Depression, recession, bear market... all have translated to job scares, a slowdown in demand and panic attacks. Here is a recap of the spillover effects of the ongoing economic imbroglio in the past fortnight, across the globe.
-Nissan Motor Co. to lay off 20,000 jobs worldwide by March 2010.
-Toshiba Corp. to cut 4,500 jobs.
-Panasonic to eliminate 15,000 jobs.
-Morgan Stanley to prune workforce by 1,800.
|News from boardrooms|
|1. Realty player BPTP has applied for the surrender of a 95-acre commercial plot in Noida that it had bought for Rs 5,006 crore, as it was unable to pay for it.|
|2. IBM will hire back some of the 4,000 workers it had recently laid off if they agree to move to a developing market like India.|
|3. Aluminium producer Nalco has postponed recruiting 700 employees.|
|4. Credit Suisse will cut bonuses for investment managers by 55%.|
|5. Reliance Retail has decided not to give performance-linked incentives.|
|6. Bank of America Corp. is deferring the payment of 2008 bonuses of more than $50,000. They will be paid in three annual instalments, starting February 2010.|
Bargains and deals
-£5 a night is the hotel room rate by the UK’s Thomson Holidays.
-6-month home EMI to be paid for a jobless person in Bengaluru by Value Designbuild.
-49 SGD (Rs 1,590) is the fare for Malaysia Airlines for some sectors.
-European carmakers—Daimler Motors, Skoda Auto and Volkswagen—are foraying into the Rs 22,000-crore auto loan market in India to fund fresh car sales.
-The service tax collection dipped by 3.6% in December 2008 as the economic slowdown spread from manufacturing to services, which account for over 55% of the country’s national income.
-According to CAPA, the average difference between the fares of lowcost carriers and full-service airlines has gone down to Rs 500-Rs 750 in January from Rs 1,500 in October-December 2008.
|Our tolerance for nonperformers is down. Earlier we put up with all kinds of stuff...all that is gone now.|
— T.V. Mohandas Pai, Director, HR, Infosys
|I expect by May you will find the impact of the stimulus packages... by June, we will have turned a corner and started to grow.|
— Gopal K. Pillai, Commerce Secretary
|With the unemployment rate at 7.2%, there is no need for companies to hire foreign workers through the H1-B program when there are plenty of qualified Americans looking for jobs.|
— Chuck Grassley, US Senator
-The Cabinet Committee on Economic Affairs has approved infrastructure projects worth Rs 34,000 crore including the Chennai Metro.
-The Indian government has doubled the unemployment insurance for retrenched workers in the ESIC scheme.