IBM India's performance based appraisal exercise of its employees is likely to impact around 1-2% of its total employee strength while the company has strongly denied any move towards layoffs.
IBM India’s performance based appraisal exercise of its employees is likely to impact around 1-2% of its total employee strength while the company has strongly denied any move towards layoffs. In response to a query on reported layoffs, a statement from IBM said, “This is factually incorrect. We are not going to comment further on rumors and speculation.”IBM India which has estimated employee strength of around 1.5 lakh regularly undertakes performance appraisal exercise and sources indicated that the technology major is likely to be very selective in identifying the non-performers.
This development at IBM comes amidst the similar exercise undertaken by other companies such as Infosys, Cognizant, Wipro, Tech Mahindra and Capgemini.Nasscom, the Indian IT industry’s trade body has also said that the annual performance appraisal process for the sector generally impacts around 1-3% of the total employees and this year has been no different from the past.
Nasscom also said the industry has been a net hirer of 1.5 lakh people every year with the total headcount now standing at 4 million. “Skilling and workforce realignment are essential to remain competitive in international markets. It needs to be appreciated that such workforce realignment is a normal part of the internal process of companies based on their own operational imperatives,” it had stated.
Nasscom chairman Raman Roy said that 50-60% of the workforce needs to be re-skilled by 2020 to meet the new demands in the market like digital. He also remarked that automation will eat into 260 million jobs worldwide by 2025.