Layoffs begin at Satyam, non-techies first target
By siliconindia   |   Wednesday, 03 June 2009, 16:18 IST
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Layoffs begin at Satyam, non-techies first target
Bangalore: The first phase of layoffs has started at Satyam Computer Services with trainers, HR and sales and marketing executives being asked to leave by Tech Mahindra, Satyam's new owner, reports Indian Financial Express. "The first phase of layoffs has started. In the second phase, employees who have been on the bench for less than three months would go away. Some senior executives on the bench are being offered almost 50 percent of their salary or an option to go on a sabbatical. Several benched senior executives have moved out. However, the initial targets are non-engineers in non-IT departments," said an official source without disclosing the number of employees on the bench who have been asked to leave. The move comes as government is planning to intervene in Satyam matters. On Monday, commenting on media reports that 10,000 employees could be retrenched at Satyam, Corporate Affairs Minister Salman Khursheed had stated, "Layoffs is something we are not going to turn a blind eye to, as we have a relevant presence in decision making in Satyam Computer Services." Employees from human resource, training and sales and marketing departments are being asked to go on a sabbatical for at least three months. They have not been given a joining date, either. Tech Mahindra is expected to take a final call on the matter by June 21. In a recent communication to employees, Hari T, Global Head - Marketing, Satyam Computer Services, said, "By the 21st of this month, 80-85 percent of your questions will be answered." He was referring to questions raised by employees on lay-offs, sabbaticals, reforms and HR restructuring. Tech Mahindra is facing a huge challenge in managing the growing bench size. The company is working on various initiatives to mitigate the impact of the large bench and utilize the staff. The employees are also being asked to take up multiple roles within their units and other departments like sales and marketing.

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