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Tag: cuts

  • H&M Shifts Southeast Asia HQ to Kuala Lumpur, Triggers Job Cuts in Singapore

    H&M Shifts Southeast Asia HQ to Kuala Lumpur, Triggers Job Cuts in Singapore

    Swedish fashion conglomerate, H&M, has recently undertaken a restructuring exercise which has led to job cuts in Singapore. This move comes as the retailer transfers its Southeast Asian hub from Singapore to Kuala Lumpur in Malaysia.

    The restructuring operation resulted in a reduction of 78 roles from a total regional workforce of 256 employees. While the exact breakdown of the redundancy hasn’t been made public, it has been confirmed that the majority of job cuts took place in the Singapore office.

    In replying to inquiries, H&M Singapore said that it is “fully backing” employees through the organizational shifts. However, the company did not disclose the exact number of dismissed staff members or specify the affected roles. H&M stated that as a company, they constantly strive to meet customer expectations and this includes regular reviews of their operational efficiency and agility.

    Despite the recent layoffs, H&M maintains that Singapore remains a crucial market for them. The retailer confirmed that it would continue to sustain an office in the country. “We will continue to maintain our retail presence reflecting our long-term commitment,” said a representative of the company.

    H&M first entered the Singapore market in 2011 with its Somerset outlet. Currently, the brand operates six stores in the country. Over the past couple of years, however, H&M has been closing some of its physical stores. In March 2023, the retailer closed its two-storey outlet at Ion Orchard after serving customers for over a decade. The Tampines Mall store was shut in August 2020, followed by the Waterway Point outlet in Punggol in January 2021.

    The Singapore Manual and Mercantile Workers’ Union (SMMWU) released a statement saying that while H&M Singapore is not a unionized entity, some employees could be union members. SMMWU secretary-general Andy Lim asserted that both the National Trades Union Congress and the SMMWU are prepared to offer assistance to these members and help them transition to new job opportunities.

    Questions & Answers

    Why is H&M moving its Southeast Asian headquarter from Singapore to Malaysia’s Kuala Lumpur?
    – Although H&M did not provide a specific reason for the shift of its Southeast Asian headquarters, such decisions are often influenced by cost factors, market opportunities, or strategic alignment.

    What are some of the steps H&M is taking to support its affected employees?
    – Although additional details were not provided, H&M Singapore stated that they are “fully supporting” their employees during these organizational changes.

    How will H&M’s presence in Singapore change as a result of this move?
    – Despite the layoffs and the shift of its regional headquarters, H&M has affirmed that Singapore remains an important market for them. The company will maintain a retail presence in the country, reflecting their long-term commitment.

  • Amazon Boosts Indian Market Presence: Cuts Reseller Referral Fees to Propel Small Business Growth

    Amazon Boosts Indian Market Presence: Cuts Reseller Referral Fees to Propel Small Business Growth

    In a bid to strengthen its foothold in India’s highly competitive e-commerce sector, Amazon recently announced that it will cease to charge sellers referral fees for products priced under 1,000 rupees, or US$10.98. This decision, revealed by the company on Monday, is part of an ongoing initiative to attract a broader range of merchants to its online marketplace.

    Enhancing the ‘Zero-Referral Fee’ Policy

    Amazon is building upon its ‘zero-referral fee’ policy that was introduced last year. Initially, this policy was applicable only to about 12 million products that were priced below 300 rupees. However, the implementation of this policy led to a remarkable 50% increase in the number of new sellers joining Amazon’s platform in India.

    A referral fee is essentially a commission that sellers have to pay to Amazon for each product sold through its platform. The newly extended policy, which came into effect on March 16, now applies to more than 125 million products.

    Along with this, Amazon has also announced a reduction in certain shipping charges, making it even more cost-effective for sellers to use their platform.

    Amit Nanda, the director of Selling Partner Services for Amazon India, stated that this move was aimed at “making selling on Amazon more lucrative and simpler, particularly for small businesses and entrepreneurs in tier-2 and tier-3 cities.”

    Amazon’s Crucial Market: India

    India has become an increasingly important market for Amazon due to its expanding base of internet users, which has significantly fueled e-commerce growth in the world’s most populous country.

    However, the e-commerce giant faces stiff competition not just from Walmart-backed Flipkart and the retail division of Mukesh Ambani’s Reliance Industries, but also from quick-commerce platforms such as Eternal’s Blinkit and Swiggy’s Instamart, which have been rapidly gaining market share.

    Amazon revealed plans in December to invest more than $35 billion in India by 2030. The investment will not only be used to expand its AI infrastructure, but also to enhance retail logistics and boost small-business growth.

    Questions & Answers

    What does Amazon’s new decision entail?
    Amazon has decided to stop charging sellers in India referral fees for products priced under 1,000 rupees. It has also reduced certain shipping charges.

    What is the goal behind Amazon’s decision?
    This decision is aimed at attracting more merchants to Amazon’s online marketplace in India, making the platform more lucrative and simpler, especially for small businesses and entrepreneurs in tier-2 and tier-3 cities.

    How does Amazon plan on investing in India’s e-commerce sector?
    Amazon has revealed plans to invest more than $35 billion in India by 2030. The funds will be used to expand its AI infrastructure, improve retail logistics, and boost the growth of small businesses.

  • Iphone Air: A Revolutionary Design With Unmet Sales Expectations

    Iphone Air: A Revolutionary Design With Unmet Sales Expectations

    Apple had high hopes for this year, setting its sights on capturing the admiration of customers with its ultra-thin iPhone, named the iPhone Air. This model was primed to break away from the pack and shine amongst Apple’s other releases. Interestingly, you don’t necessarily have to be a die-hard iPhone aficionado to appreciate the revolutionary design of the iPhone Air.

    The Thinnest iPhone Ever

    Breaking down the specifics, the iPhone Air comes in at a mere 5.6mm in thickness, making it about 19% thinner than the iPhone 6, which at 6.9mm was previously the thinnest iPhone model. Launched alongside the iPhone 6 Plus in 2014, the iPhone 6 had set a benchmark for slim design. However, the iPhone Air pushes the boundary even further. The device is powered by a 3149 mAh battery for eSIM-only models, and a 3036 mAh battery for models with a physical eSIM, providing an all-day battery life as claimed by Apple.

    Revamped Camera and Pricing

    Apple has also included a cutting-edge 48MP Fusion camera in the iPhone Air. However, unlike the iPhone Pro models, it doesn’t come with separate Ultra Wide or Telephoto lenses. This means the device doesn’t offer ultra wide-angle shots and telephoto pictures are limited to a 2x optical zoom. As for the pricing, the iPhone Air starts at $999. Alternatively, Apple offers a financing option allowing customers to pay off the phone over 24 months at a rate of $41.62 per month.

    Production Cut Due to Lower Demand

    Despite the innovative design and features, the iPhone Air has faced lower than anticipated demand, prompting Apple to reportedly reduce its production. This cutback might result in the production of one million fewer iPhone Air units. Although this model hasn’t quite hit the mark in sales, Apple’s three other models have garnered considerable attention from consumers.

    Rise in Production of Other Models

    On the other hand, Apple is said to be ramping up the production of the iPhone 17 by an additional two million units. Similarly, the iPhone 17 Pro and iPhone 17 Pro Max are expected to see production increases of one million and four million units, respectively. Industry observers speculate that iPhone customers are more inclined towards familiar models, rather than the new iPhone Air.

    The iPhone Air’s Silver Lining

    Interestingly, what has been a drawback for the iPhone Air in sales, has actually been an advantage in terms of engineering. Apple’s base iPhone 17 model has seen significant improvements this year, including the addition of the ProMotion display which provides a variable refresh rate from 1-120Hz. The iPhone 17 also boasts a battery life of up to 30 hours for video playback, a substantial increase from the 22 hours offered by the iPhone 16.

    While the iPhone Air may not have met Apple’s sales expectations, its importance should not be undermined. The device could be a significant stepping stone for Apple, serving as a proof of concept for the upcoming foldable iPhone, often referred to as the iPhone Fold. The foldable iPhone is rumored to resemble two iPhone Air units placed side-by-side. Although initially anticipated for release next year, reports suggest a potential 2027 launch, as Apple is yet to finalize the design of the foldable’s hinge and other components.

    Questions & Answers

    What is unique about the iPhone Air?

    The iPhone Air stands out as the thinnest iPhone ever created, with a thickness of only 5.6mm, which is almost 19% thinner than the previous thinnest model, the iPhone 6.

    What is the starting price for the iPhone Air?

    The iPhone Air is priced at $999. However, Apple offers a finance option allowing customers to pay off the phone over 24 months at $41.62 per month.

    Why might the iPhone Air be considered a significant development for Apple, despite lower sales?

    While the iPhone Air may not have met sales expectations, it may serve as a proof of concept for future developments, specifically in relation to the rumored foldable iPhone, referred to as the iPhone Fold.

  • PostFinance Unveils Restructuring Plans, Leading to Job Cuts Ahead

    PostFinance Unveils Restructuring Plans, Leading to Job Cuts Ahead

    PostFinance has announced plans to implement job cuts by the end of November 2025, unveiling a consultation procedure aimed at increasing operational efficiency amidst ongoing restructuring efforts.

    Job Cuts Affecting Administrative Roles

    The Swiss financial services provider revealed on Thursday that it intends to eliminate 141 positions, primarily impacting administrative staff in Bern. Furthermore, up to 73 adjustments to contracts are anticipated. This reduction represents about 3.6 percent of its total workforce, which numbers approximately 3,900 employees as of the end of 2024.

    Consultation Process Underway

    In light of the restructuring, PostFinance is initiating a consultation process, allowing affected employees to propose measures to minimize, limit, or prevent layoffs altogether. A final decision from the management board is anticipated in July, leaving a glimmer of hope for those facing uncertainty.

    Aiming for Strategic Growth

    The job cuts stem from changes within PostFinance’s organizational framework, aligning with its Strategy 2025–2028. The goal is to foster moderate growth, enhance market positioning, and improve overall performance. This strategy includes generating additional revenue streams, augmenting non-interest income, and boosting sales. The restructuring aims to optimize resources and foster synergies in crucial areas.

    CEO Beat Röthlisberger acknowledged the distress this announcement may cause, stating, “We are aware that this announcement will be burdensome for many of our employees and may cause uncertainty and concern. We will support them closely during this period.”

    Positive News from the Federal Office of Communications

    On a brighter note, the Federal Office of Communications (BAKOM) reported in its annual review that Swiss Post has exceeded the statutory minimum levels for basic service provision. Impressively, over 90 percent of the population can access cash payment services within a 20-minute journey by foot or public transport.

    Additionally, PostFinance enjoyed good customer ratings; private clients scored the company at 81 out of 100, matching last year’s results, while business clients reported slightly increased satisfaction with a score of 77.

    Questions & Answers

    What is the reason behind PostFinance’s job cuts? The job cuts are part of a restructuring strategy aimed at increasing efficiency and adapting to changes within the organizational model.

    How many jobs will be affected? A total of 141 jobs are set to be eliminated, mainly within administrative roles in Bern, alongside potential adjustments to 73 contracts.

    What did recent reports say about customer satisfaction? According to the Federal Office of Communications, private customers rated PostFinance at 81 out of 100, while business customers scored it 77, indicating stable satisfaction levels.

  • Nissan India Lays Off Over 1710 Employees As Part Of Global Exercise

    Nissan India Lays Off Over 1710 Employees As Part Of Global Exercise

    Japanese auto giant Nissan announced earlier this week that it will downsize its workforce globally by firing 12,500 employees. This includes the manufacturer’s India operations as well. A report by ETAuto now states that over 1700 employees from the Indian subsidiary will be axed from the company, contributing 13.68 per cent to the total job cuts. However, Nissan India has clarified that the downsizing process has been completed in India and was a part of the 2018-19 financial year.

    Back in September 2018, Nissan India had announced the Employee Voluntary Separation Scheme for its employees and this was part of the global downsizing exercise, according to the company. The manufacturer did say at the time that it was letting go manpower from its manufacturing vertical, where the need was less and instead would be looking to hire people for expanding the R&D efforts. carandbike reached out to Nissan for a quote on the layoffs but the manufacturer offered “no comments” on the matter.

    As part of the global downsizing or right-sizing exercise in FY2018-19, Nissan laid off over 1420 employees in the US, over 1000 employees from Mexico, 830 in Indonesia and about 880 employees from its two manufacturing facilities in Japan, according to the data provided by the company. That’s about 6400 employees being fired in the first phase of layoffs, while the company will further reduce its direct workforce by over 6100 personnel across six additional sites between FY2020-FY2022.

    The massive restructuring plan comes amidst a massive fall for the Japanese carmaker volumes and profits. The company’s profits plunged 98.5 per cent to 1.6 billion yen ($14.80 million) for the first quarter of FY2019-20, it’s worst since the loss in the March 2008 quarter during the global recession. Moreover, an ageing product portfolio, slowdown in several key markets including Japan, the US and China have further added to the company’s woes.

    Announcing the layoffs at the Quarterly Results press conference this week, Nissan – Chief Executive Hiroto Saikawa said that it was mainly targeting sites where the brand made investments to produce compact cars as part of the Power 88 plan. The plan was implemented globally in 2011 to revive sales that saw Nissan introduce 51 new car models with focused efforts to increase presence in emerging markets like India and Russia. The automaker also revived the Datsun brand as its new entry-level car brand to take on big wigs like Maruti Suzuki. However, Datsun barely managed to make a dent in the volume-friendly small car segment, which turned out to be big disappointment for the manufacturer. Apart from the workforce, Nissan will also axe its low performing products to realign costs and this includes a number of compact cars, possibly including those sold with the Datsun badge.

    That said, India still remains a key market for Nissan. The carmaker has massively invested in its Oragadam-based facility along with partner Renault and still exports a major chunk of its production from the country. The alliance has collectively invested over ₹ 45 billion over the past seven years and the plant has an installed production capacity of 450,000 units per annum. The company currently holds a 0.75 per cent market share in India.

  • Cisco to cut up to 5,500 jobs

    Cisco to cut up to 5,500 jobs

    Cisco has revealed plans to cut up to 5,500 jobs after reporting flat revenue for its full financial year a 2% decline in revenue for the fourth quarter.

    The networking vendor said it will restructure to cut costs in lower growth areas, and allow it to focus its investment on priority areas including IoT, next generation data centers and the cloud.

    The restructuring will eliminate up to 5,500 positions, or around 7% of Cisco’s total global workforce. It will commence this quarter.

    Cisco made the announcement as it revealed that revenue for FY16 was flat at $49.2 billion. Excluding the contribution of Cisco’s service provider video CPE equipment, which Cisco sold to Technicolor for $600 million last year, revenue would have grown 2%.

    Likewise, Cisco’s Q2 revenue declined 2% year-on-year to $12.6 billion, but grew 2% excluding video CPE revenues.

    Net income grew 20% for the full year to $10.7 billion, and 21% in the fourth quarter to $2.8 billion.

    “We continue to execute well in a challenging macro environment. Despite slowing in our service provider business and emerging markets after three consecutive quarters of growth, the balance of the business was healthy with 5% order growth,” Cisco CEO Chuck Robbins said.

    “This growth and balance demonstrates the strength of our diverse portfolio. Our product deferred revenue from software and subscriptions grew 33% showing the continued momentum of our business model transformation.”

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