Counselling for pink-slips, as more job cuts planned | business | Hindustan Times
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Counselling for pink-slips, as more job cuts planned

At payment and travel service form American Express, they spend time and energy telling the unwanted people the truth that they may not find easy to digest: “It isn’t you. It’s the economy”, reports Mahua Venkatesh.

business Updated: Nov 14, 2008 21:09 IST
Mahua Venkatesh

It is tough, but they try.If right-sizing is the politically correct word for making the number of jobs to fit the budget or objectives, talking the talk is not easy when you are a human resource executive given the unenviable task of letting some staff members know that they are no longer needed.

At payment and travel service form American Express, they spend time and energy telling the unwanted people the truth that they may not find easy to digest: “It isn’t you. It’s the economy.”

Counselling sessions are part of the drill at the company that may lay off more staff after 100 people were eased off last week as part of a global restructuring.

But it is not just those who are losing their jobs that need talking to. Such events can hit the morale of existing employees who might wonder if their turn is next.

Amex is planning training sessions for those who stay back as well.

The impact is limited.

“Those who have lost their jobs have been visibly upset, with or without the counseling,” said a person who suffered.

Though it is not known how many more jobs would be cut in the next round, the company’s business process outsourcing (BPO) unit is likely to be hit this time.

Refusing to divulge any details, a company spokesperson said that full arrangements have been made to help the retrenched staff get placement elsewhere.

“Our company is one of the most employee-friendly ones and the number is insignificant,” the spokesperson said. An out-placement agency has already initiated the process of placing those who have been laid off.

“It will take some time for the agency to be able to place them,” the spokesperson said. The employees who have lost their jobs have also got what the company says are handsome compensation packages. The company has already said that it would cut about 7000 jobs globally, which is about 10 per cent of its total workforce.

Amex, hit by the current global financial meltodown, registered a 24 per cent drop in its profits globally during the last quarter of the current fiscal.