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Creative shrinks workforce by half

Creative shrinks workforce by half

The Singapore-based company had to cut its workforce almost in half during the last financial year to combat a shrinking market.

The slowing global economy has hit another tech company with the news that Creative had cut its worldwide workforce by half over the last financial year.

According to Engadget, quoting figures from Hurriyet Daily News, the company has lost 47 percent – that's 2,700 jobs – of its workforce over the last financial year.

The figures have been obtained from a report filed to Singapore's financial stock exchange at the end of last year. In the report, the company stated that its target markets were “highly competitive,” and that “many of Creative's current and potential competitors have substantial greater financial, manufacturing, marketing, distribution and other resources.

In response to the filing, the company's shares on the Singapore stock market dropped 2.3 percent – which at least shows some confidence on the part of investors, as many had predicted a much greater drop. Overall, the company's stock price fell 32 percent through the 2008 financial year – which beat market expectations, with the benchmark index dropping 49 percent in the same period.

Many are hoping that the company will be able to get back on its feet with a slimmer workforce – I certainly remember the days when Creative were the name in soundcards and everyone else had to settle for selling SoundBlaster Compatibles. With its MP3 division suffering mightily against the competition – mostly in the form of Apple's all-conquering iPod – it's going to take something special for the company to regain its market-leading place once more.

Perhaps the company's hush-hush new product – the Zii 'stemcell computing' processor – will be what the company needs to get back on top. With the device due to be unveiled at CES this year, we won't have much of a wait to see if it is the miracle that Creative so sorely needs right now.

Do you believe that the 'Zii' might get the company back in the black, or do you have a better suggestion for how the Creative can fight the global spending slowdown? Share your thoughts over in the forums.

10 Comments

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n3mo 5th January 2009, 09:27 Quote
Serves them right for making crappy soundcards, treating their customers as idiots and stupid, ignorant advertising.

But jokes aside, sometimes I like living in a "almost third world" country. No signs of any financial crisis here, actually we benefit from western financial problems.
StephenK 5th January 2009, 09:42 Quote
I reckon we'll see a lot of this as companies cut costs and go into hibernation a bit while we wait out the slow down.
DXR_13KE 5th January 2009, 22:20 Quote
i applaud their death with 4 pairs of hands...
Matticus 5th January 2009, 22:34 Quote
Quote:
Originally Posted by DXR_13KE
i applaud their death with 4 pairs of hands...

Yeah I am sure 2,700 people (and maybe families) deserved to loose their jobs. The fat cats of creative are still sitting pretty so its just the average joe who is loosing out.
n3mo 6th January 2009, 16:50 Quote
I hope that most of the lost jobs were from marketing.
specofdust 6th January 2009, 17:17 Quote
Quote:
Originally Posted by Matticus
Yeah I am sure 2,700 people (and maybe families) deserved to loose their jobs. The fat cats of creative are still sitting pretty so its just the average joe who is loosing out.

Yup, and when Hitler had his ass kicked in WW2 it was just the hundreds of thousands of people (and maybe families) who lost their lives. The fat cats of the Nazi regime still sat pretty for years.

Also, it's LOSE!


I too applaud their death with many a slimey tentacle.
Matticus 6th January 2009, 20:44 Quote
Quote:
Originally Posted by specofdust
Yup, and when Hitler had his ass kicked in WW2 it was just the hundreds of thousands of people (and maybe families) who lost their lives. The fat cats of the Nazi regime still sat pretty for years.

Also, it's LOSE!


I too applaud their death with many a slimey tentacle.

Wow. I love how you used a nazi comparison to mock me, what I fail to understand is why...

Fair enough you don't like creative, I don't have much love for them either, but what is your problem with the fact that people who aren't evil nazi's lost their jobs?

I feel that perhaps you are just being an idiot for the sake of being an idiot.

And oh no I accidentally put an extra O in.

Oh and if we must be pedantic, slimy has no E in it.
DXR_13KE 7th January 2009, 12:50 Quote
Quote:
Originally Posted by Matticus
Yeah I am sure 2,700 people (and maybe families) deserved to loose their jobs. The fat cats of creative are still sitting pretty so its just the average joe who is loosing out.

2 700 people is a tiny drop in an ocean of the huge number of people getting sacked recently around the world, we are in bloody global recession and Creative's suck-the-most-c**ks-and-screw-the-most-client policy has dictated their path of failure.

I feel sad when people are left without a job and subsistence, but, i have ABSOLUTELY no sympathy for a company managed by morons and goes to huge steps and bounds to make their products loose all credibility!!! Each step they take forward is followed by a huge sack of FAIL!


The fat cats are still fat? Not for long... suicides are starting to happen and some fat cats are starting to get slim.


And guys... please don't Godwin this!!
specofdust 7th January 2009, 13:08 Quote
Quote:
Originally Posted by Matticus
Wow. I love how you used a nazi comparison to mock me, what I fail to understand is why...

Not mocking you, making a point.
Quote:
Fair enough you don't like creative, I don't have much love for them either, but what is your problem with the fact that people who aren't evil nazi's lost their jobs?

Nazis were evil, that's the point. Creative are also a bunch of tossers, that's a point. The people who worked for Hitler weren't blameless just because they worked at the bottom, or just because they didn't do anything directly wrong themselves. They were part of an evil organisation, and therefore I'm not sympathetic that thousands of Nazi soldiers who simply took part in a war for their country without intending individually to do evil were killed. They were part of something that was better destroyed.

Similarly, although those 2700 creative employees may not be responsible themselves for the nasty acts of creative, they are part of the organisation and so I've got little sympathy for them being made unemployed, as it's a sign that creative is failing, and that's a good thing.
Quote:
I feel that perhaps you are just being an idiot for the sake of being an idiot.

Undoubtedly.
Quote:
And oh no I accidentally put an extra O in.

Oh and if we must be pedantic, slimy has no E in it.

Indeed, oh noes. And yes, we must be pedantic.
naokaji 7th January 2009, 13:16 Quote
Quote:
Originally Posted by specofdust
Similarly, although those 2700 creative employees may not be responsible themselves for the nasty acts of creative, they are part of the organisation and so I've got little sympathy for them being made unemployed

The problem is though, the job market was tough allready before the current crisis, go count the jobs that have allready been cut over the last years or outsourced to some 3rd world country.
Point is, if you can get a job these days, you take it, no matter with what company since you are not in a position to be picky and there will be 100's of applications for the same job, so it will be a rushed decision by you.
Once you have the job, what are you going to do if you don't agree with what the company does? complain? I can tell you the answer right away, get lost, if we advertise your job today at 25% less salary we will have 100+ applications before the end of the week.
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