Global spillover: thousands fear job losses at IBM India
The fear is palpable at IBM campuses all over the country. The company has handed out hundreds of pink slips to employees (some estimates put the prospective figure in thousands).business Updated: Feb 20, 2014 00:18 IST
The fear is palpable at IBM campuses all over the country. The company has handed out hundreds of pink slips to employees (some estimates put the prospective figure in thousands). Employees fear that many hundred, or even thousand, more could be asked to leave.
Since jobs cuts are carried out in various departments in multiple centres across India, the exact quantum of redundancies so far is not available. IBM did not respond to an e-mailed query and several phone calls despite repeated efforts.
The US technology giant employs about 130,000 people in 18-20 offices across 14 cities in India. On Tuesday, 100 engineers out of a team of 300 in a Bangalore-based department were given pink slips. Some employees, who didn’t want to be identified, said many of their sacked colleagues left the office in tears. A former employee even posted this on the website of the employees’ union, Alliance@IBM.
The employees were asked to return laptops, clear up their desks and leave the campus within two hours, according to the eyewitnesses. “Most of the job cuts seem to be in hardware side of business,” said another employee on condition of anonymity. “We do not know what is going on. Nobody has told us anything yet,” he said.
The layoffs are linked to a global IBM initiative called “resource action” to cuts costs by $1 billion (`6,200 crore). Analysts expect IBM to cut 13,000-15,000 jobs worldwide. It currently employs 435,000 people globally.
These job cuts have come as a bolt from the blue as the $120-billion Indian IT sector seems to be recovering after a few years of indifferent growth. Indian companies like TCS, Infosys and Wipro have announced plans to hire thousands of fresh graduates this year.
First Published: Feb 20, 2014 00:04 IST