Information technology (IT) major IBM has decided to layoff a few thousand employees from the Indian unit, according to media reports. IBM India is looking at “achieving 100 per cent utilization” across projects with shift in business and increased demand for digital-technology-based services, said a source to the media outlet.
Recently, there has been a flood of layoffs in the IT sector by some of the biggest names in India. Tech Mahindra, India’s fifth-largest IT services firm, is laying off 1,500 employees across job levels. Infosys is planning to give pink slips to hundreds of mid- as well as senior-level employees. Other corporate giants such as Wipro and Cognizanthave announced job cuts in the recent past in response to what some industry experts term as cost control measures.
However, IBM India has denied the media report. “This is factually incorrect. We are not going to comment further on rumors and speculation,” an IBM India spokesman has said in a statement to NDTV. The report citing sources familiar with the development said IBM India could let go at least 5,000 employees in the coming quarters and the “process has started. Managers have been asked to identify under performers.”
The India unit of the global technology powerhouse has 1,50,000 employees. There have been other reports as well of the tech giant planning to lay off.
Cognizant and Wipro lay off hundreds of employees
Cognizant, the Nasdaq-listed IT major, fired at least 1,000 senior managers. Just a few months back, Cognizant laid off 6,000 employees. According to reports, the number could have gone up to 10,000. Cognizant has roughly 2,60,200 employees across the world, of whom 1,88,000 or around 72% are based in India. Wipro, India’s third largest software services company, is sacking 600 employees, whereas there is speculation the number may go up to 2,000. Other Information Technology (IT) Sector companies have also been laying off people left right and center, in what could be the most troubling times for the sector.
H1B visa reforms by Trump to blame? Jobs shift to USA as MNCs focus on local hires
Infosys has said that it will hire 10,000 Americans in the coming two years as well as open up four centers in the USA. Putting two and two together, it clearly seems the developments are linked to the tightening of visa norms by the USA, Singapore, Australia and New Zealand. Although, the exact numbers have not been divulged as to the number of people facing the firings, reports suggest they would be in hundreds. With the news, the IT major is perhaps prepping up the ground for mass layoffs.
IBM joins peers like Wipro, Infosys, Cognizant and Tech Mahindra are cutting down on staff as IT sector faces automation. However, the company has officially rubbished the reports. Let’s see how long before it’s officially acknowledged.