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Mahindra Satyam on the path to layoff another 5000 benchers

While you were reading the news that Mahindra Satyam has secured contracts worth $79 million only for the second quarter in North Africa and Middle East regions, employees at Satyam were reading quite a different news in their mailboxes. Here is what it said:

“In our earlier communication dated June 11, 2009, you were placed on VPP for a period of six months and accordingly, your Virtual Pool Leave is due to end on December 18, 2009. It is rather unfortunate that due to the continued economic constraints and business outlook, we do not anticipate that we will have the ability to recall many of our valued associates within the VPP period”

This came as a shocker for most of the employees as they also were aware of the recent projects that Mahindra Satyam had acquired. SEO Mind had an article late back in June & August mentioning about the so-called “Virtual Pool” [I would call it virtual fools] and “Corporate Reserve” concept that Satyam had created. It had placed around 500 employees in Corporate Reserve and another 8000 in Virtual Pool. Satyam had also started providing only the basic salary, PF and medical insurance to these employees.

The recent mail is due to the timelines on its expiry stage. Satyam was able to take back just 1500 employees from the virtual pool. Vineet Nayyar, CEO, Tech Mahindra mentioned, “We have given these employees an option of availing outplacement services. We will try to help them to the best of our abilities.”

I would say employees should start searching once they are taken away from the comfort zone however big the company is and how big the projects they receive.

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