A few weeks ago, when Satyam found a new owner in Tech Mahindra, this blogger had mentioned that despite all the brouhaha, testing times were certain for the fateful employees of the Hyderabad based beleaguered software firm. With this latest piece of official news that fear has been confirmed!
The new management has identified 10,000 Satyam employees, deemed ‘surplus’, who will be in the line of fire in the weeks to come as “Right-Sizing” is the order of the day.
It seems the defamed founder, B Ramalinga Raju hired employees with the intention of driving up the revenue and profits. Obviously that will no longer help the scandal hit firm, so the Tech Mahindra executives have decided to start trimming the excess fat.
Targeting mostly middle and junior level employees, Tech M hopes to provide soft options in the guise of sabbaticals and inter-company recruitment via job fairs.Already variable pay has been cut across the organization since April and further pay-cuts would not be surprising.
To make matters worse, Satyam has already witnessed exits from many prominent clients and is in deep crisis as many more are to follow suit. Bottomlines have already become a major concern and further lay-offs seem not just imminent but inevitable.
With 10K employees about to hit the recruitment scene, this exodus is bound to have ripple effects extending across the industry.