Friday, May 15, 2009

Satyam layoff - Countdown begins for Satyam employees - Part 1

According to sources and insider details, about 12,000 employees of Satyam will be handed the pink slip. This comes just a day before election counting begins.

Almost all the bench force of Satyam will end up loosing their jobs. A blog on Satyam, Satya of Satyam writes,
Sources inside the company have stated that 15th March has been fixed as the date for laying off a lot of people from Satyam. A lot of the top managers and the staff who has been on bench will be given sabbaticals. This means that they probably will be getting just their basic salary. Wipro has already implemented the same for their "Benched" employees. A lot of the top brass will also be replaced by Tech Mahindra staff, it is believed.
Experts have apprehensions on this because they say that the true strength of Satyam lies in delivering complex business. The outcome of this layoff is going to affect the whole IT industry, including growth prospects of freshers in other IT companies. A leading IT company has already delayed its placements and now the talent pool that is going to come out from this gigantic flooding will also take toll. This coupled with recession and high dependence of Indian IT industry on United States demographically could give a fatal blow to freshers searching for jobs in the IT industry. The major chunk of jobs for engineers in India came from IT, which now will be affected by this mammoth layoff.

Looking at the timing of this decision, the 15th may date, it seems all was planned well in advance. Knowing that a layoff early would have caused government interference since elections were round the corner, the new management has wasted no time after polling in chopping off the workforce. The new government would be under tremendous pressure to increase India's economic growth and provide jobs for the unemployed workers, which would be increasing by the day.