With lay-off reports stalking the IT sector, Manipal Global Education chairman Mohandas Pai, who was also a member of the board of directors of Infosys, said that when the speed of growth slows worldwide, companies focus on the staffing pattern to strike out the bottom layer.
With lay-off reports stalking the IT sector, Manipal Global Education chairman Mohandas Pai, who was also a member of the board of directors of Infosys, said that when the speed of growth slows worldwide, companies focus on the staffing pattern to strike out the bottom layer. He was speaking to India Today TV today.
“When growth slows down globally, companies look at the staffing pattern to strike out the bottom layer”, he was quoted as saying by the channel. “Big companies across the globe work with 85-87 percent utilisation, who also don’t have a slack in the system”, he added.
Pai also pointed out that as many as 4.5 lakh people change jobs every year, which is a vey small number. “Every time a problem happens globally, you have this kind of bloodletting in which companies look at their staffing patern and companies just whip them out.”
“This is quite a natural phenomenon and employees should upgrade their skills as this is not the end of the world, ” he further said, adding companies will fight it out.
As per Indian Express report, Tech Mahindra had joined Wipro, Cognizant and Infosys in planning to lay off employees. Tech Mahindra is also planning to lay off an estimated 1,500 employees across all levels.
Even as appraisal season is under way for IT companies and reports are coming out about such layoffs. But firms call this a routine pattern for letting underperformers go every year. Beleaguered employees have sought government intervention by to save their jobs, according to reports.
The Forum for IT Employees (FITE) had filed a plea on Tuesday with the labour commissioner in Chennai and Hyderabad. It is also expected to approach labour departments of Karnataka and Coimbatore over such terminations shortly.
— India Today (@IndiaToday) May 12, 2017
“We demand the state and central government intervention to stop the illegal termination of Cognizant employee’s with immediate effect, reinstate all the affected employees, restore the normalcy in work environment affected by illegal terminations,” Indian Express quoted FITE saying.