India Inc Job cut saga so far…
Just a week back, Prime Minister met with India Inc CEO’s and requested for an assurance from them. The assurance is, job cuts will be the last resort. After that, there were bunch of rate cuts by the RBI and several monetary policies. Did anything change in a week? Yes it did. The job loss radar is ticking and the ASSOCHAM report might just be right. Let us take a look.
L&T Infotech is trimming its work force by 5%. That would mean a job loss for 10000 people. Goldman Sachs has fired 100 employees in Mumbai and 30 in Bangalore. Satyam has fired 30 employees over fudged bills. Corus steel (part of Tata Steel now) has cut 400 jobs in UK because of poor business conditions. Tata Steel has ruled out any jobs cuts in India. Airlines are fearing that they have to lay off 8000 ground staff. Kingfisher has announced a 90% cut in the salaries of trainee pilots. Jet Airways has sacked 25+ expat pilots.
Is that scary enough? Wait till you read this. Textile industry which largely depends on export revenue is really hit. With the global economy in recession there are no takers for Indian textile exports. This meant a job loss for 7 lakh people so far and 5 lakh more are set to lose their jobs in the next 3 months. Textile industry employs 35 million people overall.
Some companies are straightforward in their job cuts, some aren’t that straightforward. IBS Software of Thiruvananthapurm Technopark is not laying off. It is discontinuing the services of 27 employees. What’s the difference between lay-of and discontinuing a service? Nothing really. Its a complete hogwash. In addition to this US jobless ranks at 10 million.
What should we do in the middle of this puddle? Do what you do best and stay optimistic. Because the tide always turns.