Pay-cuts, downsizing on at Agilent India

Indranil Chakraborty in Kolkata

Pay-cuts and attrition (read downsizing) are the order of the day at electronics test equipment maker Agilent Technologies India Pvt Ltd. The company will decide on a possible restructuring on September 30, as part of its US parent, Agilent Technology Inc’s decision last month to lay off nine per cent of its global workforce of around 4000.
Agilent India officials were not willing to comment on the restructuring that will take place here but industry sources feel that there is every chance of a downsizing of the workforce.

In the third week of August, Agilent Inc announced a series of measures that include a reduction of its worldwide workforce.

Said Mr Kewal Khanna, head of the Indian operations, “Agilent Technologies Inc announced plans to reduce its workforce by 4000 people by the middle of 2002. As far as the Indian operation is concerned, we do not have specific information about whether or how the downsizing will affect our India operation. Every thing will be decided by September 30th.”

Meanwhile, Agilent employees in India are facing pay cuts and a downsizing. “Already, some people have left. Whether it is downsizing or attrition it is a matter of definition. We apprehend around five per cent reduction in jobs in Kolktata as well as in other five offices in the country,” said an Agilent employee in Kolkata where the company has a development centre.

The company has around 110 people engaged in research & development, marketing, sales and customer support.

According to an industry report, Agilent in India has a turnover of Rs 105 crore in the Rs 370 crore testing and measurement market. Last year Agilent had a market share of 28 per cent followed by Tektronix and Acterna (18 and 11 percent respectively).

According to Mr Khanna, in the first three quarters Agilent has reported satisfactory business in India. “It all depends on the fourth quarter business activity. We will be able to reach our target if the business is good,” said Mr Khanna.

As far as the international business is concerned, Agilent said the incoming order rate has continued to decline because of weak customer demand and excess capacity and key inventory in key industries.

Regarding the pay cuts, Ms Theresa Khoo, Agilent’s spokesperson, said: “The company has taken a series of global measures to control expenses, which includes a temporary ten per cent pay reduction for all employees, greatly reduced discretionary spending and travel limited to customer-related activities.”