Hiring express slows down as economy runs out of steam, layoffs at GVK, GMR, DLF

Sep 04 2013, 17:26 IST
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Layoffs are rampant in infra sectors with leading names like GVK, GMR, DLF reducing staff strength. Layoffs are rampant in infra sectors with leading names like GVK, GMR, DLF reducing staff strength.
SummaryLayoffs are rampant in infra sectors with leading names like GVK, GMR, DLF reducing staff strength.

to 3-4 best candidates in the batch,” said a Bangalore-based HR consultant.

In the current fiscal, the IT industry is expected to see a decline in hiring by up to 17% adding 1,30,000-1,50,000 jobs, as some companies are still filling up the backlog from last year’s hiring — largely campus recruits.

During 2012-13, GVK reduced its workforce by 281 people while rival GMR cut around 200 jobs. Mumbai-based Reliance Infrastructure cut 112 jobs in the same period. However, the largest number of layoffs were by the Delhi-based construction major DLF, which slashed 1,100 jobs to end the fiscal at 2,600 people as compared to 3,700 in the previous fiscal.

As the rupee continues falling, experts say hiring will remain under stress in the coming months as well.

“While chemical and FMCG companies are hiring, the finance sector is facing challenges. Particularly, banks have problems of attrition and have unreasonable sales targets. On the other hand, entry-level hiring is happening in services like retail, entertainment and IT-ITES, but senior-level hiring is slow in these sectors,” added Lala.

Though no major retrenchment has taken place in telecom, financial services, asset management and private equity, companies are not going for replacement hiring in these sectors.

Said a senior official at a private life insurer: “Recruitment is largely happening in a selective fashion. There are cases of a recruitment freeze in the industry too, with no replacements when people leave. In certain geographies where the business has fallen, companies are reassessing the need for staff there and retrenchments may be happening.”

Said Suryanarayanan Subramanian, national head HR, Tata AIG General Insurance: “As far as the general insurance industry is concerned, growth is still happening in certain pockets. We have not seen any recruitment freeze. We are cautious about where we are hiring. The focus is on increasing productivity per employee. It would be better to take a call on compensation related issues by the end of the third quarter.”

Companies are letting people go easily and are creating an environment for resignations by not giving increments or additional responsibilities to employees. According to Uday Sodhi, CEO, HeadHonchos.com, “in manufacturing and engineering, planned hiring is not taking place as there is a slowdown in projects related to infrastructure”.

(With inputs from Rachit Vats, Vishwanath Nair & Coutinho in Mumbai and the Bangalore bureau)

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