JOB CRUNCH
Font Size 
PM's plea has no credit; Amex cuts jobs
Published on Mon, Nov 03, 2008 at 22:03, Updated on Mon, Nov 03, 2008 at 23:13 in Business section
Tags: American Express, Layoffs , New Delhi
Related Stories
Photogallery
 |  |
New Delhi: Credit card company American Express has asked some of its senior managerial employees to quit as part of its strategy to save costs.
The layoffs are primarily in Delhi and Bangalore and all the employees who have been asked to quit have been with Amex India for the past 15 to 20 years. Amex India has hired a consultancy to help sacked employees find a new job. The company currently has around 6,000 employees in India.
PTI reports the company is believed to have handed over pink slips to about 200 employees and senior executives.
The report on layoffs comes on a day when Prime Minister Manmohan Singh asked Indian companies to "refrain from large-scale lay-offs". Singh on Monday warned industry leaders that layoffs may lead to a “negative spiral”.
"While every effort needs to be made to cut cost and raise productivity, I hope there will be no knee-jerk reaction such as large-scale layoffs, which may lead to a negative spiral," Singh said on Monday.
American Express confirmed that it would cut jobs in India but said it cannot give a specific number. “Approximately 7,000 jobs are being eliminated company-wide which translates into about 10 percent of the company's worldwide workforce,” the company said in a press statement.
"While we cannot give you specific numbers for India, we can tell you that we (Indian operation) are not the main focus for restructuring," it said. "Reduction will occur throughout the company and across business units, markets and staff groups, primarily focusing on management and other positions that do not interact directly with customers."
American Express, last week, announced it would lay off 7,000 employees—about 10 per cent of its worldwide workforce—to save $1.8 billion in costs in 2009.
PTI reports the company would also suspend management-level salary hikes for the next year and curtail hiring.
Jet Airways was last month was forced to withdrew its decision to sack 1,900 employees.
(With inputs from CNN-IBN, PTI and IANS)
| Ads by Google |
| Related Ads: | |
Read Comment | Post Comment
Good one Buddy !!!!!!!!!!
Read Comment
Its pretty sad to see market going down like this. Wether we like it or not, we got to accept
Read Comment
This incident again reaffirms my strong beleif that our politicians are good at making statements and passing orders...ask them about
Read Comment
The PM's appeal not to resort to job cuts does not seem to have any effect at all.The Amex has
Read Comment
FII inflow without any conditions, Subsidiary and Sops created specifically for UPA leaders/cadres to make money, schemes tailored for scams,
Read Comment
Read more comment »