December 12, 2008
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 last fortnight, across the globe.
• Tata M o tors set to remove up to 3,000 temporary workers at its Pune factory.
• Citigroup to axe 50,000 jobs (1,000+ employees in India), in addition to 23,000 job cuts earlier.
• American Express to lay off 7,000 employees.
• ArcelorMittal to slash 9,000 jobs, mostly white-collar staff.
• Accenture to hire 10,000 people.
• TCS, Infosys to employ 25,000-30,000 hands.
• L&T plans to recruit 10,000 people.
NEWS FROM BOARD ROOMS
• PwC cancels its year-end Christmas party in India as a cost-cutting measure.
• Infosys offers a sabbatical to its employees—they won’t have to come for work, but will be able to draw half their salary.
• GE Money to shut down nearly half of its 170 branches in India.
• Sales of high-end cars fell 30.51% in October to 2,859 units, compared with 4,114 units in October last year, according to SIAM reports.
• Two-thirds of China’s small-toy exporters shut shop in the first nine months of this year.
• Nokia plans to stop selling mobile phones in Japan—except for its luxury brand, Vertu—after struggling to expand its presence.
BARGAINS AND DEALS
£100,000 Premier Yacht (Russia) is selling two boats for the price of one.
£18,255 Two-for-one deal in the UK on Dodge Avenger cars.
• A record 110 companies, compared with 94 last year, participated in IIM Lucknow’s summer placements.
• Venture capital investment in India grew 36% to $290 million in the third quarter of this financial year (till September 30). Meanwhile, in mainland China, VC investments grew 22% to $964 million in the same period.
The rich & famousHighest-paid PM to take a salary cut
Politicians taking a salary cut? Unfortunately, it’s not happening in India...yet. Singapore Prime Minister Lee Hsien Loong’s salary of $2.4 million (Rs 12.3 crore), five times more than that of US President George W. Bush, will be slashed by 20%. Crisis hits Tiger Woods
Even the richest names in sport aren’t immune to the credit crunch. The world’s top golfer, Tiger Woods, has lost out on a sponsorship deal with GM worth over $10 million (Rs 50.12 crore) a year.
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QUOTES"There will be a slowdown, but we will remain the second fastest growing economy in the world."
— P. Chidambaram, Home Minister
"As many as 40% of exporters have closed down their factories and 50% of people in the four most-affected clusters have lost their jobs."
"There is a delicious irony in seeing private luxury jets flying into Washington, and people coming off them with tin cups in their hands."