About 150 game developers, hired by Google to make video games for its cloud streaming service, Stadia, have been laid off. This took place after the announcement made by Google to shut down its Stadia Games and Entertainment division earlier this month, just nearly two years of its launch. The creation of high-calibre video games was costly, and the process was too complicated. Stadia’s subscription wasn’t great either.
IBM, as per media reports, would be laying off around 10,000 jobs in Europe as the tech giant makes a broad shift in strategy. Last month the tech giant announced that the organisation will be spinning out its infrastructure services business next year. IBM spokesperson, however, did not confirm the layoffs but suggested broad structural changes ahead as it concentrates fully on a hybrid cloud approach. IBM in May confirmed layoffs but didn’t disclose numbers.
Accenture is offering a seven-month severance payout to employees impacted by its latest layoffs. The package is high considering most companies offer a two-three months’ payout, or one month of salary for every year of service put in. The package is applicable to employees voluntarily tendering resignations. Accenture said last month it will be laying off 5% of its global workforce that are its “lowest performers”.
Accenture, as per Australian Financial Review report, is going to cut at least 5% of its “low-performing” workforce, owing to the sluggish business company is witnessing during the pandemic. India, which has the largest Accenture employee base of nearly 2L employees, could see thousands of workers being affected. CEO Julie Sweet said that every year the company replaces 5% of its low-performing workforce. This year, however, they may leave the roles vacant.
The COVID-19 induced lockdown has taken a toll on Cognizant’s headcount as the firm came onto massive cost-cutting programmes and thus fired about 7000 employees. Its employee count in Q2 dropped to the level as it was last seen at the end of 2018. As of June 30, the firm had 281,200 people on rolls dropped from 291,700 sequentially. Quarterly annualised attrition saw 24% elevation, in which 11% was voluntary and 13% redundant.
Huawei is laying off 60%-70% of its staff including contract-workers, third party employees and excluding those in R&D. The firm has also slashed its Indian revenue target for 2020 by 50%. Revenue, which was earlier expected to be $700-$800 M is now replaced by $350-$500M. Its two major Indian customers – Vodafone Idea, Bharti Airtel – have halted equipment-purchase. In US, TSMC has not given any new orders to comply with US export controls.
While the COVID-19 pandemic has increased the demand for job search on LinkedIn, the firm itself has planned to cut 960 jobs. A meeting invite will be sent to employees if they are included in the layoffs. Employees can keep the firm’s equipment during WFH while making a career transition. Affected employees will get 10 weeks severance pay; can keep health insurance for a year. In future, the firm will also hire for newly-created roles from laid-off staff.
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Top 4 IT firms – TCS, Infosys, HCL Tech, Wipro – in the June quarter saw a net decline of 9K in the headcount. In the same quarter, last year, they recorded net employee addition of 22k. TCS headcount declined to 5000, Infosys 3000, Wipro 1000 and HCL Tech of about 150 people. Freeze in lateral hiring, low employee attrition, performance-related layoffs, delayed fresher onboarding resulted in this decline. Freshers’ hiring won’t be the same as In FY20.
COVID-19 has adversely affected 70% of startups in India, said a survey conducted by FICCI and Indian Angel Network. Around 17% of startups had closed shops. The survey revealed that over 60% of startups have witnessed disruptions in business. Lack of working capital, cash flows could lead to layoffs in the next three-six months. 68% are cutting operational costs, 22%’s cash reserves can up to three-six months and 30% would lay off employees.