Job cuts in India a reality?

The government may not admit it but experts say layoffs in India are becoming a reality. Companies who are not ready to hand pink slips to their employees yet are grappling with different ways of cost cutting. Software giant Infosys has offered a sabbatical to its employees allowing them to draw half their salary in that period.


At the same time its chief says they will still hire a few thousands this year. “At Infosys we have been very clear that we will take all people we have made offers to and we are on target on that,” said Nandan Nilekani, co-chairman of Infosys Technologies.

On reports of Infosys asking its employees to take a sabbatical, Nilekani said, “The timing is a bit coincidental. We had planned it even when the economy was booming.”

But experts say layoffs will become a reality in India. The head of world's second largest headhunting firm says there will be 5-10 per cent job cuts across sectors.

“Clearly as multinationals are feeling the pinch throughout the entire world, it is going to contract here in India as well. Without sounding too pessimistic, the worst is yet to come,” said Jeffrey Joerres, Global Chairman and CEO, Manpower.

Many say cost cutting is the beginning. If it doesn’t work, companies will be forced to resort to job cuts and with demand shrinking by the day, thousands of workers across sectors face an uncertain future.