PARAMOUNT x WARNER BROS MERGER ON HOLD
A judge froze the $110B deal after 12 states sued. Paramount agreed to hold closing until 5 days after the cases are decided, or June 1, 2027, whichever comes first.
Two ways this ends badly for staff:
Deal closes. Duplicate teams get merged. Research, streaming, ad sales, comms all exist twice. One side goes.
Deal dies. Paramount eats a $7B breakup fee plus ~$7M a day to WBD shareholders after Sept 30. Cuts come anyway, just without the merger to blame.
Employees know it. One WB veteran said his best outcome is the deal closing, getting cut, and taking 15 months of severance.
Offshoring has been happening for decades, but it is picking up fast.
We published an investigation on this last week. The core finding: no US law requires American companies to disclose the work they transfer offshore.
Read the full investigation at: https://t.co/UIj7p2FtUz
LAYOFF ALERT: CENTRICA 🚨
Cutting 1,300 jobs at British Gas.
Call volumes are down 31% since 2023 and first-half adjusted profit fell 18%.
Around 500 customer service roles across Glasgow, Edinburgh, Cardiff, Leicester, Stockport and Leeds go first.
COGNIZANT CONTRACT WITH IOWA HAS ACTUAL CARVE OUTS FOR H-1B AND OFFSHORING
We got ahold of the contracts the state signed with Cognizant while laying off nearly 200 state workers.
We read all 527 pages so you don't have to. It was shocking to say the least.
On June 10, Governor Reynolds said H-1B visas were "at no point even considered" for the state IT deal, and that Iowa's systems would be "supported by Iowans, for Iowans."
The contract her office signed on June 8 says otherwise:
"H-1B" (or disqualification of Cognizant using them for this contract) appears zero times in 527 pages. "Iowans" also appears zero times. The only immigration clause in the entire agreement is Section 11.1: Cognizant must comply with visa law and run E-Verify. H-1B workers pass E-Verify.
The signed rate sheet has an offshore hourly rate column for "Location 1," identified as India. The rates are already negotiated:
Service desk agent: $60/hr onsite, $18/hr India
Security specialist: $135/hr onsite, $32.62/hr India
Project manager: $146/hr onsite, $37.40/hr India
Solution architect: $160/hr onsite, $45/hr India
Two more offshore columns sit blank, marked "Specify Location."
The job guarantee for the laid-off Iowans is real, BUT it only lasts one year. Cognizant checked a box agreeing to "offer employment with compensation not less than current compensation to all affected staff and guarantee employment for at least one year." Its planning documents count "all 225 resources" including contract workers. Nothing in the contract protects a single job after year one. If a worker declines the offer, Cognizant sources "qualified replacement personnel" with no location specified.
Cognizant also checked a box agreeing to "transform the State of Iowa's IT infrastructure and end user services practice through the application of AI and other advanced automation techniques." Its proposal lists a service desk outcome in writing: "Agentless/no human experience and resolution."
Citizenship requirements exist only for regulated data: federal tax records, criminal justice data, health records, Social Security data. Everything else has no citizenship or location requirement at all. Routing regulated data access through personnel outside the United States is permitted with the state's prior written consent.
196 state IT employees lose their state jobs for good in two weeks. Cognizant takes over August 4. On July 9, the Department of Labor Inspector General named Cognizant in the Project Firewall visa fraud investigation, citing whistleblower concerns.
Iowa will pay $339.2 million to Cognizant and $80.4 million to AWS, $419.7 million total over ten years.
@Cognizant stock is down nearly 50% YTD $CTSH
What do you have to say for yourself, Governor Reynolds? @IAGovernor
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