A few months earlier all industries were relax & booming but suddenly this recession took over this boom. Now the industries are just trying to survive this dangerous phase.
And now in the wake of a looming US recession, India’s IT sector seems to be hitting the panic button. After announcing a cut in the employees’ salaries, IT major TCS saw 500 of its employees soon after a performance appraisal.
IBM too has laid off around 700 entry-level trainee programmers across offices in India on the basis of performance. More IT companies are now looking at strict cost cutting measures. Salary hikes and bonuses are also likely to come down in the IT sector.
Information from within the company, retrieved by Conrad and others, points to 1,000 layoffs in IBM’s Server Division, 700 in its Software Group, 100 in its Global Financing unit, 360 at corporate headquarters, 300 in its Storage division and more than 2,000 in the company’s largest single unit, IBM Global Services. [source]
Wipro, the top Indian IT Giant, has decided to go for a massive Wipro Lay off. As per the news that has come out, it seems that Wipro has fired around one thousand people citing non-performance. That constitutes around 4 to 5 % of the entire Wipro Workforce which have been put under the scanner for performance reviews.
Some Facts …
TCS has shown the door to ~500 employees (~2-3 years of work experience), citing performance issues.
IBM laid off ~700 employees (mostly freshers) citing…? “performance in aptitude tests that were recently conducted in undisclosed IBM India locations.”
In another news, TCS cut the employee wage (across the board, I believe), since it couldn’t meet the EVA (Economic Value Added) targets.
“Its too tough to work under this types of pressure, even we are not able to concentrate on our work “ are the word of patni employee.
This recession has also had a great impact on the recruitment processes that take place in different colleges. Many colleges are waiting for these big companies to hire their students but companies are not even turning to college, instead of hiring fresher’s they are removing their experienced staff. Students who were selected in campus are waiting for appointment letter, while some companies have even cancelled their appointment.
“The campus recruitment has slowed down a lot, its almost 2 months now no company have come for campus recruitment ” said a student of Pccoe.
HR consultants have also started feeling the heat as not many companies are recruiting in these days.
I have even heard that some big companies are now even taking low cost projects to survive in this situation.
Two days before India’s Finance ministry P.CHIDAMBARAM said that the effect of recession will slow down in six months and the revenue will be stable in total 9 months time. I still wonder on what bases he said that .
Nobody thought that it will last for so long, but it has been over 6 months now and still no change infact the situation is getting worse and worse. If big name are included in the hit list think of the small firms.