Dutch financial services group ING Groep NV will cut 750 jobs, or 7 percent of its US workforce, as part of a global programme to cope with the economic slowdown, ING spokesmen said on Tuesday.
"As many companies in the United States we need to align operations with market conditions," ING spokesman Dana Ripley said. US companies such as Bank of America Corp have announced job cuts in the past few months to deal with slowing business activity and the U.S. Labor Department said last week that employers cut payrolls by 524,000 in December.
ING will cut the jobs during the first quarter across all its U.S. banking and insurance operations and it will also not fill 170 vacancies in the United States, Ripley said. ING currently has about 11,000 US employees people and a total global workforce of 130,000.
The US job cuts are part of a global initiative to bring costs and operations in line with market conditions as ING said in November, ING spokesman Raymond Vermeulen said. He declined to say if there could be job cuts outside the United States. ING posted a third quarter loss of 478 million euros ($635.6 million) due to 1.5 billion euros of impairments, making it ING's first quarterly loss ever.
Agencies
Wednesday, January 14, 2009
Oracle cuts 500 jobs, says report
Oracle Corp. has trimmed its workforce, but not as much as some people had speculated, The Wall Street Journal reported on Tuesday.
Citing people familiar with the matter, the newspaper said the software giant cut around 500 positions in its North American sales and consulting businesses on Friday.
The Redwood Shores, California-based company had 33,526 employees in the Americas at the end of November and 86,657 globally, the report said.
An Oracle spokeswoman declined to comment to the newspaper and could not immediately be reached.
The Journal said the Internet has been buzzing with rumors of cuts of up to 10 percent of the company's workforce, a move that would affect thousands of people. Some analysts have put the number in the hundreds.
Agencies
Citing people familiar with the matter, the newspaper said the software giant cut around 500 positions in its North American sales and consulting businesses on Friday.
The Redwood Shores, California-based company had 33,526 employees in the Americas at the end of November and 86,657 globally, the report said.
An Oracle spokeswoman declined to comment to the newspaper and could not immediately be reached.
The Journal said the Internet has been buzzing with rumors of cuts of up to 10 percent of the company's workforce, a move that would affect thousands of people. Some analysts have put the number in the hundreds.
Agencies
Tuesday, January 13, 2009
Seagate sacks CEO and to cut 800 workers
Seagate Technology has replaced its top two executives and said it plans to cut 800 jobs — 10 percent of its US work force — as the hard drive maker endures a bruising slowdown in technology spending.
Its stock fell more than 15 percent. In a surprise move, the Scotts Valley-based company announced that William Watkins, 56, Seagate's chief executive since 2004, and Dave Wickersham, 52, the president and chief operating officer, had both left the company, effective immediately. Seagate declined to make either executive available for comment.
The company also announced that it plans to cut 10 percent of its 8,000 US-based workers. It has 53,000 workers worldwide.
A familiar face will fill the CEO slot. Stephen Luczo, 51, a former investment banker who served as Seagate's CEO from 1998 until 2004 amid a wrenching restructuring, will have to engineer another big turnaround to get the company back on track.
Wickersham's jobs will be taken by Robert Whitmore, 46, Seagate's executive vice president and chief technology officer.
Seagate is the world's largest maker of computer hard disk drives, with more than 30 percent of the global market. But its business has suffered badly because of the economic meltdown, which has sapped information-technology budgets and demand for new personal computers and servers that use Seagate's products.
Oversupply in the industry has also hurt Seagate and other disk drive manufacturers. Luczo takes the reigns of a company whose stock price plunged more than 80 percent last year and that warned in December its fiscal second-quarter results would fall far below Wall Street's expectations. Seagate lowered its guidance for sales in the period by about $500 million, cautioning that slumping demand and price pressures were hurting the company more than it had anticipated.
Seagate, which is scheduled to report its full quarterly results Jan. 21, expects revenue of $2.3 billion to $2.6 billion.
Agencies
Its stock fell more than 15 percent. In a surprise move, the Scotts Valley-based company announced that William Watkins, 56, Seagate's chief executive since 2004, and Dave Wickersham, 52, the president and chief operating officer, had both left the company, effective immediately. Seagate declined to make either executive available for comment.
The company also announced that it plans to cut 10 percent of its 8,000 US-based workers. It has 53,000 workers worldwide.
A familiar face will fill the CEO slot. Stephen Luczo, 51, a former investment banker who served as Seagate's CEO from 1998 until 2004 amid a wrenching restructuring, will have to engineer another big turnaround to get the company back on track.
Wickersham's jobs will be taken by Robert Whitmore, 46, Seagate's executive vice president and chief technology officer.
Seagate is the world's largest maker of computer hard disk drives, with more than 30 percent of the global market. But its business has suffered badly because of the economic meltdown, which has sapped information-technology budgets and demand for new personal computers and servers that use Seagate's products.
Oversupply in the industry has also hurt Seagate and other disk drive manufacturers. Luczo takes the reigns of a company whose stock price plunged more than 80 percent last year and that warned in December its fiscal second-quarter results would fall far below Wall Street's expectations. Seagate lowered its guidance for sales in the period by about $500 million, cautioning that slumping demand and price pressures were hurting the company more than it had anticipated.
Seagate, which is scheduled to report its full quarterly results Jan. 21, expects revenue of $2.3 billion to $2.6 billion.
Agencies
Will the Rs 2000 crore government package bailout out Satyam?
Speculation is rife that the government is considering a package of up to Rs 2,000 crore to bailout the crisis-ridden Satyam Computer but no confirmation could be obtained.
Shortly after the Prime Minister Manmohan Singh's review meeting on Satyam on Tuesday, there was media speculation that government would be considering a financial assistance ranging between Rs 500 crore and Rs 2,000 crore but the PMO office declined to comment on it.
"We have nothing to say on this," a top PMO official said when asked about if the government was considering giving financial aid to Satyam which is confronting a cash crisis.
Meanwhile, official sources indicated that the government appointed Satyam board has written a letter to the finance ministry raising concerns about the liquidity crunch in the troubled company.
Talking to reporters after the first meeting of the new board in Hyderabad, HDFC chairman Deepak Parekh, who is member of the board, had said "working capital issues require immediate attention and we will work with the team to tide over this situation.
Satyam has 53,000 employees and needs over Rs 500 crore a month to meet the staff cost.
Commerce Minister Kamal Nath, who attended PM's review meeting, had said yesterday that the government was open to consider a financial package for Satyam.
Agencies
Shortly after the Prime Minister Manmohan Singh's review meeting on Satyam on Tuesday, there was media speculation that government would be considering a financial assistance ranging between Rs 500 crore and Rs 2,000 crore but the PMO office declined to comment on it.
"We have nothing to say on this," a top PMO official said when asked about if the government was considering giving financial aid to Satyam which is confronting a cash crisis.
Meanwhile, official sources indicated that the government appointed Satyam board has written a letter to the finance ministry raising concerns about the liquidity crunch in the troubled company.
Talking to reporters after the first meeting of the new board in Hyderabad, HDFC chairman Deepak Parekh, who is member of the board, had said "working capital issues require immediate attention and we will work with the team to tide over this situation.
Satyam has 53,000 employees and needs over Rs 500 crore a month to meet the staff cost.
Commerce Minister Kamal Nath, who attended PM's review meeting, had said yesterday that the government was open to consider a financial package for Satyam.
Agencies
Monday, January 12, 2009
Microsoft delays Windows 7 beta download
Microsoft Corp said on Friday it has paused offering downloads of the public test version of its new version of Windows due to "high demand."
The "beta" launch of the highly anticipated update to Microsoft's Windows franchise began early on Friday, but the company had to halt downloads to add more servers.
"We are adding servers as fast as we can add them," a Microsoft spokesman said at the Consumer Electronics Show in Las Vegas.
He declined to say when Windows 7 downloads would resume.
Microsoft said at CES on Wednesday it would let consumers test the next generation of its computer operating system starting Friday.
Microsoft, the world's biggest maker of software, has said Windows 7 will incorporate touch screen technology and allow users to more easily personalize the system. It promised more user-friendly features, such as a new taskbar that previews all open windows from a single application by hovering over the program's icon.
The "beta" launch of the highly anticipated update to Microsoft's Windows franchise began early on Friday, but the company had to halt downloads to add more servers.
"We are adding servers as fast as we can add them," a Microsoft spokesman said at the Consumer Electronics Show in Las Vegas.
He declined to say when Windows 7 downloads would resume.
Microsoft said at CES on Wednesday it would let consumers test the next generation of its computer operating system starting Friday.
Microsoft, the world's biggest maker of software, has said Windows 7 will incorporate touch screen technology and allow users to more easily personalize the system. It promised more user-friendly features, such as a new taskbar that previews all open windows from a single application by hovering over the program's icon.
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
Canada layoffs 34,400 employees in December 2008
The Canadian economy lost 34,400 jobs in December, driving the unemployment rate to 6.6 percent, Statistics Canada said in a fresh sign of recession gripping the nation.
It was the second month of heavy job losses, after 70,600 were shed in November. The unemployment rate rose to 6.6 percent from 6.3 percent in the prior month.
The numbers were worse than most analysts's projections of 22,000 job losses and a 6.5 percent jobless rate in December.
And Finance Minister Jim Flaherty said the situation will only get worse in the short term.
"We're in for a very difficult year," Flaherty told reporters. "We regrettably are going to have to expect continuing job losses in Canada.
"We are going to have substantial job losses," he added.
December's employment decline was led by a drop in construction, one of the biggest monthly losses for that industry in the past three decades.
Some 44,000 construction jobs were lost, as housing starts decreased to their lowest level in seven years the previous month, according to the Canadian Mortgage and Housing Corporation.
This was partially offset by an increase in transportation and warehousing.
"The job market is running out of steam," said analyst Pascal Gauthier of TD Securities.
"We believe that the Canadian economy entered a recession in the fourth quarter. Or if we're not there yet, we're knocking at the door," he told the media.
Sherry Cooper, chief economist of BMO Capital Markets, echoed in a research note: "Today's dismal data offer additional strong evidence that the Canadian economy has quickly waded knee-deep into the recession swamp."
For all of 2008, Canada's employment rate increased 0.6 percent with the creation of a total 98,000 jobs, significantly slower than the 2.2 percent job growth observed the previous year.
Gauthier too commented that the dismal December figures are "indicative of what's to come."
"In a typical recession, we can expect 15,000 to 30,000 jobs being cut each month," he said.
But Canada is still faring better than its neighbor and biggest trading partner, the United States, Flaherty and analysts agreed.
The United States lost 524,000 jobs in December.
Agencies
It was the second month of heavy job losses, after 70,600 were shed in November. The unemployment rate rose to 6.6 percent from 6.3 percent in the prior month.
The numbers were worse than most analysts's projections of 22,000 job losses and a 6.5 percent jobless rate in December.
And Finance Minister Jim Flaherty said the situation will only get worse in the short term.
"We're in for a very difficult year," Flaherty told reporters. "We regrettably are going to have to expect continuing job losses in Canada.
"We are going to have substantial job losses," he added.
December's employment decline was led by a drop in construction, one of the biggest monthly losses for that industry in the past three decades.
Some 44,000 construction jobs were lost, as housing starts decreased to their lowest level in seven years the previous month, according to the Canadian Mortgage and Housing Corporation.
This was partially offset by an increase in transportation and warehousing.
"The job market is running out of steam," said analyst Pascal Gauthier of TD Securities.
"We believe that the Canadian economy entered a recession in the fourth quarter. Or if we're not there yet, we're knocking at the door," he told the media.
Sherry Cooper, chief economist of BMO Capital Markets, echoed in a research note: "Today's dismal data offer additional strong evidence that the Canadian economy has quickly waded knee-deep into the recession swamp."
For all of 2008, Canada's employment rate increased 0.6 percent with the creation of a total 98,000 jobs, significantly slower than the 2.2 percent job growth observed the previous year.
Gauthier too commented that the dismal December figures are "indicative of what's to come."
"In a typical recession, we can expect 15,000 to 30,000 jobs being cut each month," he said.
But Canada is still faring better than its neighbor and biggest trading partner, the United States, Flaherty and analysts agreed.
The United States lost 524,000 jobs in December.
Agencies
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