Monday, 23 July 2012

Austerity Hits Cisco Systems as 1,300 Layoffs Coming; Chipmaker Renesas Cuts 5,000 Jobs; Investigating Mass layoffs

For the second consecutive year, Cisco Systems is in Austerity Mode, looking to shed 1,300 employees.
Cisco Systems is to lay off around 1,300 workers, as part of the company's ongoing austerity programme aimed at saving $1bn a year.

The firm said the cuts were being implemented to simplify its operations and adjust to changing economic conditions around the world.

The job cuts represent around 2% of Cisco Systems' 65,000 strong workforce.

Last year the firm, the world's largest maker of computer networking equipment, had shed 10,000 posts.

Cisco warned that growing economic uncertainty was creating an environment in which it was becoming increasingly difficult to clinch business deals.
Chipmaker Renesas Cuts 5,000 Jobs

The BBC also notes Chipmaker Renesas Cuts 5,000 Jobs
Renesas Electronics, the world's fifth biggest chipmaker, has announced a restructuring plan that will lead to at least 5,000 job cuts.

It is getting rid of half its 19 plants and cutting 12% of its workforce.

The plan is part of an agreement to get financial help from creditor banks and its three top shareholders: NEC, Hitachi and Mitsubishi Electric.
Investigating Mass layoffs

According to BLS data, Mass layoffs, defined as termination of 50 or more employees simultaneously, have actually been declining and are at the lowest point since 2007.

However, corporations did not exactly go on a hiring spree in the recovery and thus have been running lean.

Should the economy go into a recession (I think we are back in one), companies may have to take it to the chin in profits or in layoffs. I suspect  both.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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