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Layoff or Letoff Plans of India's IT Companies

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10/05/2017 1:33 pm

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This is a discussion on AfterGraduation new article "Poor Performance or Slower IT Industry, IT Biggies Prepare For Layoffs".

India’s IT service companies are in the process of laying off employees on a massive scale. This scale of layoffs wasn’t seen since the 2008-10 downturn in IT sector. The move has come after the growth in India’s $150 billion IT industry has slowed down more than anticipated and companies move towards hiring more in the US. Indian IT biggies denied of any layoffs but said employees had been let off due to low feedback on performance assessment.

Those taking the hit first are mid and senior level professionals with 10 to 20 years of experience, but the expectation is that lower level employees too will be hurt later in the year. The situation is worsening to a point where affected employees are beginning to approach labour unions to take up their cause.

Aggravated by rising rupee leading to lower realizations for software exports, earlier in April country’s apex trade body ASSOCHAM (The Associated Chambers of Commerce & Industry of India) had warned about industry’s growth prospect and this may lead the Indian IT firms to displace work force. In that case, the chances of layoffs are real.

Link to Full Article on AfterGraduation

Pooja Mehra

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