Satyam to lay off 5,000 employees?

This could be shocking news for the employees of the Satyam Computers, as new board of the company may press to lay-off 5,000 employees. The meeting of new board members of Satyam Computer is scheduled to be held on June 11, and likely to take core decision including the laying off 5000 employees.

IT firms are hit due the economic crisis in the world. The board of directors will take final decision on the lay-off on the scheduled meeting on June 11. It would be tough time for the employee of Satyam Computers, as they might come know about the lay-off after the board meeting.

Due to the corporate fraud, Satyam Computers has los many contract from its clients across the world. There will pressure on the management to maintain the staff due to having less contacts in the process. Many IT companies have been adopting cost cut measures to keep themselves fit during the economic crisis. The employees of the scam hit Satyam Computers are facing two blows – one the impact of the global crisis on IT sector and other the management decision to reduce strength.

In order bring the company on the development tracks, the management of Satyam might opt the decision to lay-off employees. However, this would be clear after the board of directors meeting. The employees of the company will be waiting for the board of directors meeting that will decide their fate.

Like other companies, Satyam Computer may also take decisions related to lay-off and cost cut measures. The company has lost around its 600 customers due the fraud. In May, CP Gurnani, Sanjay Kalra and Ulhas N Yargop of Tech Mahindra joined Satyam Computers as the new directors. Now the company has ten board of directors including six government appointed directors. Now the board has to take final decision on lay-off, which will decide fate of around 5,000 employees of Satyam Computers.

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Scam-hit Satyam Computers renamed Mahindra Satyam

Scandal-hit Satyam Computers has been named Mahindra Satyam. The logo will be adopted from the Mahindra Group.


Speaking on the rebranding initiative, Mr. Anand Mahindra, Vice Chairman & Managing Director, Mahindra Group, said, “Customer centricity, high standards of corporate governance, unimpeachable ethics form the cornerstones of the Mahindra Group. This rebranding exercise symbolizes an amalgamation of the Mahindra Group’s values with Satyam’s fabled expertise, even as it retains that part of Satyam’s identity which signifies commitment, purpose and proficiency of the organization and its people.”

Vineet Nayyar, Executive Vice Chairman, Satyam Board, commenting on the new identity, “This is a significant milestone towards the recovery of the company. We are optimistic that this new brand will re-energize the organization and will be well received by all our stakeholders. With this initiative, we will witness steps by the Management to adopt and inculcate the values of ‘performance and customer first’, ‘good corporate governance and citizenship’, which are drawn from the Mahindra Group. With this synergistic approach, Mahindra Satyam will learn from the best management practices of the Mahindra Group while focusing on nurturing Satyam’s innate skills and capabilities.”

Tech Mahindra will finalise this weekend a new identity for Satyam Computer Services, the scam-tainted IT company it bought in an open auction last April.

The decision was taken at a closed-door meeting attended by top executives of Tech Mahindra Hyderabad this weekend. The new brand has drawn on the strengths of both Satyam and Tech Mahindra.

The meeting was attended by Mahindra & Mahindra vice-chairman Anand Mahindra, group HR head Rajeev Dubey, Tech Mahindra CEO Vineet Nayyar, international operations head CP Gurnani and strategic initiatives head Rajeev Kalra.

Senior executives at Satyam, TechM and M&M had been working on the re-branding exercise with select external advisors ever since TechM acquired the company.

Satyam Computers, one of the top IT companies of India, shocked corporate India last January when its founder and then CEO B Ramalinga Raju confessed to cooking its books over years. The government launched a massive probe, took control over its board, and after three months, put the company up for sale.

Tech Mahindra did not want to continue with the Satyam brand in its present form, though it wanted to leverage the strengths of the firm. The new brand will convey the synergies of Satyam, well-known for its expertise in areas such as enterprise resource planning, M&M group’s global brand and corporate governance and Tech Mahindra’s strength in telecom.

Apart from re-branding, Tech Mahindra and Satyam senior executives also discussed the joint go-to-market strategy of the two companies.


Courtesy : Economic times

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satyam chief admits fraud: Raju resigns and admits incorrect balance sheet

In a shocking development, Ramalinga Raju of Satyam has resigned from the Chairmanship of Satyam. What is more shocking is that he has revealed about the incorrect details in the Balance sheet of Satyam, which is having inflated values of almost 5040 Crore Rupees. This has come as a big shock to the entire world. Satyam is one of the big IT companies of India and has been sensing some trouobles since last few weeks.

Initially, it was the Maytas Infrastructure deal which was alleged to have all inconsistencies and beign favourable to the family members of Raju. Then the World bank created another uproar by charging Satyam of data theft. And now, the resignation and revelations by Ramalinga Raju seems to be the last nail in the coffin, informing about inconsistencies in the balance sheet of Satyam talking of inflated cash and bank balances.

Till yesterday, there were rumors about a possible Satyam-Tech Mahindra Merger, but the latest news of today will make it more difficult for Satyam. There were issues of Corporate Governance overlooking, and even relationships between Indian School of Business ISB and Satyam have come under the scanner of SEBI and other regulatory authories. Let's hope that something worthwhile comes out of all this unfortunate development. There will be severe implications of all these revelations for other Indian Stock listed companies as well. Worst situation is of the shareholders which saw 20% decline in the Satyam Share price in less than 10 minutes of Raju's resignation news.

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Satyam layoff 4,500 employees

According to Times of india –
Satyam Computers, which has just started giving pink slips to its employees, could potentially downsize its workforce by a whopping 4,500 employees.

This translates to a little less than 9% of the 51,000 employees that the company employs. Company sources say 1,500 employees have been put under the performance improvement plan (PIP), euphemism for employees put on watch list and asked to shape up or ship out. Apart from this, 3,000 others have not been given any increment in the last appraisal cycle, thereby indicating that their services are dispensable.

“This 1,500 plus 3,000 equals 4,500, which indicates the total number of persons who could be eased out of the company,” the source said.

On Friday, all employees received an e-mail from the company chief Ramalinga Raju warning them, especially the ones on the bench, to not bunk office and be in their best dress code, failing which they may face strict disciplinary action.

Last week, some 400 employees from across different locations were given the pink slip. Sources also indicated that after getting the message many among the 3,000 have also started leaving jobs. But an estimate of the employees who have left is not known.

A Satyam spokesperson said: “The bottom 5% of those who have got a bad appraisal are put under PIP and given dummy projects to prove themselves. If they fail they will be shown the door. But some of them marked for PIP said they have been given very little time to come up as winners.” However, even as it downsizes, Satyam continues to hire new employees in thousands. Over 40% of them are fresh blood just passing out of college.

The spectre of retrenchment is creating panic among employees of the company. “Of the 12 people working in my project, five were suddenly asked to resign, failing which, the company warned, it would fire us. Everything came without warning,” said a techie pleading anonymity.




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