Tata Consultancy Services (TCS) said on Friday that the company expects to add 15,000-18,000 people to its headcount over the next 12 months, compared with nearly 8,700 in the three months to December. TCS currently has about 144,500 staff.
However, CEO S Ramadorai said in an interview that the company expects to slow its rate of hiring new staff this year, as a broad economic downturn affects its global clientele.
Ramadorai said some contracts and projects were being delayed or cancelled, but the company expected to achieve some earnings growth in 2009 despite the worsening global economic outlook.
"We are confident of some growth, but what that amount is difficult to say," he said. "Yes, we are winning some contracts, but then there are delays in the decision making on a number of contracts," he said, adding there were hold-ups in implementing deals that had already been signed as well as several project cancellations.
"The slowdown is very obvious and very visible, and we think it will continue for the foreseeable future."
TCS, part of India's Tata Group, posted a lower-than-expected 1.6 per cent rise in October-December net profit on January 15.
Agencies
Monday, January 26, 2009
UK firms eye India to beat recession
India is top on the priority list of many British corporate houses as many companies having business in India have been able to survive the economic slowdown. Now over 500 UK firms want to expand in India.
"We are no more just talking about India, we are here in India," said Sharon Bamford, chief executive officer of UK-India Business Council. The council opened its office in Mumbai on Thursday.
"India is in a better position than most other nations to face recession," Bamford said."Our survey shows that over 500 UK firms want to expand in India.
" Three companies, incuding architectural firms Benoy, Sturgis and service office provider Avanta have already opened their offices in India this month. Nuclear power generating and ancillary firms from UK want to be part of the nuclear power opportunity in India.
Seventeen such companies, including Rolls Royce, have met Indian government officials.
Agencies
Agencies
"We are no more just talking about India, we are here in India," said Sharon Bamford, chief executive officer of UK-India Business Council. The council opened its office in Mumbai on Thursday.
"India is in a better position than most other nations to face recession," Bamford said."Our survey shows that over 500 UK firms want to expand in India.
" Three companies, incuding architectural firms Benoy, Sturgis and service office provider Avanta have already opened their offices in India this month. Nuclear power generating and ancillary firms from UK want to be part of the nuclear power opportunity in India.
Seventeen such companies, including Rolls Royce, have met Indian government officials.
Agencies
Agencies
Sunday, January 25, 2009
Tatas to slash 5,000 jobs at Corus, Jaguar
Indian conglomerate Tatas are expected to cut as many as 5,000 jobs at their steel and auto subsidiaries in the UK -- Corus and Jaguar Land Rover -- in the coming weeks. About 3,500 jobs are anticipated to go at Corus this week itself, while Jaguar Land Rover is expected to see another 1,500 layoffs in the coming weeks, The Sunday Times has reported.
"Britain's largest steelmaker, Corus is poised to cut up to 3,500 jobs this week in one of the biggest blows yet to the faltering manufacturing sector. "Further large-scale job losses are expected within weeks, with Jaguar Land Rover understood to be considering another 1,500 layoffs," the newspaper said.
Tata group firm Tata Steel had purchased Anglo-Dutch steel maker Corus for about 6.7 billion pounds (12 billion dollars approx.) in 2007.
Another group entity Tata Motors snapped up luxury car maker Jaguar Land Rover last year for more than two billion dollars from American auto major Ford. Meanwhile, the report noted that job cuts at Corus are likely to "overshadow this week's announcement by Lord Mandelson, the business secretary, of aid for the car industry".
The UK government is expected to come up with assistance to boost the country's car industry, which is hit by the economic downturn. "It is understood the planned job cuts (at Corus) will come across the company's 23,000-strong British workforce, and are not expected to lead to the closure of any large sites," the report said.
Quoting one industry insider, the Sunday Times said, "This is not about site closure. This is about making Corus in the UK competitive".
Agencies
"Britain's largest steelmaker, Corus is poised to cut up to 3,500 jobs this week in one of the biggest blows yet to the faltering manufacturing sector. "Further large-scale job losses are expected within weeks, with Jaguar Land Rover understood to be considering another 1,500 layoffs," the newspaper said.
Tata group firm Tata Steel had purchased Anglo-Dutch steel maker Corus for about 6.7 billion pounds (12 billion dollars approx.) in 2007.
Another group entity Tata Motors snapped up luxury car maker Jaguar Land Rover last year for more than two billion dollars from American auto major Ford. Meanwhile, the report noted that job cuts at Corus are likely to "overshadow this week's announcement by Lord Mandelson, the business secretary, of aid for the car industry".
The UK government is expected to come up with assistance to boost the country's car industry, which is hit by the economic downturn. "It is understood the planned job cuts (at Corus) will come across the company's 23,000-strong British workforce, and are not expected to lead to the closure of any large sites," the report said.
Quoting one industry insider, the Sunday Times said, "This is not about site closure. This is about making Corus in the UK competitive".
Agencies
Saturday, January 24, 2009
Now iGATE joins L&T, Essar, in expressesing Interest in Satyam
There seems to be light at the end of the tunnel for the fraud-ridden Satyam Computer Services. After Larsen & Toubro and Essar showed interest in buying whole or part of the Hyderabad-based IT major earlier this week, now IT major iGATE has also joined in.
The Bangalore-based iGATE Corporation, an integrated technology and operations (iTOPS) company, on Friday expressed interest in Satyam and also the board of iGATE has been meeting officials from the newly-formed board of Satyam.
Talking to CXOtoday, Phaneesh Murthy, Chief Executive Officer of iGATE, said, "We are interested in a dialogue with Satyam and currently are quite keen and comfortable to acquire selective portions of the business."
Asked about how he plans to raise the "moolah", he said the company is in touch with PE players who are ready to bring in the money.
iGATE Corp. is a Nasdaq listed company while the other entity, iGATE Global, was listed in National Stock Exchange (NSE) in Mumbai until January 2008, but de-listed from the Indian stock exchanges since.
Recently, the company announced its financial results for the fourth quarter and year ended Dec 31, 2008. Revenue for the year was $218.8 million compared to $201.7 million recorded last year. Net profit for the year increased to $29.3 million compared to $10.5 million last year. The company also added 27 new customers in 2008 showing their might in India.
Tarun Das, CII mentor and director on the Satyam board, has been saying that there were buyout offers from domestic and foreign companies, but without identifying any buyers. "Satyam has enormous fixed assets, human resource and technology assets. So, it is a very strong company. The board has not yet discussed the issue of looking for a buyer... But I have to truthfully say we have been approached by potential buyers," Das said.
Both L&T and Essar already have interest in Satyam. While L&T recently bought a little over 4 percent stake in the company, the engineering major is also into IT business through L&T Infotech. The Ruias-promoted Essar is also into IT-related business through its outsourcing firm, Aegis.
However, it is still not known where iGATE interest is. "We have to wait for the new board at Satyam to evaluate all strategic options and based on that evaluation set the direction for the company," said Murthy.
i
The Bangalore-based iGATE Corporation, an integrated technology and operations (iTOPS) company, on Friday expressed interest in Satyam and also the board of iGATE has been meeting officials from the newly-formed board of Satyam.
Talking to CXOtoday, Phaneesh Murthy, Chief Executive Officer of iGATE, said, "We are interested in a dialogue with Satyam and currently are quite keen and comfortable to acquire selective portions of the business."
Asked about how he plans to raise the "moolah", he said the company is in touch with PE players who are ready to bring in the money.
iGATE Corp. is a Nasdaq listed company while the other entity, iGATE Global, was listed in National Stock Exchange (NSE) in Mumbai until January 2008, but de-listed from the Indian stock exchanges since.
Recently, the company announced its financial results for the fourth quarter and year ended Dec 31, 2008. Revenue for the year was $218.8 million compared to $201.7 million recorded last year. Net profit for the year increased to $29.3 million compared to $10.5 million last year. The company also added 27 new customers in 2008 showing their might in India.
Tarun Das, CII mentor and director on the Satyam board, has been saying that there were buyout offers from domestic and foreign companies, but without identifying any buyers. "Satyam has enormous fixed assets, human resource and technology assets. So, it is a very strong company. The board has not yet discussed the issue of looking for a buyer... But I have to truthfully say we have been approached by potential buyers," Das said.
Both L&T and Essar already have interest in Satyam. While L&T recently bought a little over 4 percent stake in the company, the engineering major is also into IT business through L&T Infotech. The Ruias-promoted Essar is also into IT-related business through its outsourcing firm, Aegis.
However, it is still not known where iGATE interest is. "We have to wait for the new board at Satyam to evaluate all strategic options and based on that evaluation set the direction for the company," said Murthy.
i
Toyota considers layoff of 1,000 full-time jobs
Toyota Motor Corp is considering cutting more than 1,000 full-time jobs in North America and the United Kingdom to cope with faltering global demand, a news report said on Friday.
The details of the job cuts will likely be finalised by the end of the month, said the Nikkei, Japan's top business daily, citing an unnamed senior company official. Japan's top automaker could slash more jobs in other regions if global auto sales continue to slump, the daily said.
Toyota spokesman Yuta Kaga declined to confirm the report, saying nothing had been decided.
Mike Goss, a spokesman for Toyota's North American manufacturing operations, said Toyota is considering "additional steps" after making several production adjustments in recent months, but no decisions have been finalised.
"Current business conditions are not forcing us to make involuntary reductions of Toyota team members," he said in a written statement.
Hit by the collapse in demand for cars, Toyota is expecting to incur its first operating loss in 70 years. The company on Tuesday tapped Akio Toyoda, grandson of the Japanese automaker's founder, as president, paying homage to its roots amid a deepening global downturn.
The US-educated Toyoda, 52, is the first founding family member to take the helm at the Japanese auto giant in 14 years.
Like other Japanese automakers, Toyota has been reducing temporary workers at its auto plants in Japan to curb production amid the global recession.
Harley said its fourth-quarter profit fell 58 per cent to $77.8 million, or 34 cents per share, for the quarter ended Dec. 31, compared with $186.1 million, or 78 cents per share, in the same quarter last year.
Revenue fell 6.8 per cent to $1.29 billion from $1.39 billion in the year-ago quarter.
The results fell short of Wall Street estimates. Analysts surveyed by Thomson Reuters expected 57 cents per share on sales of $1.29 billion, on average.
Harley said its financial-services division swung to an operating loss of $24.9 million in fourth quarter, hurt by write-downs totaling $63.5 million. The company said it is evaluating ``a range of options'' to provide funding for the ailing Harley-Davidson Financial Services. Many analysts have suggested the lending unit may have to be sold because it has been unable to unload its debt in the financial markets.
For the full year, Harley said its earnings fell 30 per cent to $654.7 million, or $2.79 per share, from $933.8 million, or $3.74 per share, in the same quarter last year. Sales fell 2.3 per cent to $5.59 billion from $5.73 billion in 2007.
Analysts expected $3.02 per share on sales of $5.61 billion in revenue for the year. Harley said it would not provide earnings guidance for 2009, but analysts call for $2.15 per share.
Agencies
The details of the job cuts will likely be finalised by the end of the month, said the Nikkei, Japan's top business daily, citing an unnamed senior company official. Japan's top automaker could slash more jobs in other regions if global auto sales continue to slump, the daily said.
Toyota spokesman Yuta Kaga declined to confirm the report, saying nothing had been decided.
Mike Goss, a spokesman for Toyota's North American manufacturing operations, said Toyota is considering "additional steps" after making several production adjustments in recent months, but no decisions have been finalised.
"Current business conditions are not forcing us to make involuntary reductions of Toyota team members," he said in a written statement.
Hit by the collapse in demand for cars, Toyota is expecting to incur its first operating loss in 70 years. The company on Tuesday tapped Akio Toyoda, grandson of the Japanese automaker's founder, as president, paying homage to its roots amid a deepening global downturn.
The US-educated Toyoda, 52, is the first founding family member to take the helm at the Japanese auto giant in 14 years.
Like other Japanese automakers, Toyota has been reducing temporary workers at its auto plants in Japan to curb production amid the global recession.
Harley said its fourth-quarter profit fell 58 per cent to $77.8 million, or 34 cents per share, for the quarter ended Dec. 31, compared with $186.1 million, or 78 cents per share, in the same quarter last year.
Revenue fell 6.8 per cent to $1.29 billion from $1.39 billion in the year-ago quarter.
The results fell short of Wall Street estimates. Analysts surveyed by Thomson Reuters expected 57 cents per share on sales of $1.29 billion, on average.
Harley said its financial-services division swung to an operating loss of $24.9 million in fourth quarter, hurt by write-downs totaling $63.5 million. The company said it is evaluating ``a range of options'' to provide funding for the ailing Harley-Davidson Financial Services. Many analysts have suggested the lending unit may have to be sold because it has been unable to unload its debt in the financial markets.
For the full year, Harley said its earnings fell 30 per cent to $654.7 million, or $2.79 per share, from $933.8 million, or $3.74 per share, in the same quarter last year. Sales fell 2.3 per cent to $5.59 billion from $5.73 billion in 2007.
Analysts expected $3.02 per share on sales of $5.61 billion in revenue for the year. Harley said it would not provide earnings guidance for 2009, but analysts call for $2.15 per share.
Agencies
Harley to cut 1,100 jobs as profit falls
Harley-Davidson Inc said Friday it will cut 1,100 jobs over two years, close some facilities and consolidate others as it grapples with a slowdown in motorcycle sales.
The Milwaukee-based company also reported its fourth-quarter profit fell nearly 60 per cent, and said it is slashing motorcycle shipments in 2009 to cope with reduced demand.
The iconic motorcycle maker said it will consolidate two engine and transmission plants in Milwaukee into its facility in Menomonee Falls, Wis. It will shrink its paint and frame operations in its York, Pennsylvania, plant and close its distribution facility in Franklin, Wisconsin, whose duties will be handled by a third party.
Harley also said it will end its domestic transportation fleet operation.
The company said the cuts include 800 hourly production positions and 300 non-production, mostly salaried positions. It said 70 per cent of the job cuts will occur this year and the rest in 2010.
The cuts will result in one-time charges of $110 million to $140 million over 2009 and 2010, Harley said. Once they are finished, the cuts will save between $60 million and $70 million per year.
Harley has been stung by the rapid downturn in motorcycle demand. The economic recession has prompted many consumers to put off purchases of its high-end bikes, while the credit crunch has kept some would-be customers from obtaining financing.
Meanwhile, the company remains in the midst of a shake-up among top management. Chief Executive Jim Ziemer said last month he would retire in 2009, and the company remains in the process of finding a successor. Sy Naqvi, the head of Harley's troubled financial-services arm, resigned earlier this month. Chief Financial Officer Tom Bergmann has taken on Naqvi's old duties until a replacement is found.
Harley said worldwide retail sales fell 13.1 per cent in the fourth quarter, with sales in the U.S. _ its biggest market _ falling nearly 20 per cent. International sales crept higher, though, and the overall heavyweight motorcycle sales fell 25.5 per cent in the same period, Harley said.
For the full year, worldwide retail sales fell 7.1 per cent. Harley said it is slashing new motorcycle shipments in 2009 to between 264,000 and 273,000 to cope with the down market. That would be a drop of 10 per cent to 13 per cent from a year earlier.
In 2008, Harley said it shipped 303,479 new motorcycles, down 8 per cent from 330,619 new motorcycles in 2007.
Agencies
The Milwaukee-based company also reported its fourth-quarter profit fell nearly 60 per cent, and said it is slashing motorcycle shipments in 2009 to cope with reduced demand.
The iconic motorcycle maker said it will consolidate two engine and transmission plants in Milwaukee into its facility in Menomonee Falls, Wis. It will shrink its paint and frame operations in its York, Pennsylvania, plant and close its distribution facility in Franklin, Wisconsin, whose duties will be handled by a third party.
Harley also said it will end its domestic transportation fleet operation.
The company said the cuts include 800 hourly production positions and 300 non-production, mostly salaried positions. It said 70 per cent of the job cuts will occur this year and the rest in 2010.
The cuts will result in one-time charges of $110 million to $140 million over 2009 and 2010, Harley said. Once they are finished, the cuts will save between $60 million and $70 million per year.
Harley has been stung by the rapid downturn in motorcycle demand. The economic recession has prompted many consumers to put off purchases of its high-end bikes, while the credit crunch has kept some would-be customers from obtaining financing.
Meanwhile, the company remains in the midst of a shake-up among top management. Chief Executive Jim Ziemer said last month he would retire in 2009, and the company remains in the process of finding a successor. Sy Naqvi, the head of Harley's troubled financial-services arm, resigned earlier this month. Chief Financial Officer Tom Bergmann has taken on Naqvi's old duties until a replacement is found.
Harley said worldwide retail sales fell 13.1 per cent in the fourth quarter, with sales in the U.S. _ its biggest market _ falling nearly 20 per cent. International sales crept higher, though, and the overall heavyweight motorcycle sales fell 25.5 per cent in the same period, Harley said.
For the full year, worldwide retail sales fell 7.1 per cent. Harley said it is slashing new motorcycle shipments in 2009 to between 264,000 and 273,000 to cope with the down market. That would be a drop of 10 per cent to 13 per cent from a year earlier.
In 2008, Harley said it shipped 303,479 new motorcycles, down 8 per cent from 330,619 new motorcycles in 2007.
Agencies
Friday, January 23, 2009
Sun Microsystems begins laying off 6,000 across all ranks
Sun had earlier last year announced a series of changes designed to align its cost model with the global economy and accelerate the introduction of compelling open source innovations. As part of that effort Sun announced a global workforce reduction of approximately 5,000 to 6,000 employees, representing approximately 15% to 18% of the Company’s global workforce. Sun can confirm that today layoff notifications were given to approximately 1,300 employees as part of that action. Reductions were made across all levels, including vice presidents and directors.
Sun continues to make choices to align strategically, geographically and operationally with its plan for long term growth. We believe the restructuring will result in a more efficient coverage model with resources aligned to growth opportunities. We believe the number of positions that will be eliminated, when combined with the other cost cutting measures and organizational changes being implemented, will put the Company on track for improved financial performance.
Last November, Sun Microsystems said it would be laying off up to 6,000 employees — or around 18 percent of its workforce — after a weak first quarter performance. The cuts are happening today, we’re hearing from a well-placed source, ahead of the company’s second-quarter earnings report next Tuesday.
The server and software company is facing hard times as the market has shifted from closed-source to open-source software technologies, like Linux, and it is facing stiff competition from larger rivals like IBM and HP. To boot, a significant portion of the company’s business is in the financial sector — clients that aren’t in a position to make large purchases these days. Sun has been experimenting with software-as-a-service and other models to help it gain market share, and most prominently purchased open-source database company for MySQL for $1 billion last year. Here’s some more from the strategy announcement it released in November:
As part of this effort, Sun is announcing a global workforce reduction and alignment of its Software organization into new business groups - Application Platform Software, Systems Platforms, and Cloud Computing & Developer Platforms - with a focus on boosting open source momentum and growing new sectors of the market who view technology as a competitive weapon.
Agencies
Sun continues to make choices to align strategically, geographically and operationally with its plan for long term growth. We believe the restructuring will result in a more efficient coverage model with resources aligned to growth opportunities. We believe the number of positions that will be eliminated, when combined with the other cost cutting measures and organizational changes being implemented, will put the Company on track for improved financial performance.
Last November, Sun Microsystems said it would be laying off up to 6,000 employees — or around 18 percent of its workforce — after a weak first quarter performance. The cuts are happening today, we’re hearing from a well-placed source, ahead of the company’s second-quarter earnings report next Tuesday.
The server and software company is facing hard times as the market has shifted from closed-source to open-source software technologies, like Linux, and it is facing stiff competition from larger rivals like IBM and HP. To boot, a significant portion of the company’s business is in the financial sector — clients that aren’t in a position to make large purchases these days. Sun has been experimenting with software-as-a-service and other models to help it gain market share, and most prominently purchased open-source database company for MySQL for $1 billion last year. Here’s some more from the strategy announcement it released in November:
As part of this effort, Sun is announcing a global workforce reduction and alignment of its Software organization into new business groups - Application Platform Software, Systems Platforms, and Cloud Computing & Developer Platforms - with a focus on boosting open source momentum and growing new sectors of the market who view technology as a competitive weapon.
Agencies
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