Satyam Layoff is round the corner as there are reports that it may layoff 5000 people anytime.
The company and government both are in a catch22 situation. The revival of the company requires cutting the cost that would mean chopping off the bench strength or the unnecessary accumulated employees by its founder. By doing so Satyam could trigger a domino effect that would cause others to do so in an economic recession by citing its example.
The winter of 2008 was almost tragic to the fate of the company. There are reports that contracts to the company are reducing. The CEO of Satyam, Vineet Nayyar says that the IT giant has nearly 10,000 surplus staff. The past record of the Mahindra's suggest that they mean business and looking at the way things are proceeding there is a layoff looming round the corner.
In a chat with an MBA graduate now in his mid 30's and working with a well known multi national company, his attitude suggested me that he was more of a burden on the organization. Although I am closely related to him, his saying that "you have one peon to lift your glass and one to bring you tea..." made me believe laying him off wouldn't be a bad idea for the company. The perception that as you climb the corporate ladder work becomes less has probably graduated from such people getting easy money without labour.
The fate of employees of Satyam staring directly into the barrel of layoff can't still be ascertained as the government is trying to intervene. The corporate affairs minister Salman Khusheed has made a statement that the government will not turn a blind eye to this.
This case is first of its kind. Satyam as a company needs revival and needs to pay back the obligations and loans. But being a huge company it has a social responsibility. The trade off between the two would determine the extent of gain or loss for Satyam in future.
Previously : Satyam Layoff part 1
The company and government both are in a catch22 situation. The revival of the company requires cutting the cost that would mean chopping off the bench strength or the unnecessary accumulated employees by its founder. By doing so Satyam could trigger a domino effect that would cause others to do so in an economic recession by citing its example.
The winter of 2008 was almost tragic to the fate of the company. There are reports that contracts to the company are reducing. The CEO of Satyam, Vineet Nayyar says that the IT giant has nearly 10,000 surplus staff. The past record of the Mahindra's suggest that they mean business and looking at the way things are proceeding there is a layoff looming round the corner.
In a chat with an MBA graduate now in his mid 30's and working with a well known multi national company, his attitude suggested me that he was more of a burden on the organization. Although I am closely related to him, his saying that "you have one peon to lift your glass and one to bring you tea..." made me believe laying him off wouldn't be a bad idea for the company. The perception that as you climb the corporate ladder work becomes less has probably graduated from such people getting easy money without labour.
The fate of employees of Satyam staring directly into the barrel of layoff can't still be ascertained as the government is trying to intervene. The corporate affairs minister Salman Khusheed has made a statement that the government will not turn a blind eye to this.
This case is first of its kind. Satyam as a company needs revival and needs to pay back the obligations and loans. But being a huge company it has a social responsibility. The trade off between the two would determine the extent of gain or loss for Satyam in future.
Previously : Satyam Layoff part 1