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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Satyam Lay off Job Cut: Satyam Fires 100 Hyderabad employees

It was in September when the news of Satyam layoff first came in, but yesterday, Satyam went ahead and made another round of lay-offs from its base city of Hyderabad. Satyam fired 100 employees citing reasons which are the usual ones like - "behavioural issues", "poor performance" in an performance assessment. Not only that, they went way too ahead and cited reason like - "delay in filling appraisal forms" and even "poor dressing" at work - appears to be a lot weird reasoning.

It is learnt from the news reported that it was a forced resignation - affected employees were given just 2 hours time to decide to resign or services to be terminated.

Probably, people took inspiration from the Jet Airways employees lay off who went berserk after jet airways announced lay offs. Those who were laid off alleged that the company chose to put the blame on them as against owning up for the financial crunch it seems to be facing. They point out that ratings of most employees this year in its "Smart" appraisal exercise (with S as highest rating and T lowest) have dropped with many figuring in the bottom R and T slots.

Though the management at Satyam continues to justify the lay offs mentioning that they are all based on performance and behaviours.

As reported by TOI, sources say the firm is undertaking fresh background checks of all its employees to find "valid" reasons for firing. Besides, project leaders were asked to suggest at least two names from their teams who could be eased out of the firm. But it was the manner in which the news was broken that left many shaken.

"Despite having an impeccable work record I was shown the door. And to do this I was given just two hours," says a senior software engineer.

Another employee of three years with a "S" rating under his belt had to quit under similar circumstances. The techie was first asked to take an assessment test within 30 minutes. He was then told his performance was poor and that he had to leave. "Why would the company insist on a test that my managers in the past had described as only a formality," he asked. His demand to declare the test result went unheeded, he added.

A senior associate who was laid off last week said the pink slip came as a shocker. With six years work experience in known IT firms, he was handling a project in Satyam, two phases of which were already over with his work spilling over to late evenings. One such evening last week he was summoned by HR officials who asked him to meet them
the next day. "I was told, either you leave or we terminateyour service," he says, adding that the reason cited for his removal was his failure in filling the appraisal form on time.

S V Krishnan, Global head of HR, Satyam Computer Services, said, "As part of our appraisal process we identify around 5 to 10 per cent of our associates in the Performance Improvement category and put them through a structured Performance Improvement Program. Our experience reflects that about half of this group exits the system either voluntarily or involuntarily, while the others make credible progress internally. We have concluded our appraisal process a few weeks back, and believe we are witnessing similar trends like in the past."

So where are those individuals who believed that the IT boom is here to stay, or those who believed that there will always be new technology and innovations so IT engineers will never loose the jobs or those who believed that Indian Companies never lay off anyone.
Let's hope that alternative jobs are available to the affected employees of Satyam Lay off.

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HP Lay off: HP Fires 24600 employees around the world

High on the heels of Wipro Layoffs followed by visit
Satyam Layoff, Hewlett Packard or HP, another top IT Giant, has decided to go for a massive HP lay off. As per the news that has come out, Hewlett-Packard plans to cut 7.5 percent of its work force, or 24,600 jobs, seeking to realize savings from its recent acquisition of Electronic Data Systems, the company said on Monday. Is this the time for the IT industry to declare tough times? Already the financial sectors have send jitters to the IT industry, because the BFSI sector is considered to be the top contributor for the IT industry.

Almost 50% of these jobs will be cut in the recently acquired EDS headquarters in Palo Alto, California, USA.

HP estimated $1.8 billion in annual cost savings once the three-year cost-cutting program is completed. At the time the $13.2 billion merger of computer services provider EDS into HP was announced in May, Hewlett-Packard counted 178,000 employees on its books and EDS had 142,000 employees. HP mentioned that majority of the jobs that will be cut will be in terms of overlapping functions in EDS and HP like as in legal, accounting, information technology and human resources.

Work-force reduction plans will vary by country, based on local legal requirements and consultation with works councils and employee representatives, HP said.

The only good news for the employees is that the company will provide employees affected by this restructuring program with severance packages, counseling and job placement services.

Recently, TCS created a big uproar by deducting the salary of employees or going for a salary cut. In India, it was TCS which went for a TCS layoff following TCS salary cuts. Then it was IBM which axed 700 jobs across all over India.
In February, Tata Consultancy Services (TCS), the country’s largest IT services firm, had given pink slips to 500 non-performers. IBM, too, had asked about 700 employees in India to leave, citing non-performance. In July, Patni Computer Systems had shown the door to 400 employees. While IT companies said the move was not linked to the slowdown in the US, a key market for IT services, there was a consensus that it was time for belt-tightening.




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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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