Carnival HeadquartersCBS4 Local News is reporting that Carnival Corporation is eliminating 200 positions from its IT departments across its brands, including Carnival Cruise Lines, Holland America Lines and Princess Cruises.  

The local news station writes that a French company which holds itself out as a “global leader in consulting, technology and outsourcing services” is offering offering new jobs – with only six months of guaranteed employment – to Carnival’s IT employees. CBS4 News says that the cruise line is pressuring its IT employees to sign agreements to participate in “knowledge transfer activities.”

Carnival told CBS4 that "all impacted individuals will become employees of Capgemini.”

But what Carnival did not admit is that "Capgemini is "outsourcing the work to India because that was the only way it could provide the IT services to Carnival at the rate paid to them by the company,” according to Sara Blackwell, a labor attorney, who is giving advice to the soon-to-be-displaced Carnival employees.

You can read about Capgemini’s Indian operations here.

According to CBS4, a Carnival PR spokesman said that the move was to improve performance and not save money. "Asked if the employees were being asked to train others how to do their jobs, Frizzell responded: ‘Not trained, but they will be involved in showcasing the processes related to the function in order for Capgemini to provide stronger and better service to Carnival Corporation and its brands.’”

Labor lawyer Blackwell told CBS4 that Carnival was dumping its IT employees: “The Carnival executives dumped oil in the ocean with the Princess Cruise line and now they are throwing away American workers for foreign slave labor. The executives of Carnival should be ashamed and should have to face the families that they have destroyed merely days before Christmas."

Other cruise lines have outsourced jobs before to minimize costs and maximize profits. Three years ago Royal Caribbean’s call center was unceremoniously moved to Guatemala where workers earned substantially less with no real benefits.

Carnival is reportedly cutting 200 IT jobs,140 of which are here in Miami.

Carnival’s outsourcing is part of Arnold Donald’s costs cutting steps which he initiated years ago. Money saved – yes; but at the expense of terminating loyal employees? Not to mention running the risk of demoralizing the remaining staff while offering substandard services?

I hope that Carnival’s outsourced IT sales office in India works better than the service center in India which I have to call when I’m having a computer problem.

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The CBS4 article was written by Jim DeFede, a former journalist for the Miami New Times who in the 1990’s authored articles critical of Carnival penny-pinching ways, including Is Mickey A Greedy Corporate Pig?, which is one of my favorite articles in addition to an article written by Ted Kissell titled The Deep Blue Greed – The Arison Clan Built Carnival into a Money Machine by Cleverly Avoiding Tax Laws.

Photo credit: Coolcaesar at English Wikipedia, CC BY-SA 3.0, commons / wikimedi

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December 14, 2016 Update:  CBS4 updates its article (video below) regarding Carnival Corporation’s termination of its IT employees. It turns out that the displaced Carnival employees do not have a guarantee of 6 months employment with the new foreign employer.   

Article: Carnival Cruise Line forces fired employees to train foreign replacements.

Breibart covers the Carnival outsourcing during this Christmas season . . . 

"This U.S. Company Just Laid Off Hundreds Of Employees For Reason You’ll Never Believe!" via Faith Family America.

  • Michael Askew

    I’m loosing more respect for this company, Prices up, service and quality down! Next we pilot our own ships and bring our own food? Hope the stock holders enjoy axing more jobs.

  • Mike Mundy

    I wonder what Mr Trump will have to say about this?!

  • tinikini

    Good reading, Jim. These people spared no words in describing the Carnival Empire. While these were good articles it was also sad in how they have gotten there off of the backs of their own employees and the US tax payers. I do not understand how people still support the cruise industry at all. Social media seems to destroy other companies and small ma and pa stores, but it just does not seem to effect the cruise industry at all or only for a short time and they recover…..go figure.

    As for Ted, I can’t imagine living in a country with so much instability that it could break out in a war at anytime, just to avoid paying taxes. I guess Karma caught up with him in the end.

    The whole IT bit, follow the money. How can someone with a strong Indian accent help me better than an American that I can understand? I too, am tired of calling a foreign company for my tech services and talking to people I cannot understand or do not know what they are doing. They are counting on you to hang up and go elsewhere, not provide you with better service. How does this help Carnival or their reputation? It just proves they are greedy pigs!!!

    This whole thing reminds me of my nephew who worked for Boeing. Boeing moved to Mexico and my nephew lived in a rough area of Mexico for 3 months while he trained locals to do his job. While he had the choice of whether to go or not, when you have 3 kids and a wife to support you work the extra time in Mexico, because you know you are losing your job. It was really hard on him to leave his family, put his life at risk and to train someone to take his job from him. In the end it just goes to show you that you are only a number when it comes to big corporations. I wish those at Carnival good luck in finding new jobs and creating a new future for themselves in the coming New Year.

  • Stanley Weis

    I have a very hard time with this sort of thing. I myself was the victim of a company moving its IT department, although it was from one state to another. I was put in a position of having to commit to training the people who would ultimately take my job. To the Beards at Carnival, I have to say that I am highly disappointed with this sort of a move. It may make sense to you as a business decision, but in all the years I have been sailing with Carnival the one thing that has stood out in my mind is the “Carnival family”. I guess corporate greed wins out again. Now whenever I get one of those calls from India telling me how they want to get into my computer to “repair” it I will surely think of MY Cruise Line, the one I have always felt so good about, possibly being the one responsible for calling me to “repair” my computer. Once again all I can do is voice my disappointment.

  • Arthur Hornblower
  • Jim

    Have no respect for Carnival Cruise Lines and executives Arnold Donald and Micky Arison. My family and I were planning a trip this summer on Carnival for a week and I will cancel those plans and take my money somewhere else locally or within the state. How could they do this to those employees and their families, especially the 140 in Miami. This is why increasing H1B visas is NOT good for America or American IT workers. President Trump Help!!!!

  • Kumar Goundan

    Carnival should be ashamed at itself for replacing well-educated IT workers that are doing a very good job with new hires from an outsourcing company. To add insult to injury, the outsourcing company is having the Carnival employees train their replacements. Apparently Carnival is abusing the H1 visa system. I am an Indian American IT worker and see this happening at other companies, including Disney a couple of years ago. H1 visas are meant for additional employees, not to lay off existing employees. I wish the best to the displaced Carnival IT workers. With the IT market today they should be able to find new jobs in a few months, which is the only glimmer of hope they have.

  • I Think corporate greed wins out once more. Carnival must ashamed at itself for replacing experienced IT workers that are doing a very good job with new hires from an outsourcing company. Thanks!

  • Albert G

    Short sighted. Here’s what will happen. Management expects costs savings and no decline in service/support. The contractors have language and turnover issues. No homogeneous support from I.T. means things will not be understood, appreciated or addressed because they don’t understand the business.
    Lots of communications back and forth to get things done right. Little or no documentation.
    In the end.. every time I’ve seen this thing done it does not save any money, but it does lower services.
    .. makes a good line for the CEO to use at shareholders’ meetings though.
    no more cruising with those guys for me.