US information technology giant Dell on Wednesday shut down its international services operations in Mohali. In an official statement issued late in the night, the Dell authorities said the local unit had been shut down with immediate effect and they had given the option of relocation to its employees.
The unit has been closed as the company reportedly wants to consolidate its operations.
A team from Bangalore Dell office headed by Jagdish Bangalore, Dell International Services, India country head, along with India HR head Vijay Bhardwaj on Wednesday arrived at the local office and informed the staff to either shift to Bangalore or Hyderabad office at the same salary package or quit. They have been told to inform the authorities by June 11.
The employees, on the other hand, have sought compensation for both the options. However, the team feigned ignorance about any compensation.
The decision will affect at least 1,000 employees, who are engaged in customer care and technical support for the US and Indian customers.
Employees also raised slogans against the authorities late in the evening. Most of the employees have been working here since the inception of the unit in 2005.
In February, the unit had offered its employees to quit the company in exchange for a year's basic salary. Following this, sources said around 350 employees opted for the proposal. Calling it "voluntary separation programme", Dell claimed that they were following the company's global policy.
The buzz on the online media and several technology websites has termed it a "cost-cutting measure".
Local team manager of Dell, SAS Nagar, said they were shocked to learn about the "strange" decision of the authorities on Wednesday. Despite the rumours of a shutdown, the authorities always assured them that the unit would not be closed, he added.
Another employee said the authorities knew the local employees would not move to Hyderabad or Bangalore, so it was a smart move by the company as most of them would quit the job.
The unit provided services like consumer tech support and customer care for the United States. Dell International Services is the support and services division of Dell and has operations in India, Europe, Latin America, Africa and the Philippines.