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Old 27th January 2009, 20:32   #136
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My guess would be TI...

Also heard that Y! didn't even let the "fired" employees inside. They were sent after a little formality probably at the reception itself. I might be grossly wrong on this one though.

What really bugs me is, the secrecy with which these companies do all these things. During boom time things are just opposite.

Last edited by gkrishn : 27th January 2009 at 20:36.
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Old 27th January 2009, 21:56   #137
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Okay, here is a question for all of us working in 'corporates'.

Would you prefer a layoff or a major (30%) salary reduction? I gould go for the latter. If this is the case for most of us, cant companies cut salaries bu 10, 20. 30% and retain all the staff? Doesent that make better sense?

A company with 100000 employees, if it can cut the salary across the board by 20%, it is equivalent to laying off 20000 employees. What is the reason companies do NOT do that?

Beats me completely.
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Old 27th January 2009, 22:28   #138
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Quote:
Originally Posted by Proxima View Post
Okay, here is a question for all of us working in 'corporates'.

Would you prefer a layoff or a major (30%) salary reduction? I gould go for the latter. If this is the case for most of us, cant companies cut salaries bu 10, 20. 30% and retain all the staff? Doesent that make better sense?

A company with 100000 employees, if it can cut the salary across the board by 20%, it is equivalent to laying off 20000 employees. What is the reason companies do NOT do that?

Beats me completely.
somebody mentioned low employee morale and dedication. not to mention the other costs are still to be maintained even if salaries are cut. e.g. office space, healthcare, basically all overheads.
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Old 27th January 2009, 22:48   #139
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Quote:
Originally Posted by Proxima View Post
Okay, here is a question for all of us working in 'corporates'.

Would you prefer a layoff or a major (30%) salary reduction? I gould go for the latter. If this is the case for most of us, cant companies cut salaries bu 10, 20. 30% and retain all the staff? Doesent that make better sense?

A company with 100000 employees, if it can cut the salary across the board by 20%, it is equivalent to laying off 20000 employees. What is the reason companies do NOT do that?

Beats me completely.
Guess because its easier. Doing this will also not affect the management's salary. Use of resources would also be reduced.
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Old 28th January 2009, 11:17   #140
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Although the US/European lay-off are making headlines, are transparent about their plans, while the Indian companies are resorting to removing the workforce under one pretext or another silently. The popular being sub-cons(agency), then non-performers, followed by the disciplinary category.
Fully agree to that!

Indian IT Cos need to learn a lesson or two from their MNC counterparts about transparency on issues like Layoff etc.
Though all the IT Cos are impacted by recession, Indian Cos are engaging in Layoffs in a covert manner by 1. Redoing Background checks. 2. Performance ratings etc.

Now, Infy is using the same Performance non-sense to layoff around 5000 employees.
More here: Infosys puts over 5,000 employees under scanner
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Old 28th January 2009, 12:13   #141
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Quote:
Originally Posted by Proxima View Post
Okay, here is a question for all of us working in 'corporates'.

Would you prefer a layoff or a major (30%) salary reduction? I gould go for the latter. If this is the case for most of us, cant companies cut salaries bu 10, 20. 30% and retain all the staff? Doesent that make better sense?

A company with 100000 employees, if it can cut the salary across the board by 20%, it is equivalent to laying off 20000 employees. What is the reason companies do NOT do that?

Beats me completely.
a salary reduction would be better. If its resources they are worried about when it comes to taking care of the work force, no one will complain against some major cuts (like food courts, stocked refrigerators, etc etc) as people will generally be glad to have a job vs "the weekend fruits served on table or the morning cornflakes and milk in office"
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Old 28th January 2009, 13:48   #142
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Salary reduction dosnt really help. What i have heard is, in US, the cost of the emp to the company is almost twice that of the sal that is being paid. So even 30% is not such a big deal.

But even after a 30% cut, the companies should have deep pocket to live thru a mother of all recession like this one.

I also read some where that china growth rate is almost 0%, or even may be in negative. Stop blaming satyam, even govts are cooking up nos.
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Old 28th January 2009, 13:51   #143
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Do you guys see this coming to an end? People say that things will continue to go down until around Dec 09. Then there will be a slow upswing, nowhere near as fast as it was in the last decade.

Your thoughts?
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Old 28th January 2009, 14:05   #144
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Originally Posted by gkrishn View Post
I also read some where that china growth rate is almost 0%, or even may be in negative. Stop blaming satyam, even govts are cooking up nos.
Whatever you read may be incorrect. Infact only two countries China and India will post growth rate more than 4% in the year 2009. Please recheck your information. Growth rate is entirely dependent on GDP and other domestic factors. In Indian context the effect of IT companies would have negligible effect in growth rate of India. For IT company employees what really matter is the growth rate of client's company.

I know one of my friend who is working in some company in Hyderabad which caters only domestic and government clients. They are absolutely un-affected with this recession. Their business and cash-inflows coming as before.
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Old 28th January 2009, 14:30   #145
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Whatever you read may be incorrect.
Check this RGE - The Chinese Devil Wears Prada: Why 0% Growth is the New Size 6.8%

China is reporting 6.8% growth. Reporting is one thing...
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Old 28th January 2009, 14:42   #146
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All I would say is keep your fingers crossed and pray that the next one to be laid off is not you! I am keeping my fingers crossed and continuously looking for greener pastures which is actually quite difficult looking at the current market scenario.
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Old 28th January 2009, 20:54   #147
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I am gonna being fried by most of you guys for asking this; but does anybody see a baby boom round the corner?

(There was one just after the great depression in the US of A). ;-P
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Old 28th January 2009, 21:09   #148
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i think that was because of homecoming of the war heroes. war was also the reason for the depression.

this time depression occurred because of greedy financial goals.
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Old 29th January 2009, 01:34   #149
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Originally Posted by vivekiny2k View Post
i think that was because of homecoming of the war heroes. war was also the reason for the depression.

this time depression occurred because of greedy financial goals.
This time around its the same Vivek, the Lehmans (pun intended) of the financial world messed up big time by selling sub prime bonds.

FYI - I have been impacted by the down turn too, however lay offs means that the company cannot afford a headcount of xyz, number of people, there are also other factors involved apart from giving people a paycut.

Companies today (American/non Indian) do not have the ability to sustain even associated costs with employees being on board.

Say 2000 employees, they need managers, Assistant managers and senior managers and AVPs/AGMs, the point of firing the 2000 is to reduce the entire dependency and hierarchy of those 2000 people.

Let me give you a small example. 200 Indian employees require a staff of minimum of 35 managers. The salary of those 200 people is a max of 12lakhs a month, whereas the costs of funding salaries of the 35 managers and senior personnel is 10 lakhs a month.

The associated costs of these 235 people is another 3-4 lakhs a month. I am only talking about an Indian company, you can imagine what numbers will substitute rupees if its a foreign company.

You now get the perspective ? Alternatively any management will not leave 2000 people un attended without managerial supervision upto an AVP/GM level.

Letting go of people is a painful situation in any case. Trust me its not that easy to take a sweeping decision like that.

You too tomorrow will come into a position of higher management and once faced with such a decision its wise to let go. Else the remainder majority will need to suffer.

Regards

M M

Last edited by mmmjgm : 29th January 2009 at 01:36.
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Old 29th January 2009, 02:19   #150
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This time around its the same Vivek, the Lehmans (pun intended) of the financial world messed up big time by selling sub prime bonds.
excuse me!

I was responding to BSD's expectations for baby boom.

I gave this explanation already about the associated costs in my post below.
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