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| Billionaires to create thousands jobs: Forbes |
| Press Trust of India / New York/New Delhi Mar 22, 2009, 14:15 IST |
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They have become poorer by billions of dollars in the global economic downturn that has also engulfed millions of jobs, but many brave-heart billionaires are still on a hiring spree for their businesses across the world.
India alone accounts for over one lakh new jobs -- nearly half the global figure -- being created by the billionaires, who according to US magazine Forbes' annual ranking of world's richest people earlier this month, lost about $2 trillion of wealth in the past one year.
In a report in its online edition, Forbes has said that a handful of businesses run by billionaires – ranging from internet search giant Google to fashion retailer Hennes & Mauritz – are bucking the layoff trend and are hanging up "Help Wanted" signs even in the current dismal state of economy.
H&M, run by Swedish billionaire, is also going ahead with plans to open 225 new stores in 2009, which would create 7,000 new jobs.
Google's billionaire founders Sergey Brin and Larry Page, who are worth $12 billion each, has more than 20,000 employees and "continues to hire, albeit at a reduced rate compared with years past," the report noted.
Other American billionaires with major hiring plans, as per Forbes, include realty-to-biotech business moghul David Murdock, software entrepreneurs John Sall and James Goodnight, H Roos Perot Sr and H Ross Perot Jr of Texas-based Perot Systems and auto parts chain major AutoZone's Edward Lampert.
Besides, Japan's richest person Tadashi Yanai and the country's online retail baron Hiroshi Mikitani, Hong Kong's Li Ka-Shing and Germany's wealthiest person Karl Albrecht also have massive hiring plans, the report said.
Later this month, Perot Systems would open a large facility in Chennai, India, that could generate up to 1,000 jobs, while a new project in the US would create an additional 150 positions.
While the report did not mention any Indian billionaires, those companies having announced massive recruitment plans despite the current economic scenario, although at least two entities from the business conglomerate run by Anil Ambani, who was incidentally named as the biggest loser of wealth over the past one year, has plans of recruiting people.
Anil Ambani group has plans to hire over 92,000 people in its life insurance business, while it is also looking to bring on board about 1,500 employees in its Reliance Infrastructure unit.
The massive hiring plans by the companies run by these people is in contrast with many other billionaire-run companies, who had been instrumental in creating thousands of jobs in the past, having announced massive layoffs in the backdrop of the ongoing economic and financial crisis.
Noting that billionaires have been responsible for creating thousands of jobs over the years, the report said that "they started some of the country's biggest employers, including companies like Wal-Mart, Microsoft and Dell, to name a few".
"In 2002, Home Depot, founded by billionaires Bernard Marcus and Arthur Blank, partnered with the US Department of Labor to hire 40,000 associates a year. In 2006, Microsoft added 10,081 worldwide hires, the most in its history."
This year, these businesses, like the moguls who founded them, are feeling the economic pinch: In January, Microsoft announced an 18-month plan to eliminate 5,000 jobs across its research and development, marketing, sales, finance, legal, human resources and information technology departments.
"Home Depot slashed 7,000 positions. While the Walton family's Wal-Mart just announced it was giving a reported $2 billion to its hourly employees, the nation's largest retailer said in February that it was laying off 700 employees at its Bentonville, Arkansas, headquarters and another 1,200 Canadian employees."
At the same time, Forbes said, the economic downturn has "actually helped boost several billionaire businesses and spurred them to add jobs. The discount-shopping sector, for instance, is red hot right now as savvy "recessionistas" hunt for all sorts of bargains".
The report noted that German billionaire Karl Albrecht's discount supermarket chain, Aldi, is planning 80 new stores in the US and holding a series of recruiting events for district managers and trainees this month.
Tadashi Yanai, who owns Japanese discount clothier Fast Retailing, is also continuing to expand and would open 30 new stores in 2009. Compatriot Hiroshi Mikitani of online retailer Rakuten is also looking to hire 316 new college graduates this spring from around Asia, while further 300 fresh hires would follow next year.
The recession also seems to have helped the auto parts business, as people are preferring to get repaired their existing cars, instead of buying new vehicles.
"That bodes well for American billionaire Edward Lampert and possibly for some unemployed auto workers. AutoZone opened 20 new US stores (and closed just one) and eight in Mexico. The company says that hiring and retraining employees is a major focus of 2009."
At the same time, David Murdock, who made a fortune in Dole produce and Hawaiian real estate, is foraying into health and biotech research, and is setting up a new research institute in the US, which along with affiliated state universities, would create 30,000 direct and indirect jobs by 2027.
Elsewhere, Hong Kong's telecom-to-shipping conglomerate Hutchison Whampoa's Li Ka-Shing is creating jobs in places like Ireland and China.
"So if you are unemployed, consider trying to get a job working for one of these billionaire-owned businesses. It almost certainly won't make you as rich as the founders but perhaps the post will offer a bit more job security than a lot of companies out there," Forbes said.
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