Goldman Sachs now sees loss of 400,000 jobs in Nov

NEW YORK: Goldman Sachs has revised up its forecast for US job losses in November to 400,000 after reports showing a dismal employment picture in the private sector, particularly in services.

The analysts at Goldman had previously forecast a decline of 350,000 jobs. The median estimate in a Reuters poll conducted on Friday was -320,000. The Institute for Supply Management's non-manufacturing survey fell to a record low, as did its employment index.

"Most reports on employment conditions in November have shown additional weakness relative to earlier months, but today's ISM report on conditions outside manufacturing was particularly noteworthy," said Goldman economists in a research note.

"The employment index from this report, which has predictive power for payrolls in the top-down models we have developed, fell more than 10 points from a level that was already the lowest on record for this indicator."

The report also cited weakness in small and medium-sized firms as potentially compounding the pain in the labor market.

Courtesy: Times of India

GM, Chrysler considering bankruptcy to get bailout

General Motors Corp and Chrysler LLC are considering accepting a pre-arranged bankruptcy as the last-resort price of getting a multi billion dollar government bailout, Bloomberg reported, citing a person familiar with internal discussions.

In response to automakers' bailout plea, staff for three members of Congress have asked restructuring experts if a pre-arranged bankruptcy - negotiated with workers, creditors and lenders - could be used to reorganize the sector without liquidation, media said. General Motors and Chrysler could not be immediately reached for comment by Reuters.

Industry executives and analysts say the immediate carnage from a bankruptcy of General Motors Corp, Ford Motor Co or Chrysler would spread throughout an industry that is bleeding cash in a global slowdown. All three automakers have urged Congress to authorize $34 billion in loans and credit lines, saying they will restructure, and cut models, jobs and executive pay to remain viable.

The White House did not dismiss the industry's $34 billion figure on Wednesday but said it was too early to say what it might support on an emergency basis.

Senate Majority leader Harry Reid wants to try to find a way to avert threatened bankruptcies in the U.S. auto industry with Detroit Three chief executives readying for a make-or-break hearing on Thursday on the bailout request.

Negotiations currently are splintered among small groups, making it unlikely that a proposed solution such as bankruptcy would emerge until next week at the earliest, the person briefed on internal talks told Bloomberg.

GM's failure alone would mean more than $200 billion in interest-bearing debt at the carmaker and its GMAC financing arm could be worthless for countless retirees and taxpayers, further upsetting consumption patterns.

Courtesy: Times of India

AT&T, Adobe set to axe 12,600 jobs

NEW YORK: Continuing with job cutting spree in corporate America, telecom major AT&T will slash 12,000 jobs while software maker Adobe will reduce its workforce by 600.

AT&T in a statement said it planned reduction of about 12,000 jobs or about four per cent of its total workforce.

Adobe has said it would slash 600 full-time positions worldwide. "The restructuring will result in anticipated pre-tax charges totalling approximately $44 to 50 million. Meanwhile, DuPont will cut 2,500 jobs and said it will not turn a profit in fourth quarter as a severe slowdown in markets eats away at chemical sales.

Courtesy: Times of India

Fears for 30,000 jobs at BoA/Merrill

Fresh fears emerged on Wednesday that as many as 30,000 jobs could go after Bank of America's takeover of Merrill Lynch. The bad news for the 260,000-strong combined workforce at the two banks came as an influential employment survey reported record layoffs in the financial services sector in November.

It was one of a number of dire reports on jobs released before Friday's official employment report, which is expected to show that American employers cut as many as 360,000 jobs last month.

Economists gave warning that depressing employment data could send already nervous stock markets tumbling. Rob Carnell, chief international economist at ING, described the outlook for the labour market statistics as “very, very bad”. He said: “Any decline in payrolls of the magnitudes we now expect could drive already jittery markets into a substantial reaction.”

CNBC reported yesterday that Bank of America (BoA) could cut up to 30,000 jobs as it subsumes Merrill Lynch — three times as many staff losses as previously estimated. Ken Lewis, BoA's chief executive, is seeking to extract savings of $7 billion (£4.7 billion) from the $50 billion all-share deal. He declined to comment on the report yesterday, telling the Charlotte Observer that the bank was in the “final stage of our analysis” for job reductions in its Merrill Lynch purchase.

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Nomura to cut up to 1,000 London jobs
Citigroup to cut another 52,000 employees
Most of the cuts are expected to come from Merrill Lynch, the world's biggest brokerage, which was forced to find a suitor in September as a way out of its funding crisis. John Thain, Merrill Lynch's chief executive, admitted in October that the deal would result in “thousands” of layoffs.

Yesterday, the Challenger Report, published by Challenger, Gray & Christmas, America's oldest outplacement firm, said that 91,000 jobs had been shed in the financial services sector in November, hitting a nine-year high.

It is the first snapshot of recent job losses at the banks and other financial companies since Monday's announcement that the economy has been in recession for a full year. The last time that job losses in the financial sector came close to November's figure was in March 1999, when 22,000 positions were lost amid the Russian and Asian crises. November's figures were a sharp increase on the 18,000 layoffs reported for October and the 7,000 cut in November last year. About 226,000 jobs have been lost in American financial services so far this year.

The growing fears over jobs came as the Federal Reserve's Beige Book report found that economic activity had weakened further in recent weeks.

The report, which will be used by the central bank's policymakers for their December meeting on interest rates, indicated a further decline in already grim economic conditions.

“Overall economic activity weakened across all Federal Reserve districts since the last report,” The Beige Book said. It noted weak consumer spending and that car sales were “down significantly” in most regions.Manufacturing declined and housing remained soft, due to “reduced selling prices and low, but stable, sales activity”.

The Beige Book, based on a survey of the 12 regional Federal Reserve banks, found few bright spots. Significantly, the report found credit conditions tightening, further constricting economy activity. “Lending contracted, with many districts reporting reductions in residential, commercial and industrial lending and tightening lending standards,” it said.

Courtesy: Times Online

Microsoft to support Russia's IT

MOSCOW: Microsoft plans to provide Russian IT market newbies with $100 million (78 million euros) worth of software and technical support, Russia'
s communications ministry said.

"Together with Russian venture funds (Microsoft) will choose 1,000 software producers whom Microsoft is willing to offer software, support and consultations," the ministry said in a statement on its website, following talks between Communications Minister Igor Shchegolev and Microsoft International's president Jean-Philippe Courtois.

The packages are worth about 100,000 dollars apiece, it added. Microsoft also plans to set up a network of education centers in Russia to teach budding entrepreneurs business basics and provide small businesses with discounts on its software, it said.

Courtois also said Microsoft had abandoned the idea of bringing prices on Russian-language software up to European standards.

Courtesy: Times of India

Ten tips to cope with pink slips

Coutesy: Times of India

Are you part of a burgeoning crowd that has either been given a pink slip, or a warning signal by the employers, thanks to the economic crisis? Don't lose hope. There is sliver lining to every cloud. With most companies trying to cut costs by downsizing workforce, it is a difficult time for IT pros. The bad job market situation only makes the crisis worse. So how can one deal with the current turbulent economic phase? How not to get disheartened even after getting a pink slip, or depressed having to live under the constant fear of getting laid off anytime? Here are a few tips that can help you better cope with the current challenging economic environment. But before going over to the tips remember, one always learns more from the defeats than from the victories.

Brush up your CV

If your CV still wears that jaded look, please shred it and begin anew. High time you reinvent your resume and put in your best effort before contacting the prospective employers. Wondering how to do this? Just search online. There are numerous sites that guide you how to best frame the right covering letter and resume for that 'perfect' job. Also, you can take help from placement consultants. They can possibly guide you what an employer looks for in a resume, especially in the current times.

Acquire new qualifications

If you are among those who jumped onto the BPO bandwagon immediately after graduation, this is just the right time for you to add to your educational qualification. Another academic or professional qualification will further enrich your BPO experience and, of course, open doors to a better profile. If you are not among the BPO category, you can go for courses that will further strengthen your experience. Look for a specialised course related to your current field, or area of expertise. Remember, education is an investment which always pays.

Arm yourself with soft skills

With changing times, the requirements of workplaces are changing too. So why not leverage the current phase to augment those soft skills which you always thought you had, but needed a little brushing up. This way, you can well defy the commonly held view that techies only understand the language of computers. You can even hit a grooming class! Brush up skills like how to better your presentations, how to write that perfect mail and those other interpersonal nuances. Remember, recession will pass, but these skills will stay with you forever and boost your career as well as personality.

Try turning an entrepreneur

Recession is the best time for one to look beyond the obvious. How about cashing in on all the aggression that you showed at those customer interactions, sales meets, or in cracking the deals? Channelise the same energy to bring out the entrepreneur within you. Heard stories of how the foundation of many a big enterprises was laid during the toughest of times. Some of the biggest tech czars of today -- IBM, Microsoft and HP -- have risen from the rubble of the most difficult recessions that have ravaged global economy. History is full of tales of successful startups that were born out of deepest recessions. So start now: think out of the box, revise your ideas list, unleash your creative side, look for opportunities and tap all of them to see if you can embark on your own venture.

Time for networking

The economic crisis hitting the firms across the globe has further increased the usage of professional networking sites like Xing and LinkedIn as people try to discover job opportunities through networking. No prizes for guessing that being connected pays, especially in tough times. You never know which of your connection can help you land a job, or give a positive reference. Networking platforms primarily help people share their professional interests and build contacts. Unlike other social networking sites like Facebook, Orkut or MySpace, these sites have a focussed business approach. So this is perhaps the right time for you to market yourself online, and beyond.

Depressed? Go & party!

Those late working hours never gave you time to socialise. How about starting it now? Remember, you worked hard. Now is the time to let your hair down and party harder, instead of letting all that stress get to you. With recession hitting all major sectors across the globe, it is the time for you to market yourself rightly. Parties can be a good forum for that. Position yourself and build contacts among people from various spheres of life, and what better place than all those social dos that you otherwise skipped. You never know who, where may be your knight in the shining armour. So, it may not be such a bad idea to acquire that P3P (Page 3 parties for the uninitiated) persona after all!

Acquire secondary skills

Thought a tech job is all that you can do? If, for instance, coding is your core area of work, and you believe that is all you can ever do, you may be wrong. There may be other choices that you would otherwise have never explored. One option could be to look within the sector and identify other job profiles that are still in demand. Say project managers, operations managers and the like. Also, you may look at peripheral options like IT management, or IT training. For some, tech teaching may be a good future career option. So brush up skills for such profiles and streamline your approach. For all you know, the shift may turn out to be a blessing in disguise.

Cut costs, increase savings

This can also be a good time to introspect. Think hard, and dwell upon your mistakes and the lessons learnt, if any. In future, be ready with a contingency plan as misfortune can come knocking at the door anytime. For now, you too can chalk out belt-tightening steps that cut any avoidable expenses. Keep liquidity. It will help you tide over any crunch situation. If investing in stocks or mutual funds doesn't jell with your idea of investment, consult a portfolio manager as he may give you a clearer investment picture. Investing in gold or real estate may be wise options, but again go by the market trends in a planned manner.

Destress yourself

Being laid off is often seen as a stigma many are not able to cope up with. Do not see this as a reflection upon your capabilities. Instead, see it as a silver lining that life has provided. Sit back, reflect, and think about alternatives in life that you may have wanted to pursue for a long time. Look at it from another perspective: work pressures never permitted you to gather enough courage to ask your boss to ask for that sabbatical. Yes, you got it. This is the time! Remember, sitting and brooding will take you nowhere, definitely not out of your self-formed well of unhappiness! It is time to recognise that you are stressed and take steps that distress you adequately. Take up things like Yoga, Reiki, Pranayam, wellness or meditation courses, or indulge in hobby pursuits such as dancing, reading, sports... Why, you can even start your own blog and express yourself in a manner like no other as blogging is a great stress buster in itself.

Nothing helps like help

What better time to do some social work! Why not join or assist organisations working for social causes like poverty, social upliftment or may be healthcare. Identify the causes you feel about the most and extend your time and support to those. You will utilise your time well and feel very worthy at the same time. You can also help your neighbourhood welfare association, or may be indulge in some long overdue community work. Old age homes, which also require a lot of volunteers, is another option. Volunteering for Polio or AIDS campaigns can also be quite morally fulfilling and uplifting. A heightened self-esteem can work wonders for you in many respects.

US employers announce a combined 20,000 job cuts

ST LOUIS: A round of more than 15,000 layoffs announced by AT&T Inc, DuPont and Viacom Inc suggests a yearlong wave of US job cuts is
accelerating, just as the government is expected to report a higher unemployment rate for November on Friday.

Swiss bank Credit Suisse Group has announced 5,300 job cuts, although it's unclear how many will be in the United States.

The latest layoffs coincided with a government report showing the proportion of workers continuing to receive jobless benefits has matched a level last reached in September 1992. The deepening recession is pressuring companies to slash costs, and payroll is typically the quickest and most efficient way to do it.

Yesterday's announced job cuts spanned an array of economic sectors, hitting telecom workers, bankers, salespeople and chemical manufacturers. The breadth of the layoffs suggests the pain of the recession will be felt broadly and well into 2009.

Dallas-based AT&T plans to cut 12,000 jobs, about 4 percent of its work force. The nation's biggest telecommunications company said the job cuts will begin this month and continue throughout 2009.

Wilmington, Delaware-based chemical company Dupont will cut 2,500 jobs and cut back hours for remaining workers. It also plans to eliminate 4,000 contractors this month, with more contractor cuts in 2009.

New York-based media conglomerate Viacom will cut about 850 jobs, or 7 percent of its work force.

Credit Suisse's 5,300 planned job cuts worldwide represents about 11 percent of its work force.

Courtesy: Times of India