Recession: Side Effects

These are tough times for job seekers and employees across the world. As the corporate world reels under a economic recession, more and more people are losing their jobs in the US.

However, in India, IT majors Tata Consultancy Services and Wipro have denied any job cuts, stating that the recession would not hit the IT industry.

Goldman Sachs plans to cut 3,300 jobs as the crisis worsens in the United States. The company also reported a 70 per cent fall in its third quarter profit. The total revenues for the quarter dropped 51 per cent compared to the same period last year.

Nissan Motor Co is planning to slash 2,500 jobs abroad and 1,000 temporary positions in Japan as it plans to reduce vehicle production this year by 200,000 units in Europe, Japan and North America.

Motorola Inc has decided to cut its global workforce by laying off 3,000 employees. Motorola has reported a quarterly net loss of nearly $400 million.

Motorola has also lowered its forecast for the rest of the year and said cost-cutting moves would help the company save about $800 million next year. The company had 66,000 employees by the end of 2007.

The company has sacked 13,000 staffers since January 2007. Motorola now has a tough battle ahead with strong competitors like Nokia, Samsung and Sony Ericsson.

The Walt Disney Co is also planning job cuts. However, the company is tightlipped about the restructuring plans.

American auto giant Chrysler in its latest round of job cuts said it would slash 1,825 jobs. The company has incurred losses of $1 billion in the first half of the year.

Xerox Corp has slashed 3,000 jobs due to a fall in demand from US companies.

The company has slashed 8,800 jobs since 2005, including 1,500 so far this year. The falling profits have further deteriorated the company’s financial position.

Fujifilm announced that it would cut 1,250 jobs at its printer unit, Fuji Xerox Co as demand dropped. The company has also reported a 25% drop in profits in 6 months.

Source: Rediff

3 Responses to Recession: Side Effects

  1. hari64 says:

    Let us say u r a corporate/organisation and going to retrench people today or in immediate future.

    Here is a way to save job/life of many people

    1.Assume u r going to hive off 100 employees today which u think willl result in to cost saving for the organisation of certain amount.

    2. Call all the 100 person tell them the truth and offer them 50% salary cut and 50% variable annual performance bonus if they are ready to change their KRA and ready to commit more revenue then currnet one.

    3. In such case retain 50 best employees out retrenchment of 100 choosen.One can apply various tools even in retaining the 50 like their past history, past achievement track record, behaviour,ability to deliver in crisis. One can set a revised KRA/goals for such excersize.

    4. I think such approach can save life of many plus both organisation and employees will go for better performance,better revenue and will innovate a lot. I think this is a win win situation rather then mass job cuts to cut cost.

    I would like the decision makers to comment and will be happy atleast those who implement the above can post their comment rather then they cut jobs.

    There are even something for those who have lost job recently. They in their CV/Bio-data can indicate that they are ready to work for 50% of their earlier pay package(last package drawn by them) and ready to get balance 50% by variable pay as performance bonus. Those who have been performance oriented and likes challance will certainly be successful during this recession period. and your chances of getting a new job is much higher then others.

  2. Thanks Hari,

    For sharing your views on the present situation which is prevailing right now. But honestly saying it will be also difficult for employees those who are facing danger of being asked to move to work on 50% salary. It may be true for very less percentage of employees. As of today we all have certain commitments based on our salary it may in house rent, home loan, personal loan etc.

    So I do not think it will be wise idea to accept or get ready to work at 50% salary.

    Solution:-

    1. As per me you start cutting down your extra expenses which you have developed.
    2. Start saving money.

    Also please refer these 2 blogs too

    https://abhishekkatiyar.wordpress.com/2008/10/17/10-tips-to-survive-a-layoff-financially/

    https://abhishekkatiyar.wordpress.com/2008/11/03/11-ways-to-be-a-happy-employee/

    Regards,
    Abhishek

  3. health says:

    health…

    […]Recession: Side Effects « Free to share your thoughts[…]…

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