After Job Cut, What's Next ?

Many companies are slashing jobs and what are their plans after that ? We also incorporate some companies who are not slashing jobs.

Company	Strategy
Microsoft	Own retail stores
Starbucks	Instant Coffee
Karpesky (not slashing job)	E-store
Grand-Flo (not slashing job)	Acquisition and China market
Green Packet (not slashing job)	To leverage on best practices; WiMAX-oriented “Intouch” product line.
Dell	Outsource

We can learn something from here...

• Cash sales is crucial
  
• Leverage on brand power
  
• China is still good market
  
• People will buy online. Check out a survey on Adobe Scene 7.
  
• Focus on strengths

Malaysia Economy - No More Comfort Zone

Yes, the minister finally declared, we are no longer in comfort zone.

The minister requested Malaysian to be more matured to understand that hard times ahead and will not be over at least through 2010.

Malaysian must brace for reality and get real.

We must open up everything and forget about the mundane things.

Ignore the idea of protectionism.

For this reason, I feel that certain arenas of the ICT industry have big potential because people are definitely going online more than often. A survey conducted for Adobe Scene 7 revealed that Over 90 percent of our survey’s respondents are planning to invest in new rich media and social networking technologies to ensure their brands and products stand out on the Web.

But too bad, the Internet infrastructure is not able to keep up with its demand. Internet service providers should be the best performer in this economy situation, second comes the free-lancers who are will to perform ad-hoc web solution servicing. And then the third in line will be web solution providers who are willing to do jobs for less than expected budget.

Time-Bomb Management

The automotive industry is 113 years old and along that way, came many best practices for business. And today most of them are complaining. In fact, even with so much of exposure to the business, the Malaysian automotive industry once was almost going for the scrap.

It seemed like Satyam may not be alone, like many the company had no choice but to move forward and bear all sort of business risks, including inflating accounts and absorbing more credits to trade time and financial marginal gains for a bigger hope tomorrow. But too bad the medicine didn't work.

The first thing that came to my mind is that it is easier to start a business and bring it forward to glory; what needed are passions and cash flow.

But it is harder to maintain a business in the long run.

The commercial software industry is 34 years old (Microsoft),Satyam is 22 years old.

This goes on to suggest that software outsourcing is not everything pretty, it is always interim and cash flow. But having cash flow is essential to the growth of the business.

The next generation of entrepreneurs have to take this as an educational case study.. Suddenly, it seemed like India is having too much ICT, computer software and hardware professionals and now they are probably looking for a way out.

What will this contribute towards our immediate expectation ?

• With USA slowing down as well, my guess that Indian ICT professionals will be interested to gain entry into Malaysia and Singapore.
  
• Malaysia outsourcing business may gain significant benefits in the short term and hopefully that will contribute some to the ICT industry in Malaysia.
  
• But the slowing down of USA and India (as main contractors) may also affect the sales of outsourcing in Malaysia, because not many people are buying. Let's not forget that other countries in areas such as latin America also have software outsourcing capabilities, they term it as "near shoring", with this, it doesn't seem like Malaysia outsourcing is going to get a lot of business but we may be able to have a lot of people waiting for work to do.
  
• Project management, software management and human resource management may gain significant edge in the short term given that now there are more heads to manage and less numbers to look at. This is one area that Malaysia can focus on actually.

I think that Satyam has been waiting for the right time to announce this fraud and thanks to the financial crisis in the USA. Same goes to many other companies who would take opportunity to lay off employees.

The world needs to create a brand new world-economy or some sort of culture to absorb all these gaps as described by Satyam's founder B. Ramalinga Raju and I think many more will not agree more with him.

With the USA economy crisis, the world is not getting poorer, but the existing economy is; existing businesses are. Business people and entrepreneurs need to think about potential time bombs and this is not just some sort of enlightenment, it is a mandatory action. Someday your number will be up.

And just like software development, theory may not resonance well with actual codes. If it is not proven, it may be a time-bomb.

Time-bomb management is a new skill we all need to acquire.

US Economy and The Tech Industry Recently

Got this compilation from email (Thanks to TK Chin)

Happenings Around Malaysia

• Flextronics 4 days week for Month Nov and Dec 2008.
  
• AMD Penang announced this morning VSS lay off 500 employees.
  
• Spansion force to take leave (5 days in this quarter)
  
• Jabil planned shut down from Dec 24 to Jan 4, will be 6 days leave.
  
• Agilent planned shut down from Dec 24 to Jan 4, will be 6 days leave.
  
• ASE shut down every fortnightly on Monday starting from Nov 3.
  
• Fairchild planned ‘Mass Vacation’ for 9 days leave in FY08 (Q2 : 3 days,Q3 : 2 days,Q4 : 4 days)
  
• ST-NXP Wireless cuts 500 jobs World-Wide, including subcontractors, from the current total of more than 7500 people.

Flextronics cuts 118 jobs in Limerick, Ireland

The job cuts were confirmed during this weekend. Flextronics has announced that the company will cut around 100 jobs at the Limerick plant, said RTE. The reason for the cut backs is due to the global economic downturn.

Flextronics employs around 300 staff at the Limerick facility, which provides warehousing and logistics services to a number of companies in the region.

Dell lays off 700 in Ireland

The Dell facility in Raheen, Limerick is to lay off 700 temporary workers. Additional to that, Flextronics in Limerick is also rumoured to lay off 100 staff.
Mary Coughlan, Irish Minister for Enterprise, Trade and Employment, met with members of Dell’s senior management to discuss the future of 3000 employees at the manufacturing facility in Limerick.

STMicro to lay off at Phoenix facility

Switzerland based chip maker STMicroelectronics is to lay off staff at its Phoenix, Arizona facility. Local news states that the chip maker will lay off 100 staff. The facility - which currently employs around 850 staff - will expercience an ongoing lay off process. azcentral cites spokesman Mike Michael Markowitz in saying that "about 100 of the plant's 850 workers were let go this week and that the process would continue".

Last year, the company announced closure plans for 3 American chip facilities and that chip manufacturing would be transferred to low-cost locations. Staff and management hoped for a buyer to keep the plant open.

Dell workers asked to take unpaid vacation

Media reports state that CEO Michael Dell - of computer giant Dell - has asked employees to consider taking a maximum of 5 days unpaid holidays.

As reported earlier, Dell is currently running a restructuring programme to counteract the economic and financial downturn.

This include 8,900 job cuts, voluntary severance packages and a global hiring freeze. "We are asking employees on a voluntary basis to consider taking off (up to) five days ... as unpaid time off as a flexible way to reduce costs for the company," the CEO was cited in a Reuters report in saying.

Tele-Fonika Kable to cut 900

Polish based cable and wire producer Tele-Fonika Kable plans to lay of 900 employees or 19% of its workforce. The lay offs will affect all production units across the group. The company has seven plants, of which five are located in Poland, said PB. Tele-Fonika Kable also plans to sell parts of its business, however it will not close down any plants. The company wishes to optimize production process and reduce costs.