Massive job cuts in the name of reorganizing and handful of recruitments to coverup the decrease in revenue has now become a everyday story. L&T Infotech, the country’s largest engineering company has started requesting employees to resign across its Pune, Chennai and Mumbai centers. It is surprising to know that L&T Infotech even with most of its clients in manufacturing industry is facing the market slow down.
It is seen that the down-sizing is due to fallout in the financial services with customers either closing down or projects having a cutback and delay. It is estimated that so far there has been more than 100 forced resignations. Market analysts put the figue as high as 5% of its 10,000 strong employee base.
Though the company had a net profit of Rs 211 Crore and revenues at Rs 1,573 crores during fiscal 2008, the company still went for downsizing. Looks like companies want to be safer nowadays and can even sacrifice their valuable employees to save a few cents.