Cadence says jobs to move overseas

[jamesinca]

Cadence says jobs to move overseas
Company looking to cut expenses

John Shinal, Chronicle Staff Writer Monday, August 25, 2003

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Cadence Design Systems Inc., the San Jose maker of software used to design computer chips, plans to move more of its Silicon Valley jobs to China and India as it cuts costs amid stiff competition and an industry downturn, chief executive Ray Bingham said Friday.

<SNIP>

"What you'll see from us is a continuing theme, moving more jobs to a cost- effective place," Bingham said. During a July 15 conference call, Cadence officials said the company would cut 500 jobs, or 10 percent of its workforce.

Cadence is locked in fierce competition with Synopsys Inc. of Mountain View in the $4 billion industry for software used by companies like Intel and IBM to help build new chips. Although semiconductor sales are expected to rebound this year after a two-year slump, chipmakers are cutting the amount they spend on such software to boost profits.

Analysts expect sales of these products, known as electronic design automation, or EDA, software, to drop this year for the first time in at least a decade. Cadence's 2003 revenue is expected to fall to $1.1 billion from $1.4 billion last year.

<SNIP>

"In India and China, we can get three to five equivalent engineers for what we pay one here," Bingham said.

http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2003/08/25/BU294040.DTL

[MaineDem]

1. What gets me about this economy

I have this feeling that all these "new jobs" that whistleass says will be found because of the tax cuts will never be realized. I'm convinced companies are learning to make do with less and why should they hire people when they've shown that the job can be done without them, let alone shipping jobs overseas. (Apologies for the run-on sentence.)

It's all a sham. Smoke and mirrors.

[Democat]

2. Has any candidate, Republican or Democrat, proposed a solution?

What can you do about jobs leaving the country?

[Atlant]

3. Howard Dean has proposed that...

Howard Dean has proposed that (and I'm paraphrasing) we require
overseas countries to abide by the same rules and regulations that
we impose here in the United States, and if they don't, we apply
tarriffs to, in effect, add equivalent cost to the products.

I don't know how this applies to "Intellectual Property" such as
software developed by high-tech companies.

But it's clear we either: 1) Find a way to mitigate American
job losses caused by overseas out-sourcing, or 2) Learn to live
in a third-world economy. I am certain that my job won't exist
in two to five years; I've been told as much by my managers.
They are happy to have me oversee our Indian subcontractors
though.

Atlant

[Democat]

5. Making sure companies aren't abusive makes sense

Making sure that products imported into America are not created by child labor or slave labor is a great idea.

However, even if you require the companies in India and Pakistan to pay their people fair wages and treat them well, they can still produce goods and services at an exponentially lower wage than those in America.

There could be people working in India for one third of what an equivalent American worker would be making doing the same work, but the Indian worker would actually be making more money relative to his cost of living.

Even if there was an international minimum wage, that wage would have to be adjusted for each country. Once you adjust it to the cost of living in some countries, American labor becomes too expensive for many companies to remain competetive.

There have been some good discussions about this issue on DU, and I have yet to see a real solution. It almost seems unsolvable without taking drastic action that would start a trade war, which would itself cause problems for U.S. workers.

[cprise]

11. Here is a reference-

"They have the right to have a middle class same as everyone else."
http://story.news.yahoo.com/news?tmpl=story&u=/washpost/20030825/pl_washpost/a40299_2003aug24

[jamesinca]

4. Look at Howard Deans website

go to his blog for america. He is proposing things like technical jobs for computer types. Things like distance education, online classes etc.. tele-medicine. He is also proposing 20% renewable energy like wind and solar power to decrease polution and to hire people to maintain the things. All the engineers and everybody tht it takes to do the up keep on such a program. Cleaner air and higher employment rates. It will also reduce the amount of things like asthma exacerbation cases. Go to his blog and he has all of his policys, statements and his records from VT Gov days there in PDF format.

[premjan]

6. jobs leaving country

other than information technology jobs, a certain amount of protectionism (of manufacturing and so on) is probably in order. It will happen eventually as the backlash against export of jobs begins.

[jamesinca]

7. It will happen when Bush is out of office

I picked up an article in here a few weeks ago about outsourcing jobs to India. Bush going against states protest promised India he would still send them jobs. About a week later the jobs in NC were lost, what was that 16,000 jobs or was it 1,600 jobs from the factory sectory.

[duid12]

8. yea right

>> It will happen when Bush is out of office

Dream on. This happended before Bush, and will continue to happen after Bush. Bush hasn't done anything to solve the problem, but he certainly didn't cause it. The massive export of jobs really got ramped up (at least in the IT field) under the 8 years of Clinton.

Don't assume all these problems will go away just because a democrat takes over. All that gets us in a democrat in the white house with the same problems. If you worry about this problem, ask the candidates what SPECIFICALLY they intend to do about it...and vote accordingly.

[jamesinca]

9. Regardless of the Dem view, Bush still is outsourcing

That does not help. Have you not checked the Dean Web site for his ideas on this. I would hope you have since you have the Dean avatar image. By the way, Dean does have a plan to keep jobs here in the U.S.

[Myra]

13. Bush wants to outsource...

...the fuckin' military for godsake.

Un-fuckin'-believable.

If military folks still vote Repug after
hearing that, and after getting hung out
to dry (in 120 degree heat in Iraq w little
water or protection), then they're hopelessly
clueless.

[Myra]

12. Agreed

The Dems are part of this problem.
And the Dems aren't part of the solution.

Tho' at least they don't intentionally
sabatoge the economy and loot the treasury
in conjunction with sending jobs overseas
and boosting NAFTA.

I don't know if Clinton & Gore supported
NAFTA because they had to with a Repug congress,
or because they simply wanted to and are in
the pocket of big business.
I suppose I'll always wonder...

[w4rma]

17. Correction, Myra: The DLC Dems, **Not** Dems in general (n/t)

[Mari333]

10. This is also what happened in the 80s when Raygun

did what Bush did....tax breaks for the most wealthy, and the lies, and the corporations took the extra cash and took jobs out of the country...same old GOP shit..


and the US public bought these lies again????? geesh.

edit to add : NAFTA sucks, and any Dem or Repug who supports it is sending those jobs overseas also.

[Myra]

14. Howard Dean voted for NAFTA, right?

I'm not trying to start a fight; I'm trying
to establish a fact.

[Atlant]

15. When was Howard Dean a Congresscritter?

http://www.deanforamerica.com/site/PageServer?pagename=about_biography

He served in the Vermont House from 1982 to
1986; was elected lieutenant governor in 1986,
and became governor in 1991 with the death of
then-Governor Richard Snelling.

[On the Road]

16. Since Dean Wasn't in Congress

He had no opportunity to vote on the NAFTA bill. Were you referring to something that happened to VT?