Satyam to downsize its workforce by a whopping 4,500 employees.

After delayed appraisals and cut in payouts, India’s fourth largest IT service provider, Satyam Computer is reported to downsize its workforce by a whopping 4,500 employees. This translates to a little less than 9 per cent of the 51,000 employees that the company employs.

Company sources reveal that 1,500 employees have been put under the performance improvement plan (PIP), euphemism for employees put on watch list and asked to shape up or ship out. Apart from this, 3,000 others have not been given any increment in the last appraisal cycle, thereby indicating that their services are dispensable.

Last Friday, company’s chief Ramalinga Raju had sent out an email to all employees warning them, especially the ones on the bench, to not bunk office and be in their best dress code, failing which they may face strict disciplinary action.

The company is reported to have handed pink slips to about 400 engineers and associates in Hyderabad, Pune and Visakhapatnam centers. The company management reportedly asked some of the employees to move out of its rolls to a contractual agreement or leave.

Like its peers, Satyam too claims that the layoffs are a part of its appraisal system. Global head, human resources, SV Krishnan says, “Our experience has shown that around half of them exit the system either voluntarily or involuntarily. We have concluded our appraisal process some weeks back, and we believe we are witnessing similar trends like those in the past.”

There were also reports that the company has deferred the joining date of 7500 graduates it had recruited from various college campuses this year. However, the company said that it has no intension of withdrawing these offers. Interestingly, the company has recently announced plans to hire 15000 this year.

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HP India to cut 1,000 jobs?

Hewlett-Packard’s decision to eliminate nearly 25,000 of its 320,000 jobs worldwide is expected to have a significant impact on its Indian operations too.

Analysts in India believe that in the short term, the company could see off some 1,000 people, and that in a three year period this could go up to 6,000 of its nearly 60,000 people in the country.

The computer and printer maker’s job cuts come as part of its plan to integrate Electronic Data Systems (EDS), the computer services giant that HP acquired for $13.9 billion in August as part of an effort to match IBM in the services space.

Following the acquisition, a workforce reduction was seen as inevitable, but the figure HP has announced is way beyond anybody’s expectations.

Kapil Dev Singh, managing director of research firm IDC India, said HP’s announcement mostly stems from the global economic scenario. “It’s an instant fall out of what’s happening on Wall Street. The IT accounts of banking and financial institutions (BFSI) have been shrinking. So hiring for this space has been put on a slow burner by global companies,” he said.

Mohan Lal Menon, managing director of strategy advisory firm Sentient, said a lot of overlapping was expected with the integration of HP and EDS Mphasis (in India, EDS had previously acquired Mphasis).

“Most of it would have been in the areas of HR, administration, sales and marketing. But the trigger for HP is definitely the precarious conditions in the BFSI space across the US, Europe and Asia. HP seems to be ahead of the curve, towards planning for the economic downturn,” he said.

Till the time of going to print, HP had not responded to questions sent by TOI on the impact HP’s workforce reduction move would have on India.

However, a senior official at Mphasis said no immediate impact was expected on Mphasis. “We have been hiring junior to top talent. We have been expanding our footprint across the country. So its business as usual,” he said.

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