Senior IT Employees Not ‘Entitled For Fat Salary’; 40,000 Employees Will Be Fired: T V Mohandas Pai
Another massive round of layoffs and terminations are about to hit Indian IT sector, and warnings have been shared.
Upto 40,000 senior employees, who are classified as mid-level employees, having 10-15 years of experience will face the axe, as IT giants are preparing themselves to handover pink slips to them.
This latest confirmation has been shared by IT veteran, and one of the pillars of Infosys: T V Mohandas Pai.
This means that you will need to take this warning very seriously.
But, the question arises: Who is responsible here?
Upto 40,000 Senior Employees Face Terminations
T. V. Mohandas Pai, who was a Board of Member in Infosys, and current Chairman of Manipal Global Education, has warned that more than 40,000 senior employees from the IT sector can be asked to leave, in the coming months.
He predicts about layoffs: “All across industry, may be 30,000 to 40,000 in a year..”
Earlier, V Balakrishnan, who was the Chief Financial Officer at Infosys, predicted that 5-10% of all mid-level employees from various IT firms can be asked to leave.
This amounts to approximately 90,000 to 1.2 lakh employees.
Who Is Responsible For Job Loss?
As per T V Mohandas Pai, this layoff is part of the churn, which IT industry witnesses, every 5 years or so.
These mid-level employees are the ones who are not adding value to the ‘pyramid’, as per him, and once their ‘fat salaries’ are not justified, they will be asked to leave.
In short, these employees, having 10-15 years of experience are not adding value to the overall ecosystem, hence, they are becoming redundant.
He said, As in all sectors in the West, in India too when a sector matures so many people will be there in the middle level who will not be adding value to the salary they get..”
He added, “Nobody is entitled to a fat salary and high-paying job unless you perform, right? You have to deliver value”.
However, Pai assured that 80% of the fired employees can get jobs in their respective niches, if and only if they are specialists.
Will IT Giants Fire Senior Employees On A Mass Scale?
First V Balakrishnan, and then Mohandas Pai have predicted massive job cuts in the IT sector, and it seems that their predictions are indeed true to some extent.
Earlier we reported that each IT giants from India can fire upto 20,000 employees, as projects are drying up, and US hiring is increasing.
Infosys too is firing senior employees, and hiring freshers, as revenue-profit balance is tumbling, and they are gasping for air.
We will keep you updated, as more details come in.