Twenty seven lose job every hour in America

Despite the US economy showing indications of recovery, the global job market remains gloomy, with companies laying off at least 27 employees every hour to cut costs.

With companies continuing to reduce their headcount in their efforts to tackle the downturn, around 13,000 jobs have been slashed so far in September by some of the leading global firms most of them headquartered in the US.

Job losses of about 12,900 have been witnessed in just 20 days of this month, translating into an average of 645 people being laid off per day. In turn, the toll comes to at least 27 people losing jobs per hour.

The lay-offs are happening across almost all the sectors from pharma to software to refinery, among others.

Most of the job cuts happened in the United States, which has already seen a staggering 5,50,000 Americans filing for unemployment benefits in the first week of September.

Last week, US Federal Reserve chairman Ben Bernanke said the recession is “very likely over,” while America’s retail sales data strengthened on hopes that recovery from the economic downturn was progressing.

Bernanke, however, said that recovery would be slow and it would take time to create jobs.

September’s job cut wave was led by pharma major Eli Lilly & Company, which will slash around 5,500 jobs globally by 2011.

While in terms of numbers, diversified technology leader Danaher came next with 3,300job cuts followed by agricultural company Monsanto, which would reduce its headcount by 8% of its total workforce or about 1,800 people.

Defence major BAE Systems is also planning to cut 1,116 jobs across plants in the country and may shut down one of its facilities by the end of 2012.

Moreover, US-based computer maker Dell is eliminating 500 people while Deere & Company is reducing its workforce by 367 manufacturing employees.

Other companies which announced job cuts include — Valero Energy, which slashed the jobs of 150 employees and 100 contractors, HJ Heinz’s frozen food arm fires 65 workers in Idaho.

Agencies

US-listed Indian cos on a losing spree

Indian companies listed on the American bourses lost nearly six billion dollars in just one week, with the market value of HDFC Bank eroding as much as 1.38 billion dollars, amid worsening financial turmoil and scour corporate news battering world markets.

The 16 Indian firms in the New York Stock Exchange and Nasdaq collectively lost 5.74 billion dollar in their market capitalisation for the week ended November 21, even as two companies gained valuation.

In recent weeks, the American markets went into a tailspin primarily due to heightened concerns of a protracted economic slowdown and declining consumer spending in the world's largest economy.

Among the 16 Indian stocks listed as American Depository Receipts, apart from HDFC Bank, another private sector lender ICICI Bank too lost more than one billion dollars of valuation.
While the market value of HDFC Bank tumbled 1.37 billion dollars, that of ICICI Bank dropped 1.12 billion dollars.

However, pharma major Dr Reddy's Laboratories and outsourcing firm Genpact added to their market capitalisation. Dr Reddy's Laboratories witnessed a rise of 37 million dollar in valuation, whereas Genpact's value increased by 4.3 million dollars.

IT bellwether Infosys' market valuation eroded by one billion dollars, while that of IT major Wipro decreased by 863 million dollars. In addition, Satyam Computer Services saw a value erosion of 457 million dollars.

Further, leading auto maker Tata Motors lost 77 million dollars and telecom entity Tata Communications saw a decline in value to the tune of 677.17 million dollars.

Other entities whose market capitalisation declined are internet firms -- Sify Technologies and Rediff.com, outsourcing entities -- WNS and EXLService Holdings, leading copper producer Sterlite Industries, telecom company Mahanagar Telephone Nigam Ltd and IT firm Patni Computer Systems.

On Friday, the major American indices -- Dow Jones Industrial Average, S&P 500 and Nasdaq Composite -- snapped its four-day losing streak to close in the positive territory.

Dow jumped 494 points to end the day at 8,046.42 points, while S&P 500 rose over six per cent to 800 points. Nasdaq Composite jumped more than five per cent to close at 1,384.35 points.
The surge in stocks was mainly due to media reports that President-elect Barack Obama would appoint Timothy Geithner as the new Treasury Secretary. Geithner is presently the President of the Federal Reserve Bank of New York.

Source: PTI

Tech sector may lose 180,000 jobs

The technology sector is on pace to lose 180,000 jobs this year, the most since 2003, amid a global economic downturn, according to a report.

Challenger, Gray & Christmas, Inc, a Chicago-based global consulting firm which tracks job-cut announcements, said telecommunications, electronics and computer industry companies had cut 140,422 jobs through October 31.

It said 69,654 tech-sector jobs had been cut in the third quarter of the year alone. That did not include major layoffs announced since October 31 such as the 5,000 to 6,000 job cuts at Sun Microsystems.

"At the current pace, the year-end total could reach 180,000, which would be the largest annual total since 2003, when technology firms announced 228,325 job cuts," it said.

A total of 107,295 tech-sector jobs were cut in 2007.