Job Cuts On Rise

The housing boom in the last few years in India was largely on the back of strong growth in the IT and ITES sectors.
As the employee base at the top 3 Indian IT majors grew 44 per cent. However, with most global and domestic IT companies going slow on hiring plans, housing demand has been adversely impacted. According to a national survey by the Indian Labour Bureau, 5 lakh jobs were lost during Oct-Dec of 2008, with the gems & jewellery, transport and automobile sectors most affected. In the IT sector, Infosys Technologies has put a freeze on new hiring to check costs amid the global economic downturn, Tata Consultancy Services (TCS) has ruled out salary hikes for next year and said job cuts are possible, and Wipro is said to be planning to cut 4-5 per cent of its total workforce. “Slowing home loan growth of 10 per cent year-on-year on the back of slowing employee growth of 14 per cent at the top 3 Indian IT companies in third quarter of FY09 are early signs of this trend. A deteriorating outlook for Indian IT and our IT headcount forecast for the top 3 IT majors, which have been revised down, raise a demand risk for the residential property,” Citigroup Global Markets said in a report

Thousands of homes in dark

On Monday the announcement of more than 70,000 job cuts pushed thousands of homes into darkness due to Global economic downturn. The global job losses proved that the financial crisis that erupted on Wall Street 2 years ago has now infected the whole global corporate world, engulfing industries ranging from health care to heavy equipments manufacturers.
The general public view believes, its not due to the global recession but the fact that with the current scandals coming out of the carpet and the World Bank tightening its hands on corporates has made the companies to cover them by this major job cuttings and see them as another scandal jointly performed my major companies.
From the recent history of job cuts :-

• 4000 post in Britain were cut down, UK's largest steel maker owned by TATA alone shedded 2500 employees.
• In US, a total of approx. 45000 workers were sacked many times higher than Jet Highways 1900, later taken back and slashed payrolls.
  
• In US jobs dissapering into home building and mortagage operations.
• Last week, Microsoft announced a major job cut.
• 22 out of 30 companies that are part of Dow Jones Industrial s have announced job cuts since oct.

In India soon this is expected to be felt in fields of gems and jeweleries, textiles and IT enabled services. Now US is solely seems to have eye on OBAMA's workout list.