“All departments with CTA projects were under the radar as most employees were asked to leave from this department,” said an unnamed source on condition of anonymity.
On the other hand, HSBC has neither confirm nor denied the report and stated that the workforce has in fact increased to 37,000 in 2016 from 33,000 in 2015.
“Employees were given fair choices at the time of exit with either to take the lump sum compensation and leave on the same day or wait for few months- search for the alternative and then leave,” said a source.
The reports are not singular. India has seen high-profile job cuts over the past few months. Cognizant is laying off 6,000 employees. According to reports, the number could go as far as 10,000. The company finds itself struggling for growth in the information technology (IT) sector. Though the company maintains the layoffs are part of a normal business cycle; however, it has not forwarded any reason for the increase in layoffs this year than the past year. Cognizant says employees are removed for non-performance. Cognizant has roughly 2,60,200 employees across the world, of whom 1,88,000 or around 72% are based in India.
“As part of our workforce management strategy, we conduct regular performance reviews to ensure we have the right employee skill sets necessary to meet client needs and achieve our business goals. This process results in changes, including some employees transitioning out of the company,” Cognizant has said in a statement.
The HSBC development comes as a rude surprise as jobs are already plummeting in India, although GDP growth rates continue to remain high. This is leading to jobless growth which is not good for India‘s economy. In fact, it could be a result of uneven economic growth in the country which could lead to severe social disparities. Snapdeal also laid off about 600 people. Another of India’s largest e-commerce marketplace Flipkart laid off 800 employees the past year. Similarly, taxi aggregator Ola followed suit; it fired close to 1000 employees the past year. Fashion e-commerce firm Yepme.com is reportedly planning to reduce employee strength by 80-90% and forcing entire teams to sign the dotted line. Zomato and Foodpanda too fired employees.