The global economic slump or ‘meltdown’ as the media prefers to call it has claimed 4.4 million jobs in the US alone. Worldwide job losses from the recession that started in the United States in December 2007 could hit a staggering 50 million by the end of 2009, according to the ILO. Asia, particularly China and India have somewhat managed to weather the storm so far. Yes, there have been job losses, but this has largely been in the export and financial sectors. Needless to say however, the American MNCs in both these countries have been on a relentless job-cutting spree since the last quarter of 2008.
The US has been used to the lay-off culture for quite some time, but folks in India and China have experienced this on this large a scale for the first time. Removing people is the first action that an American company would take when faced with difficult times. It is the easiest thing to do. How about improving processes and streamlining expenses? Oh, but that would take time you see. Removing people is easy. Quick-fix solution. Worse, lay-offs are not performance based. You are just plain unlucky to happen to be in a job code that has been scrapped. However, Asians are not used to this. Asian companies would use lay offs as a last resort. Continue reading