Google Lays off 200

Google said Thursday that it would cut about 200 employees from its sales and marketing organization, the third and most significant round of layoffs at the company this year.
Google, which announced the layoffs in a blog post, said that the cuts would reduce overlap between different groups and speed up decision making.

Omid Kordestani, Google’s senior vice president for global sales and business development, said the cuts were meant to address mistakes the company had made during its phase of rapid growth. “In some areas we’ve created overlapping organizations which not only duplicate effort but also complicate the decision-making process,” Mr. Kordestani wrote on Google’s corporate blog. “That makes our teams less effective and efficient than they should be. In addition, we over-invested in some areas in preparation for the growth trends we were experiencing at the time.”

The cuts suggest that the deepening global recession is affecting some parts of Google’s business more severely than the company anticipated just two months ago. In January, after Google laid off 100 recruiters, Eric Schmidt, the company’s chief executive, said that deeper cuts were “unlikely.” In February, the company cut another 40 positions when it closed its radio advertising efforts.

About 100 of the eliminated positions will be in the United States and the rest overseas, said Matt Furman, a Google spokesman. Mr. Furman said the company continued to hire new workers, albeit at a slow rate. In the fourth quarter of 2008, the company grew by 99 workers, ending the year with 20,222 full-time employees. In previous years, Google had added more than 2,000 people in a single quarter.

Laid-off workers will be given time to apply for other jobs within the company.
The layoffs this year are neither the first nor the largest in Google’s history. Last April, Google cut about 300 positions from the American operations of DoubleClick, which it acquired earlier in 2008.

UN calls for a new global currency

A United Nations panel of economists has proposed a new global currency reserve that would take over the US dollar-based system used for decades by international banks.

The proposal comes on the heels of the controversial call by China's central bank governor, Zhou Xiaochuan, to create a new world currency reserve to replace the US dollar as part of a sweeping overhaul of global finance, which is suffering its worst crisis since the Great Depression of the 1930s.

China and many developing countries blame the crisis on US mishandling of overextended mortgage loans and investments in them.

"A new global reserve system... with regular or cyclically adjusted emissions calibrated to the size of reserve accumulations, could contribute to global stability, economic strength and global equity," the panel said in a document released in New York.

The call was issued at the end of a three-day conference at UN headquarters in New York on Friday.

Earlier this week, the US said it was open to enlarging the International Monetary Fund's (IMF) currency reserves, but insisted the dollar would remain "the world's dominant reserve currency".

The call comes just days before the world's 20 largest economies (G20) were to meet in London to chart a way out of the global recession.

The UN panel said a new global reserve would be "feasible, non- inflationary and could be easily implemented". It said it would help lessen the difficulties now caused by unbalanced adjustments between surplus and deficit countries.

The 22-member panel is headed by Nobel Economics Prize laureate Joseph Stiglitz, a frequent critic of past US fiscal policy.

"The nature of this crisis has opened up opportunities for change that I think would not have been conceivable even a few months ago," Stiglitz said on Thursday.

The panel made several recommendations to deal with the financial crisis, which it said requires the cooperation of rich and poor nations together to take strong and effective actions to stimulate their economies.

Stiglitz said there has been a growing consensus among UN members that the US dollar-based financial system is problematic. But he warned that the idea of a new global reserve is still a concept that panelists are debating.

He said the current system was "relatively volatile, deflationary, unstable and (had) inequity associated with it".

"Developing countries are lending the United States trillions dollars at almost zero interest rates when they have huge needs themselves," Stiglitz said. "It's indicative of the nature of the problem. It's a net transfer, in a sense, to the US, a form of foreign aid."

The panel, known as the Commission of Experts on Reform of International Finance and Economic Structures, was established by the UN General Assembly last year to deal with the widening economic and financial crisis.

The panel believes the creation of a new global reserve would help poor countries through an improved credit system, built on a system of special drawing rights (SDRs) set up by the International Monetary Fund after World War II.

China's call for a replacement of the US dollar has made the UN proposal for a new currency reserve stronger. Some panelists suggested the SDRs could be used as a new standard of a global reserve currency.

China Calls for a New Global Currency to Replace Dollar

China calls for new global currency
BEIJING (AP) — China is calling for a new global currency controlled by the International Monetary Fund, stepping up pressure ahead of a London summit of global leaders for changes to a financial system dominated by the U.S. dollar and Western governments.

The comments, in an essay by the Chinese central bank governor released late Monday, reflect Beijing's growing assertiveness in economic affairs. China is expected to press for developing countries to have a bigger say in finance when leaders of the Group of 20 major economies meet April 2 in London to discuss the global crisis.

Gov. Zhou Xiaochuan's essay did not mention the dollar by name but said the crisis showed the dangers of relying on one nation's currency for international payments. In an unusual step, the essay was published in both Chinese and English, making clear it was meant for an international audience.

"The crisis called again for creative reform of the existing international monetary system towards an international reserve currency," Zhou wrote.

A reserve currency is the unit in which a government holds its reserves. But Zhou said the proposed new currency also should be used for trade, investment, pricing commodities and corporate bookkeeping.

Beijing has long been uneasy about relying on the dollar for the bulk of its trade and to store foreign reserves. Premier Wen Jiabao publicly appealed to Washington this month to avoid any steps in response to the crisis that might erode the value of the dollar and Beijing's estimated $1 trillion holdings in Treasuries and other U.S. government debt.

The currency should be based on shares in the IMF held by its 185 member nations, known as special drawing rights, or SDRs, the essay said. The Washington-based IMF advises governments on economic policy and lends money to help with balance-of-payments problems.
Some economists have suggested creating a new reserve currency to reduce reliance on the dollar but acknowledge it would face major obstacles. It would require acceptance from nations that have long used the dollar and hold huge stockpiles of the U.S. currency.

"There has been for decades talk about creating an international reserve currency and it has never really progressed," said Michael Pettis, a finance professor at Peking University's Guanghua School of Management.

Managing such a currency would require balancing the contradictory needs of countries with high and low growth or with trade surpluses or deficits, Pettis said. He said the 16 European nations that use the euro have faced "huge difficulties" in managing monetary policy even though their economies are similar.

"It's hard for me to imagine how it's going to be easier for the world to have a common currency for trade," he said.

China has pressed for changes to give developing countries more influence in the IMF, the World Bank and other finance bodies. G20 finance officials issued a statement at their last meeting calling for such changes but gave no details of how that might happen.

Russia also has called for such reforms and says it will press its case at the London summit.
Zhou said the new currency would let governments manage their economies more efficiently because its value would not be influenced by any one nation's need to regulate its own finance and trade.

"A super-sovereign reserve currency managed by a global institution could be used to both create and control global liquidity," Zhou wrote. "This will significantly reduce the risks of a future crisis and enhance crisis management capability."

Zhou also called for changing how SDRs are valued. Currently, they are based on the value of four currencies — the dollar, euro, yen and British pound.

"The basket of currencies forming the basis for SDR valuation should be expanded to include currencies of all major economies," Zhou wrote. "The allocation of the SDR can be shifted from a purely calculation-based system to one backed by real assets, such as a reserve pool, to further boost market confidence in its value."

Indian Companies Stop Fresh Recruitment

New Delhi: Indian companies have virtually stopped fresh recruitments to cut costs in the wake of global credit crunch, says a study by industry body Assocham.

Out of 150 human resource professionals interviewed, 90% said that “there is a virtual ban on fresh recruitments in the private sector as attrition rate has almost subsided in all sectors of economy.”

The study said that as the global slowdown is getting deeper, HR professionals are under severe pressure for working out innovative ways and means to cut unnecessary organisational frills and reduce fringe benefits such as bonus and other allowances, besides curtailment in administrative costs.

In order to avoid layoffs, HR professionals have advised managements to cut wages in the range of 10-15% at middle and senior-middle levels and 25-35% at senior levels, it said.

“Efforts are being put in the direction that only 5-7% wage cuts are being recommended for lower-level employees,” it said, adding that the focus of firms is more towards cutting administrative costs such as optimum use of stationery, conveyance and reduced electricity consumption.

Eye Witness Account of A Layoff ! Interesting Read!

* This is an eye-witnessed layoff, as reported by a victim*
victim - May i come in? i am sorry, i am late. But that should be fine.

HR - Please come in. Are you aware why we have arranged this meeting?
victim - yes of course. Even one of my friend attended the same in morning. First i thought it is because he downloaded a porn video yesterday, but the very next moment, i realized what is this all about.

HR - have a seat please. See, it's a part of the organization process that we periodically need to re-align the number of resources with the requirements and re-size the number of available skills according to demand. So maybe you do not exactly fit in the current work profile and that's why we want to give you an opportunity to look for a more suitable place. And that is why, we are executing this layoff procedure.

victim - so you mean to say that 200 candidates who had undergone oh-so-hyped technical and stress interviews in their campuses and then recruited by you, who were turned into coding machines over last two years do not fit in for work ? and it took two years for you to realize that ?

HR - See, it doesn't work the way you think. you might have been put on layoff list because you are an under performer.

victim - ahaan. so now you think i am under performer. There are people on bench over 10 months because their resource manager haven't assigned them to projects and you think employees are under performer ? project directors, who have been stuffing resources with bloody 200% margin and even then, 10% of the team always has to perform under extreme stress and you are saying employees are under performer !!! we are not under performer, we never had an opportunity to perform.

HR - see, project assignments and such authorities are not in HR's hands. HRs are for your compensation issues, and we are always helpful to employees for such matters.

victim - Oh yes, of course. you have always been helpful to all managers & directors in hiding the numbers when there's an extra bonus deposited from client's side so that those employees; who are actually working their asses off to deliver the project even before the deadline; would never know why their share has disappeared ! i will tell you why exactly this layoff is being executed. It's not because the reasons you stated.

It is because American big brothers are not ready to outsource anymore work to India. and typically, not to our company. We are doing the same work since years and years with no difference in quality, but with an increased cost every year.

So they are not ready to buy your junk code written by those dumb fashion chicks you have retained to make your office look more glamorous.

Managers are more focused on internal politics about how do i climb the organization ladder and not let the others. They are not letting technically strong engineers being exposed to clients because they are feeling insecure when they stand next to their juniors.

Neither the company has brought any innovation in it's service and that's why, we are much much less efficient than expected. you want to pay more to those who sit inside the closed cabin and that's why you are firing those employees who are sitting outside !

HR - listen, you need to calm down. you are not the only person. There are lot others on the list.

victim - oh ya. the long list ! something that the company is really proud of. whatever. i am pretty calm and cool. don't worry, i wont need any of those ambulances you have kept ready outside. In fact, i am very happy that this ended very soon and you yourself are firing me.

Otherwise, i was about to resign in coming time. Just let me know where all i need to sign and finish it off.

HR - Alright, here are the papers you need to sign. Once you complete that, surrender your Identity card and Access card. After that, you are not allowed to walk inside the official premises or interact with any employee. so one security guard will escort you to the parking. let me know the address, our cab will drop you home. if you have any personal belongings in your cubicle, do let us know. We will send them out separately along with your relieving letter.

victim - okie. I will need a cab to pearl's bar. We all, who are being fired are having a party there, and no offense, but you are not invited
Source:
http://spectatorspeaks.blogspot.com/2008/08/layoff-in-indian-it-industry.html

Expats Leave bangalore as recession hits

Bangalore: As companies look to cut costs in order to offset recession, many expats are being asked to leave Bangalore, which is home to around 1,000 expat professionals, placed mainly in the IT, financial services and manufacturing verticals, serving as overseers, delivery heads, engagement heads and business account heads, reported The Times of India.

While some expats have already left, many others are busy placing their CVs with leading headhunters in India and overseas as they are facing the pressure to leave, say HR professionals. Many 5-star hotels in the city have seen a drop in their long-staying expat clientele, mainly on account of them leaving the city.

Naresh Malik, who is associated with a Mumbai-based CXO search firm, says, "With each offshoring contract that involves 400-500 people, clients normally depute expats at vendor locations to oversee the delivery."Cost is the reason for this exodus. "Companies are eager to cut cost, and expats are really a big cost," says Romi Malhotra, CEO of The Dominon, a top-leadership crafting firm, and former MD of Dell India.

One expat salary, he says, is almost three times that of an Indian salary. "Expat perks and benefits are also very high. One in five expats is under pressure to look out for other job options or move back," he adds.When the aviation boom had created a pilot shortage, many expat pilots had been hired. But now, airlines have been sacking expats due to the pressure imposed by the withdrawal of flights from many routes. Domestic pilots have been demanding that expats should be first asked to go, given their higher salaries.

Obama Cuts Cost to Face India, China

Washington: President Barack Obama wants to reduce health care and energy costs to lessen the massive national debt lest India and China overtake a recession hit US economy."We're doing everything we can to reduce that deficit," Obama said addressing his second prime time news conference Tuesday night.

A fiscal deficit of over $1.3 trillion left by the Bush administration is expected to double with the stimulus measures to rescue the economy.

But it's hard to do so "because we've accumulated a structural deficit that's going to take a long time, and we're not going to be able to do it next year or the year after or three years from now. What we have to do is bend the curve on these deficit projections," Obama said."And the best way for us to do that is to reduce health care costs," he said suggesting investment in health information technologies and preventive care. "Let's do a whole host of things, some of which cost money on the front end, but offer the prospect of reducing costs on the back end."

Now, the alternative is to stand pat and to simply say: We are just going to not invest in health care. We're not going to take on energy. We'll wait until the next time that gas gets to $4 a gallon. We will not improve our schools."And we'll allow China or India or other countries to lap our young people in terms of their performance. We will settle on lower growth rates, and we will continue to contract, both as an economy and our ability to provide a better life for our kids,"

Obama said.Asked about a Chinese proposal to replace the US dollar as the reserve currency with a new global currency run with a different standard by the International Monetary Fund, he said: "I don't believe that there's a need for a global currency.""The dollar is extraordinarily strong right now," Obama said, "and the reason the dollar is strong right now is because investors consider the United States the strongest economy in the world with the most stable political system in the world."