Satyam takes a layoff path

Within a few weeks after announcing its financial results for the second quarter, India’s fourth largest IT Company, Satyam Computers, has reportedly issued pink slips to around 200 employees in various cities.

Whilst the company portrays the move as a part of the annual appraisal that usually takes place during the second financial quarter, and denies its connection with the recession in global economy, its employees avow it as one of the cost-cutting measures assumed by the company to lessen the high cost on human resources.

The ousted employees alleged that the ongoing recruitments in the company as one of the cost cutting exercises that include replacing high-priced human resources with low-cost workforce.

Denying these charges, Satyam’s Global Head for Human Resources, S V Krishnan, stated that the step follows the annual appraisal plan, in which 5-10 percent employees identified at the bottom of performance pyramid as per the Performance Improvement Plan.