Satyam plans to cut 5000 employees
June 04 2009 10:40 PM

Satyam starts bending with at least 10,000 employees who are not needed in the current situation. And sources say that half of them could lose their jobs in the near future.

Before the scam hits Satyam had the largest manpower when compared to any Indian IT Firm.

Let’s take a look at the current status of its bench strength.

Sources say that out of 12,000 employees on the bench, 7,000 employees are currently in-between projects, 500 are on unpaid leave and sabbaticals, and the remaining 4,500 are under training.

“Some amount of rationalization is unfortunately absolutely necessary to make the company viable again," said Satyam board member Deepak Parekh.

When contacted, Satyam said, "There is no official number that has been stated at this point and the information is speculative."

IT experts say that the layoff may start from Hyderabad which has the largest number of employees.

However the Corporate Affairs Minister Salman Khurshid said in an interview “It is very easy to be on an extreme and say we won’t let you lay-off people. And it is very easy to say in an extreme tone that you can lay off if you like we have nothing to do with it. The government has to take a middle path to say, please lay off keeping in mind that this is a sensitive human issue. The government can’t, however, also say that it doesn’t matter if the company collapses, you don’t lay off anybody. The objective is survival of the company. They are hard decisions that are being taken and have to be taken.”

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