Each Indian IT Giant Can Fire Upto 20,000 Employees: 3 Reasons Why This Is Happening
In the last few days, we have reported about a layoff phenomenon, which has already started in the Indian IT sector.
Infosys, TCS, Cognizant and others have already announced, or hinted that senior and mid-level employees from their organizations will be asked to leave.
Although the numbers varies from case to case, but as per industry experts, IT giants can layoff 10,000 to 20,000 employees in the coming days.
Why is this happening?
Here are three reasons why..
3 Reasons Why IT Giants Will Fire Employees
As per a Business Standard report, IT biggies in India are resorting to termination of employees due to:
- Rising pressure on core business verticales, due to heavy discounts to US clients
- Increased hiring in the US, due to strict H1B visa rules for Indians
- Emergence of new technologies, such as automation, AI and machine learning, which are making employees redundant
This is the reason that IT biggies are expected to fire 5-8% of their total employees in the coming days, which translates to 10,000 to 20,000 employees, per IT company.
Who Will Be Fired?
As per Kris Lakshmikanth, founder-head at executive search firm Head Hunters, the employees who are in the roles of Project Managers, and Delivery Managers, having salary of Rs 20-40 Lakh per annum, would be the first to be asked to leave.
He said, “It (reduction of personnel) is happening across all tier-I IT services companies. Employees in the senior project manager or delivery manager kind of roles, where the annual salary range is Rs 20-40 lakh, are facing the maximum risk..”
As per an industry veteran from Infosys, as much as 1.2 lakh Indian IT employees face terminations in the next few months.
Layoff News Coming In From All Quarters
IT biggie Cognizant has already announced that upto 6,000 employees in India can be asked to leave, as one of the major content based projects from Facebook has been pulled off.
IT Employees in India have formed Unions, and they have termed this as illegal, and asked for Govt. interference to stop this mass terminations.
Overall, globally, Cognizant can fire upto 13,000 employees.
On the other hand IT biggie Infosys has made it clear that they will fire tons of senior and mid-level employees, and hire freshers, which will help them to save upto Rs 1000 crore this year.
Although they have described this as normal exercise, and only under-performers will be asked to leave first, but employees are skeptical.
As much as 12,000 employees from Infosys face job loss.
At the same time, TCS too is planning to fire a large number of senior and mid-level employees, and hire freshers to reduce costs, and increase profits.
Capgemini, another IT behemoth, too is firing employees in India.
Interestingly, Indian IT employees have already dragged some of the IT companies to Court, over long working hours, and zero extra pay, even as the salaries of Indians in the IT companies have actually decreased in the last few years.