New York: Sun Microsystems will cut 3,000 jobs over the next 12 months because of the delay in its takeover by software giant Oracle. The company is waiting for the verdict an European Union (EU) probe regarding the takeover.
Sun Microsystems in a filing with the U.S. Securities and Exchange Commission (SEC) said that the layoffs are part of a restructuring plan brought in by the delay in its acquisition by Oracle. The company said the move will result in charges of between $75 million and $125 million over the next several quarters.
The $7.4 billion deal, for a one-time Silicon Valley star and developer of the Java programming language, was approved by its shareholders in July and the U.S. Department of Justice in August. The EU is still investigating the case, and a decision is due by January 19, 2010.
Oracle had said last month that Sun was losing $100 million every month as it waited for the probe.
The EU is concerned that the deal, if approved, could breach competition rules, which will lead to rise in prices and less choice for customers. The major concern lies on Oracle having control over Sun's MySQL database business.
EU Competition Commissioner, Neelie Kroes, said the EU is obliged to investigate "when the world's biggest proprietary database company proposes to take over the world's leading open-source database company".
On the other hand, Oracle maintains that MySQL did not compete against each other, and said it would not sell MySQL to get the deal approved.
Oracle will look to strengthen its position against rival IBM, which gave up on its own attempts to buy Sun earlier this year.
Showing posts with label ; Layoffs in India. Show all posts
Showing posts with label ; Layoffs in India. Show all posts
Saturday, October 24, 2009
Mahindra Satyam may Layoff 5000
Chennai: Months after assuring that there would be no further lay offs, Mahindra Satyam may just lay off another 5000 benchers. Many employees on the Virtual Pool Program (VPP) of the company have been sent a formal notice of two months by e-mail.
According to the Times of India, the mail dated October 19, reads: "In our earlier communication dated June 11, 2009, you were placed on VPP for a period of six months and accordingly, your Virtual Pool Leave is due to end on December 18, 2009. It is rather unfortunate that due to the continued economic constraints and business outlook, we do not anticipate that we will have the ability to recall many of our valued associates within the VPP period."
On June 11, the company had announced the creation of the virtual pool, placing around 8,000 associates on the bench. "The surplus employees will be put in the VPP and paid basic salary, PF and medical insurance," Vineet Nayyar, CEO, Tech Mahindra, had said while ruling out any retrenchment.
However, with the six-month period of the VPP set to lapse in December, the company has served a two-month notice, as required by the employment contract, reportedly on over 5,000 employees. Sources said that the company did not have enough projects on hand and was not able to recall many associates.
A Mahindra Satyam spokesperson said that the company had absorbed about 1,500 associates from the virtual pool. The spokesperson also denied that the company was "laying off" people, even as the mail speaks of "separation of employment".
"We have given these employees an option of availing outplacement services. We will try to help them to the best of our abilities," he said.
According to the Times of India, the mail dated October 19, reads: "In our earlier communication dated June 11, 2009, you were placed on VPP for a period of six months and accordingly, your Virtual Pool Leave is due to end on December 18, 2009. It is rather unfortunate that due to the continued economic constraints and business outlook, we do not anticipate that we will have the ability to recall many of our valued associates within the VPP period."
On June 11, the company had announced the creation of the virtual pool, placing around 8,000 associates on the bench. "The surplus employees will be put in the VPP and paid basic salary, PF and medical insurance," Vineet Nayyar, CEO, Tech Mahindra, had said while ruling out any retrenchment.
However, with the six-month period of the VPP set to lapse in December, the company has served a two-month notice, as required by the employment contract, reportedly on over 5,000 employees. Sources said that the company did not have enough projects on hand and was not able to recall many associates.
A Mahindra Satyam spokesperson said that the company had absorbed about 1,500 associates from the virtual pool. The spokesperson also denied that the company was "laying off" people, even as the mail speaks of "separation of employment".
"We have given these employees an option of availing outplacement services. We will try to help them to the best of our abilities," he said.
Sunday, September 27, 2009
Wipro lays off 300 non performers
To power its growth during the present slowdown, Wipro, the third largest IT services company in India, has resorted to certain stringent measures. Last week, according to company sources, an indefinite number of employees have been laid off by the company. An employee, who has been laid off says, "Last week, around 300 employees were laid off on one single day."
Some had to wait for a long time to get back their documents, after being told about the company's decision. The employee illustrates, "I had to wait for more than eight hours to get back my documents, because of the long queue of employees."
Few days back, Wipro had outperformed its larger rivals Infosys and TCS both in terms of profit and revenue growth, in its Q4 results.
The move by the Bangalore-based company comes in the wake of an announcement made by Girish Paranjpe, Joint CEO of Wipro's IT business. Paranjpe had said, "For FY09, we probably have seen five to seven percent of our manpower employed with the IT business being released, as against two to three percent a year back."
According to Paranjpe, the performance criteria have become tougher now, because of the slowing economy. Last year, the company had announced, to put four to five percent of its workforce that is about 3,000 employees, under the performance scanner. Based on their performance some would be given counseling to help them improvise, while others would be asked to quit.
The spokesperson said, "Those who don't clear the �tests�, are the ones who are sent off." Pointing out to similar kinds of measures by other companies, she added, "This type of a move is taken by many companies these days, due to the economic downturn."
Courtesy: siliconindia
Some had to wait for a long time to get back their documents, after being told about the company's decision. The employee illustrates, "I had to wait for more than eight hours to get back my documents, because of the long queue of employees."
Few days back, Wipro had outperformed its larger rivals Infosys and TCS both in terms of profit and revenue growth, in its Q4 results.
The move by the Bangalore-based company comes in the wake of an announcement made by Girish Paranjpe, Joint CEO of Wipro's IT business. Paranjpe had said, "For FY09, we probably have seen five to seven percent of our manpower employed with the IT business being released, as against two to three percent a year back."
According to Paranjpe, the performance criteria have become tougher now, because of the slowing economy. Last year, the company had announced, to put four to five percent of its workforce that is about 3,000 employees, under the performance scanner. Based on their performance some would be given counseling to help them improvise, while others would be asked to quit.
The spokesperson said, "Those who don't clear the �tests�, are the ones who are sent off." Pointing out to similar kinds of measures by other companies, she added, "This type of a move is taken by many companies these days, due to the economic downturn."
Courtesy: siliconindia
Adobe freezes pay, cuts variable
Adobe Inc, the world’s biggest maker of graphic-design software, will freeze pay this year as the recession crimps sales, said Chief Financial Officer Mark Garrett. “Clearly, we aren’t going to have salary increases,” he said in an interview. “The bonus plans and variable compensation plans will pay out less. We have set ourselves up for what we think we need to do -- from a costs perspective -- for the rest of this year.”
Adobe also has cut about 8 per cent of its workforce, curbed travel and reduced its use of contractors. While US demand is now steady, overseas sales may still be dropping, Garrett said. That revenue accounted for almost 60 per cent of Adobe’s total last year.
Adobe also has cut about 8 per cent of its workforce, curbed travel and reduced its use of contractors. While US demand is now steady, overseas sales may still be dropping, Garrett said. That revenue accounted for almost 60 per cent of Adobe’s total last year.
TCS Drops plans to raise headcount in australia
Global IT major Tata Consultancy Services (TCS) is understood to have shelved plans to increase its headcount in Australia to around 2,000 by the end of this year. The reason: The ongoing financial crisis.
TCS had dropped plans to boost its headcount in Australia even though it recorded double-digit revenue growth, according to reports and blog posts from the country.
The Tata group company employed around 950 people in Australia at the end of the previous year, but around 50 have since been relocated to India. This puts TCS’ total employee base in that country at around 900, reports say.
A TCS spokesperson said: “Australia continues to be a significant growth market for TCS. Given the uncertainty in the global economy, TCS will grow its staff strength in line with the business growth there. Under the current context, with customers looking at offshoring as an effective value proposition, we are likely to see an increase in people servicing Australian customers in India.”
In January, TCS Asia-Pacific Head and Regional Director, Girija Pande, had said that the company planned to double the number of workers in Australia by the end of the year.
In Australia, TCS provides near-shore, high-profile technology services.
TCS had dropped plans to boost its headcount in Australia even though it recorded double-digit revenue growth, according to reports and blog posts from the country.
The Tata group company employed around 950 people in Australia at the end of the previous year, but around 50 have since been relocated to India. This puts TCS’ total employee base in that country at around 900, reports say.
A TCS spokesperson said: “Australia continues to be a significant growth market for TCS. Given the uncertainty in the global economy, TCS will grow its staff strength in line with the business growth there. Under the current context, with customers looking at offshoring as an effective value proposition, we are likely to see an increase in people servicing Australian customers in India.”
In January, TCS Asia-Pacific Head and Regional Director, Girija Pande, had said that the company planned to double the number of workers in Australia by the end of the year.
In Australia, TCS provides near-shore, high-profile technology services.
No pay hike at wipro
Wipro has announced that it will not be giving its employees any wage hikes this fiscal year. The company also said that it would honor its commitments to fresh graduates it hired last year but on a staggered basis. The students will have to wait longer before being absorbed in the company.
Wipro had issued offer letters to over 7000 students from various universities who have graduated this year.
Pratik Kumar, vice president (human resource) at Wipro said, "We will honor our commitments made to the students last year but it will be on a staggered basics since we don't want them to sit in the bench. We will also have no wage hike during this fiscal."
Since we are not sure how many we can absorb this fiscal, some of the freshers could spill over next fiscal, he said.
Wipro will be going for fresh recruitments only during Jan-Feb of 2010. Kumar also said Wipro would go for lateral hiring depending on business generation.
The company has also made it a policy to approach students only during their last semester unlike earlier when it approached them during the 6th semester.
Wipro had issued offer letters to over 7000 students from various universities who have graduated this year.
Pratik Kumar, vice president (human resource) at Wipro said, "We will honor our commitments made to the students last year but it will be on a staggered basics since we don't want them to sit in the bench. We will also have no wage hike during this fiscal."
Since we are not sure how many we can absorb this fiscal, some of the freshers could spill over next fiscal, he said.
Wipro will be going for fresh recruitments only during Jan-Feb of 2010. Kumar also said Wipro would go for lateral hiring depending on business generation.
The company has also made it a policy to approach students only during their last semester unlike earlier when it approached them during the 6th semester.
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