These Resource Action (RA) notifications tell staff that they have 30 days to find another position within the company or they will be let go, with a few months of severance pay. Most of those on notice will not find new positions and will leave the company. We've heard from insiders and former employees that the target headcount reduction is about 45 percent within IBM's US infrastructure group.
Consulting firms may be less outspoken than tech CEOs, but they're staring down the same staffing problem as Silicon Valley after President Donald Trump introduced a $100,000 H-1B application fee last Friday.
Trump's overhaul of the program, by mandating a $100,000 fee for new applications, may disrupt projects of Indian outsources like Tata Consultancy Services Ltd. and Infosys Ltd. that derive a large chunk of revenue from the US. TCS shares fell as much as 3.4%, the most in more than two months, while Infosys slipped as much as 3.9%. Tech Mahindra Ltd. declined 6.5%.
