Pink Slips Frighten Techies In India
Hyderabad: The crisis in the software industry has been deepening sending shockwaves across the world. It is reliably learnt that about 56 thousand persons are likely to lose their jobs this year in this sector.
Seven IT majors are getting ready to layoff employees. In Hyderabad alone, ten thousand employees are going to be sacked according to one estimate. The managements have been sending pink slips in a big way. Eight employees of Cognizant have approached the labour department of Telangana government.
According to sources, giants like Infosys, Wipro, Tech Mahendra, HCL technologies, Cognizant, DXC and Cap Gemini are preparing to lay off 56 thousand employees this year. There are about 50 multinational companies in Hyderabad. About two thousand small and medium companies are there. In all, some three lakh employees are working. The major companies have started retrenching employees on account of lack of performance. In some cases employees are served with notices asking them to leave the organisation in a stipulated period.
The seven majors have started giving low performance ratings by way of preparing ground for sacking. For instance, Cognizant alone has put 15,000 employees in low performing category of Bucket-4. Infosys also has included 3,000 employees of senior managerial level in the group which has to improve its performance. DXC technologies wants to reduce the number of units across the country from 50 to 26. The company is getting ready to retrench 10,000 of its 1,70,000 employees this year. Infosys said it would review performance of the employees every two years.
The employees who are working at the top and middle executive levels are a worried lot. Eight of the sacked employees of Cognizant have approached the labour department challenging their removal.
Forum of IT employees has criticised IT companies for sacking even those employees who have higher ratings of performance. The Cognizant landed in labour commissioner’s court. The basic reason for the retrenchment here is the obligation to recruit the citizens of the US in America. The Telangana Information Technology Association has commented that offering lower ratings to employees in order to sack them will jeopardise their future.
” Citing the reasons of Trump’s restrictions on H1-B, the IT companies have taken up indiscriminate firing. Hiring and firing is common in technology industry. IT industry in India is taking undue advantage of Trump’s policies to reduce the headcount considerably,” said Y Kiranchandra, founder- member of FITE.