Financial Daily from THE HINDU group of publications
Saturday, Jun 10, 2006
Financial Daily from THE HINDU group of publications Saturday, Jun 10, 2006 |
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Software Info-Tech - Human Resources Pink slip fears come back to haunt techies Our Bureau
The trimming exercise Sun Microsystems to axe 5,000 jobs worldwide as part of cost-cutting efforts. Around 16,000 jobs worldwide are at stake as Intel plans to downsize. Seagate to rest 50% Maxtor workforce as part of merger revamp. Apple to shut down India support centre just months after establishing.
Bangalore , June 9 The much-feared layoffs are seen making a comeback in the global IT sector. The latest announcements by IT multinationals Intel, Sun Microsystems and Apple Computers relating to restructuring of their global operations to cut costs have started raising concern among workforce. These announcements are coming at a time when an impending recession looms large in the US. Reverberations of this global activity are expected to impact their Indian operations and concerns about job security are seen coming to the fore again in the techie circles here. Sun Microsystems announced on May 31 its intent of axing 5,000 employees worldwide as part of a cost cutting exercise. The release mentions "disinvestments in non-core processes and research and development activities." Over the next 6 months, Sun will reduce its 37,500 worldwide employee headcount by 11-13 per cent. When contacted, the Sun spokesperson in Bangalore refused to comment the impact on India operations. However, sources said the job cuts would be restricted to engineering divisions, and would not affect any marketing or sales positions. This multinational has about 1,000 employees across six centres in India. Chipmaker Intel too has announced plans of downsizing. Around 16,000 jobs worldwide are at stake. The IT behemoth has initiated a study called `efficiency programme' to determine expendable positions across its centres. Underperforming businesses will be targeted and the decision to axe jobs will be taken post-July, said the spokesperson for Intel India. The firm employs around 3,000 employees across 10 locations in India. This restructuring is expected to reduce $1 billion out of its forecasted expenses worldwide. Hard disk manufacturer Seagate Technology also announced last month that it would cut 6,000 jobs, soon after acquiring Maxtor Corp. About 50 per cent of Maxtor's workforce would be rested by end of year. The job cuts would mostly impact workers in Europe and the United States, it was noted. Recently, Apple Computers delivered a hard-hitting move to Bangalore. It announced the shut down of its technical support centre just months after establishing it. eginning with a team of 30, Apple had announced it would ramp up to 3,000 by year-end. However, the company reversed its decision and hung up on Bangalore. Mr Steve Downling, Corporate Media Relations, Apple, only revealed, "we have re-evaluated our plans and have decided to put our planned support centre growth in other countries." Apple continues to maintain its sales and marketing division in Bangalore, which employs 25 people.
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