AM I NEXT? NO LOVE AT RACKSPACE HOSTING

Am I Next? Rackspace outsourced 125 employees to Tech Mahindra.

San Antonio-based Rackspace Hosting, a cloud development, hosting, and management company owned by private equity firm Apollo Global Management, continues its restructuring/repositioning by transferring 125 quality assurance and support employees to Pune, India-based Tech Mahindra, a business process outsourcer and consultancy, as part of a strategic partnership that appears to be able to compete with Amazon AWS and Microsoft Azure. Since being acquired and taken private by Apollo in 2016 for approximately $4.3 billion, there have been three layoffs of approximately 600 employees. It was rumored that Apollo was looking to take the company public in once again in 2018 to spread the risk and reduce their capital investment.

One cannot help but wonder if these employees will be replaced with Indian counterparts in the coming year?

According to a company spokesperson, “Our partnership with Tech Mahindra is a powerful combination. Their understanding of innovative and customer-centric IT experiences is uniquely complimentary to how Rackspace provides a Fanatical Experience. We believe that this will help generate industry leading technology services and platforms. With 121,000+ associates, working across 90 countries and helping 938 global customers, including Fortune 500 companies, this partnership will allow us to drive far more business impact for our customers.”

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? THE WRITING IS ON THE WALL AT HUAWEI TECHNOLOGIES

Am I Next? Problems at Huawei Technologies.

Because of the oppressive Red Chinese surveillance-state connections with Huawei and the persistent spying and theft of intellectual property from the U.S. military and American corporations, Huawei equipment represents a clear and present security risk to American interests. Therefore, Shenzhen, China-based Huawei Technologies has been sanctioned by the United States Government and U.S. entities will not be allowed to provide certain communications products and knowledge to Huawei or import certain products that are critical to the build-out of the 5th generation communications platforms in the United States.

According to the U.S. Department of Commerce, Huawei and its affiliates are on an “entity list,” which requiring vendors and customers to receive licenses to provide American technology to Huawei or use Huawei technology in their products and platforms. Waivers are both time-consuming and expensive to obtain. The language of the restriction states “any unlicensed transfer of any technology of any sort by anyone from the U.S. to Huawei is prohibited.”

As a result of severe financial pressures, Huawei is planning extensive layoffs in the United States, initially at its U.S. research and development subsidiary known as Futurewei Technologies based in Santa Clara, California. Approximately 850 employees work at Futurewei research and development facilities in the continental United States.

However, nothing is written in concrete as two U.S. factions battle over the restrictions. On the national defense side, the sanctions are critical to protecting the interests of the United States. And, on the commerce side, some say that a relaxation of the sanctions can be used to force China to negotiate on a number of issues including tariffs, currency manipulation, and the theft of intellectual property.

The handwriting is clearly on the wall and those affected should be considering contingency plans.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT TRAMONTINA

Am I Next? Tramontina Cookware moving manufacturing to Brazil.

Sugar Land, Texas-based Tramontina, an aluminum cookware manufacturer and subsidiary of Rio Grande do Sul, Brazil-based company, has decided to cease manufacturing and assembly in the United States and consolidate production in the company’s 10 facilities in Brazil. The decision was driven by financial considerations and the rising cost of materials, labor, and transportation.

As a consequence of this decision, 108 employees assembly employees will be laid off in Sugar Land, Texas and is shuttering its manufacturing facility in Manitowoc, Wisconsin which will result in the loss of another 145 jobs. The layoffs in Wisconsin will begin around August 31, 2019 and those in Sugar Land beginning in September, 2019.

A company spokesman noted, “This is an extremely difficult announcement. Due to the production cost increases over several years, our shareholders decided to cease manufacturing operations at our U.S. facility as a strategic step towards consolidating our production within the group’s existing factories in Brazil, which allows us to focus more on product development, sales and logistics in the U.S.”

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?