By Dion Weisler for CNBC
HP now expects 4 500 to 5 000 employees to leave the company by the end of fiscal 2019 as part of an ongoing restructuring plan, the PC maker said on Tuesday.
In October 2016, HP’s board had approved a restructuring plan to be implemented through fiscal year 2019, under which it had expected around 4,000 job cuts. In May, the company said it expected that number to increase by 1 to 2 percent.
The company employed 49,000 people as of October 31.
HP, formed in 2015 when the then Hewlett-Packard Co was spilt into two, said in a regulatory filing. It now expects pretax charges of about $700 million related to the layoffs, compared with about $500 million forecast earlier.
HP estimates that about half of the expected pretax costs will relate to severance and the remaining costs due to infrastructure, non-labor actions, and other charges.
When Hewlett-Packard Co split up, HP Inc focused on the consumer-facing hardware business, including sales of PCs and printers, while Hewlett Packard Enterprise co-hosted the company’s data-center, software and services units.
HP, which has the top position in worldwide PC shipments in the first calendar quarter of 2018 with a 22.6 percent market share, reported better-than-expected quarterly sales of $14 billion in the quarter ended April 30.
Source: Supermarket & Retailer
Durban could lose the headquarters of general merchandise retailer Game to Johannesburg, a move that could affect hundreds of staff members in the region.
Massmart Holdings Limited spokesperson Annaleigh Vallie confirmed that the move was eminent with Game management currently holding discussions with staff based at the retailer’s head office in Durban.
“It is, however, important to note that no decision on the move has been finalised,” said Vallie.
Massmart owns the South African local brands such as Game, Makro, Builder’s Warehouse, CBW and many others. It has four divisions, which are Massdiscounters to which Game falls, Masswarehouse, Massbuild and Masscash.
Walmart purchased a majority of shares in Massmart in 2011.
“The discussions are at a very early stage and currently involve consulting with approximately 330 potentially affected staff in order to ensure their input into the decision making process. From a legal perspective discussions of this nature typically take place within the framework of Section 189 of the Labour Relations Act.”
Vallie said currently no retrenchments were taking place in the region.
The company was of the view that if the potential move would take place, Game would benefit from being geographically closer to suppliers, Massmart and other group operating divisions.
Vallie said: “This in turn has potential to enhance commercial decision making and, group-wide collaboration and leverage.”
South African Commercial, Catering and Allied Workers Union (Saccawu) Kwa-Zulu Natal regional secretary Mathews Ndlovu said on Monday that the union was not surprised by the move. “Our objective is to try and make sure that there is no jobs lost in the process. We cannot stop the company from re-locating as part of their business restructuring,” said Ndlovu.
He said that if the staff members agreed to go to Johannesburg, they should receive relocation allowances and fees. “These things are on the table and have not been completed yet. As for those who are not willing to relocate must be accommodated in the perimeters of the province with same benefits which are not less favourable to what they are currently getting.”
Original article by Given Majola for IOL
Ricoh plans to cut about 4,000 jobs as early as fiscal year 2019 to streamline its struggling, core office-equipment business, the Nikkei reported on Thursday.
The company will let go off 3 000 employees through a sale of a logistics unit in Japan and trim management positions in Europe — reducing its global workforce by 4 percent, the Japanese daily said.
Ricoh and legacy companies that supply office printing equipment such as Xerox Corp have been looking to sell assets and focus on other areas of growth as paper printing increasingly gives way to digital alternatives.
Earlier this year, Japan’s Fujifilm Holdings said it would buy Xerox in a $6.1 billion deal to gain scale and cut costs. That proposal has, however, hit road blocks as two of Xerox’s top shareholders — Carl Icahn and Darwin Deason — opposed the deal.
Ricoh, meanwhile, has already cut over 5,000 jobs in North America since beginning of this year, the Nikkei said.
The 59-year old company has reported declining profits for the past four years. Its stock has shed nearly two-thirds of its market value since its peak in 2007.
Ricoh did not immediately respond to a request for comment outside regular business hours.
The Nikkei said last month that Ricoh was conducting impairment tests on its slumping North American business, and may have to take a related charge of about 100 billion yen ($943.04 million).
The company will sell a copier factory in the Chinese industrial hub Shenzhen and is planning to dispose of its equity stake in a Coca-Cola distributor for about 56 billion yen ($528.50 million), the Japanese business daily reported on Thursday.
Expenses related to the job cuts and other restructuring efforts are expected to weigh on the company’s fiscal 2018 performance, the Nikkei reported.
Ricoh will also set aside 200-billion yen for acquisitions of commercial and industrial printing companies as it looks to move away from office printing, according to the report.
Source: Japan Today
A new report published by the World Economic Forum casts a grim light on the future of jobs across the world, with 1.4 million US jobs alone expected to disrupted by technology and other factors between now and 2026.
The report is an analysis of nearly 1,000 job types across the US economy, encompassing 96% of employment in the country. Its aim is to assess the scale of the re-skilling task required to protect workforces from an expected wave of automation brought on by the “Fourth Industrial Revolution”.
Drawing on this data for the US economy, the report found that 57% of jobs expected to be disrupted belong to women. In addition, the report found that if called on today to move to another job with skills that match their own, 16% of workers would have no opportunities to transition and another 25% would have only between one and three matches.
At the other end of the spectrum, 2% of workers have more than 50 options. This group makes up a very small, fortunate minority, as on average all workers would have 10 transition options today.
The positive finding of the report is the huge opportunity identified for re-skilling to lift wages and increase social mobility.
With re-skilling, for example, the average worker in the US economy would have 48 viable job transitions – nearly as much as the 2% with the most options today. Among those transitions, 24 jobs would lead to higher wages.
Re-skilling may also ultimately be the deciding factor as to whether the South African economy survives the fourth industrial revolution.
According to a report released by global consultancy Accenture in January 2018, 35% of all jobs in South Africa are currently at risk of total automation, meaning machines can perform 75% of the activities that make up these jobs.
Accenture said that both blue and white-collar jobs are at risk.
“The jobs of clerks, cashiers, tellers, construction-, mining- and maintenance workers all fall into this category,” it said.
Hard-to-automate jobs (those with a lower risk of automation) include tasks like influencing people, teaching people, programming, real-time discussions, advising people, negotiating and cooperating with co-workers, Accenture said.
Similar to the WEF’s findings, Accenture found that if South Africa can double the pace at which its workforce acquires skills relevant for human-machine collaboration, it can reduce the number of jobs at risk from 20% (3.5 million jobs) in 2025 to just 14%(2.5 million).
“Digital is a growth multiplier. Digital technologies are ushering in a new economic era by overcoming the physical limitations of capital and labour, exposing new sources of value and growth, increasing efficiency and driving competitiveness, said Dr Roze Phillips, MD for Accenture Consulting in Africa.
“However, for countries like South Africa that are less prepared for human-machine collaboration, digital technologies may bring more job losses than gains.”
“South Africa cannot hesitate – it must start now. To succeed, leaders must act swiftly to re-imagine work, pivot the workforce and scale up ‘new skilling’,” said Phillips.
Source: Business Tech
Fewer than a quarter of matrics find jobs relatively quickly, according to economist Mike Schüssler of economists.co.za.
Those members of the matric class of 2017 who will not be studying further, but will be looking for a job, will not be easily absorbed by the job market, he told Fin24 on Tuesday.
“It will be tough for them to get work. Over 50% of our matriculants under the age of 34 have not found permanent employment and it’s not getting better,” he said.
“This is part of the process young job seekers go though. It takes long to get a first job – even for those with a degree it takes a while. You do not get a degree and suddenly you are running the firm.”
The overall unemployment rate in SA nears 28% in the narrow sense (excluding people out of work, but still actively searching) and 37% in broader terms (including those who have given up looking for a job). For young people this figure is much higher. Schüssler estimates it to be well over 50%.
“To get your first job is probably one of the hardest things in life and often takes a while. If you have not had a job, you are regarded as not having ‘proven’ yourself yet,” explained Schüssler.
“Unemployment in SA is high already, but for the youth it is higher and for those looking for a first job it is very tough.”
According to Statistics SA, only 12.8% of people in SA between 15 and 24 have a job (in terms of the narrow definition). For those between 25 and 34 years of age, only 49.6% actually have a job; and for those between 35 to 44 years of age, 63% have a job.
“My message to matrics is that a job is a job. The big thing is to start off doing a first job. Yes, we will have minimum wages, but maybe we have to be careful regarding how it is implemented,” suggested Schüssler.
“Maybe people getting a job for the first time could be excused from having to get the minimum wage for the first two years of employment.”
Another suggestion by Schüssler is for young matriculants who do not find a job quickly to try and do volunteer work.
“Maybe ask if you can just get money for transport. At least you will still be in the process of learning. The next employer wants to know that you can stick to a job and perform the tasks you are given. That is very important,” said Schüssler.
Never lose hope
“Don’t give up hope. Everybody is suffering and employers often prefer young people who are a little bit older – about 25 years – as they might be regarded as being more mature and used to the discipline of sticking to a job.”
He pointed out that this is a global trend as older people tend to be regarded as having proven themselves – whether they have done so or not.
“Young people must try to offer a service – even start waitering, just start somewhere. The best advice is not to give up. And if you get a job, work hard. Employers want people who are productive and efficient,” said Schüssler.
“Young people must say to themselves: get a job, then negotiate and work your way up. It is not an automatic thing. Yes, SA’s unemployment is high, but all over the world young people struggle to find jobs.”
By Carin Smith for Fin24
As many as 800-million workers worldwide may lose their jobs to robots and automation by 2030, equivalent to more than a fifth of today’s global labour force.
That’s according to a new report covering 46 nations and more than 800 occupations by the research arm of McKinsey & Co.
The consulting company said on Wednesday that both developed and emerging countries will be impacted. Machine operators, fast-food workers and back-office employees are among those who will be most affected if automation spreads quickly through the workplace.
Even if the rise of robots is less rapid, some 400-million workers could still find themselves displaced by automation and would need to find new jobs over the next 13 years, the McKinsey Global Institute study found.
The good news for those displaced is that there will be jobs for them to transition into, although in many cases they’re going to have to learn new skills to do the work. Those jobs will include health-care providers for aging populations, technology specialists and even gardeners, according to the report.
“We’re all going to have to change and learn how to do new things over time,” Michael Chui, a San Francisco-based partner at the institute, said in an interview.
Reported by Rich Miller for Bloomberg LP on Tech Central
HP is set to cut between 3 000 and 4 000 jobs worldwide over the next three years, as it seeks to make savings as PC sales continue to plummet.
The world’s second-largest PC supplier has struggled in a dwindling market, and hopes the cutbacks will save the company between $200-million to $300-million annually by 2020.
However, HP will also incur an estimated $350-million to $500-million in restructuring costs.
According to a filing made to the Security and Exchange Commission on Thursday, HP plans to swing the axe between 2017 and 2019, spread across the many countries and regions the company operates in.
HP split into two divisions in September 2015, resulting in a loss of 30 000 jobs – almost 10% of the workforce. Today HP Inc oversees printers and computers while Hewlett Packard Enterprise focuses on enterprise services, though it has spun off much of its software business.
“I’m proud of the progress we have made in our first year as the new HP. Our focus is clear, our execution is solid, and we are positioned well for the next step in our journey,” says Don Weisler, president and CEO of HP, in a statement.
“We are confident in our strategy and believe it will continue to produce reliable returns and cash flow, while also enabling HP to invest in differentiated innovation and long-term growth.”
Weisler acknowledges that the market is currently “challenging”, but says the company is still “committed to innovating”, pointing to HP’s current opportunities in manufacturing and 3D printing.
The announcement comes during a global decline in PC sales, dropping 5,7% in the third quarter compared to last year according to a report by Gartner. This represents the longest period of decline in the history of the PC industry.
By Dale Walker for www.itpro.co.uk
COSATU has announced a one day national strike for all employees on Friday, 7 October 2016.
NEDLAC has confirmed that COSATU has complied with s77 of the Labour Relations Act, No 66 of 1995 (LRA) in serving the necessary notices on NEDLAC. The activities on 7 October 2016 will therefore constitute protected protest action and will not be a strike, despite COSATU calling it such.
Similarly, the activities on 7 October 2015 were called a national strike but were in fact protected protest action.
Section 77 of the LRA provides for “protest action to promote or defend socio-economic interests of workers” and covers a much larger scope of demands than those of mutual interest between employee and employer.
The demands that COSATU wishes to “fight for” are:
• “Demand the total banning of the labour brokers;
• Demand the scrapping of the e-tolling system including the expensive toll gates;
• Fight in defence of our Jobs and against retrenchments;
• Demand the implementation of the Legislated National Minimum Wage;
• Fight to defend and protect our Collective Bargaining Agreements;
• Fight for compliance with Occupational Health and Safety Standards in all workplaces;
• Fight for the implementation of the NHI;
• Fight for the scrapping of the Taxation Amendment Law; and
• Demand the implementation of Free Education.”
Any employee is entitled to participate in the protected protest action and may not be disciplined for being absent from work. Participating employees enjoy the same protection as in the case of a protected strike. However, the principle of no-work-no-pay will apply.
Any employee engaged in an essential service may not participate in the protest action. Employees in a maintenance service may participate if permitted by the agreement regulating the maintenance service.
It is not yet clear whether any of the non-COSATU unions will take part in the protest action organised by COSATU.
It is also not clear how widespread the protest action will be. Some of the COSATU regions have already indicated that they will support the project.
By Faan Coetzee and Samantha Coetzer, Cliffe Dekker Hofmeyr
Employment levels have dropped in six of the nine provinces in the year to June‚ Statistics South Africa said on Thursday.
KwaZulu-Natal‚ Gauteng and North West recorded the largest decreases at 77‚000‚ 28‚000 and 25‚000 respectively.
Employment gains were recorded in Limpopo‚ Western Cape and Northern Cape (31‚000‚ 9‚000 and 6‚000 respectively) over the same period.
At city level‚ compared to a year ago‚ employment decreases were recorded in three metropolitan municipalities. These were: Ekurhuleni metropolitan which recorded the largest decrease at 29‚000‚ followed by Nelson Mandela Bay (23‚000) and Buffalo City (3‚000).
Annual employment gains were recorded in five metropolitans‚ with the largest increase in the City of Cape Town at 43‚000.
Overall‚ Stats SA’s Quarterly Labour Force Survey showed that employment declined in the second quarter of 2016 by 129‚000 to 15‚5-million.
The quarterly decline in total employment was driven by job losses in Services‚ Agriculture‚ Transport and Mining.
Quarterly employment gains were observed in Manufacturing‚ Private households and Construction.
However‚ while Manufacturing created 67‚000 jobs quarter-to-quarter‚ Stats SA noted that the number of employed in this industry was lower compared to the same period last year (45‚000 or 2‚5%).
Formal sector employment declined for two successive quarters to 10‚9 million in Q2: 2016 but was still 0‚8% higher compared to the same period last year.
The informal sector contracted by 58‚000 or 2‚3% in Q2: 2016 – making it 5‚8% lower compared to the same period last year.
As to which jobs are shedding positions‚ Stats SA said that on a quarterly basis‚ employment decreased in six of the ten occupations in Q2: 2016.
The largest decreases were recorded in Sales & services (93‚000) and Plant & machine operator (70‚000) occupations. Over the same period‚ employment increased in four of the ten occupations; with the largest increases in Technician and Domestic worker occupations (56‚000 and 24‚000 respectively).
Year on year changes reflect employment decreases in six occupations‚ the largest decrease being recorded in Plant & machine operator (153‚000) occupations. In Q2: 2016‚ annual employment gains were recorded in four occupations – Professional (107‚000)‚ Manager (68‚000)‚ Technician (16‚000) and Domestic worker (7‚000).
In the first quarter of 2016, the formal non-agricultural sector of the South African economy shed 15 000 jobs in all sectors, except construction and community services, according to the Quarterly Employment Survey.
Employment therefore declined by 0,2% to 9,2-million people in the formal non-agricultural sector of the economy.
The Quarterly Employment Survey collects data from the mining, manufacturing, electricity and gas, construction, retail, business and community and personal services sector, and measures the level of employment and earnings per sector.
It should not be confused with the rate of employment reflected in the Quarterly Labour Force Survey.
Statistician-general Pali Lehohla released the latest figures on Monday, which showed that the largest percentage of job losses took place in the retail, hotel and restaurant sector.
In the retail trade sector, 27 000 jobs were lost, while 7 000 people were retrenched in the hotels and restaurants industry.
Employment in the mining sector contracted for the sixth consecutive quarter by 4 000 employees in the first quarter of 2016.
Finance and business services lost 9 000 jobs after employment rose by 42 000 in the last quarter of 2015.
There was also a 4% decline in earnings for the quarter ended March 2016 – from R545-billion to R523-billion.
These decreases were recorded in all industries, except the business services industry. Statistics SA ascribed the changes in gross earnings to the absence of bonuses and overtime that were paid to employees in the last quarter of 2015.
By Liesl Peyper for www.fin24.com