British insurance giant Aviva said on Thursday it would cut 1,100 permanent jobs and 590 contract positions by the end of 2009 -- the latest British financial group to axe jobs amid the economic crisis.
"There is expected to be a reduction of 1,100 permanent roles by the end of 2009," Aviva said in a statement.
"In addition, 590 contract positions will be closed over the next few months," it added.
The leader of Britain's biggest union, Unite, said the announcement to shed 1,100 permanent roles "will cause alarm across the insurance industry."
"It is unacceptable that once again shareholders received their full dividends while the workers who brought the company this success are rewarded with job losses," said Unite boss Derek Simpson.
"The Aviva workforce is continuing to live under constant uncertainty about their future," he added.
Agencies
Saturday, April 4, 2009
Will US face second recession in 2010?
Although the US economy is expected to return to growth later this year, there is a danger of a second recession if monetary easing and Tough times a weak dollar lead to increased inflation expectations, a report said.
Massive stimulus spending and moves by the Federal Reserve to fuel economic activity is expected to jump-start the anemic US economy in the last quarter of this year after it contracted 6.3 percent in fourth quarter of 2008.
But the Fed's moves to boost the economy by slashing interest rates and buying up billions in government debt could have undesired consequences, The Conference Board, a private research group, said in the report.
"If the United States experiences a too-rapid recovery, there may be a risk of another recession in 2010," said Bart van Ark, vice president and chief economist of The Conference Board.
"It may fuel expectations for a return to inflation, adding to the uncertainty concerning the pattern and path of economic recovery," he said.
The U.S. economy has the potential for a "double-dip" recession, Van Ark noted, similar to 1980 and 1982, as commodity prices rise on the back of a falling dollar and monetary easing.
He added, however, that the likelihood of this scenario taking place is small as deflation risks are great, while government stimulus spending should stem further economic decline and ease the flow of job losses.
The U.S. economy could contract by 2.6 percent in 2009, the largest annual decline since 1946, the Conference Board said.
Agencies
Massive stimulus spending and moves by the Federal Reserve to fuel economic activity is expected to jump-start the anemic US economy in the last quarter of this year after it contracted 6.3 percent in fourth quarter of 2008.
But the Fed's moves to boost the economy by slashing interest rates and buying up billions in government debt could have undesired consequences, The Conference Board, a private research group, said in the report.
"If the United States experiences a too-rapid recovery, there may be a risk of another recession in 2010," said Bart van Ark, vice president and chief economist of The Conference Board.
"It may fuel expectations for a return to inflation, adding to the uncertainty concerning the pattern and path of economic recovery," he said.
The U.S. economy has the potential for a "double-dip" recession, Van Ark noted, similar to 1980 and 1982, as commodity prices rise on the back of a falling dollar and monetary easing.
He added, however, that the likelihood of this scenario taking place is small as deflation risks are great, while government stimulus spending should stem further economic decline and ease the flow of job losses.
The U.S. economy could contract by 2.6 percent in 2009, the largest annual decline since 1946, the Conference Board said.
Agencies
Friday, April 3, 2009
Like Boeing, Bombardier to layoff 3,000 jobs
Canadian plane maker Bombardier, which is the third largest aircraft company in the world, on Thursday joined giant Boeing in axing 3,000 jobs worldwide citing sagging demand for its business jets.
Boeing has already announced to lay off 10,000 staff as the global downturn takes toll on the aviation sector.
Surprisingly, job cuts at the Montreal-based Bombardier came the day the company reported higher profits and revenue for the fiscal year 2009. But "there is no doubt that we are going through challenging times and our business environment is changing fast," said Bombardier CEO Pierre Beaudoin in a statement.
"However, we believe we are well positioned to face this difficult economic environment with a strong balance sheet, high level of liquidity as well as a large and diversified backlog, both by product and geographies," he added.
Thursday's job cuts, which account for 10 per cent of the company's total workforce, are in addition to 1,360 jobs it eliminated in February after fall in demand for its Learjet and Challenger aircraft, the Bombardier statement said.
Apart from eliminating hundreds of positions in Canada, the latest job cuts will also affect the company's facilities in the US, Mexico and Northern Ireland, the statement said.
With companies avoiding buying of corporate jets amid the global downturn, Bombardier said it expected to sell 25 per cent less business aircraft in the current fiscal year.
In its annual fiscal report Thursday, Bombardier posted a net income of $1 billion for the fiscal year 2009 ending January 31 - up from $317 million during the previous year.
The company earned a total revenue of $19.7 billion in 2009, compared to $17.5 billion in fiscal year 2008.
However, despite its strong financial showing, the company said its sales were slipping, forcing it to scale back its operations and axe jobs.
Agencies
Boeing has already announced to lay off 10,000 staff as the global downturn takes toll on the aviation sector.
Surprisingly, job cuts at the Montreal-based Bombardier came the day the company reported higher profits and revenue for the fiscal year 2009. But "there is no doubt that we are going through challenging times and our business environment is changing fast," said Bombardier CEO Pierre Beaudoin in a statement.
"However, we believe we are well positioned to face this difficult economic environment with a strong balance sheet, high level of liquidity as well as a large and diversified backlog, both by product and geographies," he added.
Thursday's job cuts, which account for 10 per cent of the company's total workforce, are in addition to 1,360 jobs it eliminated in February after fall in demand for its Learjet and Challenger aircraft, the Bombardier statement said.
Apart from eliminating hundreds of positions in Canada, the latest job cuts will also affect the company's facilities in the US, Mexico and Northern Ireland, the statement said.
With companies avoiding buying of corporate jets amid the global downturn, Bombardier said it expected to sell 25 per cent less business aircraft in the current fiscal year.
In its annual fiscal report Thursday, Bombardier posted a net income of $1 billion for the fiscal year 2009 ending January 31 - up from $317 million during the previous year.
The company earned a total revenue of $19.7 billion in 2009, compared to $17.5 billion in fiscal year 2008.
However, despite its strong financial showing, the company said its sales were slipping, forcing it to scale back its operations and axe jobs.
Agencies
Despite hope of recession easing layoffs rise
American employers are laying off workers at a faster pace despite a few hopeful signs recently that the recession, now the longest
since World War II, could be easing.
The Labor Department on Friday is slated to release a report expected to show that a net total of 654,000 jobs were lost last month. That's more than the population of Baltimore.
If economists are right, it would mark a record four straight months that job losses topped 600,000.
``It's going to be another month of gargantuan jobs losses,'' predicted Stuart Hoffman, chief economist at PNC Financial Services Group. ``Companies were slashing jobs and not filling vacant positions.''
With employers axing payrolls, the US unemployment rate is expected to jump to 8.5 per cent, from 8.1 per cent in February. If that happens, it would mark the highest jobless rate since late 1983, when the country was recovering from a severe recession that drove unemployment past 10 per cent.
As the recession, which started in December 2007, eats into their sales and profits, companies are laying off workers and resorting to other cost-saving measures. Those include holding down hours, and freezing or cutting pay, to survive the storm.
Looking forward, economists expect monthly job losses continuing for most, if not all of, this year.
However, they are hoping that payroll reductions in the current quarter won't be as deep as the roughly 650,000 average monthly job losses in the January-March period. In the best-case scenario, employment losses in the present quarter would be about half that pace, some economists said. That scenario partly assumes the economy won't be shrinking nearly as much in the present quarter.
Federal Reserve Chairman Ben Bernanke said the recession could end later this year, setting the stage for a recovery next year, if the government is successful in bolstering the banking system. Banks have been clobbered by the worst housing, credit and financial crises to hit the country since the 1930s.
Even if the recession ends this year, the economy will remain frail, analysts said. Companies will have little appetite to ramp up hiring until they feel the economy is truly out of the woods and any recovery has staying power.
Given that, many economists predict the unemployment rate will hit 10 per cent at the end of this year. The Fed says unemployment will remain elevated into 2011.
Economists say the job market may not get back to normal _ meaning a 5 per cent unemployment rate, until 2013.
``There's going to quite a long haul before you see the jobless rate head down,'' said Bill Cheney, chief economist at John Hancock Financial Services.
To brace the economy, the Fed has slashed a key bank lending rate to an all-time low and has embarked on a series of radical programs to inject billions of dollars into the financial system.
And the Obama administration had launched a multi-pronged strategy to turn the economy around. Its $787 billion stimulus package includes money that will flow to states for public works projects, help them defray budget cuts, extend unemployment benefits and boost food stamp benefits.
The administration also is counting on programs to prop up financial companies and reduce home foreclosures to help turn the economy around.
On the economic front, some glimmers of hope have emerged recently.
Orders placed with US factories actually rose in February, ending a six straight months of declines, the government reported Thursday. Earlier in the week, there was better-than-expected reports on construction spending and pending home sales. And last week a report showed that consumer spending, an engine of the economy, rose in February for the second month in a row, after a half-year of declines.
Still, skittish employers announced more job layoffs this week. 3M Co., the maker of Scotch tape, Post-It Notes and other products, said it's cutting another 1,200 jobs, or 1.5 per cent of its work force, because of the global economic slump. Fewer than half the jobs will be in the US, but include hundreds in its home state of Minnesota. The 1,200 figure includes cuts made earlier in the first quarter.
Elsewhere, healthcare products distributor Cardinal Health Inc. said it would eliminate 1,300 positions, or about 3 per cent of its work force, and semiconductor equipment maker KLA-Tencor Corp. said it will cut about 600 jobs, or 10 per cent of its employees.
Agencies
since World War II, could be easing.
The Labor Department on Friday is slated to release a report expected to show that a net total of 654,000 jobs were lost last month. That's more than the population of Baltimore.
If economists are right, it would mark a record four straight months that job losses topped 600,000.
``It's going to be another month of gargantuan jobs losses,'' predicted Stuart Hoffman, chief economist at PNC Financial Services Group. ``Companies were slashing jobs and not filling vacant positions.''
With employers axing payrolls, the US unemployment rate is expected to jump to 8.5 per cent, from 8.1 per cent in February. If that happens, it would mark the highest jobless rate since late 1983, when the country was recovering from a severe recession that drove unemployment past 10 per cent.
As the recession, which started in December 2007, eats into their sales and profits, companies are laying off workers and resorting to other cost-saving measures. Those include holding down hours, and freezing or cutting pay, to survive the storm.
Looking forward, economists expect monthly job losses continuing for most, if not all of, this year.
However, they are hoping that payroll reductions in the current quarter won't be as deep as the roughly 650,000 average monthly job losses in the January-March period. In the best-case scenario, employment losses in the present quarter would be about half that pace, some economists said. That scenario partly assumes the economy won't be shrinking nearly as much in the present quarter.
Federal Reserve Chairman Ben Bernanke said the recession could end later this year, setting the stage for a recovery next year, if the government is successful in bolstering the banking system. Banks have been clobbered by the worst housing, credit and financial crises to hit the country since the 1930s.
Even if the recession ends this year, the economy will remain frail, analysts said. Companies will have little appetite to ramp up hiring until they feel the economy is truly out of the woods and any recovery has staying power.
Given that, many economists predict the unemployment rate will hit 10 per cent at the end of this year. The Fed says unemployment will remain elevated into 2011.
Economists say the job market may not get back to normal _ meaning a 5 per cent unemployment rate, until 2013.
``There's going to quite a long haul before you see the jobless rate head down,'' said Bill Cheney, chief economist at John Hancock Financial Services.
To brace the economy, the Fed has slashed a key bank lending rate to an all-time low and has embarked on a series of radical programs to inject billions of dollars into the financial system.
And the Obama administration had launched a multi-pronged strategy to turn the economy around. Its $787 billion stimulus package includes money that will flow to states for public works projects, help them defray budget cuts, extend unemployment benefits and boost food stamp benefits.
The administration also is counting on programs to prop up financial companies and reduce home foreclosures to help turn the economy around.
On the economic front, some glimmers of hope have emerged recently.
Orders placed with US factories actually rose in February, ending a six straight months of declines, the government reported Thursday. Earlier in the week, there was better-than-expected reports on construction spending and pending home sales. And last week a report showed that consumer spending, an engine of the economy, rose in February for the second month in a row, after a half-year of declines.
Still, skittish employers announced more job layoffs this week. 3M Co., the maker of Scotch tape, Post-It Notes and other products, said it's cutting another 1,200 jobs, or 1.5 per cent of its work force, because of the global economic slump. Fewer than half the jobs will be in the US, but include hundreds in its home state of Minnesota. The 1,200 figure includes cuts made earlier in the first quarter.
Elsewhere, healthcare products distributor Cardinal Health Inc. said it would eliminate 1,300 positions, or about 3 per cent of its work force, and semiconductor equipment maker KLA-Tencor Corp. said it will cut about 600 jobs, or 10 per cent of its employees.
Agencies
Thursday, April 2, 2009
Samsung partners BSNL, MTNL for 3G services
Korean electronic major Samsung said it has partnered state-run telecos BSNL and MTNL to provide high-end handsets for their 3G services and is looking at up to 45 per cent of its total sales being generated from multimedia and touchscreen phones.
"We have partnered BSNL and MTNL to promote 3G services in India. We are currently giving a special bundling offer for BSNL consumers on our select handsets for 3G services," Samsung India Electronics President and CEO Jung Soo Shin said.
He said, "We have also provided handsets to MTNL to offer 3G services in Delhi."
Samsung today launched an 8 megapixel touchscreen, 3G enabled phone 'Ultra' priced at Rs 27,500 in India. The handset is capable of offering speedy internet access, video telephony, streaming and multimedia services.
"Samsung already has four touchscreen phones available in the Indian market, all of these are 3G enabled," Shin said.
"We are looking at touchscreen and multimedia phone portfolio to contribute 40-45 per cent of our total sales by the end of the year," Samsung Telecom Division Country Head Sunil Dutt said.
Agencies
"We have partnered BSNL and MTNL to promote 3G services in India. We are currently giving a special bundling offer for BSNL consumers on our select handsets for 3G services," Samsung India Electronics President and CEO Jung Soo Shin said.
He said, "We have also provided handsets to MTNL to offer 3G services in Delhi."
Samsung today launched an 8 megapixel touchscreen, 3G enabled phone 'Ultra' priced at Rs 27,500 in India. The handset is capable of offering speedy internet access, video telephony, streaming and multimedia services.
"Samsung already has four touchscreen phones available in the Indian market, all of these are 3G enabled," Shin said.
"We are looking at touchscreen and multimedia phone portfolio to contribute 40-45 per cent of our total sales by the end of the year," Samsung Telecom Division Country Head Sunil Dutt said.
Agencies
Are Satyam employees set to join BoA?
About 250-300 employees at fraud-hit Satyam Computer Services are joining Bank of America, a newspaper said on Wednesday.
The employees were working on a Satyam project for Merrill Lynch, which was taken over by the US bank after it was hit by the subprime crisis last year, it said.
The project was not renewed by Merrill after Satyam was caught in country's biggest corporate scandal and the work of managing its database and providing infrastructure support would now be done in-house, the paper said.
The first of these employees will join Bank of America between April 2 and 8, it said, adding they have been given salary increases of around 10 per cent and joining bonuses.
A spokeswoman for Satyam said, "The report is speculative." An official at Bank of America-Merrill Lynch in India said she could not immediately comment.
Satyam, whose market value has slid to $505.6 million from $7 billion last May, is in the midst of a bidding process to find a new buyer. It plunged into a crisis in January after its founder quit as chairman revealing profits had been falsified for years.
Engineering conglomerate Larsen & Toubro and mid-sized outsourcer Tech Mahindra are among the suitors, and local media have said US private equity WL Ross & Co was also among the bidders.
Agencies
The employees were working on a Satyam project for Merrill Lynch, which was taken over by the US bank after it was hit by the subprime crisis last year, it said.
The project was not renewed by Merrill after Satyam was caught in country's biggest corporate scandal and the work of managing its database and providing infrastructure support would now be done in-house, the paper said.
The first of these employees will join Bank of America between April 2 and 8, it said, adding they have been given salary increases of around 10 per cent and joining bonuses.
A spokeswoman for Satyam said, "The report is speculative." An official at Bank of America-Merrill Lynch in India said she could not immediately comment.
Satyam, whose market value has slid to $505.6 million from $7 billion last May, is in the midst of a bidding process to find a new buyer. It plunged into a crisis in January after its founder quit as chairman revealing profits had been falsified for years.
Engineering conglomerate Larsen & Toubro and mid-sized outsourcer Tech Mahindra are among the suitors, and local media have said US private equity WL Ross & Co was also among the bidders.
Agencies
Wednesday, April 1, 2009
Global IT spending to drop by 3.8% in 2009, says Gatner
The ongoing global slowdown will force companies worldwide to reduce their IT expenditure to USD 3.2 trillion this year against $ 3.4 trn in 2008, according to an IT research company.
"The unprecendented decline of the global economy is impacting the IT industry with worldwide IT spending forecast to total $ 3.4 trn in 2009, a 3.8 per cent decline from 2008 revenue of nearly $ 3.4 trn," IT research and advisory company Gartner said in a report.
Gartner said that all four of the key market sectors of the IT industry-- hardware, software, IT services and telecommunications have been revised downward, with only software spending growth remaining positive.
"Spending in computing hardware
will see a decline of 14.9 per cent with total spending to be around USD 324.3 billion as against $ 3.4 trn in 2008," Gartner said.
The spending in IT services and telecommunications sectors will also fall by 1.7 per cent at USD 796.1 billion and 2.9 per cent at USD 1,891.2 billion, respectively, the report said.
Agencies
"The unprecendented decline of the global economy is impacting the IT industry with worldwide IT spending forecast to total $ 3.4 trn in 2009, a 3.8 per cent decline from 2008 revenue of nearly $ 3.4 trn," IT research and advisory company Gartner said in a report.
Gartner said that all four of the key market sectors of the IT industry-- hardware, software, IT services and telecommunications have been revised downward, with only software spending growth remaining positive.
"Spending in computing hardware
will see a decline of 14.9 per cent with total spending to be around USD 324.3 billion as against $ 3.4 trn in 2008," Gartner said.
The spending in IT services and telecommunications sectors will also fall by 1.7 per cent at USD 796.1 billion and 2.9 per cent at USD 1,891.2 billion, respectively, the report said.
Agencies
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