Top 7 IT firms including Infosys, Wipro to lay off at least 56,000 employees this year

Top 7 IT firms including Infosys, Wipro to lay off at least 56,000 employees this year

The information technology (IT) firms in India have indulged themselves in a dirty game in the form of the industry’s largest lay off drive. It is rumored that at least seven of Indian technology giant companies are planning to sack 56,000 engineers this year. Hence, it is evident that India’s outsourcing and tech firms are firing workers. It can be attributed to the fact that global corporations who are the paymasters of Indian software companies are no longer interested in application development and maintenance.

It is also a fact worth noting that the number of employees fired by the organizations is twice the number of IT workers sacked by the enterprises in the earlier year. It also reflects the under-preparedness in adapting to new technologies. Hence, it can be said that the companies firing the employees are not adapting to the newer environment of the computer. The organizations also include multinational and Indian firms with a considerable amount of popularity in India.

The seven companies that comprise of Wipro Ltd, Infosys Ltd, HCL Technologies Ltd, Tech Mahindra Ltd, Cognizant Technology Solutions, Capgemini SA and DXC Technology are the major employers in the Indian IT sector, and hence they drive a considerable amount of growth in the Indian economy. However, they together employ 1.26 million and are planning to sack 5% of their workforce in 2017.  

Moreover, it is a widely accepted fact that most of these companies would end the year with very fewer employees. However, they started the year with employing new staff but now are reversing the trend as per the inputs from the HR manager of these companies. Moreover, by conducting several surveys and interviews with 22 former and current employees across these seven companies, the fact can be established that many Indian IT firms are firing their employees.

On the other hand, the companies are preparing the background to sack the employees as each of these seven major IT giants in the Indian IT sector is putting a significant number of IT workers on notice by awarding them with lowest ratings. For instance, Cognizant has made it possible to place 16,000 employees in the lowest possible category. On the other hand, Infosys has set more than 4000 senior managers in the class of employees who need improvement.

On the flipside, many companies are doing more and walking the extra mile to sack their employees by showing them the exit door. However, all these seven companies are still denying that they are sacking employees, and they are planning to release a press release announcing the reports of sacked employees. However, the managers from Cognizant have directly declined this report and further stated that their company is one of the most ethical businesses in the world, and sacking employees is seen as unethical. They do this every year to dispose of incumbency, and hence it is a normal process. Sacking is an important part of employee management as it helps in maintaining the proper balance.