construction, real estate, aviation, IT-enabled services and financial services sectors.
Expansion has slowed in Asia's third-largest economy in the last two quarters, from the 8 per cent or more annual growth in the past four years, with high interest rates crimping demand and on the global financial crisis.
The central bank last week cut its forecast for growth in 2008/09 to 7.5-8 per cent from its earlier view of 8 per cent. This compares with the economy's 9 per cent growth in 2007/08.
"Employers have no other alternatives as part of their corporate strategy ... for sustaining their operations with squeezed margins (even) after after drastic cost cutting measures," ASSOCHAM said in a statement.
Trade body Associated Chambers of Commerce and Industry of India (ASSOCHAM) said the job cuts would be across the steel, cement, construction, real estate, aviation, IT-enabled services and financial services sectors.
Expansion has slowed in Asia's third-largest economy in the last two quarters, from the 8 per cent or more annual growth in the past four years, with high interest rates crimping demand and on the global financial crisis.
The central bank last week cut its forecast for growth in 2008/09 to 7.5-8 per cent from its earlier view of 8 per cent. This compares with the economy's 9 per cent growth in 2007/08.
"Employers have no other alternatives as part of their corporate strategy ... for sustaining their operations with squeezed margins (even) after after drastic cost cutting measures," ASSOCHAM said in a statement.
Subscribe to:
Posts (Atom)