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
Wednesday, December 31, 2008
Dell preparing for changes in senior management
Dell Inc's president of global operations, Michael Cannon, and chief marketing officer, Mark Jarvis will leave their roles in moves expected to be announced soon, the Wall Street Journal said, citing people briefed on the matter.
The people told the paper that they expect Jarvis to leave Dell, while Cannon will likely stay on in a different capacity.
Other changes are expected to focus on cutting costs and gaining tighter control over the company's global operations.
Two people with knowledge of the situation told the paper that Dell may also make cuts to its lower executive ranks.
The impending changes are intended to make managing Dell's world-wide business more efficient, people briefed on the matter said.
Operations now divided by geography will be consolidated into international business units, a shift Dell made earlier this year with its consumer division.
A Dell spokesman declined to comment to the paper on any changes, but said Dell has "been in a two-year process of positioning the company best for customers and long-term growth."
Dell could not be immediately reached for comment.
Source: Agencies
The people told the paper that they expect Jarvis to leave Dell, while Cannon will likely stay on in a different capacity.
Other changes are expected to focus on cutting costs and gaining tighter control over the company's global operations.
Two people with knowledge of the situation told the paper that Dell may also make cuts to its lower executive ranks.
The impending changes are intended to make managing Dell's world-wide business more efficient, people briefed on the matter said.
Operations now divided by geography will be consolidated into international business units, a shift Dell made earlier this year with its consumer division.
A Dell spokesman declined to comment to the paper on any changes, but said Dell has "been in a two-year process of positioning the company best for customers and long-term growth."
Dell could not be immediately reached for comment.
Source: Agencies
Air India announces fare cut up to 82pc
A day after Jet Airways reduced fares on domestic routes, state-owned operator Air India on Tuesday announced fare cut up to 82 percent in at least 20 sectors, mostly on metro routes, a senior airline official said.
"The new fare cut comes into effect today (Tuesday). We have cut fares on 20 sectors by up to 82 per cent. This will largely benefit passengers on metro routes," an airline spokesperson told reporters.
India's leading private air carrier Jet Airways Monday reduced fares on its domestic routes by up to 40 percent with immediate effect.
Another leading carrier, Kingfisher Airlines, Sunday announced fare cut from Jan 1. However, it has not announced the quantum of fare cut.
Low cost carriers are also expected to follow suit, said an industry official. The fare cuts comes in the wake of slackening demand in the post-peak season and continued decline in fuel prices.
Over the past four months, there has been a sharp decline in aviation fuel prices. While some air carriers earlier this month reduced the fuel surcharge on the ticket price by Rs 200 to Rs 400, they did not touch the base fare.
Oil companies have reduced aviation fuel prices seven times since September. The fuel is now sold at Rs 32,691.28 per kilolitre in Delhi after prices were slashed by Rs 4,208.37 in the first week of December.
Source: Airlines
"The new fare cut comes into effect today (Tuesday). We have cut fares on 20 sectors by up to 82 per cent. This will largely benefit passengers on metro routes," an airline spokesperson told reporters.
India's leading private air carrier Jet Airways Monday reduced fares on its domestic routes by up to 40 percent with immediate effect.
Another leading carrier, Kingfisher Airlines, Sunday announced fare cut from Jan 1. However, it has not announced the quantum of fare cut.
Low cost carriers are also expected to follow suit, said an industry official. The fare cuts comes in the wake of slackening demand in the post-peak season and continued decline in fuel prices.
Over the past four months, there has been a sharp decline in aviation fuel prices. While some air carriers earlier this month reduced the fuel surcharge on the ticket price by Rs 200 to Rs 400, they did not touch the base fare.
Oil companies have reduced aviation fuel prices seven times since September. The fuel is now sold at Rs 32,691.28 per kilolitre in Delhi after prices were slashed by Rs 4,208.37 in the first week of December.
Source: Airlines
GM cuts financing costs; GMAC expands lending
General Motors Corp and its financing affiliate GMAC on Tuesday announced programs to make it easier for car and truck buyers to get financing, a day after GMAC agreed to sell the government a $5 billion stake.
Through Jan. 5, GM will offer interest rates of zero percent to 4.9 percent on loans of up to five years on various 2008 model year vehicles, and 3.9 percent to 5.9 percent on some 2009 vehicles. Many of the vehicles also carry cash discounts of $500 to $4,250.
The move is a bid to capitalize on GMAC's separate plan to provide auto financing to more U.S. consumers. GMAC will extend loans to retail buyers with credit scores of 621 or higher. In October it had restricted loans to borrowers with scores of 700 or higher.
Many analysts consider borrowers with credit scores of 620 or lower to be "subprime." Dealer wholesale financing is unchanged, GMAC said.
GMAC is owned by GM and private equity firm Cerberus Capital Management LP [CBS.UL].
The changes may help bolster sales at GM, the nation's largest automaker, following a 41 percent plunge in November.
GMAC has traditionally provided the bulk of financing for GM's retail customers and the floorplan financing that dealers rely on to carry car and truck inventory.
Mark LaNeve, GM's sales and marketing chief, said the lower financing costs will encourage customers to "get back into the game."
Source: Agencies
Through Jan. 5, GM will offer interest rates of zero percent to 4.9 percent on loans of up to five years on various 2008 model year vehicles, and 3.9 percent to 5.9 percent on some 2009 vehicles. Many of the vehicles also carry cash discounts of $500 to $4,250.
The move is a bid to capitalize on GMAC's separate plan to provide auto financing to more U.S. consumers. GMAC will extend loans to retail buyers with credit scores of 621 or higher. In October it had restricted loans to borrowers with scores of 700 or higher.
Many analysts consider borrowers with credit scores of 620 or lower to be "subprime." Dealer wholesale financing is unchanged, GMAC said.
GMAC is owned by GM and private equity firm Cerberus Capital Management LP [CBS.UL].
The changes may help bolster sales at GM, the nation's largest automaker, following a 41 percent plunge in November.
GMAC has traditionally provided the bulk of financing for GM's retail customers and the floorplan financing that dealers rely on to carry car and truck inventory.
Mark LaNeve, GM's sales and marketing chief, said the lower financing costs will encourage customers to "get back into the game."
Source: Agencies
Tuesday, December 30, 2008
RCom plans to invest Rs 4,000 crore on 3G network
Reliance Communications is looking forward to participate in the 3G auction slated for next year, company chairman Anil Ambani said Tuesday.
The company has planned an investment of Rs 2,000 crore to Rs 4,000 crore on 3G services, he said.
Ambani also said the company would participate in the auction for spectrum on a nationwide basis and not restrict to a few circles.
The company has planned an investment of Rs 2,000 crore to Rs 4,000 crore on 3G services, he said.
Ambani also said the company would participate in the auction for spectrum on a nationwide basis and not restrict to a few circles.
Indian IT cos eye Japanese outsourcing biz
After neutralising their mother-tongue accent and mastering the American drawl, Indian geeks are busy learning Japan’s Kanji, Katakana and Hiragana symbols.
Reason: The recession is eating into the volume of outsourced IT work from the US; and after the US, Japan is an important market from the IT perspective, more so during the current period.
Take the case of Suman Reddy Ragidi, a business analyst of Cognizant. Japanese language training has enabled her to converse with clients both in formal as well as informal situations.
“The training has also made it easier for me to understand all project documentation written in Japanese,’’ says Reddy Ragidi. On its part, Cognizant runs foreign language training in its offices and its mandatory for employees to enroll in such language courses.
“Language is an important aspect of culture and such training is helpful in everyday communication. Importantly, employees are able to articulate their viewpoints to clients,’’ says K Venkataraman, director of Cognizant.
The Japanese IT services market is valued at $108 billion, according to a recent survey by Nasscom and Pricewaterhouse-Coopers. India has bagged only 13 per cent of this offshoring pie. Moreover, demand for software is primarily driven by the BFSI (banking, financial, services and insurance) and manufacturing companies which consume 42 per cent of the total IT services.
Another Chennai-based IT player Infoview Technologies, whose business comes fully from Japanese majors, is making sure its employees know Japanese symbols by heart. Around three-fourth of the company’s employees have learnt the language and the top management team which accounts for 10 per cent of the workforce has reached the ‘near native level’ in terms of mastering the language.
The company also recently launched an online Japanese learning software for beginners in India. JWEIC is developed by WEIC Corporation, a Japanese company that is into production and sales of e-learning language and learning management systems. Infoview, which has the rights to sell the software in India and Singapore, is targeting executives and college students alike for the online course. It is targeting 10,000 learners during the first year.
Similarly, Noida-based Nucleus Software which generates half of its revenues from Japan is encouraging its employees to learn the language. “Right now, we are utilising the services of interpreters and translators,’’ says chief executive and managing director, Vishnu Dusad.
For Indian IT entrepreneurs like Chandrasekaran of Infoview Technologies and Dusad of Nucleus the lure for doing business with ‘The Land of the Rising Sun’ is the importance that the Japanese place to long-term relationships. “It’s tough to crack the market initially,” says Cheran Chandrasekaran, CEO, Infoview Technologies.
Source: Times of India
Reason: The recession is eating into the volume of outsourced IT work from the US; and after the US, Japan is an important market from the IT perspective, more so during the current period.
Take the case of Suman Reddy Ragidi, a business analyst of Cognizant. Japanese language training has enabled her to converse with clients both in formal as well as informal situations.
“The training has also made it easier for me to understand all project documentation written in Japanese,’’ says Reddy Ragidi. On its part, Cognizant runs foreign language training in its offices and its mandatory for employees to enroll in such language courses.
“Language is an important aspect of culture and such training is helpful in everyday communication. Importantly, employees are able to articulate their viewpoints to clients,’’ says K Venkataraman, director of Cognizant.
The Japanese IT services market is valued at $108 billion, according to a recent survey by Nasscom and Pricewaterhouse-Coopers. India has bagged only 13 per cent of this offshoring pie. Moreover, demand for software is primarily driven by the BFSI (banking, financial, services and insurance) and manufacturing companies which consume 42 per cent of the total IT services.
Another Chennai-based IT player Infoview Technologies, whose business comes fully from Japanese majors, is making sure its employees know Japanese symbols by heart. Around three-fourth of the company’s employees have learnt the language and the top management team which accounts for 10 per cent of the workforce has reached the ‘near native level’ in terms of mastering the language.
The company also recently launched an online Japanese learning software for beginners in India. JWEIC is developed by WEIC Corporation, a Japanese company that is into production and sales of e-learning language and learning management systems. Infoview, which has the rights to sell the software in India and Singapore, is targeting executives and college students alike for the online course. It is targeting 10,000 learners during the first year.
Similarly, Noida-based Nucleus Software which generates half of its revenues from Japan is encouraging its employees to learn the language. “Right now, we are utilising the services of interpreters and translators,’’ says chief executive and managing director, Vishnu Dusad.
For Indian IT entrepreneurs like Chandrasekaran of Infoview Technologies and Dusad of Nucleus the lure for doing business with ‘The Land of the Rising Sun’ is the importance that the Japanese place to long-term relationships. “It’s tough to crack the market initially,” says Cheran Chandrasekaran, CEO, Infoview Technologies.
Source: Times of India
AMD raises layoff count to 600 now
US chip maker Advanced Micro Devices Inc said that it laid off 600 workers, 100 more than first announced, and was taking yet another charge related to its $5.4 billion purchase of ATI Technologies Inc.
AMD said it cut 600 employees in its most recent quarter, compared with the 500 it had originally planned. As a result, the company now expects to record $70 million in restructuring charges, versus the $50 million it previously predicted.
In addition, the new cost reductions would result in more charges in the first half of 2009, although AMD would not provide an estimate.
The chip maker also said it would take a goodwill impairment charge related to its 2006 acquisition of graphics chip maker ATI. AMD said its decision was "based on the results of an updated, long-term financial outlook" for the business, according to a filing with US securities regulators.
The company said it could not estimate the size of the charge, which would be material and non-cash, according to the filing with the US Securities and Exchange Commission. A company spokesman declined to provide any further detail.
It is the latest charge AMD has taken related to its purchase of ATI. In the June quarter, the impairment charge totalled more than $800 million.
In the December quarter, AMD said it would also take a $20 million impairment charge on its investment in flash memory chip maker Spansion Inc.
Source: Agencies
AMD said it cut 600 employees in its most recent quarter, compared with the 500 it had originally planned. As a result, the company now expects to record $70 million in restructuring charges, versus the $50 million it previously predicted.
In addition, the new cost reductions would result in more charges in the first half of 2009, although AMD would not provide an estimate.
The chip maker also said it would take a goodwill impairment charge related to its 2006 acquisition of graphics chip maker ATI. AMD said its decision was "based on the results of an updated, long-term financial outlook" for the business, according to a filing with US securities regulators.
The company said it could not estimate the size of the charge, which would be material and non-cash, according to the filing with the US Securities and Exchange Commission. A company spokesman declined to provide any further detail.
It is the latest charge AMD has taken related to its purchase of ATI. In the June quarter, the impairment charge totalled more than $800 million.
In the December quarter, AMD said it would also take a $20 million impairment charge on its investment in flash memory chip maker Spansion Inc.
Source: Agencies
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