Satyam has put almost 5000 employees on virtual. Those on the virtual bench will not get full salaries, 50-60 per cent of salaries may be cut and the number of working days reduced. Also, some people may be put on training with only 25 per cent of the salary paid. Besides, sabbaticals of over a year's time will be encouraged and employees will also be given a choice to leave with severance package.Raju Kapur, business head at Ikya Human Capital, said, "Virtual bench is a partial lay off. It is a cost cutting method. Employees are the biggest cost for an IT company and the result of cutting the amount of salary out flow, will immediately reflect in the company’s books."
Tech Mahindra in its due diligence process of Satyam had estimated over 15,000 employees as excess on base of 45,000 employees eating heavily into Satyam's margins.But a straightforward layoff in Satyam is not an option for Tech Mahindra, especially with the government involved in the process.
Meanwhile, apart from creating a virtual bench, Tech Mahindra is also absorbing about 2000 Satyam employees in its fold and has opened recruitments in Pune, Mumbai and Noida. But these employee-trimming plans are still on paper and margins will still bleed some more. It’s time for Tech Mahindra to see through some tough decisions.
Wednesday, May 20, 2009
Satyam puts 5000 employees on virtual bench
Sunday, May 10, 2009
Microsoft lays off 1% of India staff
Microsoft has laid off 1 per cent of its India workforce on May 5 as part of the global software maker's second wave of layoffs. Microsoft India has sent notices to its employees in Bangalore and Hyderabad that it would be eliminating their jobs, informed sources said.
It is not clear which groups of the Indian operations have been affected by the cuts which are learnt to have been carried out across diverse functions.
However, a company source said that a sizeable number of Microsoft's sales and support personnel in Hyderabad and a few in Bangalore were among those affected. The Response Windows team has also been dismantled completely, the source claimed.
The company's official spokesperson was unavailable for comment on the developments.
The job cuts are part of Microsoft's global initiative announced in January that it would reduce 5,000 jobs worldwide by June 2010. At that point of time, the company had laid off 1,350-1,400 people largely in the US.
In the second round of layoffs effected on May 5, another 3,000 jobs were eliminated.
With the second wave of layoff notifications, Microsoft has cut 4,500 jobs and is close to its 5,000 layoff target.
On whether more layoffs would be announced in the India operations, which have over 5,500 people on its rolls, sources said that such a possibility could arise under a new round of job cuts, though no hint or official announcement to the effect has come from CEO Steve Ballmer.
While announcing the second round of job cuts, Ballmer had said in a memo last week that the company would closely monitor the impact of the economic slowdown and take necessary action on its cost structure, including taking a decision on undertaking additional job eliminations "as required".
The company is known to be going ahead with plans to hire 2,000-3,000 workers worldwide this year in some of its growing areas of focus, including online services business and the enterprise server group.
It is not clear which groups of the Indian operations have been affected by the cuts which are learnt to have been carried out across diverse functions.
However, a company source said that a sizeable number of Microsoft's sales and support personnel in Hyderabad and a few in Bangalore were among those affected. The Response Windows team has also been dismantled completely, the source claimed.
The company's official spokesperson was unavailable for comment on the developments.
The job cuts are part of Microsoft's global initiative announced in January that it would reduce 5,000 jobs worldwide by June 2010. At that point of time, the company had laid off 1,350-1,400 people largely in the US.
In the second round of layoffs effected on May 5, another 3,000 jobs were eliminated.
With the second wave of layoff notifications, Microsoft has cut 4,500 jobs and is close to its 5,000 layoff target.
On whether more layoffs would be announced in the India operations, which have over 5,500 people on its rolls, sources said that such a possibility could arise under a new round of job cuts, though no hint or official announcement to the effect has come from CEO Steve Ballmer.
While announcing the second round of job cuts, Ballmer had said in a memo last week that the company would closely monitor the impact of the economic slowdown and take necessary action on its cost structure, including taking a decision on undertaking additional job eliminations "as required".
The company is known to be going ahead with plans to hire 2,000-3,000 workers worldwide this year in some of its growing areas of focus, including online services business and the enterprise server group.
Wednesday, May 6, 2009
Fewer jobs cuts in US signal weak recovery
Job cut announcements by United States employers fell for the third consecutive month in April to 130,000, the lowest in six months, signalling that recovery in the strained job market may be underway, a report said on Thursday.
Planned job cuts announced by US employers totalled 132,590 in April, a 12 per cent drop from the 150,411 layoffs recorded the previous month. This is the third consecutive decline in monthly job cut announcements and the lowest total since 112,884 cuts were announced last October, a report by global outplacement consultancy firm Challenger, Gray & Christmas said.
However, the pace of job cuts is still well ahead of last year. The April total was 47 per cent higher than the 90,015 job cuts announced in the same month in 2008, the city-based firm said. Employers have announced 711,100 job cuts this year, 145 per cent more than in the first four months of 2008 (290,671).
"Job cuts are still at recession levels, but the fact that they are falling is certainly promising and may suggest that employers are starting to feel a little more confident about future business conditions. Hopefully, the next few months will bring further relief, as we tend to see downsizing activity slow during the summer months," Challenger, Gray & Christmas CEO John Challenger said.
During the month, the highest number of job cuts at 27,624 was announced in the government and non-profit sector.
"State and local governments, as well as school districts, are really feeling the impact of this downturn. They are losing revenue from property taxes as foreclosure rates increase, as well as from declining sales and income taxes. Meanwhile, their costs are growing as more people find themselves jobless and in need of public assistance," Challenger said.
The recession has taken a heavy toll on the automotive sector, which announced 24,172 layoffs, followed by industrial-goods companies, which cut 18,636 jobs through April. Economic conditions, cost-cutting, restructuring and demand downturn continued to be the main reasons for the layoffs, the report said.
However, some sectors also announced hiring plans during the month. The automotive sector announced plans to hire 11,500 people, followed by retail (7,000), financial sector (2,000) and entertainment/leisure (1,500).
Planned job cuts announced by US employers totalled 132,590 in April, a 12 per cent drop from the 150,411 layoffs recorded the previous month. This is the third consecutive decline in monthly job cut announcements and the lowest total since 112,884 cuts were announced last October, a report by global outplacement consultancy firm Challenger, Gray & Christmas said.
However, the pace of job cuts is still well ahead of last year. The April total was 47 per cent higher than the 90,015 job cuts announced in the same month in 2008, the city-based firm said. Employers have announced 711,100 job cuts this year, 145 per cent more than in the first four months of 2008 (290,671).
"Job cuts are still at recession levels, but the fact that they are falling is certainly promising and may suggest that employers are starting to feel a little more confident about future business conditions. Hopefully, the next few months will bring further relief, as we tend to see downsizing activity slow during the summer months," Challenger, Gray & Christmas CEO John Challenger said.
During the month, the highest number of job cuts at 27,624 was announced in the government and non-profit sector.
"State and local governments, as well as school districts, are really feeling the impact of this downturn. They are losing revenue from property taxes as foreclosure rates increase, as well as from declining sales and income taxes. Meanwhile, their costs are growing as more people find themselves jobless and in need of public assistance," Challenger said.
The recession has taken a heavy toll on the automotive sector, which announced 24,172 layoffs, followed by industrial-goods companies, which cut 18,636 jobs through April. Economic conditions, cost-cutting, restructuring and demand downturn continued to be the main reasons for the layoffs, the report said.
However, some sectors also announced hiring plans during the month. The automotive sector announced plans to hire 11,500 people, followed by retail (7,000), financial sector (2,000) and entertainment/leisure (1,500).
Saturday, May 2, 2009
Jet lays off 110 employees news on 1st May
Now another Layoff news came on 1st May as Jet lays off 110 employees.
Faced with mounting costs and falling revenues, private airline Jet Airways has laid off 110 employees.Of these employees, 50 are contract employees who have 'superannuated,' and another 60 are probationary cabin-crew.
When asked about the pink slips being handed over to the 60 cabin-crew, a Jet Airways spokesperson said that "these cabin-crew were in their probation period and the airline has decided to terminate their contracts. However, the termination is in accordance with law and their service conditions."
On the decision of not renewing the contracts of its 50 employees, Jet said that these employees had superannuated.
"Jet Airways undertakes additional measures to streamline costs to improve the financial health of the company under the challenging global economic environment. The airline has issued notices of termination to identified employees on contract, who have superannuated," the spokesperson said.
Source - rediff
Faced with mounting costs and falling revenues, private airline Jet Airways has laid off 110 employees.Of these employees, 50 are contract employees who have 'superannuated,' and another 60 are probationary cabin-crew.
When asked about the pink slips being handed over to the 60 cabin-crew, a Jet Airways spokesperson said that "these cabin-crew were in their probation period and the airline has decided to terminate their contracts. However, the termination is in accordance with law and their service conditions."
On the decision of not renewing the contracts of its 50 employees, Jet said that these employees had superannuated.
"Jet Airways undertakes additional measures to streamline costs to improve the financial health of the company under the challenging global economic environment. The airline has issued notices of termination to identified employees on contract, who have superannuated," the spokesperson said.
Source - rediff
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