The advent of new technology paradigms like robotics, AI, blockchain and IoT is changing how companies and individuals consume technology and for the Indian businesses to remain successful, an update to the technology of tomorrow, today will be needed, Nasscom Senior VP and Chief Strategy Officer Sangeeta Gupta said.
Many of those laid off were mid- or upper-level techies, with low lateral skills for other industries.
"All these IT multinational companies have been earning huge profits and there is no reason to retrench employees. The firing operations are being taken up on the pretexts of ‘growth plans', ‘restructuring', ‘role rationalisation' etc, which are nothing but measures to maximise their profits at the cost of employees," CITU said in a statement.
The axe will fall mainly on midlevel employees and those who haven’t picked up relevant skills.
The voluntary separation programme could be for 300-400 executives holding the title of a director.
IT cos have no choice but to lay off some of their mid-level staff to become more agile, said ex-CFO of Infosys.
The company is letting go of 10% of the workforce, or around 2,200 people.
Under new CEO, Cognizant is undergoing a widespread restructuring aimed at boosting growth & lowering costs.
The compensation increases have come at a time when the company said it was laying off as many as 200 senior executives.
Two things happened around 2016 that might provide a clue to this collapse.
Cognizant slashed its revenue growth guidance earlier and said it was looking at cutting jobs to reduce costs.
Rumours abound about a spike in the employee see-off numbers this year contrary to the annual one to two per cent, sources said on Saturday.
Accenture, Infy, TechM, Cognizant, MphasiS investing to make workforce future-ready.
Firms are now going big on outplacement and career-transition services for staff who are being let go of.
Cognizant clarified the number of job losses that were being targeted.“The number of senior job cuts will be under 200,” a Cognizant spokesperson told ET.
Cognizant spokesperson said: “Cognizant has not conducted any layoffs. Each year, as is the best practice across our industry, we conduct performance reviews.
Reports suggest that over 6,000 employees in India have lost jobs even as the company has put in place a voluntary separation programme for mid to senior execs.
Those taking the hit first are mid- and senior-level professionals. But lower level employees, too, will be hurt later in the year due to sluggish growth.
Tamil Nadu's labour laws provide for aggrieved employees to approach the Conciliation wing of the state labour department to settle disputes with employers.
Infosys had announced that it could hand out pink slips to hundreds of mid and senior-level employees as it carries out bi-annual performance review.
Those in support of laid-off workers say the firing policies based on performance reviews are often discriminatory.
Former employees of IT firms including Cognizant, Tech Mahindra and Wipro in Pune on Thursday filed separate petitions with the Maharashtra Commissioner of Labour against their former employers saying that their services have been terminated illegally.
"We are planning to organise a united front of IT employees associations to hold talks with Karnataka govt to resolve the issue," an AIITEA official said..
“The growing realisation among Indian workforce that reskilling is the only way to stay competitive led to a 37% increase in registrations during the February-April period compared to last year," said Raghav Gupta, India country director, Coursera.
There is a gentle deceleration in net new hiring growth rate and the emphasis is shifting from scale to skills, said Nasscom.
In an email sent to employees from Jim Lennox, CTS's chief people officer, said revisions and promotions will be effective from October 1.
Defending the industry as a whole, Viswanathan said that early estimates from Nasscom indicate that the IT industry will be net hirers as the year ends.
The development on Friday is a hard-earned relief for the eight employees fearing the axe amid reports of higher-than-expected non-performer exits from the IT firm.
"Such reports are incorrect. In fact the industry continues to be a net hirer with over 1.5 lakh people being employed on a net basis each year," Nasscom said.
The programme gives participants a chance to explore other opportunities while making way for the next generation of leaders to step up.
A bunch from the workforce in Chennai is preparing for conciliation proceedings with the state labour department in what they claim is a fight against retrenchment.
The stark takeaway from ET's Jobs Disruption survey of nearly 11,000 employees is that the fear of job losses is not overblown but a near-term reality.
Domestic IT giants are bracing for tougher rules for H-B1 visas in the US and disruptions due to new technologies
The Forum for IT Employees had filed a petition on "layoffs" by the IT giant, alleging that Cognizant was illegally terminating thousands of employees.
"As digital becomes more prevalent we are looking for skills like design talent and data science and we will hire those folks in other parts of the world, the US included."
Multiple factors — prospect of a stricter US visa regime and the automation of certain jobs in the sector — have led to the latest retrenchment cycle.
Large IT services companies are all in the process of laying off employees on a scale not seen since the 2008-10 downturn.
Last month, Mahindra Group Chairman Anand Mahindra had tendered apology over the manner in which an employee of Tech Mahindra was asked to quit.
Working with a technology company in India today is fraught with risks. Indian IT is facing several challenges which has taken the sheen off the sector.
Global corporations, the paymasters of Indian software vendors, are no longer so keen to ante up for application development and maintenance.
IBM did not confirm the number of employees who will be affected but said that "re-skilling and rebalancing is an ongoing process as we accelerate the benefits of cloud technologies for clients."
Large IT services firms, according to reports, are in the process of laying off employees on a scale not seen since the 2008-10 downturn.
A few employees of Cognizant recently approached the state Labour Department alleging that the IT company was forcibly taking resignations from employees citing poor performance.
Francisco D’Souza said by implementing IPA technologies, Cognizant is driving savings and transforming core processes to help companies become digital enterprises.
From around 1.65 lakh employees on its payroll in 2011, IBM's India headcount is expected to slide to one lakh by March this year.
Cognizant, Infosys, Wipro won’t disclose how many jobs they cut, but it appears the industry is going through one of the largest retrenchments in its history.
Over the past few months, Indian IT companies are confronted with closer scrutiny and tighter visa norms in the US, a market that accounts for nearly 60 per cent of India's IT exports.
"Layoffs are regular, performance-based things that we do every year. The number is really 300-400," Infosys COO UB Pravin Rao said.
According to executive search firm Head Hunters India, job cuts in IT sector will be between 1.75 lakh and 2 lakh annually for next three years.
The job cuts are also affecting mid-to-senior employees who are at the centre of the reskilling and restructuring conversations happening across the sector
To retain margins, IT cos are increasing proportion of fixed cost projects in revenue, tightening costs and recruiting more freshers, less experienced staff.
The company did not specify the number of employees that could be asked to leave. Industry sources suggest that the number would run into hundreds.
"Some of the companies which have been named (as undertaking job cuts) have clarified that there is nothing big this year," she said on the sidelines of Broadband India Forum event.
The nod to set up India's first dedicated IT employee union is a significant moment, the first big breakthrough for techies grappling with prospects of job loss.
However, experts said the situation definitely does not warrant such panic, especially at a time when residential market is seeing the green shoots of a recovery.
Since the situation may get more acute, professionals may be forced to switch industries and look for jobs in emerging sectors such as fintech or ecommerce.
Here’s how to find out if you are close to being laid off and the steps you can take in order to prevent it.
Tamil Nadu, home to an estimated four lakh IT professionals, is witnessing increasing job losses typically among middle-level managers.
For employees ranked JL5 (job level 5) and below — typically those with less than eight years of experience — the compensation review will be effective from July.
With opportunities shrinking and markets transforming, a fifth of 40 lakh Indian software engineers are likely to lose their jobs by 2020.
Snapdeal 2.0 will see more layoffs, with some estimating the number to be over 1,000, decimating, a firm that at one point had a staff count of almost 10,000.
The effect of automation and artificial intelligence still is not clear, and they could open up new areas that simply shift tech work rather than eliminate it.
Retrenched employees claim their former employers pressured them to hand in resignations instead of firing them, thereby saving on the expense of severance pay.
As customers seek to lower IT spend, many Satyam employees fear that Tech Mahindra could look at rightsizing the company.
"By June it should be over," Capgemini India Chief Executive Srinivas Kandula told PTI today on the sidelines of the Nasscom summit here.
The IT major, which has most of its facilities in Chennai and Bangalore, is paying employees the full variable pay component this year. Cities that are IT hubs | Nine trends for IT
Even if the market turns rangebound for in a broader consolidation move, expect plenty of stock-specific action in a market that looks flush with foreign portfolio money.
The need to secure and sustain a good job is critical. Find out how to ensure a stable career and free yourself from job concerns.
Placement heads across colleges said they are keenly tracking developments on layoffs, visa issues, etc, and ensuring students are kept in the loop.
Nasscom says the software industry, which employs over 3 million professionals, will see a 17% decline in annual hiring.
Swiss bank Credit Suisse, which announced global layoffs of 5,300 last week, is significantly reducing work to Wipro.
The banking, financial services and insurance (BFSI) segment is the largest outsourcing vertical for Indian technology players.
IndyMac’s move could impact about 400-450 people at Cognizant Technology Solutions, ExlService Holdings and WNS. IP add in cyber crime I Firing employees?
Consumption is critically dependent on employment, and the job market news is not bad. But employers, like everyone else, want strong policy signals.
Recruitment agencies and experts tracking IT sector warned that these companies are already going slow on hiring experienced professionals.
Chrysler LLC Chairman and Executive Bob Nardelli said the automaker should be able to meet its job-cutting goals without antagonizing the United Auto Workers.
Banking, financial services and insurance (BFSI) segment is the largest outsourcing vertical for tech cos in the country. Work before MBA? | Facts on foreign study loans
Wipro, India's third largest software exporter, has lifted freeze on promotions & hikes on a selective basis. Satyam restores variable pay of 28,000 employees
In what could be the first signs of a turnaround in the IT sector, Wipro, India’s third-largest software exporter by sales, has lifted the freeze on promotions and hikes on a selective basis.
Companies are rolling out red carpet for people who had quit or even those who were laid off. There are even no interview processes for returnee candidates.
When S Gopalakrishnan took charge, Infosys was in top gear till things stalled with the global recession. Infosys, TCS, Wipro on soft growth mode for now
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