New York: Bucking the recessionary trend, US corporates Apple, Google and Colgate are doing so well that they are unlikely to fire their employees and may even recruit, a media report has said.
The Time magazine in its report published online has named Cisco, Visa, education company Apollo, cigarettes firm Altria, cellular operator Verizon, Corinthian College and pharma entity Amgen in the list of 10 companies which are defying the trend.
“The other firms included have large amounts of cash on their balance sheets and have elected to use the slow economy to develop new products and services to take share away from financially weaker competitors,” the magazine said
On search engine giant Google, which had fired a small number of people last year, the magazine said, “if the company wants to control personnel costs, it can simply stop hiring.”
About Apple, the magazine said because its success is based on creating new products, improving old ones and aggressive marketing, it would need all the people who work at the company and perhaps more.
“The company has $24 billion in cash and securities and adds to that every quarter. Apple refuses to make acquisitions, preferring to create and market its own products,” Time said.
Further, Apple would also not lay people off because its CEO Steve Jobs would have to admit he had made a bad decision and that the entity would not appear to be perfect, the magazine added.
Besides, Colgate has “side-stepped the global slowdown” and in the most recent quarter the company’s profits were up 20%. It would be hard to pick a better time to sell toothpaste, pet food, and shampoo. Even in a bad economy, most of these are products would have stable sales, it stated.
Apart from this, quoting networking major Cisco Chief Executive Officer John Chambers, who has said that the company plans to avoid job cuts the magazine stated that Cisco probably has as much or more cash on hand as any tech company in the US, holding $27 billion in available funds.
On Visa, which acts as an agent to transfer funds between buyers and merchants, it noted that unlike large banks, when a customer defaults, Visa’s balance sheet is not at risk, while in the last quarter, its profits rose to 35%.
The Time magazine stated that, “employees at these firms are as close to being safe from being thrown into the job market as almost anyone in the country.”