In The Papers 12 November

12-11-2008

by Sylvia Leatham

Fears grow over Kostal jobs | SAP hires Wookey in surprise move

The Irish Times reports that Irish financial software firm Norkom posted a strong set of half-year numbers on Tuesday, as reported by ENN.

The paper also notes that Vodafone Ireland's monthly average revenue per user fell 5.7 percent in the first half of the year. Read more on Vodafone's KPIs on ENN.

The same paper says that Swedish cosmetics firm Oriflame is to create 35 jobs in Bray, Wicklow, following a EUR2.4 million investment in research and development, as reported by ENN.

The Irish Independent notes that money from dormant bank accounts is to be used to buy computers for schools in disadvantaged areas in a EUR1 million government scheme. Education Minister Batt O'Keeffe said he was inviting 100 schools to apply for the grants, which will not exceed EUR20,000 each, saying that "Funding will be devolved to individual school authorities to buy ICT resources."

The paper also reports that the 14,000 or so members of the Eircom Share Ownership Trust (ESOT) will get a Christmas bonus worth EUR50 million later this month as the trustee responsible for the portfolio continues its distribution of shares, which are redeemable for cash. This latest tax-free allotment brings the total amount distributed to the ESOT so far to EUR750 million and leaves about EUR380 million in the kitty. Following the allotment, it will have made tax-free distributions totalling EUR120 million during 2008. The ESOT, which has a 35 percent stake in Eircom, is comprised of former and current staff of the telecommunications firm.

The Irish Examiner says that fears are growing for the future of jobs at Kostal, following the announcement that the German firm is to reduce staff, close two plants for extended periods and cut working time by 20 percent. Kostal, which makes automotive electronic systems and employs over 1,100 people in Ireland, has cited the worldwide slump in car sales for the cutbacks, which will affect its plants in Abbeyfeale in Limerick and Mallow in Cork. A total of 29 workers are to be laid off in Mallow before the end of the year. Shutdowns will take place at both plants for three days later this month and for three weeks over the Christmas period. Management has also announced that from next February working hours at the plants will be reduced by 20 percent.

The paper also notes that Cork-based technology marketing firm Pixel Lab has been short-listed for a Golden Spider web award. Pixel Lab offers digital and web design services to help clients communicate their brands to an online audience. The awards will take place on 20 November.

The Financial Times says that German software giant SAP has hired John Wookey, a former prominent executive from rival Oracle, as an executive vice-president. The hire is unusual given the deep enmity that has developed between the German and US corporate software makers as changes in their strategies have put them on a collision course. The rivalry hit its peak early last year when Oracle sued SAP for theft, claiming that a US unit of the German company had been stealing its software. Wookey left Oracle in October 2007, following reports he had fallen out with Oracle chief Larry Ellison. At SAP, Wookey will be involved in developing product strategy for the online delivery of applications for large corporate customers.

The same paper reports that UK cable TV operator Virgin Media has announced a programme of 2,200 job losses, or 15 percent of its staff, as part of a restructuring operation. The company said it would improve efficiency "significantly", adding that the cuts would be implemented mainly between the end of next year and the end of 2010. The move was seen by analysts as a necessary part of the company's addressing its debt position but one said that, by cutting back on call centre and engineering staff, Virgin Media could substantially lower the quality of its customer service.

The Wall Street Journal says that Microsoft is moving closer to an agreement with Verizon Wireless to become the default search provider on the mobile firm's handsets, a deal rival Google has been aiming for, according to sources. Under the terms now being considered, Microsoft would share revenue with Verizon from ads shown in response to mobile web searches, with guaranteed payments to Verizon of around USD550 million to USD650 million over five years, or roughly twice what Google offered, the sources said. Separately, Microsoft is negotiating a deal to put its Windows Mobile software in more Verizon devices.

According to the same paper, Google has added audio and video chatting tools to its Gmail e-mail service. The new features compete with Skype and other web conferencing tools that have become popular in recent years. Starting this week, Gmail users who download an additional piece of software can pull up an expandable video chat screen from within Gmail and start communicating with contacts on the other end. Users without webcams will be able to chat via voice.

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