AMEX TO CUT INDIA JOBS, REFUSES TO GIVE NUMBERS

Well if after reading the previous post you thought that Indian employees of American Express will not get affected, you couldn’t be more wrong. Read the following article published by HT Syndication with permission from Indo-Asian News Service.

“US credit card and banking giant American Express Monday confirmed that the company would cut jobs in India but said it cannot give a specific number.

“Approximately 7,000 jobs are being eliminated company-wide which translates into about 10 percent of the company’s worldwide workforce,” the company said in a press statement in response to queries from IANS.

“While we cannot give you a specific number for India market, we can tell you that we are not the main focus of the restructuring. The reductions will occur throughout the company and across business units, markets and staff groups, primarily focusing on management and other positions that do not interact directly with customers,” the statement said.

“While we cannot get into specifics around business units and departments, we can tell you that the reductions will occur across business units, markets and staff groups focusing on management and other positions that do not interact directly with customers,” the statement said.

Earlier, on Oct 30 the company had announced in New York that it would take company-wide reengineering initiatives to produce cost benefits of approximately $1.8 billion in 2009.

The reengineering plan includes: reducing staffing levels and compensation expenses, cutting operating costs and scaling back investment spending.

The company has taken on its books a restructuring charge of approximately $370 to $440 million pre-tax (approximately $240 to $290 million after-tax) in the fourth quarter, the company statement said.

The charge is primarily associated with severance and other costs related to the elimination of approximately 7,000 jobs or about 10 percent of the Company’s worldwide workforce.

The reductions will occur across business units, markets and staff groups primarily focusing on management and other positions that do not interact directly with customers.

The company is also suspending management level salary increases for 2009 and instituting a hiring freeze for open positions. The total benefit from these staffing and compensation-related decisions is expected to be approximately $700 million in 2009, the company statement said.”

So what are you waiting for…a pink slip? Enroll now!!

 

American Express to cut 7000 jobs

Article by Press Trust of India dated 7th November, which says that the American credit card group Americal Express wants to slash its cost by USD 1.8 Billion in 2009…some of the Indian firms are not even this large…read the complete article…

In order to slash its costs by USD 1.8 billion in 2009, major US credit card group American Express, will lay off 7000 of its employees, amounting to around 10 per cent of its worldwide workforce.

The company is also planning to suspend management salary increases, put a freeze on new hires, slash investment spending and cut expenses for consulting, travel and entertainment.

Earlier this month, the company has reported a 24 per cent drop in third-quarter profits as cardholders cut spending.

American Express is also shrinking the credit limits and has already started notifying its card members that it will initiate a broad-based interest rate hike — not a cut.

Rates of the company’s credit cards are expected to go up by 2 percentage points to 3 percentage points. Turbulence in global credit and equity markets has restricted the availability of funding for consumer and small business lenders such as American Express, while rising unemployment has contributed to higher late payments and defaults on loans.

Further job cuts are likely following JP Morgan’s acquisition of Washington Mutual, which has more than 43,000 employees, and at Wachovia, which had plans to cut about 5,000 mortgage jobs before being sold to Wells Fargo.

Bank of America said it would eliminate 7,500 jobs after buying Countrywide and thousands more job cuts are likely as the bank integrates its acquisition of Merrill Lynch.

If you are looking for a lucrative career which does insulates you from all the job cuts, hiring freeze, salary increment freeze, cost cutting…Register with us.

 

Spice Group in for salary cuts up to Rs 5-Rs 25 lakh

Extract from an article in the Economic times dated 06th November. Now salary cuts in the telecom sector as well. No sector is being spared in these tough times. WIthout the salary cuts the effective salaries are going down due to increase in prices of all commodities. Life with salary cuts is a double whammy…the same salary is buying you lesser and lesser than what you could afford. Be insulated from salary cuts, Register with us and start on your own.

“The salary cuts are now spreading to the telecom sector, too. Some 30-40 senior employees, in the level of vice-presidents and above, across the BK Modi-run Spice Group companies like Cellebrum Technologies, Spice Mobiles and Hotspot Retail are in for salary cuts to the tune of Rs 5 lakh to Rs 25 lakh from their annual cost-to-company (CTC) compensation package.

Speaking to ET, Dilip Modi, Group president & global COO, said: “No salary cut has been implemented as yet and all managers have got their normal October salaries.” ET’s email on the same to the group’s official spokesperson did not elicit any response at the time of going to press.

Top-level sources within the group, however, said the group has indeed effected massive salary cuts, almost 50 percent of CTC of vice-presidents and president-level employees. The salary cut has also spread to Spice Entertainment and the group’s BPO arm, Omnia BPO Services. The salary reduction or ‘deferment’ as the company chooses to call it, according to sources, has not impacted junior level staff.

The company has also, in ambiguous terms, communicated to senior-level staff that the cuts will be restored post recovery of the markets, said a source. “Things are still not clear. We don’t know whether our CTC will be restored or the amount cut now will be given back once market conditions improve. But the BK Modi Group has a tradition of rewarding employees if they stick to them during tough times,” said another source.

While two sources ET spoke to said many senior managers hit by these pay cuts are looking to move on, they are finding it difficult to find suitable openings outside the group because of general slowdown in hiring. Surprisingly, one source said the pay cut was a necessary evil in the current scenario of slackening consumer demand and dwindling cash flows”…

The article continues giving details on the stock prices of the companies that has been falling like all others. But the point to be noted is that even top guys are finding it difficult to find other jobs. So what are you waiting for…register now for free.

 

Job Cuts Loom Large

Such articles have become very common and may not surprise you anymore. However it will definitely give you a confirmation that the job that you had thought was secured, may not be so secure after all. New jobs are hard to find too.

 

Jobs for Trainees

Read this article which highlights the job issues faced by Trainees. If this is the issue that is going to be faced by our future generations…I think its high time you do something for your kids.

“Trainees feel the heat in tough times

5 November 2008, DNA – Daily News & Analysis

With recession having hit the corporate sector, freshers find it difficult to get a job, and keep it

At a time when organisations are resorting to job cuts in the wake of recession, trainees are the most affected lot. Young guns, taking their first steps on the job front, are finding it difficult to sustain their position in these difficult times.

Panvel resident John Reddy (name changed on request) who works as a trainee in a construction firm at Chembur said, “Last week, my company announced that they will be firing 30 employees from our branch citing cost cutting as the reason. My colleagues believe mostly trainees will be targeted. I joined the firm in August and my probation term ends in January. Experience counts a lot. If I have to leave this job and join another organisation, I’ll once again have to join as a trainee. I feel I have wasted my time in this firm.”

While John can at least mention this humble experience in his CV, there are many others who don’t have this option. Seawoods resident Shruti Kelkar (name changed) works with a fashion web portal based in CBD-Belapur. The company may shut soon. “Just a week back, we were informed that the website is shutting down. This left me completely shocked. I have lost two months’ salary. What hurts more is that I will no longer be able to prove my six months’ experience in the organisation as the website will be offline soon and I will have no reference to show my work. I’m back to ground zero.”

As trainees have very little experience, it is only fair that corporates choose seniors over juniors to run the company. It is difficult to find a job in the time of recession, especially when you lack experience. Those who have found a placement are thanking their stars.

Vashi resident Aditi Sinha, a PR professional said, “I quit my last job as there were rumours that they may fire a few employees and I didn’t want to wait till them. I quickly moved to another firm although they are offering me the same remuneration package. I’m happy I at least have a job, unlike my friends who are still struggling.”

In times like these, students looking for internship placements will find it easy as most companies don’t pay interns and the cost-cutting measures do not apply to them. The mood is definitely down with recession having hit pockets forcing people to check their finances and keep expenses under control. Sadly, it is the future citizens of the country who are bearing the brunt.”

Future of our country…Register here for a bright career

 

Salary Cuts – Times of India – 3rd Nov

An article that appeared in the Times of India on 3rd November about salary cuts. Is your job secure enough? If your answer is yes then you are fooling yourself. No one is safe from such things. Salary cuts combined with cost cuts are sucking the motivation out of people. Imagine that you are working without any motivation…what will be your output…in turn if your output is bad what will be the compensation that you will receive…will your job be safe anymore???

Read the following extract and decide for yourself

Salary cuts: Jet pilots say start with expats

Mumbai: Jet Airways warned its pilots union on Saturday that everyone from the CEO downwards would have to take a pay cut if the airline was to stay in business. It said the decision was not open to negotiation. But the union, Society for the Welfare of Indian Pilots (SWIP), says it is unfair to trim their salaries even as Jet pays expatriate pilots double. The union say expat salaries should be trimmed first.

“We have not given any assurance of support or agreed to anything so far. But we did demand that other cost-cutting measures be put in place first. They have told us about the formation of a task force to identify and implement cost-saving steps,” said a source.

The union has asked to meet Jet’s founder-chairman Naresh Goyal to discuss cost-cutting measures. Expat pilots and their high salaries figure on the wishlist.

“No expat pilot has been served a termination notice even though we were given to understand that their exit was imminent in the present circumstances of reducing fleet strength and surplus crew,” says a letter from the SWIP to Jet’s top management. CEO Wolfgang Prock-Schaeur said he could not comment on the issue because “it is an internal matter of the company on which I will not like to make any comment in public”.

According to sources, Jet Airways recruited 80 foreign pilots – 50 on Boeing 737, 30 on ATR aircraft – this year itself, from January onwards. “The airline will be grounding 5 Boeing 737-400 and 2 Boeing 737-NGs which will put about 75 pilots in the surplus category. We also wanted to know how the management plans to deploy these pilots,” said the source….

…the article continues… but just imagine that even if the salaries of expats are cut, the Indians will be next in line. Apart from this there are other cost reduction methods like reduction in perks, medical benefits etc

So don’t waste anymore time…Register with us.