Fired AOL India employee talks
AOL cut more than 900 jobs around the world today — 20 percent of its staff — and India took a pretty tough cut from the axe: 400 jobs, according to several sources, and 300 contractors, according to another source. The nice thing for Reuters is that we have a big bureau in Bangalore, not too far from AOL, and plenty of our people know other people there and were able to get important details about the job cuts.
I coordinated some of the coverage from here since I’m hanging out in the bureau, and was happy when I heard that my colleague Nivedita Bhattacharjee got time to talk with one of the employees who was laid off today. Here is some of what he told her. We agreed to his request for anonymity because he wants to get work again and does not want to disqualify himself from jobs because he spoke to the press.
The entire team had a meeting, and they briefed us about how issues will be handled… we work in AOL. It’s something that we are always prepared (for). We were expecting an announcement soon.
They had some U.S.-centric plans, so they didn’t need us.
I’m leaving on good terms. It’s quite a good severance package… In many ways people are satisfied — we are getting four months’ salary as compensation and, depending on each case, there will be other benefits added to it.
Every fired employee (gets) four months of severance, which is pretty good, but with this action, nobody really has much faith in management, and (we) have been scarred by the experience of easily being let go … after being told for months prior that we were a valuable asset. …
Most technology product teams are being moved to HP. Services like finance, advertising,… paid services are now going to move to MindTree. Of course, not every team in full is being moved. They laid off some, and the remaining will become HP and MindTree employees.
New York Times job cuts: Read the memo
The New York Times will cut 100 positions in its newsroom by the end of the year, Executive Editor Bill Keller told staff on Monday. This is the second time that the paper has taken this unfortunate step, having cut 100 positions last year (though, as Richard Perez-Pena reported in his story on nytimes.com, other positions were added so it was not a net reduction). Thing is, the TImes already cut pay for journalists and other employees this year in an attempt to forestall cuts. So… it’s not good news, but it is fit to print. Here is Keller’s memo:
Colleagues,
I had planned to invite you to the newsroom and break this news in person today, but I’ve been hit by something that seems to be the flu. Though I strongly believe in delivering bad news in person, I don’t want to add insult to injury by spreading infection.
Let me cut to the chase: We have been told to reduce the newsroom by 100 positions between now and the end of the year.
We hope to accomplish this by offering voluntary buyouts. On Thursday, the Company will be sending buyout offers to everyone in the newsroom. Getting a buyout package does NOT mean we want you to leave. It is simply easier to send the envelopes to everyone. If you think a buyout may be right for you, you have up to 45 days to decide whether you will accept it or not.
As before, if we do not reach 100 positions through buyouts, we will be forced to go to layoffs. I hope that won’t happen, but it might.
Our colleagues in editorial and op-ed, and on the business side, also face another round of budget cuts.
Newspaper Association cuts jobs, ditches print
I suppose that it’s natural that your representatives in Washington should be people who reflect their constituencies. In that spirit, there are reports out that the Newspaper Association of America — a tireless defender of print newspapers even as ad revenue crumbles all around them — is cutting the print edition of its magazine, along with half its jobs.
I’ve left messages with several NAA contacts, but in the meantime, We confirmed the news with the NAA — 39 jobs going away. Meanwhile, here is an excerpt from a report on AOL’s Daily Finance site:
The Newspaper Association of America (NAA) is the not-for-profit organization that represents the interests of over 2,000 newspapers and other print publications. Its roots can be traced back to 1887, and for many years its magazine Presstime has kept members up-to-date on trends in the marketplace. Therefore, it seems sadly ironic that the NAA is killing its print edition of Presstime. The magazine will now be available in an on-line version only.
It also links to this article from Editor & Publisher:
While its members struggle under a punishing economic downturn and a secular transition to digital, the Newspaper Association of America is cutting its staff by 50% and will cease publication of the print edition of the magazine Presstime.
The association trimmed 39 positions this afternoon in response to the downturn in the industry, with 43 staffers remaining. In a memo to employees, President and CEO John Sturm wrote the steps were necessary and were taken at the direction of the board. “To be direct, industry economics compelled this round of staff reductions – to ensure we remain an affordable value to our members,” he wrote.
Sturm also said the association is looking to further reduce member dues.
New jobs from job losses, for $29.95
Here’s one from my colleague, San Francisco bureau reporter David Lawsky:
The recession is good business for Volusion, whose business is demonstrating the common wisdom that some people who lose their jobs become involuntary entrepreneurs.
The company hosts Websites for businesses. Its soup-to-nuts site requires no programming experience and lets beginning entrepreneurs — or anyone — start out at $29.95 a month. Corporations pay more.
“We’ve been on a hiring binge. We definitely need people to keep up with the growth,” said Clay Olivier, Volusion’s chief operating officer.
Since October the number of companies using Volusion to host their businesses is up 27 percent to 15,000, including both presidential campaigns, which created business websites to sell merchandise, he said.
As massive lay-offs grew in the United States this fall, so did Volusion’s business. Since October the Simi Valley, California company has nearly doubled in size — from 65 people to 120 people, according to Chief Executive Kevin Sproles.
Its facilities in Simi Valley and in Austin, Texas, have grown from 6,000 square feet to 30,000 square feet in the same period, he said.
Unfortunately Volusion just laid off their Simi Valley support staff.
http://www.volusion.com/announcements/20 11/
Sound familiar? McClatchy cutting jobs
These have been a couple of ugly weeks for the newspaper industry. First, EW Scripps pulled the plug on the Rocky Mountain News, and then, today, McClatchy said it was cutting about 1,600 jobs, representing 15 percent of its workforce.
For those who like to look at the bright side of things, McClatchy isn’t shutting down The Miami Herald, Sacramento Bee or Anchorage Daily News. But the staff cuts are deep and undoubtedly will hurt the quality and depth of coverage at some of those newspapers. How couldn’t they? After all, they come on top of two other major rounds of layoffs at McClatchy.
The move isn’t really a surprise, given that McClatchy said back in early February that it had to come up with a plan to cuts more costs given the deterioration of the industry. Still, it seems job cuts at the company come as frequently as seasons change.
Here’s what CEO Gary Pruitt had to say in today’s statement: “We have been transitioning steadily from a traditional newspaper company to a hybrid print and online, news and advertising company for some time. The effects of the current national economic downturn make it essential that we move even faster to realign our workforce and make our operations more efficient. We previously discussed a plan to reach a targeted level of cost savings, but given the worsening economy, we must do more. I’m sorry we have to take these actions, but we believe they are necessary.”
If that sounds familiar, it should. On two previous occasions in recent months Pruitt has used similar language to announce job cuts. Here’s a refresher.
– September. McClatchy announces it is cutting 1,150 positions. Pruitt: “It is painful to announce these staff reductions, but the continued restructuring of our company is necessary given the relentless economic downturn and its impact on our business.”
The Executives from McClatchy don’t know what they are doing. When the McClatchy family ceased running the company, the “new executives” have cut back all of the incentives that “Ms. Eleanor McClatchy” had set up for her employees. She treated her employees as if they were family, they were paid the best in the business, the employees were happy working for this company. Not any more. The “New Executives” have terminated almost all of the veteran employees, replacing them with employees who have no experience and will work for minumum wage. The employees who are still there are there just to complete their time and to get their retirement. Even that is uncertain, now that the McClatchy company has frozen their Pension Plan. Almost everything in the future is uncertain as far as veteran employees are concerned, the only thing that is certain is that the “New Executives” will continue to get their
bonuses regardless of what the economy is going through, of how much debt the company has. If it were not for the CEO, Gary Pruitt’s biggest mistake, buying the KNIGHT RIDDER PACKAGE, THE COMPANY would still be in good standing and making alot of money. Because Pruitt is so greedy and so hungry for attention he wants for the public to think that he knows what he is doing, NOT
TRUE, he was there when the company was doing good, and he just happened to be there, it has nothing to do with him. Most McClatchy employees would love it if he were fired today, and never heard from again. I know for a fact, that I would. He should be fired for making the worst Business Decision in all of McClatchy’s history, buying the KNIGHT RIDDER was the biggest mistake of the entire McClatchy History. Now, there is a big probability that the company will go under sooner than
the public knows.
Tech cos to H-1B workers: We feel your pain
Technology companies, which have laid off hundreds of thousands of workers, are already feeling the heat from politicians about their support of the H-1B foreign worker program at a time when many Americans are jobless. (Read the Reuters story explaining why, as a result, tech companies might have to tone down their campaign to hire more H-1B workers this year.)
Last month, Microsoft was the specific target of Republican Senator Charles Grassley, who shot off a letter to the tech bellwether saying it should lay off foreign workers before laying off domestic workers.
Microsoft responded it was laying off both H-1B workers and Americans, and that it was extending support equally to all affected employees. While that may be the case, foreign workers often have a harder time if they’re laid off.
Under the H-1B visa rules, a worker who loses his job cannot stay on in the United States without changing to a different visa or finding another job. With layoffs all around, it’s not the best market in which to find a job, which means foreign workers could be forced to drop their American lives and head back home.
But some recruiters say companies are sympathetic to the plight of these workers. Recruiter Adam Charlson, who works at Korn/Ferry International’s Silicon Valley office, said companies have been quite aggressive about trying to protect people on H-1B visas. “Organizations are actively doing whatever possible to keep the loopholes open to help H-1Bs find other employment,” he said.
That could mean setting an employment termination date in the future so that the laid-off foreign worker has some time to look for another job or settle his affairs, he said. It could also include things like outplacement services, including helping people brush up on interview skills and writing resumes, and even emotional counseling.
Outplacement services can be especially helpful for H-1B workers, said John Challenger, CEO of outplacement services firm Challenger, Gray & Christmas. Unlike their American counterparts, foreign workers may not have access to informal networks — such as alumni groups and family networks — which can ofte provide leads for new jobs, he said. Tough times for all.
Why do we need to intellectualize American jobs goto Americans?
Was the US falling apart before these racist incompentants came along.
Don’t lecture me, I’ve worked with them and maybe a handful out of a hundred know what they are doing, but boy, oh boy, are they cheap and quiet and will work 24 hours a day until they get it right, and even if they can’t get it right, their managers will say they got it right.
I’ve been interviewed by hundreds of them over the last six years and there’s no way an Indian will hire a non-Indian.
Our economy is collapsing and even the business that make a buck off them are collapsing!
CitiBank, AIG, J.P. Morgan Chase.
We’re creating a minute number of billionaires and turning the rest of the country into beggars.
Replace Congress; we can’t wait another 2 years for people who actually care about the US.
from MacroScope:
So many ways to say goodbye
It takes a delicate touch to make job cuts sound more palatable. As U.S. companies reduce payrolls by the thousands, the press releases seem to be getting more and more creative.
Check out today's announcement from The Reader's Digest Association, which is eliminating 8 percent of its global workforce and suspending matching contributions to employees' 401(k) retirement accounts. Somehow it stings a bit less when you tell employees that it's all part of a "Recession Plan" right?
"We have announced a comprehensive 'Recession Plan', which is our internal roadmap for dealing with the extraordinary effects of this recession on consumer spending," Mary Berner, president and CEO, said in a statement.
Then there was Caterpillar, which said earlier this week that it would "remove" 20,000 workers as it executes "strategic 'trough' plans".
Reader's Digest spokesman William Adler said the language wasn't intended to try to soften the blow of something as traumatic as losing a job.
"We're calling it the recession plan internally to encourage not only understanding of it by the employees, but for their interactive participation," he said, adding that the company was encouraging employees to think of ways to cut costs and save money, which was all part of the "recession plan."
"It's not like 'rightsizing,'" Adler said, referring to an infamous U.S. euphemism that many companies in recent years have adopted to describe firing and laying off their employees.
