Recently Pune-based Persistent Systems choose to move away from traditional practices to a relatively new idea by hiring several freelancers and consultants in a team for a short-term project, that's steadily gaining popularity in the global technology services space.
It may be a tough time for workers of IT and telecom companies in the country. Many large IT and telecom companies are in the process of laying off employees on a scale not seen since the 2008-10 downturn. The mid-and senior-level professionals are getting first hit, however, many lower-level employees too are likely to face the axe in the coming months. Here are 10 IT and telecom companies that have announced or are likely to cut jobs this year.
Indian tech company, Cognizant is also likely to cut at least 2.3% of its total manpower which comprises of over 6,000 employees, as the IT MNC struggles with growth in an IT environment that is fast shifting towards new digital services. The company is said to be likely to cut roles that do not have much requirements due to the application of automation on lower-end IT jobs. Some Cognizant employees have also filed a petition with the assistant commissioner of labor arguing that they were being forced to sign voluntary resignation letters, through the Forum for IT Employees.
Capgemini, the French IT services major is supposed to drove off nearly 9,000 people, or around 5% of its workforce. A large part of this are erstwhile employees of Igate, the company that Capgemini acquired in 2015. Capgemini had reportedly asked over 35 VP, SVPs, directors and senior directors to leave in February and 200 people were asked to leave at one of its offices in Mumbai.
Infosys, the Indian IT giant is also likely to announce job cuts in the coming near future. Around 1,000 employees in job level 6 and above (group project managers, project managers, senior architects and higher levels) are expected to be asked to leave, according to sources. Managers at these levels have been asked to identify, in terms of performance, the bottom 10% of their reporters. Late last month, Infosys is also reported to have asked some 500 employees to leave, citing 'non-performance' as issue. Infosys stated on its part that its performance management process provides for a bi-annual assessment of performance. "A continued low feedback on performance could lead to certain performance actions, including separation of an individual and this is done only after feedback. This process is executed every year but the numbers could change for each performance cycle."
Wipro, being India's third-largest software exporter too likely to have initiated moves to trim excess layers of managers and executives inside the company and make the organization leaner and more decentralized as part of CEO Abidali Neemuchwala's broader strategy. Moving this way of de-layering exercise, Wipro is removing additional layers such as that of a "project leader", which are increasingly being rendered redundant as automation kicks in big-time and in India's $160-billion IT industry, more newer and specialized roles are getting emerged.
Recently, Tata Teleservices removed 500 to 600 employees. According to people familiar with the matter, as many as 500-600 employees are said to have been affected by the layoffs in sales and other related functions. The lay-offs have been done across locations. The severance package being offered to the employees impacted by the decision is one-month's salary for every year of service. Tata Teleservices spearheads Tata Group's presence in the Indian telecom market.
This year in February, major corp in cellular services, Aircel reportedly drove off about 700 of its employees composed of nearly 10% of its pan-India staff strength, in its first stage of manpower downsizing amid a huge wave of consolidation that is going to engulf India's telecommunication sector. Aircel has around 8,000 employees in India.
The Indian e-tailer Snapdeal, confirmed in February end, about cutting jobs, but declined to specify the accurate number of workers affected by the decision. The company is said to be cutting 30% of its manpower. The step will impact on around 1,000 employees, as expected, that are directly employed by the company in its e-commerce marketplace while thousands of contract workers in its logistics division may also be let off.
Four months after Chinese billionaire Jia Yueting acknowledged his company LeEco was fast running out of cash, the erstwhile high-flying company fired 85% of its India staff and two leadership positions got disappeared in that is thought to be a precursor to its eventual withdrawal from the South Asian nation. Industry executives attributed the likely exit to the financial crisis at the parent firm and its decision to focus on China and the US.
Craftsvilla and YepMe
Craftsvilla and fashion portal YepMe are ethnic online retailer and among the startups that have given pink slips in the recent times. Recently, Craftsvilla is reported to have executed more than 100 staff members, including its entire product and technology teams and most of its operations and marketing teams.
It's called the 'gig economy' or 'Uberisation' of
workforce, where talent works on a demand-supply model, moving across projects and organisations as per the demand and their interest areas. "While this (Uberisation) isn't seen yet at a mass level with services companies, it is starting to happen," said Sameer Bendre, chief people officer at Persistent Systems.
"There are a few pockets where we are experimenting with it... We believe that there are a lot of opportunities in some areas for us to use it, like women returning to work after maternity leave," he said.
Also Read: Good or Bad Time For IT Companies