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.

 

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

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