Wednesday, November 12, 2008

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Global Logic shows the door to 125 employees

Forward by Ramana

In another hit to the IT sector, GlobalLogic, one of the largest outsourced product development companies in India, has laid off
about 125 employees. While 108 employees were asked to leave ‘due to poor grading in the appraisals’ concluded in October, another 17 were told to leave because their ‘skill sets fell obsolete’.

The over $100-mn company, which has delivery centres in Noida, Nagpur and Pune, confirmed the layoffs but said the figure is 115. GlobalLogic CEO Peter Harrison, who flew in from the US this week, called an emergency townhall meeting to announce the drastic steps.

“We believe in sharing the numbers (of layoffs) with employees as we don’t want to create any anxiety. A transparent organisation is the most productive one,” said its marketing
head Rohit Sharma. Over the last two years, GlobalLogic reduced its headcount to 2,000 from 3,000. The company has also consolidated its verticals into three—B2B, B2C and telecom—to reduce flab and overlap.

In another interesting twist, one of the co-founders and partner Rajul Garg has resigned from the executive management team as the HR head to pursue entrepreneurial activities ‘outside the company’. He now just has a position on the board. The company is now on a lookout for a new HR head.

Business flow from start ups and emerging product companies has been impacted due to the slowdown. To reduce its discretionary spend, GlobalLogic has done away with paper or plastic tumblers and provided coffee mugs to employees. Single employee pick or drops even at night are now curtailed.

The company has also restructured its management team under which the Indian operations head Mukul Jain will now become the global head. The new India country manager and the existing Ukraine and China heads will report to him.

3 comments:

  1. Do not cite the news before you read official comments on it. This article is full of errors and misinterpretations.

    ReplyDelete
  2. We categorically deny the report that there are any plans to cut the headcount from 3000 to 2000. This is a figure that has been erroneously sighted and is not a fact.
    It has been erroneously reported that our CEO Peter Harrison came down for an emergency town hall. The use of the word emergency is incorrect as this was the visit that was scheduled irrespective of current global scenario.
    Also the number of employee layoffs has been quoted as 125 and is incorrect. The correct number is just 17 in India which is due to business reasons.
    The statement that GlobalLogic has shown employees the door is something we strongly object to as it is a norm during every appraisal cycle that employees must adhere to international standard set across globally.
    We therefore believe GlobalLogic has the right to have the correct perspective to the story shared with the readership of The Economic Times.
    Also the use of phrase like “restructuring of BU’s to cut the flab, “search for HR head position and mention of plastic tumblers cost reduction” (this was initiated as a part of our corporate social responsibility on global warming and eco friendly initiatives) are misrepresentation.

    ReplyDelete
  3. It is extremely surprising that now the same publication which published this news has come with clarification correcting their previous statement, please refer link below,
    Journalist like these should be more responsible, accountable and discipline in rolling out correct information and facts, misleading readers with wrong information which is far away from reality and truth for the sake of making their story more jazzy should be refrained.
    On the contrary articles should focus more on industry pain points, solution based approach and clearly not misleading scoop and scoop articles.

    http://epaper.timesofindia.com/Repository/ml.asp?Ref=RVRELzIwMDgvMTEvMjEjQXIwMDUwMg==&Mode=HTML&Locale=english-skin-custom

    Harun Rashid, GlobalLogic

    ReplyDelete