Satyam board meets to discuss cost-cutting moves
With cost-cutting and workforce rationalisation top on the agenda, the board of the embattled Satyam Computer today met to discuss the future course for the firm.business Updated: Jun 11, 2009 12:57 IST
With cost-cutting and workforce rationalisation top on the agenda, the board of the embattled Satyam Computer today met to discuss the future course for the firm.
The board is likely to discuss various cost-cutting measures including slashing expenses related to real estate and leased properties to improve the margins of the IT firm, a source privy to the development said.
Satyam on Tuesday had reported Rs 181 crore net profit in October-December 2008 but still it faces legal and other claims that could put a burden of up to Rs 10,000 crore on it.
The company may also firm up decision on rationalising workforce, the source added.
Satyam has 41,622 employees on its rolls, but its new owner Tech Mahindra had earlier said that the company has excess staff of 8,000-10,000.
The board may also discuss individual clients at the meeting.
The scam-hit firm had lost 23 customers in about three months after the disclosure of a massive fraud by its founder Ramalinga Raju, but won new business orders from as many as 215 clients during the same period.
Besides, 43 other customers partially or completely withdrew their businesses from Satyam, although they did not terminate their service agreements, Satyam had said.
Hyderabad-based Satyam was plunged into turmoil after revelations in January by founder Ramalinga Raju that he had cooked the books of the firm for years.