HCL Technologies is said to have laid off 350 employees as the country’s IT industry braces against strong headwinds amid growing concerns about global inflation.
According to a report by moneycontrol.com, the tech company has fired employees who were primarily working on its client Microsoft’s news related products, signalling an increasingly tough business environment.
“Microsoft had an issue with the quality of work. We used to monitor, curate and edit content for its news platform MSN from across countries like India, Europe and the US. They had recently automated the process as well for global news monitoring,” one of the employees who was laid off told the news site seeking anonymity.
The employees were laid off from across geographies, including Guatemala, the Philippines, and India, the report said. The last day of work for these employees will be September 30 and they will be offered severance pay.
“Our technology and services vertical continues to see robust growth and is one of the fastest growing segments for us,” an HCL spokesperson said in a statement.
The development comes at a time when Indian IT firms are seeing margin pressure due to inflation and impending recession in markets like the US and Europe, the biggest markets for the sector. The report added that the development also indicates the ongoing business slowdown, budget and target readjustments by Big Tech including Microsoft, Google, and Meta.