The year 2009 is not likely to provide any breather to India Inc, at least not during the first half. Human resource consultants said that there could be further job cuts during the first couple of months in 2009.
Financial sector companies, which include retail and investment banks, which have already laid off several executives in the last few weeks, may show the door to many more even next year.
Industry sources said that several companies have also sought legal advice to facilitate the lay off process.
"India has just started to feel the heat, post the financial sector meltdown, the worst is yet to come and we may see more lay offs in the coming months," he said.
HR officials also said that there is no room for average performers. Unlike the yesteryears, companies are now keeping an eye on people whose contribution to the growth of the company has been negligible. "Employees must justify their existence, there is no place for average or non performers, who may have to be shown the door, in times of crisis," a foreign bank official who did not wish to be identified told Hindustan Times.
Performing executives, however, have nothing to fear, human resource officials said as companies are also looking at providing bonuses and incentives in order to retain them. Lehman Brothers' India arm, which has been bought by Japanese major Nomura, has already given incentives to its employees as a mechanism to retain talent.