[SilentEngine]

I guess lot of IT folk are coming to terms only now with the reality. Pay cuts and layoffs are going to be the norm for next few months at least and perhaps much longer once the larger economic impacts start showing up. One should consider themselves extremely lucky if they continue to get paid 100%.

When the revenue streams are hit, there's going to be that much less 'work' to do, even in WFH scenario. Only few specific domains may be able to survive the onslaught without taking any hit (Example: Companies proving solutions to healthcare or video conference solutions).

In current times, cutting down the expenses is key, whether it's at individual level or organization level. In our office, we have already implemented pay cuts across the board for next few months till the situation improves.

[raksrules]

Our organization (IT Company in India) has capped leaves to 15 days and if my understanding is correct, even if say I had 34 leaves in my kitty, it would be reset to 15 days and I would lose 19 days of accrued leaves.

[Miyata]

Meanwhile, closer home, the D-mart honcho "Radhakishan Damani beats coronavirus crisis as net worth soars 11%"

the billionaire with most gains among the 12 richest Indians

Cyrus Poonawalla, who founded the vaccine manufacturer-- Serum Institute of India, was the only other Indian tycoon among the 12 whose wealth rose in 2020.

D-Mart’s rivals have not benefited as much under the same circumstances. Future Group, which runs India’s second-largest retail chain by revenue and has over 1,300 stores across the country, saw shares of its publicly-traded retail unit nosedive 80 per cent this year amid mounting debt woes.

[raksrules]

Originally Posted by Miyata

Meanwhile, closer home, the D-mart honcho "Radhakishan Damani beats coronavirus crisis as net worth soars 11%"

Dmart near my home is literally open 24x7 currently. They allow limited people to go on specific intervals but from what my brother told, it is fully stocked.

[hothatchaway]

It seems their inability to deliver (pun intended) during the crisis has not affected their ability to raise more money. BB is still not delivering in many parts of Kolkata, including mine, which happens to be a prominent locality.

https://www.google.com/amp/s/techcru...aises-60m/amp/

Indian grocery startup BigBasket has raised $60 million as it scales its business in the country to meet growing demand from customers stuck at home.

[Joxster]

Tesla cuts staff pay as coronavirus halts production

Electric car-maker Tesla will reduce staff pay and put non-essential workers on furlough while production of its vehicles is stopped due to coronavirus.

Work at its factory in Fremont, California halted on 23 March.

In a letter to staff, the company said it hoped to resume operations on 4 May, "barring any significant changes".

Most remaining workers will face a pay cut of 10%, while director pay will be cut by 20% and vice-presidents and above will lose 30% of their salary.

Furloughing is designed to support firms that have been badly hit by coronavirus, and to prevent mass unemployment. Taxpayers' money will help temporarily pay the wages of people who can't do their jobs, to help companies retain them.

Source: https://www.bbc.com/news/technology-52216250

--------------------------------------------------------------------------------------

My personal experience: The company I work for had already reduced the salary of all U.S employees by 20% towards the end of March, and also told them that they might be furloughed if production cannot resume soon. In EMEA, people have also taken a 20% reduction to their salary, but also a 20% reduction in their working week - meaning that payroll employees work 4 days a week instead of 5. This does not apply to me however, since they pay the same amount for me every month, regardless of how many days I work.

I had heard about layoffs happening in my company, especially for contract employees, and then seen it happening for myself, so I mentally prepared for the worst. Since I am contract employee of my company, I didn't want to harbor any false hopes.
My reporting manager had a very candid discussion with me, and told me that the leadership of my department didn't want to let me go, so I didn't need to worry for now. However, they did need to justify continuing to retain me, so I was requested to make a comprehensive overview of all of my tasks, activities, projects, achievements etc., which I did today. I do sincerely hope that it is enough to convince them about retaining me, as I really cannot afford to lose my income at this point!
I keep reminding myself how lucky I am to have a job right now, and am trying to count all the little blessings in my life.

I feel very bad for the millions of people who are suddenly facing unemployment due to absolutely no fault of theirs. I hope that they can weather the storm, not lose faith in their abilities, and find another job very soon. If there are any BHPians in this situation, please don't lose hope. Things will pick up again. This is a rough patch which the whole world is going through. You are not alone!

Cheers

[AMG Power]

Originally Posted by hothatchaway

It seems their inability to deliver (pun intended) during the crisis has not affected their ability to raise more money.

This is the reason you see financial disasters starting from Kingfisher, Nirav Modi onwards. Proven incompetence doesn't deter these investors after all they are also here to make a quick buck.

Banks will start lending huge amounts and one fine day a few years from now the invested company will go belly up with everyone surprised that it could happen.

They needn't be. Caution is not a buzzword when you play with other people's money.

[ritz3645]

Coronavirus layoffs: Indian H-1B visa holders leave US in 60 days


Current economic slowdown prompted by the global coronavirus outbreak has made businesses reconsider their employee hiring and retention decisions - a lot of US companies will be laying off Indian employees working on H1B visas in the upcoming weeks.

The unemployment claims in the US have reached a staggering 3000% since March, with more than 6.6 million people filing for unemployment benefits, according to a data released by the U.S Department of Labour and Statistics.


Data compiled by Johns Hopkins University states, the coronavirus pandemic has infected over 360,000 and is responsible for almost 11,000 deaths in the nation.

Only 60 days for H1B visa holders to leave the US


Post announcement from Trump, employees on H1B work visas in the US now have only 60 days to find a similar full-time job or leave the country. Once laid off, employees will no longer be able to access the health insurance provided by their respective employers.

While the US has put American citizens on temporary paid leave or allowed them to work reduced hours; Indian H1B workers on the contrary will have to work for 40-hours on a payroll and be paid nothing less but the same amount.


Indians are the largest beneficiary of the H1B US visa programme, which is a non-immigrant work permit allowing US employers to hire specialised skilled foreign talent from abroad to meet specific job requirements. Tech giants such as Amazon, Google, Microsoft are some of the US companies recruiting skilled workforce from India under the H1B programme.

With increasing unemployment in the country rising from 6% in 2015 to 21% in 2019, as per the National Foundation for American Policy, the Trump administration might suspend the H1B visa scheme this year.


The H-1B workforce layoffs are indicative of a greater immigration problem in the years to come, wherein a foreign worker may have to wait his entire lifetime to secure a lawful permanent residency in the US. While employers are buying time and counting hopes on the economic situation to change soon, the public policy think-tank CATO Institute estimates that around 200,000 Indians could die of old age while waiting for their green cards. Also, some professionals express worry that transferring H-1B status to another company within the 60-days grace period is difficult, given the hiring freezes.


Seeking visa and stay extensions from the Trump government

The USCIS claims three-fourth of the migrant workforce comprising of Indian doctors, nurses, and software engineers are on the verge of losing their jobs and health insurance as well. Most H1B workers are not in a situation to leave home with their children, who are US citizens within a time period of 60 days, as many nations have announced an entry ban, including India. Plus there are no evacuation flights to take Indians back home, in case the travel bans are extended, which means H1B workers will have to overstay on their visas.

There is not enough clarity from USCIS on visa extensions. A senior official from the Department of Homeland Security said that people who are nearing visa expiry period can go back to their home country. However you can also apply for visa extensions, if flights are not operational to your home country and your visa is nearing expiry period. Most Indian migrant workers are urging the Trump administration to extend the post-job loss limit to 180 days instead of the currently stated 60-days only.

A petition campaign on the White House website requesting extension of timeline of stay has attracted more than 20,000 signatures thus far. A minimum of 100,000 petitions are needed to get a response from the White House.

Link:
https://amp.ibtimes.co.in/indian-h-1...-layoff-817007

[Warwithwheels]

First mailer from a company shutting shop due to COVID 19.

[raksrules]

Originally Posted by ritz3645

Coronavirus layoffs: Indian H-1B visa holders leave US in 60 days

I don't think this is some new news. The 60 days time period to either find a new job or leave country has been there since last 2-3 years I guess.

[hserus]

Originally Posted by raksrules

I don't think this is some new news. The 60 days time period to either find a new job or leave country has been there since last 2-3 years I guess.

Immigration attorneys are advising Indians on H1 to go on leave without pay rather than getting laid off.

[dark.knight]

Originally Posted by Warwithwheels

First mailer from a company shutting shop due to COVID 19.

One of many more to come I assure you, I'm personally aware of the brick and mortar shops, trading and importing businesses, luxury sector, agro sector, liquor distillery etc and about 2 dozen of them are in deep trouble, they have about a 40% chance of survival if this is lifted by 14th and interstate raw materials and/or imports are allowed within the month. Unlikely as that is, they have about a 10% chance to make it, provided they swallow huge losses and take risks, not many who can do that.

With my situation being about the same, it's a wait and watch for now, since imports will be off the radar for long, and with corporates curbing budgets and spending combined with the heavy wave of recession which is going to smash us, I'm in no mood to take a risk by absorbing losses and putting more capital in what would likely, be a very thin chance for profitability in about 4-5 months if not much more. Luckily mine was started on a shoestring and zero borrowing ever.

The fall of businesses will commence once the GST commission and governmental organizations open shop, my CA has already projected 4 people ready to close a few among their multiple ventures. Many, many businesses will be lining up to dissolve themselves.. a few thousands in the first month in Bangalore itself, is my guess.

Hospitality industries, malls, brands within malls, theatre industry, automobile industries, automobile related sectors like 3M etc will be in doldrums. Imagine if thousands shut shop, tens of thousands are laid off, that'll choke transport in India for about a month or so till they figure out an alternative livelihood. The luxury sector will be nearly decimated (watches, clothes, cars, jewelry).

There is not going to be a V or U, this recession will be a straight nose-dive for this year for sure. IT will be hit hard as well, which is when most in Bangalore will awaken and start panicking. With physical (actual) businesses failing, what chance does IT have? Every UBER and OLA driver are in deep trouble today.

Also while everyone are busy scratching themselves indoors, banks (public sector ones) have quietly gone for a 2 stage reduction in deposit interest rates, first via the covid crises and now via merger- almost by a percent in all, and more is expected in due course. Loans will be easier to procure now but this infusion wont see any instant results for this year atleast. Without demand bouncing back, the spine of the economy will shatter.

Diversify, spread out in as many financial institutions as possible and I wouldn't recommend mutual funds or share-market unless you absolutely know what you're doing. This is pure back to the basics of housing, clothing and food.

[rrsteer]

Ray Dalio on what Covid 19 means for global economy:

https://www.youtube.com/watch?v=yrxYhv2O3wU

It maybe a good idea to read his thoughts here, before or after watching the video: https://www.linkedin.com/pulse/chapt...HY5sRMoQ%3D%3D

[vinit.merchant]

Japanese government has taken the first step among all countries.
I hope a lot many countries follow suit.

https://www.youtube.com/watch?v=JHWzwWSScxg

[DrVjy]

Originally Posted by vinit.merchant

Japanese government has taken the first step among all countries.
I hope a lot many countries follow suit.

https://www.Youtube.com/watch?v=JHWzwWSScxg

Good thinking. Would likely work for Japan and USA in reasonable time as well. But India could take years to catch up with China's massive manufacturing base of skilled men and machines.

What I believe is economic immunity is as much needed today as immunity from the Coronavirus. Unfortunately, that is hard to achieve in many business sectors.

Don't know how accurate I am here, but felt like doing some loud thinking:

Business sectors ranked in increasing degree of economic immunity (in my perception):

LOWEST ECONOMIC IMMUNITY
:
1. IT services (development, maintenance)
2. Automotive industry
3. Aerospace industry
4. Passenger transport services
5. Medical services (Specialist consultation)
6. Consultancy (Engineering/ Legal)
7. Training services
8. Goods transport services
9. Healthcare industry
10. Banking services
11. Education services (Teaching/ Research)
:
HIGHEST ECONOMIC IMMUNITY

In contrast, low EI sectors are also those with high perks and rewards and vice versa.