Recession: Side Effects

November 4, 2008

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