After Wipro, Cognizant and Infosys, Tech Mahindra plans to lay off 1500 employees

Tech Mahindra is planning to lay off an estimated 1,500 employees across all levels.

Written by BV Mahalakshmi , PP Thimmaya | Hyderabad/bengaluru | Updated: May 11, 2017 8:29 am
Tech Mahindra, Tech Mahindra CJS Solutions Group, Tech Mahindra acquisition, Tech Mahindra CJS acquisition, business news, companies news, latest news, indian express Tech Mahindra office in Noida (File Photo)

Tech Mahindra on Wednesday joined its bigger rivals Wipro, Cognizant and Infosys in laying off employees. The company is planning to lay off an estimated 1,500 employees across all levels.

With the appraisal season under way for IT firms and reports emanating of such planned layoffs, which the companies call a routine process for letting underperformers go, employees have started seeking government intervention to save their jobs.

On Tuesday, the Forum for IT Employees (FITE) filed a petition with the labour commissioner in Chennai and Hyderabad. It will also be approaching the labour departments of Karnataka and Coimbatore over such terminations shortly.

“We demand the state and central government intervention to stop the illegal termination of Cognizant employee’s with immediate effect, reinstate all the affected employees, restore the normalcy in work environment affected by illegal terminations,” FITE said.

In fact, fearing more such layoffs, FITE also plans to submit a petition to Prime Minister Narendra Modi, chief ministers of all states and the labour department of all states seeking intervention in this matter without any further delay.

In response to a query on layoffs, Tech Mahindra said, “We have a process of weeding out bottom performers every year and this year is no different.”

As reported earlier, Infosys, is also in the process of letting off around 1,000 employees, largely in the category of project managers and senior architects. Cognizant is also resizing its employee headcount by around 6,000 while it has also reduced the variable component in salaries.

Similarly, Wipro is estimated to have let go of 350-400 employees, which the company attributed to a rigorous performance appraisal process to align its workforce with business objectives and which has resulted in the separation of some employees.

The slowdown in hiring in the industry has been happening for quite some time now with Nasscom stating that total employment for the sector grew by 5 per cent in FY17 as against 6 per cent in FY16. “Gentle deceleration continues as industry focuses on productivity and automation,” it had said.

Unlike the layoffs in the past where largely the lesser experienced professionals were impacted, this time there is downsizing across all levels. Cognizant recently announced a voluntary separation package for its employees.

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  1. R
    Ravi
    May 12, 2017 at 5:11 am
    Fruits of Modi Jungle Raj giving its result.
    Reply
    1. N
      NEO
      May 11, 2017 at 8:50 pm
      IT industry is still just OUTSOURCING....The Indian IT compaies has failed miserably to create an OTHER-THAN-AMERICAS market to make themselves hedged against such TRUMP-ism... HOWEVER the IT people can't get the sympathy from other walks/sectors/industry, as in their goood times, they never care other sectors by heart....Their OUTSOURCED smile made him jealous to other comparatively low paid jobs,but more secured/sustainable than the IT....
      Reply
      1. A
        Abhi Sharma
        May 11, 2017 at 11:50 pm
        If you are in a sector like the automotive industy, you too are going to be hit. If the IT sector employees don't buy, to whom do you sell?
        Reply
      2. A
        Abhi Sharma
        May 11, 2017 at 7:01 pm
        Most of the retail consumption story and employment growth in India was fuelled by the success of India's IT sector. The employees are the big spenders across sectors ranging from smartphones, cars and jewellery to real estate. Any major slowdown or collapse of this sector will hurt our country tremendously
        Reply
        1. T
          TIHAEwale
          May 11, 2017 at 5:42 pm
          ITcompanies are not like PSBs and AI where in tax payers money is put down the drain. also reporters should these companies employ over a lakh each and 15 will be on the bench ( no revenue earning work) so when client bil s are not forth coming from new and existing projects certain staff trimming will take place
          Reply
          1. A
            arc
            May 11, 2017 at 4:46 pm
            More joblessness created than jobs in Modinomics era. Happens when we elect a lying unread small time bania as PM who thinks jobs are created by chanting some brahminical mumbo jumbo.
            Reply
            1. S
              s s nair
              May 11, 2017 at 4:40 pm
              Success of Narendra Modi starts.
              Reply
              1. P
                periakaruppan
                May 11, 2017 at 1:08 pm
                Oh no problem. Our pm midi with 56 inch chest who made India, Who created so many jobs will give us jobs, now he gone to srilanka to bring us jobs, He will next go to USA to ring us jobs, he promised us jobs and he will deliver us jobs, he created modinomics and with that he will provide jobs
                Reply
                1. D
                  Desh bhakt
                  May 11, 2017 at 1:26 pm
                  So, you have no ability to get a job and need the PM. Will you need his help tomorrow to make babies also, you moron ?
                  Reply
                  1. K
                    Khan
                    May 11, 2017 at 2:36 pm
                    PM could not make his own babies, how will he make others ???
                    1. H
                      hohoho
                      May 11, 2017 at 3:04 pm
                      all that is needed is thy gau matha
                      1. A
                        Abc
                        May 12, 2017 at 7:59 am
                        Very well said.. these IT people dont know how to get their work done and spoi the US market. Good decission made by Trump to remove these IT companies from US..
                    2. M
                      mumbai
                      May 11, 2017 at 12:43 pm
                      IT officers are very happy about modi and his government. they keen on canvassing for modi online and offline, day and night. They now are planning to join yogi, giriraj kataria and make the india congi mukt. keep it up sirs. I appreciate the indian trump bhakts who made special poojas for Trump victory. Itharkku thaane aasaip pattai balakumara!!!
                      Reply
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