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 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.
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.
[...] or you may Subscribe to me via email for latest information in this website. I just learn from Yugatech.com that Accenture Manila Solutions Division is having a Mass Lay off., . It is a company in [...]
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.
@Trixie – not all employees have the same skill-sets and salary ranges.
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:
“@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.
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.
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
@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.
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 DAYS….”… (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”
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 DAYS….”… (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”
Twitter: silkenhut
says:
Mass layoff.. that is scary. News like this makes me feel happy that we only got a salary freeze instead of lay offs.
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.)
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.
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
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…
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 webteam.manila@gmail.com in case you’re interested.
Twitter: markdown07
says:
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
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!
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.
[...] Accenture – one of my former co-workers was a direct hit of this, sad, sad [...]
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…
wahh im planning to apply pa nman sa accenture so meaning as a programmer ibig sabhin di n sila muna open for hiring??
[...] not forget about Accenture Manila, a BPO company who recently cut some of its Solutions Division personnel for lack of projects. [...]
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
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