Satyam to cut cost, may lay-off 5,000 employees
Satyam Computer services are now in the hands of
Tech Mahindra, which is considered to be efficient in terms of management. The company’s share price has gone up after the take over by Tech Mahindra, and if the current comments by experts are to be believed, then one can say that the company is marching ahead under the able management of Tech Mahindra.
The accounts fraud that made the company headlines in the media, is in the news again for different reasons. Its past chairman as well as promoter Ramalinga Raju is languishing in jail along with his CFO and other senior management cadres against whom cases have been filed on various accounts.
The new management is looking for all avenues to take the company in the same heights as it was before the financial scam came out in the open. Tech Mahindra CEO Vineet Nayyar is of the opinion that the company is in excess of 10,000 staff out of which 5000 are needed to be laid-off. The company is searching for some options to be given to those 5,000 employees instead of painful retrenchment. Being the top in number of employees out of all IT sector companies compared to the billings, Satyam is seriously thinking to validate its employees for cost cutting and viability, disclosed by Deepak Parekh, one of the board members of Satyam.
Though the company sources have denied the firm decision in this respect, the experts in the field think that the lay-off will start from its Hyderabad center that has the highest number of employees. Tech Manhindra is trying to reduce the number of lay-offs by applying sabbaticals and virtual bench.
The change in government in New Delhi with the new Corporate Affairs Minister
Salman Khurshid expressed his desire to phase out the government nominees in
the board as well as his unhappiness in the news of lay-offs. The minister’s
apprehension is right in losing the sympathy of those will be laid-off. The
government is of the opinion for a middle path since lay-off is a sensitive issue.