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Accenture Manila cuts hundreds of jobs

Q: Key Point 4: Update 2: Employees that were let go ranged from regulars...

Update 2: Employees that were let go ranged from regulars to management positions.

Abe Olandres January 16, 2009 · 3 min read

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I got a call last night from a media researcher (for an investigative TV program) asking me about my take on the recent series of layoffs in the local BPO sector. They wanted to know if I think the job cuts were Â related to the global financial crisis.

After a series of calls and text messages, the program supervisor called me asking to verify an alleged layoff at Accenture Manila that very day. The unofficial figure was 500 heads! I said I didn’t know where that came from — it could be from another source but I could call insider people and verify it.

A call to my source from the inside verified the layoffs. My source immediately told me “I know what this is all about” right after picking up the phone.

Apparently, the memo went out on the 14th stating that people from the Solutions Division will have to be let go starting on the 15th. The 500 figure is still unconfirmed but they say it is going to be a huge number.

The reason behind was that Accenture Manila has become overcrowded with project developers and consultants with no assignments or have prior projects that have been canceled or indefinitely put on hold.

This development may not be a big surprise as Accenture (like many other multinational companies in the country) has been doing some belt-tightening measures since last year.

Will update this breaking story as I get more information.

Update 1: Memos were sent out Wednesday night for employees to report to the Makati office the following day only to be surprised by a severance package and outplacing support greeting them as they arrive. Employees are very worried as people just disappear from their stations left and right.

Update 2: Employees that were let go ranged from regulars to management positions. They are given option to transfer to the Call Center Division if they wish so and if the skill-sets are applicable. Those left out are given a severance package of 1 month’s salary for every year of service to the company.

Update 3: More job cuts are coming. The Country Managing Director sent a second notice to everyone on January 15. “All affected employees have been contacted via call, email invite and/or SMS. Only a few are still scheduled for notification in the succeeding days…. If you are approached by the media or anyone else with questions regarding the workforce actions today, please do not respond.” They are also arranging town-hall meetings and people hour sessions. The 500 head count is confirmed and they’re shedding more people.

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Abe Olandres

Editor-in-chief

Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and considered by many as the Father of Tech Blogging in the Philippines. He is also a technology consultant, a tech columnist with several national publications, resource speaker and mentor/advisor to several start-up companies.

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152 Comments

jigen7 · 17 years ago

wala nman nasagot sakin d2 eh hayyy

mayet · 17 years ago

Hi may sasabihin lang ako tingin ko off-topic dito pero I just wanna get this out. Matagal ko na itong alam pero since one year na ko wala sa Acenture I don’t care na. Some might be offended pero I resigned because I disliked the management and I have a feeling dati pa lang na maglayoff sila so I looked for a greener pasture. I don’t even care if you think may motive ako for posting this pero just take note of the facts na lang po okay.

I know two people nandyan pa din even now, yung isa taga solutions at yung isa services. Yung services boardmate ko at yung sa solutions friend ko matagal na. Long story short academic honored sa PUP friend ko, but silent hardworker nga lang. Etong boardmate ko inamin nya sakin na all she does is to be nice and close to her lead, you know ‘PR’, then easy lang at work since they don’t have tight deadlines daw and I noticed naman. Eto one time she left her payroll on her desk and computed she earns 30K plus monthly, about 5K more than my friend. Ouch! Knowing 1 year nag JSE and 2 years SE na friend ko, samantalang si services girl 2 years pa lang experienced hire level F (SE din). And honestly on the skill I would say far more madiskarte and ‘detail-oriented’ friend ko compared sa kanya especially in terms of admin tasks. I can’t say anything bad about the personality of the services girl, pero my friend is working herself to death with a client facing project and friendly din naman sya. Does she deserve that lower salary?

By the way, I earn more than them but im on higher level.

My point is being lucky at Acenture depends on who your lead is. I usually encountered the lead of the services girl laging nakangiti pero biased yung guy sa subordinates na likes nya, and so I heard nasa loob daw ang kulo kahit laging happy face. Yung lead ng friend ko sabi nya protects his people, pero hindi nga lang biased. I told my friend about it yesterday..she will resign na this year..I told her to volunteer to join retrenchment instead..sayang severance.

The only reason companies invented (promoted) the idea that salary is confidential and disclosing it is unprofessional..because it gave them the reason to better compensate people ‘advantageous’ and ‘close’ to them while they compensate less for hardworking people they consider ‘useful’ but not of their same ‘class’. They also capitalize the ‘insecurity’ natin that we are being judged by our salary..which is bull obviously dahil sa disparities ng basis even for two people doing the same job in different places. Buti na lang may payscale and glassdoor and the likes so we can anonymously disclose our salaries kahit hindi naman talaga kelangan anonymous. This way we can be informed if we are compensated lesser by our bosses compared to our peers and make better decisions of our precious time and life.

Saka tama yung napansin ng iba dito..parang may backers Accenture ngayon..do they now hire teams of bloggers or commenters to damage control these days? Kasi kahit sa glassdoor yung positive comments almost parang iisa lang theme nung message kahit galing sa multiple posters. Sila din kaya yung backroound investigators? Sigh…

Do you really believe accenture laid off people because of financial crisis? Partially yes..but you need to know their history..that’s not the main reason..yet.
Do you really believe Intel totally closed some assemblies (including Philippines) and cutting 6,000 jobs because of financial crisis? Partially yes..but you also need to know what’s happening at these sites to know the primary reason..especially at Cavite.
Do you really believe Microsoft in process of slashing 5,000 jobs because of financial crisis? Partially yes..but you also need to know the advantage contracting companies provide during times of uncertainty.
Financial crisis..a convenient excuse for house cleaning purposes..why waste it now when it will really affect the company eventually anyway?

DarkBlak · 17 years ago

im currently working at accenture… nakakatrauma talaga yung balita na yan… lalo na para sa amin na kahit may project eh na hired naman thru agency lang meaning hindi kami direct hire ng accenture and anytime pwede kaming alisin… buti na lang kahit papano maayos lagay ng project namin… pero syempre nakakatakot pa rin kasi kung dati every 3 months ang renewal ng kontrata namin ngayon naging 1 month na lang… natatakot kami na baka isang araw palitan na lang kami ng mga naka bench…

jigen7 · 17 years ago

so it is not preferable to apply to accenture na?kasi di muna sila natanggap ng hiring?

GabbyD · 17 years ago

SMS?! thats harsh!

nandato · 17 years ago

@sikreto – i understand your pain man… i’m sorry to hear that news… sana makahanap ka na kaagad ng work… ang alam ko programmers overseas merong available (pero kadalasan puro KSA eh)

@others – i agree that we should help those people who were layoffed… sana intindihin din natin sila kung dito sila nagpost ng sama ng loob kasi mahirap ung nattrauma ng ganun… ung feeling na hindi enough ang skills mo (pero in truth, wala ka lang project)… tingin ko some of you who were able to keep their work sa accenture should be really thankful at meron kaung projects… pano na lang kung wala diba? baka kayo ung isa sa 500 na un…

novoonline · 17 years ago

Hmmmmm

Sad news, reason really was stated already, even if di sinasabi ng Accenture: Client backouts. Alam naman natin lahat global financial crisis. And this crisis, di naman lahat inasahan. Di lang naman accenture diba? madami rin.. It was just sad having this things. And yung layoff, ganun po talaga ang mag layoff. alangan na sabihan ka a week before. Kung ikaw employer at nalaman mo na tatangalin ka na? ano gagawin mo? Iba’t iba ang klase ng tao and if they are not satisfied or kung nakaka tanggal ng gana ang sitwasyon di mo alam ang pwede niya gawin. So they did the right way, to protect the others. Sana maintindihan nyo un.

And mind to share, who knows, this year, bumawi ang pilipinas sa mga losses na yan? Why? Try searching Satyam

jigen7 · 17 years ago

wahh im planning to apply pa nman sa accenture so meaning as a programmer ibig sabhin di n sila muna open for hiring??

sikreto · 17 years ago

I’m one of those who have been affected by the so-called “redundancy program”. I have been with ACN Solutions (or IT, correction to those who said that the affected department was BPO or contact center) for almost 5 years and have only spent 3 days in bench. You wouldn’t imagine the stress and anxiety that we all faced when we all reported to Makati office the next day after we were informed that we will be having a one-on-one meeting with people we don’t know. The HR hadn’t been helpful as well as no further information was divulged, except for the venue and time. We all faced the unknown that day. Redundancy program is their way of sugar-coating the real issue here… that ACN is being affected by the world-wide financial crisis. I felt terrible for the bread-winners who lost their jobs. However, I do understand that ACN had to let go of excess baggages for them to keep afloat. On a lighter note, I believe that we, who have been laid off, will be able to find a new (and better) job as I know the skills, potentials, and capabilities that we all have. For those who have not been affected by this crisis, you have something to be thankful for. If you know of anyone who has been laid off, believe me, he/she needs the support now more than you can think of…

atanari · 17 years ago

I agree with Anonymous. I am working for Accenture and I understand that the company is really going on a difficult situation right now.

As explained, the company is just balancing the number of supply from the current demand that we have. It would be unfair to keep people in the bench naman without definite projects na pwede nila mapuntahan in the next 6-9 months. So the company have to make a decision to give people opportunities outside of Accenture. Sayang din naman ung skills ng mga tao kapag hindi nila nagamit dahil nasa bench lang sila. I know that as much as possible ayaw nila gawin ang redundancy program but they did because they had to.

Siguro hindi lang naman Accenture ang may ganitong dilemma, nauna lang siguro ung company namin. Let’s all hope and pray na lang na malampasan natin ang economic crisis na ito.

lucifer · 17 years ago

that’s really a bad news. same thing happened to me…i was laid off by another american it(it means pest) company. they recruited me because i am have very good skills in programming only to find out that they wnt to use my blog about business intelligence in order for them to win clients. they even scheduled me to a meeting with their BI expert who went to the country from new York just for the meeting…but I turned it down, and after that incidence my relationship with the company was soured and eventually got laid off…i think these american it(it means pest) companies should go homes! yankee(pest) go home!

edge · 17 years ago

so the rumors are really really true.. the financial crisis that’s been going on in the US is already taking it’s toll on call centers here in the Philippines.. ACS and Accenture were the first ones to feel the blow, unfortunately.. but loss of money is also largely felt in companies like HP and Dell considering they both took off annual salary increase and cash incentives.. sad but it’s really happening..

http://blog.edgelacorte.com

Anonymous · 17 years ago

I have friends, classmates and previous colleagues whom are with ACN and these development has been closely monitored by our group. Let’s try to understand ACN. The company is trying to survive.

There are some companies that are not yet affected or if they are, the current crisis have a minimal impact to their business.

As an IT recruiter, news such as this will create a big impact to the local IT industry. I am still happy to say that my current employer/company is not affected since our IT is an internal offshore team. But aside from us, you can try checking opportunities to companies based in Australia, New Zealand and also in Canada. Most of the companies there are not directkly affected by the current situation.

Maybe instead of sourgraping and posting our sentiments to our employers, why not help and inform your friends that there are other opportunities available.

You can ask help from head hunters, executive search firms and even to your previous colleagues to find a new job.

On my end, I have opportuities for tenured J2EE devs and Unix admins from ACN. Just email your inquiries to we****@gmail.com in case you’re interested.

jazz · 17 years ago

It was a business decision. I believe that the management hard time deciding for they know that people will be hurt. Many are blinded and few had the overall view of the true picture of the situation. But life has to go on, these things happened for a Divine reason. Let us just keep praying that will be able to surpass this challenge and be grateful for all blessings we have. This too shall pass…

Rajesh Sethi · 17 years ago

Just to update- Accenutre India is continuously doing lay-offs at Bangalore,Hyderabad and Mumbai centers.Primary reason being lack of project and shutting down of few projects due to serious quality issues.
Unfortunate but true.
Regards
Rajesh

Beau Rudd · 17 years ago

I think that you are going to see allot more of the bigger call centers in the Philippines doing the same thing.

Allot of bad stuff happening in the US and it’s not going to get any better.

Anonymous · 17 years ago

To Ms Concern: I’m not from Accenture but I know a few people from that company. Even if they are assigned to projects they also feel threatened by the redundancy program. People on the bench, like you, probably feel very much worse. But I hope you don’t give in to unofficial news that you hear or else magpapanic ka talaga. Accenture still has projects so I cannot see them letting go of 25% of the workforce. They also left maybe one thousand people on the bench when they could have gotten rid of the entire bench. At the moment ‘yan ang tingin ko ha.

But, if ever totoo ang balita, try looking for other jobs now. That’s the smartest thing you can do. It will also make you feel better that you are also doing something instead of just waiting to be served your papers.

Isipin niyo na rin siguro that this company is not just a black box labelled Accenture it is a company made up of and run by people. These are difficult decisions that the leadership made. The company is trying to survive. I am sure that as much as possible ayaw nila gawin ang redundancy program na ‘yan but they did because they had to.

I hope things get better for the company for everyone’s sake. But hang in there.

(And by “only few are still scheduled for notification” I think they meant out of the 500 there are still a few they had not formally spoken to. Malamang ‘yung iba na hindi pumasok that day.)

Allen · 17 years ago

Mass layoff.. that is scary. News like this makes me feel happy that we only got a salary freeze instead of lay offs.

Ms. Concern · 17 years ago

Ako ay from accenture, Just want to share this to all of you and sana sa lalong madaling panahon maimbestigate na to kasi nakakaTRAUMA talaga lalu na pag waiting ka sa bench parang may taning na buhay mo naghihintay ka nalang oras mo specially kapag bench ka, 6 days na di parin makatulog yun lagi naiisip mo pati family mo naaapektuhan na, redundancy program lagi nasa isip saka “Only a few are still scheduled for notification in the SUCCEEDUNG DAYSâ€¦.”… (3% – 10% is only a few yun ba nasa isip nila 3% ng total population ng accenture is only a few ok na sana pero kung ang 5 years old mong anak bigyan mo ng 3% ng 16000 pesos mo pambili ng lolipop at uubusin niya ng 1 day is only a few ba yun) and may plan sila na magLayoff pa ng 4000-5000 employees for about 20%-25% ng total population nila hanggang mid year a top secret na usap usapan nila. tactics nila is unti-unti para hindi halata marami silang palusot and panakip butas “NAGHIHIRE PA DAW SILA NGAUN” matagal na kaya nilang strategy na magrecycle ng employees pagmarami ng bench… tanong bakit ngaun “REDUNDANCY PROGRAM” na dahilan nila… sana magsalita na mga head master ng accenture dito kasi “NAKAKATRAUMA TALAGA”

Ms. Concern · 17 years ago

I’m from accenture, Just want to share this to all of you and sana sa lalong madaling panahon maimbestigate na to kasi nakakaTRAUMA talaga lalu na pag waiting ka sa bench parang may taning na buhay mo naghihintay ka nalang oras mo specially kapag bench ka, 6 days na di parin makatulog yun lagi naiisip mo pati family mo naaapektuhan na, redundancy program lagi nasa isip saka “Only a few are still scheduled for notification in the SUCCEEDUNG DAYSâ€¦.”… (3% – 10% is only a few yun ba nasa isip nila 3% ng total population ng accenture is only a few ok na sana pero kung ang 5 years old mong anak bigyan mo ng 3% ng 16000 pesos mo pambili ng lolipop at uubusin niya ng 1 day is only a few ba yun) and may plan sila na magLayoff pa ng 4000-5000 employees for about 20%-25% ng total population nila hanggang mid year a top secret na usap usapan nila. tactics nila is unti-unti para hindi halata marami silang palusot and panakip butas “NAGHIHIRE PA DAW SILA NGAUN” matagal na kaya nilang strategy na magrecycle ng employees pagmarami ng bench… tanong bakit ngaun “REDUNDANCY PROGRAM” na dahilan nila… sana magsalita na mga head master ng accenture dito kasi “NAKAKATRAUMA TALAGA”

x5 · 17 years ago

@Trixie – actually yung boot camp ang isa sa ginagamit nila “pangsala” ng mga empleyado. karamihan ng natanggal last year dahil sa boot camp. ngayon yung “redundancy” naman.

Satish Nambisan · 17 years ago

Thats true.I was in Accenture India and situation is not much different.Manager actually asked Team Lead to select their 5 favorites from team of size 10.Team lead selected their pet 5.Later Team lead started finding many mistakes in work from other 5 who are not favorites.Consequently those were put on performance Improvement Plan.In 1 month 5 were asked to go.
Morale-If you want to remain in >,be close to manager/supervisor and butter him/her constantly.
In India companies receive political wrath if they do lay-offs in mass.So companies are opting this trick of soft layoffs.
1)HR approaches you and tells that you have failed in background checking.
2)Supervisor tells you that your performance is not ‘upto the mark’ and hence PIP needed.
Regards
Satish

JJ · 17 years ago

Hi All,

Its true because not only bench people are terminated but also regular employees with high level positions from SE to Manger positions. At for Lucien they are just saying its due to redundancy program but if you look in any angle its still termination. Just like you said removing the ones that you dont need you just revised the phrase.

BrianB · 17 years ago

“@Trixie – not all employees have the same skill-sets and salary ranges.”

This is the age of the multi-tasker specialist and the lazy generalist. Babaliktad ata ang working environment sa mga companies. It used to be specialist don’t have much work on a given day.

Palagay ko karamihan sa mga na let go ay the sort of people that could’ve gone abroad but told themselves OK rin naman salary at benefits sa accenture, dito nalang ako sa pinas.

Crying Capitalist · 17 years ago

Is it the fault of Capitalism?

What is Capitalism by the way?

Should the Philippines adopt a pure Socialist model?

Check out the arguments here:
http://www.youtube.com/watch?v=V-4kCD4nbrw&feature=channel_page

Trixie · 17 years ago

If Accenture is laying-off its employees, bakit meron pa ding ibo-boot camp? Bakit hindi na lang ilipat nila yung walang ginagawa sa ibang projects.

Abe Olandres Editor-in-chief · 17 years ago

@Trixie – not all employees have the same skill-sets and salary ranges.

Rehan Mitra · 17 years ago

More lay-offs by Accenuture India expected in February. Till now all people below Performance level have been sent home.Tactics to remove people are:
1)Minor mistake in Time sheet.
2)Not listeing to Manager/supervisor.
3)Give the tasks which are impossible to complete and put the person on Performance Improvement Plan.
“In the past 3 years we filled lot of garbage in house.Now its a time to clean the house”Said Senior Manager in Bangalore requesting annonimity.

Miguel · 17 years ago

Someone with deep pockets should start a product company. By the time the products are ready, 2-3 years from now, the markets should have recovered.

calvin · 17 years ago

actually the severance package is not that bad para dun sa mga matagal na. 3 or more years. :) siguro within a year makakakuha na ulit ng trabaho.

Rehan Mitra · 17 years ago

Accenture India has BPO and Solutions Workforce in India.Lay-offs are happening in both but mainly in Solution Workforce.It lost 3 big clients to Indian competitors -TCS and Infosys.
Health of current projects is not also very good.Many are in turmoil and managers are trying their best to retain the clients.

Rehan Mitra · 17 years ago

To add, Accenture India is doing lay-offs for last two months.Some 1000 were laid-offs in last two months.640 people in December 08.Layoffs are mainly at Bangalore/Mumbai/Hyderabad.
Lay-offs are happening for either of reasons:
1)Those with lesser performance(Consistently Below Peer Group)OR
2)Failure in Background checking.Accenture India has hired third party for background checking.Slight failure in background checking results in loss of job.For example-showing 4 months experience instead of actual 3 months.
More lay-offs will be started from February.Currently 4000 people are on Bench-idle.

Abe Olandres Editor-in-chief · 17 years ago

@BrianB – they were called up to report to the Makati office in batches (around 20-30) and then given their severance package and NDA.

@paul farol – I am told that the call center division is doing great and it’s just the solutions division that’s suffering from overcrowded employees.

Ambo · 17 years ago

My brother is connected with accenture. Luckily, he’s not of the 500 people. Sad news.

paul farol · 17 years ago

Is this happening to other call centers as well?

BrianB · 17 years ago

Regulars and managers? Wow, sounds illegal. Did they sign anything?

Jhoanna · 17 years ago

I heard that some of the 500 let go are part of a bench clean-up process.

LC · 17 years ago

And so the first of many axes fall.

paul farol · 17 years ago

Good morning Yugatech,

Please do keep all of us posted. We’re monitoring this at the Senate.

Glenn · 17 years ago

Akala ng karamihan sa inyo tapos na ‘to? tignan nyo po history ng mga layoff sa accenture dati may mapapansin kayo. meron pa daw sila ugali na inuunti nila para di masyado matutukan ng media.
search nyo yung mga articles sa net….tapos na overhires, kakatapos lang ng noncharged at redundant. wag naman sana pero pwedeng mangyari bench cleanup, at underperformers. pinakamalala dyan yung pinakamatindi: lesser demand leads to lesser supply, lesser sales leads to lesser funds, lesser funds leads to suffering…wakekeke…narinig nyo na yung isang tao gumagawa ng trabaho ng dalawa

Marami sa inyo kokontra pero sana tama kayo ^__^ kung mali kayo, eh di tama ako lol

Grabe sugar coating…redundancy program?…kahit yata magsara accenture magmumukhang nagbakasyon lang

Tama ka dyan viceroy…greedy kaya nag mass hiring sila tapos ngaun mass layoff, kawawa friend ko halos kaka-resign lang para pumasok dun ayun natanggal naman

viceroy · 17 years ago

@lucien

In my view, your Accenture friend is just doing some damage control. Softening the bad publicity Accenture is getting right now due to mass layoffs.

The timing is very coincidental with the global financial crisis. If the reason behind the layoffs are about redundancy, why did they just realized it now? I’m aware that the company are noted for being structured and organized, when it comes to project planning and the like, so it confused me how did they overlooked this redundancy problem. They are even mass hiring in the recent past years or so.

From what I know, the problem lies on too much people who were not assigned on any project, which was probably caused by mass hiring. Then suddenly the clients for the projects they’re expecting have backed out due to the crisis, thus the people who are supposed to be assigned on that project are no longer needed. Don’t you agree this is a more logical explanation?

markey · 17 years ago

OMG! this will affect us badly

Lucien Dominick G. Tiojanco · 17 years ago

I got a couple of clarifications from my friend who happens to be part of Accenture’s management.

Accenture is redundiating positions, not laying off people – like when you have two payroll departments when you obviously only need one, get rid of the other, or when you have a dedicated SSS PoC when your HR already has an individual who does that plus more, then get rid of the former.

They are not cutting down their workforce to cutdown on workforce, they’re just making sure they don’t have people they don’t need.

DavaoBaseJumper · 17 years ago

Wow, that is bad news indeed. I have a lot of friends in Accenture, although most of them are already outside the Solutions Division, or are in higher positions already.

anna samovar · 17 years ago

Call centers are really still making money. It’s only the BPO sector that’s not call center related that got hit. So there’s still hope.

I do wonder though, what will those 500 do -now that we have excess top talent of 500 people roaming the Manila streets? What will it mean? Will the local companies pick them up quickly -since they’ve been drained by Singapore (who’s now also doing layoffs?).

Your comments please.

mr nice ash · 17 years ago

…still hiring for positions in Solutions Division that requires resources…

…laying off people that are currently not assigned…

http://newsinfo.inquirer.net/breakingnews/infotech/view/20090116-183804/Accenture-RP-lays-off-500-workers

sylv3rblade · 17 years ago

Ouch, quite a number.
I’ll try contact some of my friends on the Solutions Division for some information on it.

janie · 17 years ago

Well, it happens talaga.. I personally know some of the people who were affected by this so-called belt-tightening measures of Accenture Manila. This is also happening in other offices of Accenture worldwide.
Let’s face it, even the biggest companies (banks, financial institutions, etc) were directly impacted by the financial crisis worldwide — and most of these companies acquire services from outsourcing companies such as Accenture. So when the client companies decide to cut down on their expenses — meaning to suspend indefinitely some of their projects (which may include outsourced services), then many employees will lose their jobs. It’s as if the clients directly suspended the work of the individuals that were working for outsourcing companies. A really sad truth.