IT sector job cuts: IBM to fire thousands of employees as mayhem continues in India's IT sector?

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 Cognizant have 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

Comments

Post a Comment

Popular posts from this blog

IT sector job cuts will continue, says top HR firm; 5­–6 lakh engineers to lose jobs

Image
By Muqbil Ahmar Tech Mahindra,  Infosys, Wipro, Cognizant ; all these Information Technology majors have fired thousands of employees.  India's Information Sector  seems headed for an uncertain and tumultuous future. According to a top  HR firm , the dark clouds hovering over the IT sector are here to stay. HR firm Head Hunters India has said that 5–6 lakh engineers are set to lose jobs in the next three years, that is, between 1.75 and 2 lakh per year for the next three years. "Contrary to media reports of 56,000 IT professionals to lose jobs this year, the actual job cuts will be between 1.75 lakh and 2 lakh per year in next three years, due to under- preparedness in adapting to newer technologies," Head Hunters India Founder-Chairman and MD K Lakshmikanth has said, while analyzing a report submitted by McKinsey & Company at the Nasscom India Leadership Forum on February 17. The  McKinsey report  has said that nearly half of the Information Technology se
Read more

GST will make highways free of traffic

Image
By Muqbil Ahmar The current scenario of the  logistics industry  in  India  is far from ideal. Today, Central and state governments levy different taxes separately. A  Ministry of Road Transport and Highways  report says that a typical truck spends 16% time at check-posts. On an average, a truck in India runs an annual distance of 85,000 km compared to 150,000 to 200,000 km in the Western countries. The industry is fragmented due to the state-level tax structures, which forces enterprises to put up warehouses in every state. This makes the  supply chain  longer than necessary and to a certain extent inefficient. Additionally, due to the complex tax structure, the transport industry spends 50--60 percent of resources on  tax compliance  and deposit of interstate sales tax. GST implementation aims to remove complex web of tax structure The  Goods and Services Tax  ( GST ) will be implemented this year. The new law is expected to help the overall growth of  economy  and a so
Read more

How is India suffering from chronic poverty? Tackling India’s hunger problem and ways to fight it through technology

Image
A huge chunk of the Indian population suffers from chronic hunger. On the  Global Hunger Index , India is at the 97th position. According to a study by the  International Food Policy Research Institute  ( IRPRI ), one-sixth of India’s population is undernourished, while 190 million people go to bed hungry daily. A total of 30% children below the age of 5 years are underweight. India alone accounts for around 30% of neo-natal deaths internationally, all linked to  malnutrition . Rs. 50,000 crore worth food wasted yearly  behind India’s hunger One may be tempted to conclude that the culprit is insufficient food production. However, this is not true. In India’s case, around 40 percent of fruits and vegetables and about 20 percent of grains get destroyed because of insufficient infrastructure and supply chains that are inefficient. Food never reaches consumers. Around Rs. 50,000 crore worth of food is wasted every year. Such wastage has other ramifications as well. It results not
Read more