After spending six weeks diagnosing Yahoo Inc.'s troubles, new Chief Executive Carol Bartz started to prescribe a cure on Thursday with a management shake-up that will usher out the Internet company's chief financial officer.
Besides pushing CFO Blake Jorgensen out the door, the overhaul will expand the responsibilities of Yahoo's chief technology officer, Ari Balogh, and the company's top advertising executive in the United States, Hilary Schneider.
Bartz also created two jobs: a chief marketing officer and her own chief of staff.
Elisa Steele, who has been working at NetApp Inc., will join Yahoo as chief marketing officer on March 23, while Joel Jones, a former McKinsey consultant who has been Yahoo's corporate strategist, becomes Bartz's chief of staff as of Thursday.
With the new pecking order, Bartz hopes to speed up Yahoo's decision-making and have a senior team that supports her strategy for turning around a company struggling with three years of declining profits _ a downturn that had battered its stock price well before the market's overall decline.
Although Bartz still hasn't specified how she intends to get Yahoo back on track, she has left no doubt about her resolve to recapture the Internet pioneer's glory days.
``I'm singularly focused on providing you with awesome products. Period,'' Bartz wrote in a blog posting Thursday addressed to Yahoo's 500 million worldwide users.
Yahoo's previous two CEOs, co-founder Jerry Yang and former movie studio mogul Terry Semel, also attempted to revive Yahoo in recent years by reshuffling executives, but those moves never paid off. Bartz's reorganization is meant to last two to four years.
Investors appear to be betting that Bartz will deliver on her promises. Yahoo shares gained 50 cents, or 4 percent, to close Thursday at $12.98.
Yahoo hired Bartz, 60, last month to replace Yang, who exasperated many investors and employees with his wishy-washy management style. Yang also infuriated stockholders last year by turning down an opportunity to sell Yahoo to rival Microsoft Corp. for $47.5 billion, or $33 per share, well above the price of $19.18 just before the software maker announced its initial bid.
Although Microsoft CEO Steve Ballmer has repeatedly said he no longer wants to buy Yahoo in its entirety, he has indicated he still wants to explore a possible partnership that would involve Yahoo's online search engine, the second most popular behind that of Google Inc.
Bartz so far has been lukewarm to the idea in her public remarks, but Jorgensen expressed an interest in working with Microsoft in a Wednesday presentation at an investor conference.
In a Thursday research note, Barclays Capital analyst Douglas Anmuth said he didn't consider Jorgensen's departure a sign Yahoo is any less interested in working with Microsoft.
But Anmuth wondered about the wisdom of letting Jorgensen go, given that Bartz came to Yahoo without any previous Internet experience. Jorgensen also was somewhat of a novice, having joined Yahoo in June 2007, but Anmuth thought he would at least provide Yahoo some stability.
Jorgensen will remain CFO until Bartz can find replacement. His departure isn't a total shock because he was an ally of former Yahoo President Susan Decker, who resigned last month after Bartz beat her out for the CEO job.
But Jorgensen provided no inkling he might be headed out the door when he met with USB analyst Benjamin Schachter earlier this week, Schachter wrote in a Thursday note.
``While we were fans of Blake, Bartz is clearly going to be leading the charge here,'' Schachter wrote.
Jorgensen is paid a salary of $500,000, according to Yahoo's most recent disclosures about executive compensation. The terms of his severance package weren't disclosed Thursday.
Besides changing CFOs, Yahoo also appointed a new leader to expand its service on to mobile devices. David Ko, already part of the mobile team, was promoted to the top job in the division to replace Marco Boerries, who is leaving the company after a four-year stint.
Bartz mainly wants to root out bureaucracy with her new chain of command.
``People here have impressed the hell out of me,'' Bartz wrote Thursday. ``They're smart, dedicated, passionate, driven, and really nice. There's so much great energy and frankly lots of optimism. But there's also plenty that has bogged this company down. For starters, you'd be amazed at how complicated some things are here.''
In hopes of simplifying things, Bartz is placing all of Yahoo's products under Balogh, who joined the company a year ago. The shift appears to lessen the authority of Ash Patel, who had been overseeing most of Yahoo's products.
Schneider's job is being expanded to include oversight of advertisers and partners in Canada, not just the United States. Bartz intends to hire another executive to steer Yahoo's advertising relationships in Mexico and overseas.
Finally, Yahoo is creating a new division to handle complaints from frustrated users and advertising customers.
Agencies
Saturday, February 28, 2009
Friday, February 27, 2009
Are salaries at Indian IT MNCs melting?
Software multinationals in India have begun freezing wage increases, slashing salaries and postponing merit-based hikes, a study by Indian consulting firm Zinnov has found.
"Though Bangalore stands highest in its average salary for multinational R&D firms, followed by Pune and Chennai, the economic slump is causing undue pressure on them to retain compensation levels," Zinnov director for advisory services C S Chandramouli, said after the survey was made public.
Hinting that IT salaries in 2009 would see a freeze across the board in a majority of the firms surveyed, Chandramouli said the average increment would be in the 5-12 per cent range.
"Of the 30 representative multinationals surveyed in these three cities (Bangalore, Pune and Chennai), 27 per cent of them said they have frozen salary increases this year, while 42 per cent said they would provide salary increases and 15 per cent have postponed their merit increase cycle to take a call at a later stage if the economic scenario changes," Chandramouli said.
As a preferred destination for IT services and R&D, about 680 multinationals operate in India. Many of them have more than one R&D centre and presence in one or two of the three cities surveyed.
According to Zinnov's annual report on "Compensation and Benefit Study 2009", 12 per cent of the MNCs have announced 5-10 per cent salary cuts either for senior management or across levels.
"The survey highlights that multinationals are also shifting focus to the variable pay component to reward and retain top performers as opposed to fixed pay. Some of them have even restructured their compensation, linking employee rewards to individual and organisational results," the report said.
Referring to the adverse impact of the tough economic conditions on the compensation budgets, Chandramouli said MNCs were attempting to balance their need to retain key talent and address concerns over wage increase.
"Organisations are being proactive in managing people cost as it constitutes about 62 per cent of the total operating cost," he noted.
Highlighting compensation trends across functions like engineering, quality assurance testing and technical architects, the report said senior positions such as engineering manager and director engineering continued to be on a rise, with an average 8 per cent increase.
As India's IT hub, Bangalore, however, continues to dominate the compensation index, especially in software product and R&D. "Bangalore engineers are paid 5 per cent higher than their counterparts in Pune and 8 per cent higher than in Chennai for engineering and quality positions," Zinnov consultant Sahana Shetty said.
However, average salaries of senior positions in the three cities are similar, though average salaries at junior positions are two-three per cent higher in Bangalore. "Employees are not clear if they will be laid off or if the projects they are working on will be de-prioritised. They are also concerned about the financial health of the parent company. Employees are frustrated with cost cuts for what seem like inexpensive benefits (snacks, lunch, office parties, etc)," Shetty added.
Agencies
"Though Bangalore stands highest in its average salary for multinational R&D firms, followed by Pune and Chennai, the economic slump is causing undue pressure on them to retain compensation levels," Zinnov director for advisory services C S Chandramouli, said after the survey was made public.
Hinting that IT salaries in 2009 would see a freeze across the board in a majority of the firms surveyed, Chandramouli said the average increment would be in the 5-12 per cent range.
"Of the 30 representative multinationals surveyed in these three cities (Bangalore, Pune and Chennai), 27 per cent of them said they have frozen salary increases this year, while 42 per cent said they would provide salary increases and 15 per cent have postponed their merit increase cycle to take a call at a later stage if the economic scenario changes," Chandramouli said.
As a preferred destination for IT services and R&D, about 680 multinationals operate in India. Many of them have more than one R&D centre and presence in one or two of the three cities surveyed.
According to Zinnov's annual report on "Compensation and Benefit Study 2009", 12 per cent of the MNCs have announced 5-10 per cent salary cuts either for senior management or across levels.
"The survey highlights that multinationals are also shifting focus to the variable pay component to reward and retain top performers as opposed to fixed pay. Some of them have even restructured their compensation, linking employee rewards to individual and organisational results," the report said.
Referring to the adverse impact of the tough economic conditions on the compensation budgets, Chandramouli said MNCs were attempting to balance their need to retain key talent and address concerns over wage increase.
"Organisations are being proactive in managing people cost as it constitutes about 62 per cent of the total operating cost," he noted.
Highlighting compensation trends across functions like engineering, quality assurance testing and technical architects, the report said senior positions such as engineering manager and director engineering continued to be on a rise, with an average 8 per cent increase.
As India's IT hub, Bangalore, however, continues to dominate the compensation index, especially in software product and R&D. "Bangalore engineers are paid 5 per cent higher than their counterparts in Pune and 8 per cent higher than in Chennai for engineering and quality positions," Zinnov consultant Sahana Shetty said.
However, average salaries of senior positions in the three cities are similar, though average salaries at junior positions are two-three per cent higher in Bangalore. "Employees are not clear if they will be laid off or if the projects they are working on will be de-prioritised. They are also concerned about the financial health of the parent company. Employees are frustrated with cost cuts for what seem like inexpensive benefits (snacks, lunch, office parties, etc)," Shetty added.
Agencies
IBM to host gen-next technology competition
As part of its University Relations programme, IBM has rolled out a novel gen-next technology challenge titled "IBM Blue Battle" in over 25 leading engineering colleges across India.
The first in the "IBM Blue Battle" series has been launched at IIIT Hyderabad and is being conducted on IBM Multi-core architecture for gaming. Colleges to follow include UVCE Bangalore, JNTU Hyderabad, Madras Institute of Technology (Anna University) Chennai, few IITs and NITs.
Amol Mahamuni, programme director, WebSphere Solutions and Technology and University Relations-IBM India/SA, said, "The challenge will enhance the students' knowledge on technologies that are at the helm of innovation across the industry and provide them with an opportunity to develop innovative solutions in real work scenario." It hones their technical skills while learning basic on-the-job skills such as teamwork, organization, and working under deadlines, he added.
The competition will enable participants to work on technologies such as Multi processors/Nano technology, electronics, service oriented architecture (SOA), Multi Core Architecture, Enterprise Computing (IBM System z), Information Management, Web 2.0, cloud computing, virtualization and High Performance Computing (HPC). Mentors from IBM, along with the college faculty, will closely work with the students throughout the programme.
This competition will also enable students to work on projects using IBM products, applications, tools and services in the future through further collaboration and mentoring by IBM experts.
The winners of this competition will receive prizes including Lenovo Ideapad laptops, along with certification from IBM.
IBM's University Relations has been partnering with academia to drive evolving open standards-based IT skills.
CXOtoday.com
The first in the "IBM Blue Battle" series has been launched at IIIT Hyderabad and is being conducted on IBM Multi-core architecture for gaming. Colleges to follow include UVCE Bangalore, JNTU Hyderabad, Madras Institute of Technology (Anna University) Chennai, few IITs and NITs.
Amol Mahamuni, programme director, WebSphere Solutions and Technology and University Relations-IBM India/SA, said, "The challenge will enhance the students' knowledge on technologies that are at the helm of innovation across the industry and provide them with an opportunity to develop innovative solutions in real work scenario." It hones their technical skills while learning basic on-the-job skills such as teamwork, organization, and working under deadlines, he added.
The competition will enable participants to work on technologies such as Multi processors/Nano technology, electronics, service oriented architecture (SOA), Multi Core Architecture, Enterprise Computing (IBM System z), Information Management, Web 2.0, cloud computing, virtualization and High Performance Computing (HPC). Mentors from IBM, along with the college faculty, will closely work with the students throughout the programme.
This competition will also enable students to work on projects using IBM products, applications, tools and services in the future through further collaboration and mentoring by IBM experts.
The winners of this competition will receive prizes including Lenovo Ideapad laptops, along with certification from IBM.
IBM's University Relations has been partnering with academia to drive evolving open standards-based IT skills.
CXOtoday.com
Thursday, February 26, 2009
Electronic hardware manufacturing to touch $155 bn by 2015
With the increasing consumption of electronic items in the country, the hardware manufacturing industry in India is poised to touch $155 billion by 2015.
"As per study made by Frost and Sullivan, the (global) market for electronics hardware is expected to grow by 30 per cent to $320 billion in 2015," Department of Information Technology Secretary Jainder Singh said at the Componex Nepcon exhibition here today.
"There is a potential for the domestic hardware manufacturing to grow to $155 billion in 2015," he added.
Indian electronic hardware production increased from Rs 43,800 crore in 2003-04 to Rs 80,800 crore in 2007-08, with a cumulative annual growth rate of 16.6 per cent, he added.
Increased consumption of mobile phones, computers and televisions is driving the domestic demand for the industry in India.
"While the sales of PCs have reached 7.3 million units a year, about 8-10 million mobile phones are sold. The market for colour televisions has also increased to about 15 million units a year," he said.
Singh noted that with the relaxation in import policies and progressive reduction in duties, import of manufactured components has increased, which has in turn suppressed the domestic demand.
Agencies
"As per study made by Frost and Sullivan, the (global) market for electronics hardware is expected to grow by 30 per cent to $320 billion in 2015," Department of Information Technology Secretary Jainder Singh said at the Componex Nepcon exhibition here today.
"There is a potential for the domestic hardware manufacturing to grow to $155 billion in 2015," he added.
Indian electronic hardware production increased from Rs 43,800 crore in 2003-04 to Rs 80,800 crore in 2007-08, with a cumulative annual growth rate of 16.6 per cent, he added.
Increased consumption of mobile phones, computers and televisions is driving the domestic demand for the industry in India.
"While the sales of PCs have reached 7.3 million units a year, about 8-10 million mobile phones are sold. The market for colour televisions has also increased to about 15 million units a year," he said.
Singh noted that with the relaxation in import policies and progressive reduction in duties, import of manufactured components has increased, which has in turn suppressed the domestic demand.
Agencies
Is Nokia likely to enter laptop industry?
The world's top cellphone maker Nokia is eyeing entering the laptop business, its Chief Executive Olli-Pekka Kallasvuo said in an interview to Finnish national broadcaster YLE on Wednesday.
"We are looking very actively also at this opportunity," Kallasvuo said, when asked whether Nokia plans to make laptops.
Industry has rumoured about Nokia's possible plan to enter the PC industry since late last year, but Kallasvuo's comment was the first official admittance of such plans.
"We don't have to look even for five years from now to see that what we know as a cellphone and what we know as a PC are in many ways converging," Kallasvuo said.
"Today we have hundreds of millions of people who are having their first Internet experience on the phone. This is a good indication," he said.
Nokia's comments come a week after No 3 PC brand Acer launched a foray into the phone business with eight cellphone models, joining leader Hewlett-Packard and No. 4 Lenovo in the high-growth space.
While strong profit margins in the smartphone industry attract PC brands, the attraction of the low-margin computer industry is less obvious.
"Nokia maybe nervous about entering a market segment that is already heavily commoditised, but it would be in a position to exploit its enormous scale in manufacturing, supply chain and distribution," said Ben Wood, research director at CCS Insight.
"All leading mobile network operators and retailers are adding connected notebooks and netbooks to their portfolios alongside mobile phones. On this basis it comes as no surprise that Nokia is evaluating this segment," he said.
The global PC industry was resilient for most of last year when other technology sectors were ailing, but it too has now been caught up in the deepening economic downturn that has hit demand from consumers and corporate buyers.
Agencies
"We are looking very actively also at this opportunity," Kallasvuo said, when asked whether Nokia plans to make laptops.
Industry has rumoured about Nokia's possible plan to enter the PC industry since late last year, but Kallasvuo's comment was the first official admittance of such plans.
"We don't have to look even for five years from now to see that what we know as a cellphone and what we know as a PC are in many ways converging," Kallasvuo said.
"Today we have hundreds of millions of people who are having their first Internet experience on the phone. This is a good indication," he said.
Nokia's comments come a week after No 3 PC brand Acer launched a foray into the phone business with eight cellphone models, joining leader Hewlett-Packard and No. 4 Lenovo in the high-growth space.
While strong profit margins in the smartphone industry attract PC brands, the attraction of the low-margin computer industry is less obvious.
"Nokia maybe nervous about entering a market segment that is already heavily commoditised, but it would be in a position to exploit its enormous scale in manufacturing, supply chain and distribution," said Ben Wood, research director at CCS Insight.
"All leading mobile network operators and retailers are adding connected notebooks and netbooks to their portfolios alongside mobile phones. On this basis it comes as no surprise that Nokia is evaluating this segment," he said.
The global PC industry was resilient for most of last year when other technology sectors were ailing, but it too has now been caught up in the deepening economic downturn that has hit demand from consumers and corporate buyers.
Agencies
Tuesday, February 24, 2009
Motorola to bring live 'News on the Mobile' to India
Motorola, Inc's Indian subsidiary, Motorola India Private Limited, and digital publisher, Pressmart Media Limited, on Tuesday announced the live news-on-the-mobile service on MOTO VE66, MOTOSURF A3000 and MOTOROKR EM35 phones slated for distribution in India.
News on the mobile provides consumers access to branded news content powered by Pressmart. By selecting the WAP link "Daily News" on their Motorola phones, consumers can receive free news content and access to their favourite newspapers while on the go.
Newspapers offered on the service include Indian Express, The Financial Express, The Asian Age and Deccan Chronicle.
News-on-the-mobile is designed specifically for the mobile phone screen for optimum viewing experience.
A GPRS connection is required to access the free news content, a Motorola press release said here.
Agencies
News on the mobile provides consumers access to branded news content powered by Pressmart. By selecting the WAP link "Daily News" on their Motorola phones, consumers can receive free news content and access to their favourite newspapers while on the go.
Newspapers offered on the service include Indian Express, The Financial Express, The Asian Age and Deccan Chronicle.
News-on-the-mobile is designed specifically for the mobile phone screen for optimum viewing experience.
A GPRS connection is required to access the free news content, a Motorola press release said here.
Agencies
Is Vodafone to layoff hundreds of jobs?
Vodafone, the world's largest mobile phone group by revenue, is to cut hundreds of jobs in Britain, according to a report on Sky News.
The move to cut jobs could be made as early as Tuesday, said the report.
The mobile phone operator, which employs 10,000 people, has previously said it will boost free cash flow by cutting 1 billion pounds of costs.
Vodafone declined to comment on specific job cuts.
Agencies
The move to cut jobs could be made as early as Tuesday, said the report.
The mobile phone operator, which employs 10,000 people, has previously said it will boost free cash flow by cutting 1 billion pounds of costs.
Vodafone declined to comment on specific job cuts.
Agencies
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