Is it pinkslips time at Cisco? Predicting a significant drop in revenue for the fourth quarter, a JP Morgan analyst has reported that Cisco Systems Inc "could" soon announce a workforce reduction of 10 percent (this could be equal to about 6,600 employees).
In his 49-page first-quarter 2009 preview of communications equipment and networking companies, analyst, Ehud Gelblum, of JP Morgan wrote, "We expect Cisco to guide fourth fiscal quarter revenue down 17-22%, year over year, as demand continues to deteriorate, in-line with our estimate for a 21 per cent year over year decline," "We believe Cisco could also announce a 10% headcount reduction, which we calculate could save $900M annually," he wrote.
The recent lowering of sales projections by two of Cisco's competitor's Juniper Network and F5 Network has led to a similar speculation about the company.
Cisco spokesman reportedly refused to comment on JP Morgan report directly. However, in a statement he said that on our fiscal second quarter 2009 earnings call in February we discussed a limited restructuring where we could in the near term see a total reduction of between 1500 and 2000 jobs company wide. This does not represent a broad-scale layoff in our workforce.
The spokesman added that this limited restructuring is part of our ongoing, targeted realignment of resources. While Cisco constantly manages its business priorities, resources and overall employee alignment as part of our overall business management process, we are sensitive to the impact these decisions have on employees during this challenging economic environment. We are doing everything possible to minimize the impact on employees affected by the limited restructuring.
Indiatimes
Friday, April 17, 2009
Infosys to cut variable pay compenent
Infosys has cut the variable pay for employees, with the cuts being deeper at the higher levels. For senior executives, the variable pay, which constitutes nearly 50 per cent of their total compensation, has been slashed by 58 per cent.
“Some boardroom executives have even taken a 70 per cent to 85 per cent variable pay cut,” said T V Mohandas Pai, head of HR in Infosys. The company's hiring has been steadily declining.
In Q4, it added (net) only 1,772 people, compared to 2,772 in Q3, and 2,586 in Q4 of 2007-08. In the whole of 2008-09, it hired (net) 13,663 people, down from 18,946 in the year before.
The company maintained that it will not seek to trim its payroll by laying off software professionals. There will, however, be no salary hike this year, as the company plans to keep its operational costs under control.
“We are not laying off anybody and there are no such plans,” said Infosys Technologies HR-director, TV Mohandas Pai.
Infosys plans to hire 18,000 professionals in the current fiscal, including almost 16,000 fresh graduates and experienced hires. It will also recruit around 1,000 non-Indians outside the country to increase the number of foreign professionals in its workforce.
Times News Network
“Some boardroom executives have even taken a 70 per cent to 85 per cent variable pay cut,” said T V Mohandas Pai, head of HR in Infosys. The company's hiring has been steadily declining.
In Q4, it added (net) only 1,772 people, compared to 2,772 in Q3, and 2,586 in Q4 of 2007-08. In the whole of 2008-09, it hired (net) 13,663 people, down from 18,946 in the year before.
The company maintained that it will not seek to trim its payroll by laying off software professionals. There will, however, be no salary hike this year, as the company plans to keep its operational costs under control.
“We are not laying off anybody and there are no such plans,” said Infosys Technologies HR-director, TV Mohandas Pai.
Infosys plans to hire 18,000 professionals in the current fiscal, including almost 16,000 fresh graduates and experienced hires. It will also recruit around 1,000 non-Indians outside the country to increase the number of foreign professionals in its workforce.
Times News Network
Thursday, April 16, 2009
New email server for Microsoft
Microsoft Corp said it will launch a test version of its Exchange Server, marking the latest development in the technology used by 65 percent of businesses worldwide to run their email systems.
The public beta test version of Exchange Server 2010, as the product is called, is the first of a wave of upgrades to Microsoft programs as the software giant gears up for the next release of its highly successful and profitable Office suite of applications.
Microsoft, which is gradually moving toward Internet distribution for some of its products to counter threats from Google Inc and other new competitors, said the latest Exchange Server can work entirely as an online service, which may attract customers looking to save money on hardware and support for their email and messaging systems.
For users, the new Exchange Server offers a few innovations, including the ability to "mute" streams of email, or opt out of conversations of limited interest to the recipient.
The new system also offers a range of tips to avoid embarrassment or wasting time, by warning users before they send mail to large distribution groups, to out-of-office recipients or to people outside the organization, which Microsoft hopes will protect against information leaks and reduce unnecessary e-mail messages.
It also has a function to transcribe voice messages sent to the computer. The full public roll-out of Exchange Server 2010 is scheduled for the second half of 2009 while Microsoft's Office 2010 is expected to be available in the first half of 2010.
Agencies
The public beta test version of Exchange Server 2010, as the product is called, is the first of a wave of upgrades to Microsoft programs as the software giant gears up for the next release of its highly successful and profitable Office suite of applications.
Microsoft, which is gradually moving toward Internet distribution for some of its products to counter threats from Google Inc and other new competitors, said the latest Exchange Server can work entirely as an online service, which may attract customers looking to save money on hardware and support for their email and messaging systems.
For users, the new Exchange Server offers a few innovations, including the ability to "mute" streams of email, or opt out of conversations of limited interest to the recipient.
The new system also offers a range of tips to avoid embarrassment or wasting time, by warning users before they send mail to large distribution groups, to out-of-office recipients or to people outside the organization, which Microsoft hopes will protect against information leaks and reduce unnecessary e-mail messages.
It also has a function to transcribe voice messages sent to the computer. The full public roll-out of Exchange Server 2010 is scheduled for the second half of 2009 while Microsoft's Office 2010 is expected to be available in the first half of 2010.
Agencies
Will Yahoo layoff hundreds of employees?
Yahoo Inc is gearing up for its third round of mass layoffs in 14 months, signaling the long-slumping Internet company is still struggling to snap out of its financial malaise under a new leadership team.
The cuts will likely affect several hundred employees, a person familiar with the plan said, confirming a report first published on The New York Times' Web site.
The person asked to remain anonymous because Yahoo isn't publicly discussing anything that might affect its stock price until the April 21 release of the Sunnyvale, California-based company's first-quarter earnings report.
Most analysts expect those results to be lackluster, extending a pattern of disappointing profits that began in 2006.
Yahoo hired technology veteran Carol Bartz as its chief executive in January to steer a turnaround. The blunt-talking Bartz has spent much of her tenure trying to understand Yahoo's strengths and weaknesses while promising to throw out the dead wood. She already has reorganized Yahoo's management team.
Bartz's predecessor, Yahoo co-founder Jerry Yang, also tried to shake things up by laying off about 1,000 workers in February 2008 only to expand the payroll again in the next few months. Just before Bartz's hiring, Yahoo eliminated more than 1,500 jobs to enter 2009 with 13,600 workers.
When they made the last cuts, Yahoo executives warned more layoffs could be coming if the recession worsened — an unwelcome turn that occurred during the first three months of the year.
The deepening downturn has caused more advertisers to trim their spending, a trend that has hurt all companies like Yahoo that depend on advertising for most of their revenue. The retrenchment has been a bigger problem for more traditional media, particularly newspapers, but it's also forcing Internet companies to tighten their belts.
Even Internet search leader Google Inc, which generates three times more revenue than Yahoo, decided to lay off about 340 workers and curb other expenses during the first quarter to bolster its profits during the tough times.
Agencies
The cuts will likely affect several hundred employees, a person familiar with the plan said, confirming a report first published on The New York Times' Web site.
The person asked to remain anonymous because Yahoo isn't publicly discussing anything that might affect its stock price until the April 21 release of the Sunnyvale, California-based company's first-quarter earnings report.
Most analysts expect those results to be lackluster, extending a pattern of disappointing profits that began in 2006.
Yahoo hired technology veteran Carol Bartz as its chief executive in January to steer a turnaround. The blunt-talking Bartz has spent much of her tenure trying to understand Yahoo's strengths and weaknesses while promising to throw out the dead wood. She already has reorganized Yahoo's management team.
Bartz's predecessor, Yahoo co-founder Jerry Yang, also tried to shake things up by laying off about 1,000 workers in February 2008 only to expand the payroll again in the next few months. Just before Bartz's hiring, Yahoo eliminated more than 1,500 jobs to enter 2009 with 13,600 workers.
When they made the last cuts, Yahoo executives warned more layoffs could be coming if the recession worsened — an unwelcome turn that occurred during the first three months of the year.
The deepening downturn has caused more advertisers to trim their spending, a trend that has hurt all companies like Yahoo that depend on advertising for most of their revenue. The retrenchment has been a bigger problem for more traditional media, particularly newspapers, but it's also forcing Internet companies to tighten their belts.
Even Internet search leader Google Inc, which generates three times more revenue than Yahoo, decided to lay off about 340 workers and curb other expenses during the first quarter to bolster its profits during the tough times.
Agencies
Microsoft to provide free training for the unemployed
Microsoft Corp announced that it would be giving away more than 30,000 vouchers over the next 90 days to help unemployed people in Washington state get new computer skills.
The vouchers will entitle them to take computer classes for free -- either in person or online -- and take Microsoft certification exams at no or low cost.
At a news conference in Seattle, Gov. Chris Gregoire commended Microsoft for stepping up to the challenge of helping the nation come out of the recession stronger.
"When this downturn ends, we will need more skilled workers ready to enter the job market. Microsoft's generosity will provide thousands of men and women the skills they need to work with the software that runs our businesses," Gregoire said.
Washington's WorkSource job centers across Washington started giving out the vouchers on Monday. Washington state had the 17th highest unemployment rate in the country last month with a jobless rate of 8.4 per cent.
The vouchers are part of a new national programme Microsoft announced at the National Governors Conference in February. Elevate America hopes to offer job training to as many as 2 million Americans over the next three years.
Sue T Carter of Bellevue picked up one of the first vouchers. She said she has been working part time for more than two years and really needs to find a job that will help her pay her rent, because she is less than a month away from eviction.
Carter earned several college degrees years ago and has picked up most of her computer skills on her own, but she knows companies seek employees with professional training.
"Knowledge is power and I'm willing to do anything to make myself a more viable candidate in the workplace," Carter said. "It always makes you more viable if you've got more skills to offer."
She expressed enthusiasm that the training programme is not costing taxpayers anything. Brad Smith, Microsoft senior vice president and general counsel, said the company also is excited about the public-private partnership because it will help both people and businesses.
"This programme is all about equipping people with the new skills they'll need to get a job in the changing economy," Smith said.
The free training will be for Microsoft software, from basic technology literacy to intermediate-level courses on programmes such as Excel and PowerPoint.
Agencies
The vouchers will entitle them to take computer classes for free -- either in person or online -- and take Microsoft certification exams at no or low cost.
At a news conference in Seattle, Gov. Chris Gregoire commended Microsoft for stepping up to the challenge of helping the nation come out of the recession stronger.
"When this downturn ends, we will need more skilled workers ready to enter the job market. Microsoft's generosity will provide thousands of men and women the skills they need to work with the software that runs our businesses," Gregoire said.
Washington's WorkSource job centers across Washington started giving out the vouchers on Monday. Washington state had the 17th highest unemployment rate in the country last month with a jobless rate of 8.4 per cent.
The vouchers are part of a new national programme Microsoft announced at the National Governors Conference in February. Elevate America hopes to offer job training to as many as 2 million Americans over the next three years.
Sue T Carter of Bellevue picked up one of the first vouchers. She said she has been working part time for more than two years and really needs to find a job that will help her pay her rent, because she is less than a month away from eviction.
Carter earned several college degrees years ago and has picked up most of her computer skills on her own, but she knows companies seek employees with professional training.
"Knowledge is power and I'm willing to do anything to make myself a more viable candidate in the workplace," Carter said. "It always makes you more viable if you've got more skills to offer."
She expressed enthusiasm that the training programme is not costing taxpayers anything. Brad Smith, Microsoft senior vice president and general counsel, said the company also is excited about the public-private partnership because it will help both people and businesses.
"This programme is all about equipping people with the new skills they'll need to get a job in the changing economy," Smith said.
The free training will be for Microsoft software, from basic technology literacy to intermediate-level courses on programmes such as Excel and PowerPoint.
Agencies
Tuesday, April 14, 2009
Is IBM set to layoff thousands of jobs?
International Business Machines Corp plans to cut “thousands” of staff in the UK, Germany and Ireland as it shifts jobs to eastern Europe, China, India and South America, the Observer reported.
Job reductions have already been carried out in western Europe and more will be made within months, the newspaper said, citing Lee Conrad of Alliance@IBM, a network for company employees.
Indian workers at the company earn about 10 per cent of the amount paid to US employees performing similar tasks, according to the newspaper.
An IBM official told the media that a number of US employees have been laid off, declining to comment on future job reductions.
London-based IBM spokesman Joe Hanley said IBM declined to comment on “speculation regarding resource actions.”
Agencies
Job reductions have already been carried out in western Europe and more will be made within months, the newspaper said, citing Lee Conrad of Alliance@IBM, a network for company employees.
Indian workers at the company earn about 10 per cent of the amount paid to US employees performing similar tasks, according to the newspaper.
An IBM official told the media that a number of US employees have been laid off, declining to comment on future job reductions.
London-based IBM spokesman Joe Hanley said IBM declined to comment on “speculation regarding resource actions.”
Agencies
BT likely to layoff another 10,000 jobs
British Telecom (BT) is preparing to axe another 10,000 jobs. The huge redundancy programme will be announced next month alongside a horrendous set of year-end figures that will include provisions of about £1.5 billion.
The results will mark one of the lowest points in BT’s history since it was privatized in 1984. The share price has crashed to 81 pence, valuing the telecom company at £6.3 billion. It will also seriously damage the legacy of Ben Verwaayen, BT’s former chief executive, who left eight months ago and has since become chief executive at Alcatel-Lucent .
The dividend is likely to be cut by up to 60%, while profits will be further dented by a big contribution to address a pension deficit that will exceed £8 billion. The redundancies, which result from an improvement in BT’s efficiency, are in addition to the 10,000 job cuts made last year and will be spread around BT’s 160,000 workforce. There is no guarantee that this will mark the end of job losses. Some analysts believe next month’s figure could be higher than 12,000.
Agencies
The results will mark one of the lowest points in BT’s history since it was privatized in 1984. The share price has crashed to 81 pence, valuing the telecom company at £6.3 billion. It will also seriously damage the legacy of Ben Verwaayen, BT’s former chief executive, who left eight months ago and has since become chief executive at Alcatel-Lucent .
The dividend is likely to be cut by up to 60%, while profits will be further dented by a big contribution to address a pension deficit that will exceed £8 billion. The redundancies, which result from an improvement in BT’s efficiency, are in addition to the 10,000 job cuts made last year and will be spread around BT’s 160,000 workforce. There is no guarantee that this will mark the end of job losses. Some analysts believe next month’s figure could be higher than 12,000.
Agencies
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