Tag Archives: California Jobs exodus

Wall Street Off Shores to Mumbai | Sep 2016

Watch out Wall Streeters: Your jobs are moving to Mumbai India

– Yahoo

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Morgan Stanley is moving jobs overseas.

“The US bank set out a plan to cut costs back in January, and CEO James Gorman said at the time that “too many employees” were based in high-cost centers.

“Now is the time to tackle head-on our infrastructure costs,” he said.

Jonathan Pruzan, chief financial officer at the bank, provided an update on the situation at the Barclays Financial Services Conference on Monday.

“We said we were going to deploy 1250 people into our lower cost centers of excellence in Mumbai and other parts of the world,” he said. “We have had about 450 jobs that we’ve put in those centers so far.”

“To date, the vast, vast majority has been through attrition, so when someone leaves in a core location, we replace that in one of these centers of excellence,” he added.

Morgan Stanley isn’t the only bank pulling this move. UBS has a plan to move about 2,500 jobs to low-cost locations such as Poland, India, China, and Nashville, Tennessee, over the next year.

And at Goldman Sachs, around a quarter of the bank’s staff work in low-cost “strategic locations” like Bengaluru, Salt Lake City and Dallas.”

….Continue reading @ Yahoo Finance

Dell-EMC to Lay Off 2,000 – 3,000 US Workers after Requesting 5,000 H-1B Visas & Green Cards to Import Foreign Workers

– WolfStreet.com

Trying to find efficiencies and synergies to save $1.7 billion.

The ink was barely dry on Dell’s acquisition of EMC, the largest technology deal ever, valued at $67 billion when it was announced in October last year – and already the layoff rumors are oozing from the woodwork.

“People familiar with the company’s plans” told Bloomberg that Dell will cut 2,000 to 3,000 jobs.

Dell spokesman Dave Farmer refused to comment specifically on the report on Thursday but said instead, as sort of a confirmation: “As is common with deals of this size, there will be some overlaps we will need to manage and where some employee reduction will occur.”

On Wednesday, the day the deal closed, CEO Michael Dell gave some clues in an interview: “There are some overlapping functions and that sort of thing – that’s not the primary feature of this, but there is some of that.”

These “overlaps” or “overlapping functions” are terms in corporate speak for real people, and these real people are mostly working in the US, according to the report: supply chain, marketing, and general and administrative positions.

Dell is trying to find some efficiencies and synergies to save about $1.7 billion in the first 18 months after the deal closes, so starting from Wednesday. They’re not dilly-dallying around cutting costs and laying off people.”

…Continue reading more @ Wolfstreet

Historic Jobs and Company Exodus from California Since 2008 | Aug 2016

 

Obama’s Economic Miracle? | Apr 2016

 

 

More Wash DC Failure – Mimi Walters | Apr 2016

Historic Jobs and Company Exodus from California Since 2008 | Aug 2016

9,000 Companies Have Left California Since 2008

– Breitbart

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“At least 9,000 companies have left California from 2008 to 2015, according to the 378 page study by Spectrum Location Solutions titled, California’s Forty Year Legacy of Hostility to Business.

Joseph Vranich, president of site selection consultants Spectrum Location Solutions (VLS) in Irvine, found that roughly 9,000 California companies moved their headquarters or diverted projects to out-of-state locations in the last seven years due to the Golden State’s “hostile” business environment. 

Vranich reports that the bitter negative perceptions of California for business began during Jerry Brown’s first chaotic two terms as California Governor from 1975 to 1983. Things got so bad that the Governor instructed his aides in 1977 to begin wearing “California Means Business” buttons.

According to the Wall Street Journal, Brown tried to convince reporters on a late 1970s junket to Japan that “Our economic climate is very good.” He added, “I think this is dissipating a good deal of the political rhetoric surrounding the business-climate talk.”

VLS points out that despite the growing anti-business environment, California’s economy grew for the next three decades due to wonderful scenery and climate, a workforce with technical expertise, and trade access to Asian nations.

But since the start of the Great Recession and accelerating after Brown’s election as governor in 2009, a mass exodus of businesses from the not-so-Golden State to more “friendly” locations like Texas and Nevada occurred.

Vranich told the Dallas Business Journal that companies that are leaving California to escape escalating costs and regulations can move to Texas or Nevada that have no income tax and high relative purchasing power. According to Vranich, “I even wonder if some kind of ‘business migration history’ has been made.”

VLS estimates that many former California companies that moved to more business friendly locals have experienced “astonishing” operating cost savings of 20 up to 35 percent.

The top 10 states that California businesses have relocated to over the last seven years are in the following order: (1) Texas; (2) Nevada; (3) Arizona; (4) Colorado; (5) Washington; (6) Oregon; (7) North Carolina; (8) Florida; (9) Georgia; and (10) Virginia.

Los Angeles was at the top of the list of the 10 California counties that suffered the highest number of disinvestment events. L.A. was followed by: (2) Orange, (3) Santa Clara, (4) San Francisco, (5) San Diego, (6) Alameda, (7) San Mateo, (8) Ventura, (9) Sacramento, and (10) Riverside counties.

The Tax Foundation using data from The Bureau of Economic Analysis estimated the difference in purchasing power for $100 in all 50 states and the District of Columbia. Only Washington D.C., New York, and New Jersey got less purchasing power than California’s $88.97. That compares to $103.73 for neighboring Arizona and a national high of $115.34 in Alabama.

VLS has found that on a national basis, Democrat-leaning northeast and west coast areas get less purchasing power for their dollars, compared to the Republican-leaning southeast and mid-west.

The Tax Foundation established a direct inverse correlation between purchasing power and the percentage level of state tax rate. California, with a 13.3 percent top state tax bracket, leads the nation.”

…Continue reading @ Breitbart